Speaker of the National Assembly, Ms Thoko Didiza,
Chairperson of the National Council of Provinces, Ms Refilwe Mtshweni-Tsipane,
Deputy President Shipokosa Paulus Mashatile,
Ministers and Deputy Ministers,
Honourable Members,
We are a nation of builders.
We are a nation that does not run away from problems. We confront them.
We do not lament and complain. We find solutions.
When faced with challenges, we do not fracture. We do not fall apart.
We unite and we work together to overcome those challenges.
And so, as we conclude this debate on the State of the Nation Address, our shared commitment to our country and to our people must guide our every action in the year ahead.
The State of the Nation Address is about building a stronger South Africa. It is about rising to the challenges that we face in our own country and around the world, and emerging more prosperous, more secure and more resilient.
There can be no doubt that we have made progress.
Over 30 years, we have fundamentally improved the lives of South Africans.
Over the last eight years our country faced some of the most difficult challenges. But working together, we have undertaken a programme of institutional renewal by stabilising what was weakened through state capture, restoring integrity and accountability, and rebuilding the capacity of the state to serve the people of South Africa.
We have overcome a global pandemic that led to the worst decline in our economy, where our GDP contracted by 6 percent.
We stood firm in the face of an attempted insurrection that was aimed at destabilising our democracy.
We rebuilt in the wake of catastrophic flooding, and brought to an end more than 15 years of load shedding.
Through effective macroeconomic management, we have been able to tackle an unsustainable debt burden, where we ended up spending more to service our debt than we spent on health or education.
To deal with all these challenges, we have had to rebuild the capacity of the state and to embark on major reforms, while addressing the immediate challenges that our people are facing.
All these efforts have been aimed at improving the lives of our people and to create a conducive environment for our economy to grow.
And over the last year, we have seen promising signs of recovery.
We see this in reducing unemployment and accelerating growth. We see the signs of recovery in improved public finances, lower inflation and growing business and consumer confidence.
Although this progress is modest, the momentum of change is building.
Our task now is to sustain this momentum, to protect and build on the progress we have made, and to ensure that it results in a tangible improvement in the life of every South African.
Improved economic indicators may seem distant and abstract, but they have a real impact on our lives.
Lower borrowing costs for the state frees up resources for health and education, for the police and for better services.
Reduced public debt enables the private sector to invest more of its capital in expanding production and jobs.
A lower inflation rate reduces the cost of living, enabling families to pay for food and other basic needs.
And a declining unemployment rate means an income for more families and hope for more young South Africans.
And yet, as we have heard in this debate, we still have a long way to go.
More than 10 million South Africans are estimated to live below the food poverty line.
More than 11 million people are unemployed.
These are not simply statistics. These are individuals, families and communities that are facing great hardship, that experience violence on a daily basis, that run short of food, that face water cuts and that long for a better life.
We can stand on the sidelines and lament, as some have done in this debate.
Or we can roll up our sleeves and work together to change this reality – to build a stronger economy that benefits all South Africans and to build and a more equal society in which all South Africans have a place.
The State of the Nation Address outlined the steps we are taking as the Government of National Unity, working together with all social partners and all sections of society, to achieve these objectives.
We are determined to reach every person in this effort. To leave no one behind.
Through the measures we are taking we are improving the lives of the youngest in our society.
Through the Child Support Grant, which reaches 13 million children, we are protecting millions of children from the worst effects of poverty.
Through free primary health care for pregnant women and children under six, we are improving the health of children.
We are directing more resources to the early development of children.
We have increased the subsidy for early childhood development and made Grade R compulsory for all children, establishing a solid base for their entry into the education system.
And we are focusing on strengthening literacy and numeracy in the foundation phase.
And now through the measures we are putting in place to end child stunting, we will improve the developmental outcomes and the life prospects of millions of children.
These measures will fundamentally change the prospects of an entire generation of children and each generation that will follow.
On none of these issues is government working alone. We are working with social partners, service providers, NGOs, parents and communities.
At this moment, more than 3.5 million people between the ages of 15 and 24 are not in employment, education or training.
We are working together to change that.
In addition to the steady increase in the matric pass rate, more and more learners from schools in poor communities are passing and achieving university exemptions.
