QUESTION
1. Mr K M Mmoiemang (Northern Cape: ANC) to ask the President:

(1) Whether the Government has assessed the impact of inadequate spending by (a) provinces and (b) municipalities on their commitments to deliver quality and essential services to communities, particularly crucial infrastructure such as (i) housing, (ii) schools and (iii) roads; if not, why not; if so,

(2) whether the Government has been engaging (a) provinces and (b) municipalities that continue to (i) underspend and (ii) fail to adequately utilise their allocated service delivery budgets to ensure they develop the necessary capacity, acquire the requisite skills and establish credible financial management systems in the 7th Administration (details furnished); if not, why not; if so, what are the relevant details? CO833E

REPLY:
Honourable Members,

Government regularly assesses the trends in underspending by provinces and municipalities and its impact on their ability to deliver quality and essential services to communities. 

The issue of underspending, particularly on infrastructure allocations such as housing, education, water and roads, is a great concern. 

Inadequate or slow capital expenditure by municipalities and provinces has hampered the delivery of basic services and infrastructure. 

This results in problems like delays in housing delivery and stalled school, water, sanitation and waste management infrastructure projects. 

It also erodes public trust in the state’s ability to improve the lives of citizens and exacerbates service delivery protests.

The inability of many municipalities to spend their capital budgets is often the result of poor planing, weak implementation capacity, and inadequate financial and supply chain management.

National government continues to engage directly with provinces and municipalities that demonstrate persistent underspending and to address these root causes.

Key interventions include budget monitoring forums coordinated by National Treasury to track in-year spending and detect low expenditure patterns early.

Through Section 154 support interventions, the Department of Cooperative Governance works closely with municipalities to strengthen institutional and financial capacity.

Capacity-building programmes are organised through the Municipal Infrastructure Support Agent to address skills shortages, especially in planning, engineering and project management.

Cabinet has also appointed an Inter-Ministerial Committe on Municipal Turnaround which is hard at work to support distressed municipalities.

One of the strategic priorities of this administration is to build a capable developmental state. Among other things, this involves strengthening intergovernmental coordination and accountability and introducing early warning systems, and expanding the reach of Operation Vulindlela reforms to accelerate infrastructure investment and strengthen local government.

Dedicated working groups have been established for eThekwini and Johannesburg, which are supporting both metros to address challenges with their water and electricity infrastructure.

Finally, the Metro Trading Services Reform Programme has been initiated by National Treasury to support the implementation of institutional and financing reforms to increase investment in infrastructure.

These measures will help to address the root causes of underspending and ensure that infrastructure is maintained and expanded to improve service delivery. 

I thank you.  

QUESTION
2. Mr N H Pienaar (Limpopo: DA) to ask the President:

Whether, with reference to his recent visit to the United States, he now concedes that to attract more international investments, the Government of National Unity has to rework the Broad-Based Black Economic Empowerment policies to make them more (a) effective and (b) inclusive to stimulate economic growth and job creation (details furnished); if not, what is the position in this regard; if so, what are the relevant details? CO843E

REPLY:
Honourable Members,

Our visit to the United States focussed on resetting our relationship and I believe subsequent events have proved the value of  open and continued conversations with our major trading partners. Our commitment to Black Economic Empowerment as expressed through various policy documents and statements remains steadfast. At a broader level, through the Statement of Intent as well as the Medium Term Development Plan, the Government of National Unity is committed to translate the values of the Constitution into practice with a focus on the achievement of social justice, redress and equity. 

The bill of rights of our Constitution under the equality clause states that: “Equality includes the full and equal enjoyment of all rights and freedoms. To promote the achievement of equality, legislative and other measures designed to protect or advance persons, or categories of persons, disadvantaged by unfair discrimination may be taken”.

This anchors our commitment to legislation and policies that advance economic transformation and increase the participation of previously excluded individuals from the mainstream economy. 

The Broad-Based Black Economic Empowerment Act remains a fundamental lever for transformation, as part of our broader strategy to achieve more rapid, inclusive and sustainable economic growth in the country.

As I have said before, we must dispense with the false notion that we must make a choice between growth and transformation. Black economic empowerment is not only compatible with investment and growth, but is essential to achieve broad-based growth and prosperity.

However, despite the progress that has been made across a range of measures, we can do better. As with any other policy, we must constantly assess whether we are achieving our goals and where we can make improvements.

The Department of Trade, Industry and Competition is therefore considering a review of broad-based black economic empowerment measures to align with government priorities of ensuring industrialisation, inclusive growth, localisation and facilitating access to finance for emerging enterprises. 

The purpose of the review will be to improve the effectiveness of BBBEE implementation, address gaps in implementation, set timelines and provide for strong linkages between BBBEE and industrial policies.

We need to ensure that our BBBEE policies support inclusive growth, just as we need to ensure that growth supports transformation.

Our task is to strengthen BBBEE and ensure that it works effectively in promoting the participation of black people in our economy, not to abandon it.

I thank you.
 

