President Cyril Ramaphosa will address the nation at 20h00 this evening, 04 April 2022, on developments in South Africa’s response to the COVID-19 pandemic.
The SABC will provide a live feed for all media.
The President’s address will be broadcast and streamed live on PresidencyZA digital platforms.
Media enquiries: Tyrone Seale, Acting Spokesperson to the President – media@presidency.gov.za
Issued by: The Presidency
Pretoria
1. On opening up the market for alternative power generation producers:
Honourable Speaker,
As government, we have created a regulatory environment that is conducive to opening up of the market for alternative power generation producers.
Within the framework of the Integrated Resource Plan, alternative energy generation measures are being explored and implemented to augment electricity supply and improve the stability of the grid.
In addition, the President announced the amendment of Schedule 2 of the Electricity Regulations Act 4 of 2006 by increasing the Embedded Generation threshold from 1MW to 100MW.
In this regard, the Department of Mineral Resources and Energy has amended the Electricity Regulations of New Generation Capacity and has put together processes to be followed to ensure requests by municipalities for own generation are speedily attended to.
Currently, 292 small-scale generators have registered with NERSA and have generation capacity of 187MW. The Independent Power Producers Office is processing offers by Independent Power Producers for approval by Eskom and National Treasury.
Furthermore, the Minister of Mineral Resources and Energy has issued Determinations on the required new generation capacity, in concurrence with the National Energy Regulator of South Africa.
The Determinations made, resulted in the procurement of more than 7 309 MW from renewable and non-renewable energy. Most of these power plants are already in operation, with less than 400MW still under construction.
We can report the following achievements to the House:
• Preferred Bidders for 2 600 MW of renewable energy, known as Bid-Window 5, were announced in 2021 with Financial Close planned for April 2022.
• The Request for Proposal for 2 600 MW of renewable energy under Bid-Window 6, is scheduled for release end March 2022.
• Request for Proposal for 513 MW of battery storage, is scheduled for release by end April 2022.
• Request for Proposal for 1 600 MW of renewable energy under Bid-Window 7, will be issued by end August 2022.
We must make the point that Eskom’s load shedding is not as a result of limited market role for alternative power generation, but mainly a result of breakdowns encountered from the old and aging power generation infrastructure.
The Eskom Political Task Team continues to provide political leadership support to ensure that Eskom meets its obligation of providing electricity.
This support includes ensuring that Eskom, in the short term, is able to implement a credible and transparent national maintenance programme to ensure that power generation plants operate at optimal levels to reduce negative impacts of electricity supply disruptions.
Collectively, these measures are aimed at addressing the current load shedding and future power generation needs.
Thank you!
2. On consultations with Traditional and Khoi-San leaders:
Honourable Speaker,
Indeed, on 10 March 2022, we consulted the Traditional and Khoi-San Leaders on progress made in the fight against the ongoing Covid-19 pandemic.
We communicated the intention of government to lift the National State of Disaster as advised by the National Coronavirus Command Council, including calling on each sector to develop its own sector plan to continue fighting the spread of Covid-19.
The Traditional and Khoi-San Leaders expressed support for the work done by government in the implementation of the Covid-19 Risk Adjusted Strategy. The leaders encouraged government to fast-track the finalisation of Amendments to Health Regulations towards ending the National State of Disaster.
The leaders further committed to continue in partnering with government on the path of advancing efforts on communities vaccinating against the Covid-19 pandemic, in the spirit of saving lives and livelihoods.
In accelerating our vaccination programme, we have consistently ensured that we also consult with inter-faith leaders to solicit their inputs, and access places of worship to promote vaccination.
In our view, these consultations, which are not only with the Traditional and with Khoi-San leaders, have reaffirmed South Africa’s strength of working in partnership with various social partners for the common good.
The success we have achieved in bringing down Covid-19 infections, hospitalisation, and deaths is due to strong partnerships with various social formations and communities.
We would like to take this opportunity to thank the private sector, organised labour, civil society, sport federations, athletes, artists and cultural workers, as well as all our vaccination ambassadors who gave time and resources to partner with government in the fight against the coronavirus pandemic.
Thank you!
3. On government’s just transition plans:
Honourable Speaker,
Our energy generation is guided by the Integrated Resource Plan 2019, which provides for the use of all energy resources available in the country. This includes, amongst others, coal, gas and renewable energy sources.
Currently, there are no plans for the discontinuation of the use of coal as 99 percent of South Africa’s electricity supply is derived from coal and 30 percent of liquid fuels are derived from the same commodity. Coal remains one of our largest natural endowments that will continue to form part of our energy mix in terms of the IRP 2019.
Notwithstanding this fact, our country is committed to forging a low-carbon growth path that prioritises environmental sustainability, in line with our constitutional and international obligations. We need to ensure that we deploy new infrastructure, technologies and solutions that enable us to adhere to ambient air quality standards, and protect the lives of communities from negative environmental externalities.