And more and more students from poor backgrounds are being supported to attend universities and colleges. In the five years from 2019 to 2024, funding from NSFAS nearly doubled from R27 billion to R54 billion.
Now we are undertaking a fundamental overhaul of our skills development system by embracing the dual skills development model that has served other countries that have reduced their unemployment levels extremely well.
This will produce the skills that our economy needs and enable more and more young people to find meaningful and lasting jobs.
We know that it will take many years for the economy to grow enough to create enough jobs for all those looking for work.
That is why we introduced initiatives like the Presidential Employment Stimulus, which has created more than 2.5 million work and livelihood opportunities since it was established in 2020.
The Youth Employment Service – which is a partnership between government and business – has given over 214,000 young people work experience opportunities in industries such as manufacturing, renewable energy, tourism, logistics, finance and the digital economy.
Over 5.7 million young people are now registered on the SA Youth platform. To date, over 2 million earning opportunities have been secured by young people on the platform.
These opportunities provide more than an income. They provide young people with skills and experience while contributing to social development.
These opportunities are making a real difference in millions of young people’s lives.
And they are helping to prepare them for a better future.
Yet we know that what will make the greatest difference in people’s lives are jobs and other livelihood opportunities.
What will make the greatest difference is accelerated economic growth. A growing economy means expanding opportunity and it means hope.
We have not experienced the excitement and the promise of rapid growth for almost twenty years, but we are on the cusp of achieving it now.
We are focused on rebuilding the economy and driving investment.
We should not underestimate the scale of the task ahead nor diminish the progress we have made.
For our economy to grow, we are steadily addressing several impediments:
Severe load shedding was debilitating our economy, lowering production, raising costs and deterring investment. We have effectively ended load shedding.
we have stopped load shedding unreliable power raises costs, stops production, and deters investment.
Overburdened infrastructure and inefficiency at our ports and on our rail lines have for years been reducing our competitiveness and harming our export industries. We are improving operational performance through investment, increased capacity and far-reaching reforms.
We are addressing the skills mismatch between what young people have and what our economy needs through an overhaul of our education and training system.
To respond to low levels of investment and policy uncertainty, we are strengthening policy formulation and reducing regulatory burdens.
We have had to tackle poor governance, diminished state capacity and corruption by focusing on the professionalisation of the public service, improved efficiency and the modernisation of our procurement system.
Crime and insecurity remain significant impediments to growth, which is why we are intensifying the fight against organised crime, gang violence, gun crime and gender-based violence.
Our economy has also been constrained by a challenging macroeconomic environment, which is why we have been reducing high debt service costs and supporting lower inflation and interest rates.
Perhaps one of the most immediate impediments to faster economic growth is dysfunctionality in many municipalities. We are addressing this through an overhaul of our local government system through the review of the White Paper, and through direct interventions in municipalities in trouble.
The transformation of our network industries is the platform on which rapid inclusive economic growth will be achieved.
Already, South Africans are feeling the benefits of some of these changes, from the improved supply of electricity to the return to service of commuter rail lines to the reduction in the cost of data.
In 2022, we had 205 days of load shedding. In 2023, we had over 330 days. This was the most severe period in an energy crisis that stretched back more than 15 years.
To address this crisis, we established the National Energy Crisis Committee, or NECOM.
There were groans from some quarters, who said: “Yet another committee”.
We have heard the same tired refrain from some speakers in this debate.
Yet what NECOM did was to bring together all the key role-players to focus on the immediate tasks necessary to end load shedding, to restore the integrity of our power system and to lay the basis for stable, sustainable and universal access to electricity into the future.
It succeeded because it was able to draw on the skills, capabilities, resources and efforts of a broad range of departments and public institutions, as well the best experts in South Africa and around the world, and to build a platform for collaboration with social partners.
It was never about meetings and talk shops. It was about taking a hands-on approach to solving the problem, making sure that things actually get done and that they get done quickly.
The experience of NECOM shows that complex problems need collaborative solutions.
Now, through its generation recovery plan, Eskom has increased its average Energy Availability Factor (EAF) from 56 percent in April 2023 to around 65 percent at present.
There is currently a pipeline of more than 220 gigawatts of renewable energy projects at various stages of development.