QUESTION
3. Ms M Makesini (Free State: EFF) to ask the President:

(1) Whether, in light of the damning 2024 Auditor General’s Local Government Audit Report regarding the collapse and failure of municipalities to manage their financial affairs, he and Cabinet are considering (a) reducing the number of municipalities and/or (b) merging those which are deemed unsustainable; if not, what is the position in this regard; if so, what are the relevant details;

(2) whether he will consider having some processes undertaken by a commission of inquiry instead of a department; if not, what is the position in this regard; if so, what are the relevant details? CO844E
 
REPLY: 
Honourable Members,

The 2024 Auditor-General’s Local Government Audit Report highlights the persistent deterioration in financial management, governance and service delivery performance in many municipalities across the country. 

The report paints a stark picture of widespread financial mismanagement, non-compliance, irregular expenditure, lack of consequence management and weak internal controls in a significant number of municipalities.

The national government is therefore taking steps to address the challenges in local government.

While some of these challenges are specific to each municipality, many have their roots in systemic problems and must be addressed through structural reform.

The Department of Cooperative Governance has embarked on a process to update the White Paper on Local Government to ensure that the local government system is effective and fit-for-purpose.

The Minister of Cooperative Governance and Traditional Affairs is engaging in a series of consultations with political parties, representatives of provincial and local government, and social partners in this regard, and just this week held a dialogue to contribute to the review of the White Paper. 

The issue of optimising the number of municipalities, as well as the appropriateness of the two-tier system of local government, must be considered as part of this process.

While there are strong arguments for having fewer municipalities, there are also strong reasons to ensure that local government remains local and accountable to the people that it serves.

These decisions must therefore be based on a careful assessment of the evidence, and must aim to ensure that municipalities are financially sustainable, to remove any duplication of fuctions, and to improve service delivery, particularly in areas where municipalities lack a sufficient revenue base.

It must also be noted that the determination and the re-determination of municipal boundaries is done by the Municipal Demarcation Board, which is an independent constitutional institution. 

There is therefore no need for the appointment of a commission of inquiry to attend to the matters raised by the Auditor-General, nor the review of municipal boundaries.

I thank you.
 

QUESTION
4. Ms S Nxumalo (Mpumalanga: ANC) to ask the President:

(1) Whether the Government is making any progress in forging a comprehensive social compact that would join all social partners in a common programme to (a) rebuild South African economy and (b) enable higher growth; if not, why not; if so, what are the relevant details.
(2) whether any provinces are benefiting from the (a) social compacts and (b) master plans that are aimed at attracting investment to sectors such as automotives, clothing and textiles, poultry, sugar, agriculture and global business services; if not, what challenges are experienced in this regard; if so, what are the relevant details? CO834E
 

REPLY: 
Honourable Members,

Following the 2024 elections, the Government of National Unity adopted the Medium Term Development Plan (MTDP) to guide the work of the 7th administration. 

The success of the MTDP will require cooperation and collaboration with key stakeholders outside and beyond government, in particular business, labour and civil society. 

Achieving growth and job creation depends on a whole-of-society approach that amplifies the state’s own capacity to drive development.

Currently, social compacting has been undertaken at a sectoral level through a number of Master Plans that have been developed together with social partners. 

In many cases sectoral compacts have yielded positive outcomes which include job retention, investment commitments, localisation efforts and the revitalisation of sectoral value chains. 

For example, the Automotive Master Plan has helped maintain South Africa’s position as a competitive vehicle manufacturing hub. 

The Sugar Industry Master Plan has supported the recovery of an industry under significant distress.

The provinces in which these industries are located have benefited from these outcomes.

For example, the clothing, textile, footwear and leather industries are concentrated in the Western Cape, KwaZulu-Natal and Gauteng. The main sugar cane growing areas are in KwaZulu-Natal and Mpumalanga. The main vehicle manufacturers are located in Gauteng, KwaZulu-Natal and Eastern Cape.

The investments that have been generated in these industries through the Master Plans are benefiting the economies of these provinces.

While there has been meaningful progress in building social compacts at this level, work towards a national social compact has now commenced with the launch of the National Dialogue. 

The National Dialogue will seek to forge a new social compact, to agree on the actions required by all members of society to bridge policy differences among social partners, strengthen implementation mechanisms, and rebuild trust to overcome the country’s challenges and achieve the objectives of the National Development Plan.

This National Dialogue builds on a rich history of social compacting in our country.

Indeed, the drafting and adoption of our Constitution represented a comprehensive national compact. It is a compact that continues to bind the nation together in a cohesive manner. The National Dialogue will no doubt reconfirm our commitment to the compact we achieved when we drafted our Constitution.

In order for our country to progress, we need a shared vision of what kind of a society we want to build, and what we need to do to get there. That is what the National Dialogue will produce, as the basis for a strong and enduring social compact that unites all South Africans behind a single goal. 

I thank you.  

