President Cyril Ramaphosa has blamed corruption for the government's failure to create new jobs.

Speaking on the opening day of the Presidential Jobs Summit at the Gallagher Convention Centre in Midrand yesterday, Ramaphosa said the government was determined to intensify the work it had already started to end state capture and root out corruption.

"State capture and corruption have undermined investor confidence and public trust, eroded key institutions of the state and diverted resources intended to support development," Ramaphosa said.

"The social partners have agreed to support the government's anti-corruption strategy and to develop their own complementary strategies," he added.

Ramaphosa, flanked by minister of labour Mildred Oliphant and minister in
the presidency Nkosazana Dlamini-Zuma, said business had committed to implementing a zero-tolerance approach to corruption and would develop several initiatives to combat corruption.

The president said the stimulus and recovery plan he unveiled last month would see the reprioritisation of R50bn of public funding towards activities that would stimulate job creation in agriculture,township economies and rural areas.

Ramaphosa added that the financial sector would  invest R100bn over five years in black-owned industrial  enterprises.

The government would work with the financial sector to develop facilities for financing at preferential rates and extended repayment terms.

While progress had been made in lifting millions of people out of dire poverty, many South Africans still faced great hardships.

"The jobs that have been created in the past few years have not kept pace with the growth of the population nor the expansion of the workforce.

"We have therefore gathered here at this jobs summit to respond to these economic challenges, which manifest themselves through unemployment, poverty and inequality," said Ramaphosa.

The two-day job summit which will bring the government, business, labour and other stakeholders together, aims to address the country's unemployment rate which currently sits at 27.2%.

The event is convened by the National Economic Development and Labour Council (Nedlac).