The Minister of Electricity and Energy is leading the building of more than 14,000 km of new transmission lines, and an innovative new model for independent transmission projects.
For an economy that has long been held back by energy constraints, these developments are potentially transformative.
For homes that have suffered years of electricity supply interruptions, the end of load shedding is a relief. For businesses, it was the removal of an obstacle to growth.
The next phase of our energy transformation – the establishment of a fully independent state-owned transmission company – is a complex process and one of the most important reforms in our country’s history. It requires detailed technical work and strong coordination across different entities. That is why I have established a dedicated task team under NECOM which reports to me in which participates the presidency, minister of electricity and energy and his department, minister of finance and his department as well as Eskom to effectively manage and steer the process.
The value in establishing these types of structures is to enhance intergovernmental cooperation as well as breaking down the Silos that are often given rise to in government.
Drawing on our experience in energy, we established the National Logistics Crisis Committee.
Thanks to the work of the NLCC, we have seen a turnaround in the performance of our freight rail lines and ports.
The volume of goods transported by rail is increasing year on year, and the efficiency of our port terminals has improved.
Collaboration between Transnet and the private sector has, for example, seen a 50 percent reduction in security incidents on the coal line to Richards Bay. The total length of cable stolen has been reduced from 180 kilometres of stolen cables in 2024 to 59 kilometres in 2025.
The reform of our logistics system is well underway, through strong collaboration between the Department of Transport, the Presidency and National Treasury.
This year will be a watershed moment for logistics reform, as private rail companies begin to operate on our freight rail network and major opportunities for private sector participation are initiated for port and rail infrastructure.
In undertaking these far-reaching changes, we are strengthening the state and we are rebuilding state-owned entities.
We are mobilising investment on a massive scale – from a range of public and private sources – into electricity generation and transmission, into our ports and our rail lines, and into our water infrastructure. We are mobilising new skills, new capabilities and new technologies.
Let us be clear: we are retaining public ownership of our strategic national assets.
Private train operators will carry freight on rail lines that are owned by the state.
Private electricity producers will provide electricity to consumers across a power grid that is owned by the state.
Through these changes, we are strengthening the financial position and the operational performance of entities like Eskom and Transnet. We are making them more competitive and more efficient.
We will now apply the successful methodology that we have used in energy and logistics to other urgent challenges that confront South Africa today.
We are already working to establish a National Water Crisis Committee to restore a reliable supply of water to municipalities that face disruptions right now, but also to ensure water security in the long term.
Like electricity and logistics, the crisis in water has many causes stretching back many years.
Like electricity and logistics, we have already embarked on far-reaching reforms that will fundamentally change the way the water sector functions and serves the people.
This will enable investment in water infrastructure to meet growing demand and build our resilience to climate change, alongside institutional reforms to enable greater investment and stronger regulation of water service delivery.
It will also require mobilising resources and expertise to support municipalities in crisis, and intervening more quickly and effectively where they consistently fail to meet set norms and standards.
The National Water Crisis Committee is building on work already done – by the Water Task Team chaired by the Deputy President, by Operation Vulindlela, by the Department of Water and Sanitation and by the respective municipalities.
To drive local production and create more jobs in sectors with great potential, we are finalising our National Industrial Policy, focusing on decarbonisation, diversification and digitalisation.
This will contribute to an economy that is equipped for the future, drawing on our vast capabilities and abundant natural resources.
As we build an economy for the future, a number of industries in our country are currently in distress
The Presidency, together with the Department of Trade, Industry and Competition, is working with individual companies and sectors to develop short term plans to stave off closure and save local jobs.
Among the sectors involved are cement, autos, steel and pharmaceuticals.
In addition, there are sectors – such as oil and gas – that require coordination across government departments and planning together with business and labour.
In all these efforts, we have to show determination and urgency.
It is not only in the area of economic growth and transformation where collaboration, partnership and focus needs to play a key role.
We are also establishing a dedicated initiative to oversee the reform of the criminal justice system, learning from the successful model of Operation Vulindlela.
This initiative will be led by the best experts that our country has to offer. It will work closely with the South African Police Service, the National Prosecuting Authority, the Special Investigating Unit and other law enforcement agencies to drive a comprehensive reform programme.