QUESTION
5. Ms S M N Mokoena (KwaZulu-Natal: MKP) to ask the President:

(1) Whether he will provide an explanation regarding his Administration’s failure to deliver tangible results in youth unemployment (details furnished); if not, why not; if so, what are the relevant details.
(2) whether the youth of South Africa still trust his leadership; if not, what is the position in this regard; if so, what are the relevant details? CO838E

REPLY: 
Honourable Members,

Youth unemployment is a critical challenge for our country, as it is for many societies around the world.

We are working to create opportunities for unemployed young people through four key interventions.

First, over the past five years, we have expanded public and social employment programmes at a massive scale through the Presidential Employment Stimulus.

The Presidential Employment Stimulus has created 2.2 million publicly funded opportunities through a wide range of programmes.

One of the flagship programmes which we have implemented through the stimulus is the Basic Education Employment Initiative. 

This is the largest youth employment programme in South Africa’s history. Since 2020, it has supported the delivery of over 1 million jobs and livelihood opportunities in our country at over 23,000 schools. 

Another example is the revitalised National Youth Service launched by the National Youth Development Agency in 2020, which has created opportunities for young people in areas such as food security, early childhood development, and more.

Second, we are providing young workseekers with support and linking them to jobs. In 2020, the Presidential Youth Employment Intervention (PYEI) was launched to create pathways for young people to enter the labour market. 

The backbone of this intervention is the SA Youth network, which has linked a growing number of young people to opportunities for learning and earning.

There are now over 4.7 million young people registered on the network, many of whom have been supported to access opportunities.

Through the Employment Tax Incentive and the Youth Employment Service, we are encouraging employers to create opportunities for young people. We continue to call on the private sector to hire inclusively and to prioritise young people who need a first opportunity to start their employment journey.

Third, we are investing in new and better ways to provide young people with the skills they need to compete in a rapidly changing labour market. 

The Jobs Boost Outcomes Fund has pioneered an innovative outcomes-based financing mechanism to equip previously excluded young people to access and retain high quality jobs. 

The pilot phase of the project, which ends in December 2025, is on track to exceed its target of 4,500 jobs and will inform a comprehensive scale-up of the programme.

In addition, over the past five years, more than 560,000 people have been trained through SETA-funded programmes, while this year alone the National Student Financial Aid Scheme is supporting 788,741 students through its bursary programme.

Finally, we are supporting young entrepreneurs and improving access to capital and markets for youth-owned businesses.

Over the past five years, the Department of Small Business Development and the NYDA have provided financial and other support to over 236,000 youth-owned enterprises. 

These efforts have made a difference to the lives of millions of young people across our country. At the same time, we recognise that many young people remain frustrated with the pace of change.

Ultimately, we need to grow our economy at a much faster rate if we are to make inroads in our longstanding unemployment challenge.

That is why we are moving forward with our far-reaching economic reform programme through Operation Vulindlela, and deepening collaboration across government, business, and civil society to deliver at greater scale and with greater impact. 

I thank you. 

QUESTION 
6. Mr M F Mokwele (Limpopo: ANC) to ask the President:

(1) Whether any engagements have been conducted with members of the Government of National Unity (GNU) regarding the emergence of an anti-transformation agenda in terms of the country’s approach in (a) addressing historical inequalities and (b) redressing the legacy of the prolonged social, economic and political exclusion in the country (details furnished); if not, why not; if so, what are the relevant details;

(2) how will the Government safeguard the country from the anti-transformation agenda in the face of the allegedly growing attacks by some members of the GNU? CO835E

REPLY: 
Honourable Members,

The common programme of the Government of National Unity is outlined in the Medium Term Development Plan.

It incorporates those actions that have been agreed by the parties to the GNU based on the Statement of Intent that they signed.

While the 10 parties to the GNU differ on several economic issues – and continue to articulate their views and positions – this common programme does indeed provide a platform for meaningful transformation.

The Medium Term Development Plan has identified three strategic priorities: driving inclusive growth and job creation, reducing poverty and the high cost of living, and building a capable, ethical and developmental state. 

The plan places a specific emphasis on inclusive growth, as follows:

“Inclusive growth entails leaving no one behind. Key objectives include improved general living standards, improved incomes and material conditions, especially for the most marginalised and vulnerable in South African society.

“It also requires a significant change in the unequal pattern of ownership of economic assets and access to economic opportunities. To achieve this, accelerated interventions for redress, economic empowerment, and spatial transformation in favour of previously marginalised groups will be required. 

“Deliberate efforts to significantly increase the economic participation of [women, youth and persons with disabilities] are pivotal and economic inclusion through employment and pathways to sustainable livelihoods must be strengthened.”

These measures – to which the GNU has committed itself – are essential in addressing historical inequalities and redressing the legacy of the prolonged social, economic and political exclusion in the country.

While the parties to the GNU may differ on some specific policy issues and public debates are likely to continue, the fundamental commitment to the GNU’s transformational agenda remains in place.

It is the responsibility of all South Africans to safeguard and advance transformation, because only then can we build the prosperous, inclusive and stable country we all seek.

I thank you.