Other countries, when faced with the threat of organised crime and the penetration of criminal syndicates, have been able to reform their criminal justice system and restore the rule of law.
We have the resources and ability to do so in South Africa. We will not allow the criminals to prevail.
One of the most important developments in recent years has been the mobilisation of society to end the violence that men commit against women.
Faced with this pandemic of violence, South Africans came together to develop a National Strategic Plan against Gender-Based Violence and Femicide.
And since the adoption of the plan, government departments, agencies, NGOs, business organisations, sporting bodies and others have been working together to implement the six pillars of the plan.
They understand that gender-based violence and femicide cannot be stopped by government alone. It must be stopped by society.
Over the past five years, South Africa has made progress in critical areas.
We have strengthened laws, expanded survivor-centred services through the Thuthuzela Care Centres, rolled out victim-friendly rooms at police stations, and invested in women’s economic empowerment as a critical pillar of prevention.
For the first time, we have a national prevalence study that gives us clear evidence of the scale and drivers of gender-based violence.
These gains matter and they show what is possible when the state and civil society act together.
The classification of gender-based violence and femicide as a national disaster enables all spheres of government to act with greater speed, reduces the fragmentation of effort and establishes a clear command, coordination and accountability framework.
It gives both government and broader society far greater capacity and impetus to implement the measures that I outlined in the State of the Nation Address.
These measures include the mobilisation of all sectors of society to challenge harmful attitudes and practices.
We are continuing the extensive work already underway to promote women’s economic empowerment, strengthen law enforcement and scale up survivor-centred support.
The Premiers who spoke during the debate highlighted the progress being made across the country in strengthening local economies, improving service delivery and investing in the future.
Provinces are taking the lead in infrastructure investment, from the resuscitation of Pilanesberg Airport in North West to the rehabilitation of roads and bridges in KwaZulu-Natal. Then there is the innovative partnership between the Limpopo provincial government and mining companies to mobilise funding for the construction and maintenance of local roads.
Provinces like Free State are investing in education, refurbishing and maintaining ECD centres, building new schools and hostels, and ensuring that all learners from poor communities attend no-fee schools and are part of the school nutrition programme.
Mpumalanga has launched the uBuhlebezulu E-Learning programme which is designed to bridge the digital divide through the use of smart devices.
We welcome the initiative by KwaZulu-Natal to forge provincial skills compacts with the private sector in logistics, energy, construction and the digital economy.
We have also heard about how Mpumalanga is investing in health, appointing doctors to Community Health Centres and building new clinics and hospitals, including the Middelburg Regional Hospital and the Mapulaneng Hospital.
Limpopo is providing leadership on tackling the country’s water challenges, establishing operational ‘war rooms’ in the Mopani District, particularly in Giyani, to ensure that water reaches the remaining 5 of 20 villages.
The Premier of the Northern Cape outlined the work being done in the province to drive investment in mining and renewable energy, in infrastructure and in education and health.
It is these efforts that have contributed to the steady growth of employment and GDP in the province over the last five years, and the notable improvement in the province’s Human Development Index.
Gauteng has introduced the Rapid Land Release Programme to enable investment and expand access to affordable housing.
The Western Cape is contributing to job creation by expanding tourism, increasing air access and promoting foreign direct investment in other key sectors.
Free State is setting an example in the provision of government services, through the integrated services programme to reach rural and underserved communities. This initiative brings together various government entities and departments to offer comprehensive services to communities, ranging from the issuance of title deeds, birth certificates and IDs to business support.
The Premier of the Free State spoke about how the loss of the province’s top spot in matric results has spurred the province to do better and to regain its position.
We welcome that determination, as provinces should be learning from each other. They should be driven to improve not only their matric pass rates, but health outcomes, service delivery, crime reduction, infrastructure maintenance and many others.
Healthy competition encourages innovation and improves efficiency, accountability and transparency.
We have seen the value of government working as one through the District Development Model.
The DDM seeks to eliminate silos between government departments and the three spheres of government.
It further aims to strengthen integrated planning and coordination, improving service delivery, eliminating fragmentation and ensuring inclusive, people-centred development.
The DDM brings together national, provincial and local government and stakeholders like organised business, labour and communities in a particular district to collectively address challenges.
Where the DDM has been integrated into government operations and structures, it has begun to make a measurable difference.
For example, the work done by the Presidential eThekwini Working Group in line with the DDM approach has contributed to significant improvements in the city.
By bringing national, provincial and local government together with business, labour, civil society and residents, we have seen improvements in the delivery of services like water and sanitation, the recovery of key industries like tourism, increased business sentiment and improved efficiency at the Durban Port.
In the State of the Nation Address, I said that our Constitution calls on us to redress the injustices of the past, to build a society that is equal and just.
We cannot do that without transforming our economy.
It cannot be acceptable to anyone in this House for African people, coloured people and Indian people to be poorer and have fewer opportunities than white people.
It cannot be acceptable to anyone in this House for women to earn less than men, to own less than men and to run fewer businesses than men.
And yet there are people in this House, in this debate, who tell us to get rid of the measures that we have put in place to correct this gross historical injustice.
They say we must get rid of broad-based black economic empowerment, falsely claiming that it benefits only a few, falsely claiming that it inhibits economic growth, falsely claiming that it enables corruption.
And yet the progress we have made since the introduction of these laws is undeniable. We have seen real changes in ownership patterns, including more businesses owned by women. We have seen changes in management control, enterprise development and skills development.
It is no accident that between 2006 and 2023, black African households experienced real income growth of 46 percent, coloured households 29 percent and Indian households 19 percent.
It is no accident that the level of poverty in the black African population fell from 67 percent in 2006 to 44 percent in 2023. Nor is it any accident that the level of poverty in the coloured population fell from 43 percent to 25 percent in the same period.
Despite this progress, the average income of white households is still nearly five times higher than that of black African households.
This is the gulf we must close through deliberate and sustained efforts to expand opportunity. Now is not the time to abandon BEE. Now is the time to make it more effective.
Just remember what our forebears said when they drafted the Freedom Charter.
They said “These freedoms we will fight for, side by side, throughout our lives, until we have won our liberty.” We should all be working together to ensure that we rid our country of the injustices of the past.
We must see broad-based black economic empowerment not as a cost to the economy, but as an investment in the sustainable growth of our economy.
That is why I announced in the State of the Nation Address that we are undertaking a review of our Broad-Based Black Economic Empowerment framework to ensure that it supports greater transformation and inclusive growth.
During the course of this debate, MPs have spoken on behalf of their political parties.
When they are out on the streets, they campaign for their parties.
But in Cabinet, there are no parties.
There are no ANC or DA or IFP or PA or UDM or GOOD or FF Plus or PAC or Al Jama-ah ministries.
Every Minister and Deputy Minister is part of a collective, working together to implement a common programme, the Medium Term Development Plan.
No Minister or Deputy Minister should be claiming their work in the GNU as an achievement of their party.
In many cases, the basis for their achievements were laid before they came into office. And in many cases, the work to realise their objectives will continue after they have left.
Our successes are the achievements of the collective. By the same measure, we are collectively responsible for our mistakes and shortcomings.
It is our commitment to the principle of partnership and shared responsibility that has made the Government of National Unity work and that will stand us in good stead for the work ahead.
We are undertaking these tasks in a global environment that is uncertain, unstable and rapidly changing.
During our Presidency of the G20, we set out our vision and programme for a better, more inclusive, more peaceful and more equal world order.
Most of the G20 countries overwhelmingly aligned themselves with that vision.
It is a vision that is shared by most Member States of the United Nations, BRICS and the Non-Aligned Movement.
We will continue to work with like-minded countries and on all available international platforms to advance that vision and implement that programme.
The African continent remains at the centre of our foreign policy.
South Africa is now the chair of SADC for the next two years, and will use that position to promote peace, integration and economic development in our region.
We have also been elected to the AU Peace and Security Council. In this capacity we will be working with other countries to promote peace efforts on the continent.
At the AU Summit in Addis Ababa this past weekend, we chaired the Ad-Hoc High-Level Committee on South Sudan, known as the C5, which is working to stabilise the situation in South Sudan, ensuring that elections take place and that a sustainable resolution to the conflict in the country is achieved.
We do this because a better Africa and a better world are in our national interest.
At the same, we are having to adapt very quickly to changing circumstances.
We cannot rely on goodwill and fine sentiments.
That is why we are being more assertive in our trade policy, seeking out new markets and reaching trade agreements that support growth and job creation in our economy.
We are intensifying our efforts to mobilise investment into our country and find investment opportunities for our businesses abroad.
This relies on a stronger, more capable state. Our foreign missions must be focused on driving trade and investment.
We are working to ensure that our departments – from DTIC to agriculture, to mineral resources to tourism – are aligned around a common trade strategy.
Amid the global turmoil, we have set a clear path to advance the interests of our country and its people. We must now pursue that path with greater focus and purpose.
Thirty years ago, South Africans came together to craft a Constitution that would define the values and the principles of our democracy.
It placed on all of us a responsibility to correct the injustices of the past and to ensure that all people would progressively be able to exercise their right to housing, health care, food, water, social security and education.
As a nation, we have travelled far in giving effect to the promise of our Constitution.
But we have much further to go.
It is therefore fitting that this year, South Africans will once again come together to forge a vision for our country into the future and to agree on a programme of actions to achieve that vision.
This is the year in which the National Dialogue will reach every corner of our country.
The National Dialogue is led by a Steering Committee of more than 100 people representing over 30 sectors in our society.
It continues to be guided and inspired by the Eminent Persons Group, prominent South Africans drawn from many fields and backgrounds who have all made a contribution to social cohesion and nation building.
It is ultimately the people of this country, engaged in dialogue and united action, who will determine the path that our country takes.
Dialogue and partnership are woven into the fabric of our society.
They have enabled our country to overcome great difficulties, from the crime of apartheid to the political violence of our transition to a devastating global pandemic to a persistent energy crisis.
It is this spirit that infuses the work of the Government of National Unity, that informs our approach to collaboration and coordination, that encourages us to draw on resources and capabilities from across society to solve difficult problems.
It is dialogue and partnership that will take the country forward.
It is the people of South Africa, working together, who will sustain the momentum of our recovery and who will accelerate progress to an inclusive economy and a transformed society.
As I conclude, I extend my gratitude to Deputy President Mashatile for his support and the leadership he continues to provide in the areas assigned to him.
I thank all Ministers and Deputy Ministers for diligently implementing the actions contained in the Medium Term Development Plan.
The Deputy President and I have been spending more time evaluating Ministers and Deputy Ministers, as well as Directors-General. This is part of an effort to promote accountability, to engender a culture of performance and to ensure action.
I am grateful to the leaders of the political parties in the Government of National Unity, who meet regularly to discuss matters of national interest. Their contributions have been very useful in managing the challenges our country faces.
I thank all the Honourable Members who have participated in this debate.
As the elected representatives of the people of South Africa, we have much to do.
Now is the time for action, for greater effort and for faster progress. Together and in unity.
Last year I spoke about the imagery of weaver birds working together to build their nest. Today I want to end by using another imagery of beavers, working together to build their nest.
Beavers are like a team of engineers. They work together to fell branches, pack mud and raise dams and lodges that create a safe “neighbourhood” of deep water around their home.
Beavers are a reminder that real building is rarely a solo act.
Think of a river that runs too fast, too exposed, too uncertain.
One beaver can’t change it. But a community can.
They don’t wait for perfect conditions; they start with what’s in reach.
One drags a branch. Another places it. Others pack mud and strengthen the weak points. Bit by bit, they raise a dam and shape a lodge—not as a monument, but as a home.
And what does that teamwork create? Not just a structure, but a safer environment: calmer water, protection from danger, space for life to grow. Their work turns risk into refuge.
It doesn’t happen through noise or ego; it happens through coordination, consistency and a shared purpose.
That’s what working together looks like for us.
We don’t all have the same role, but every role matters. Some people plan. Some people lift. Some people reinforce. Some people spot the leaks early and fix them before they become disasters.
When we build like that – patiently, practically, together – we don’t just complete a project. We create a “neighbourhood”: a place where others can thrive because we chose to cooperate.
So let’s build like beavers: with urgency, with unity and with the quiet determination to make something strong enough to hold – something that lasts and something that shelters more than just ourselves.
Let us be the real builders of South Africa, working together.
I thank you.
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