Going forward, the IRP 2019 proposes the use of high efficiency, low emissions coal technologies. Government is currently working on other measures such as the Gas Utilisation Master Plan and the Renewable Energy Master Plan.
We are exploring the development of the Nuclear Procurement Framework as proposed in the IRP 2019. All of these are part of the medium to long-term plans in ensuring security of energy supply.
Having said that, it is important to point out that, out of the entire fleet there are planned optimised plant shutdowns that is aligned with the Integrated Resource Plan, to balance capacity, environmental, social and economic considerations.
This is inevitable because, in the main, these plants are approaching the end of their lifespan, and have become uneconomical, unpredictable and costly to run.
Nine coal-fired power stations will be shut down by 2035, thereby impacting significantly on the reduction of generation capacity.
From a power generation perspective, there is an immediate priority to address the issue of generation capacity losses resulting from the planned decommissioning of power stations.
Of course, the decommissioning of the existing coal-fired plants, will drive the demand for new capacity. As coal-fired units and stations are shut down, it is essential that new capacity is added to the grid, to ensure energy security.
Overall, the country has a 4 000 to 6 000 MW need that must be built per year.
In addition, the Department of Mineral Resources and Energy has tabled a plan for an additional 8 000 MW clean energy projects to be added to the grid over the next 2 to 5 years. This is a combination of greenfield renewables and gas projects, as well as repowering its existing coal sites, as the coal plant shuts down.
The costs for renewable energy technologies continue to decline as compared to when we started with Bid Window 1, and this will add generation capacity sooner and thus reducing the risk of load shedding.
For example, solar photovoltaic projects now take between 18-24 months to complete, wind projects have a lead-time of between 24 and 36 months, and gas requires 24 to 60 months to complete.
Our current focus on the implementation of the Just Energy Transition, is Komati Power Station as the first coal-fired power station to be repurposed.
It will be repowered in the next 12 to 18 months, using solar photovoltaic plant supported by 244MWh battery storage.
Komati is ideally positioned to be a flagship Just Energy Transition project to act as a ‘proof of concept’ for subsequent projects at Grootvlei, Hendrina and Camden Power stations. These power stations are all scheduled for retirement by 2025.
Clearly, the socio-economic impact will be dire if nothing is done to implement Just Energy Transition Plans that will repower and repurpose these plants to sustain local economic development activities and job creation in areas affected by the shutdowns.
We need to state upfront that any just transition that government undertakes, must be done sensibly and in the best interest of South Africa’s economy.
As part of the energy transition process, studies were conducted on the impact of plant shutdowns on the communities where Eskom has power plants.
Studies based on the Integrated Resource Plan programme, demonstrate that 300 000 net direct, indirect, and induced jobs could be created over the next decade by investing in the clean energy programme as described in the IRP 2019.
The studies have also looked into mining projects with specific attention to the repurposing of old mines, infrastructure and mine water, as well as the rehabilitation of mining land or property for farming opportunities.
A significant element of Eskom’s Just Energy Transition strategy is to ensure that efforts, initiatives and projects, are aimed towards safeguarding impacted and affected communities as far as it is possible when a coal plant is shut down.
The repurposing and repowering of the stations to be shutdown will also involve reskilling and upskilling of staff and communities to match and align their skills with new opportunities offered by emerging sectors, especially in renewable energy sector value chains.
Our approach to the renewable energy sector must not only focus on energy generation, but must also have at its centre the goal to stimulate local manufacturing and re-industrialisation in partnership with other industries and government, especially in the communities where the shutdowns are planned.
It must be a programme that contributes to the re-industrialisation and stimulation of South African manufacturing sector through localisation of the supply chains of components, technology and equipment whilst impacting on the development of black and women industrialists.
Honourable Speaker,
Without grid development, new generation capacity development is moot. The development of the transmission grid in the Northern and Eastern Cape Provinces is paramount to the addition of new generation capacity.
In aligning these plans to the expansion of the country’s generation capacity, Eskom has tabled a transmission development plan for this purpose, which indicates that 8000 km of line must be built in the next 10 years.
This project will require significant financing, which Eskom has tabled as part of the Just Energy Transition financing and regulatory support to acquire land and servitudes.
In the final policy-adjusted scenario, the costs that come with the transition should not be ignored, especially in the context of a fiscally constrained environment.
The speed at which we will be able to move, will be determined by the scope, scale and availability of resources. Due diligence will be taken to manage the just energy transition financing modalities in a responsible manner that does not collapse the economy, and burden the fiscus with unsustainable debt obligations.
It is our conviction that our undivided focus on the implementation of our just energy transition and the completion of restructuring of Eskom, will in future deliver energy supply security and a much needed reprieve from the negative impact of load shedding.
Thank you!
4. Addressing concerns raised by Military Veterans:
Honourable Speaker,
The President established the Presidential Task Team on Military Veterans in order to ensure that amongst others, there is urgent and continuous engagement with the community of military veterans in order to resolve their grievances.
The Presidential Task Team has since November 2020 held extensive consultations with different Military Veterans’ Associations.
Flowing from these consultations, it became evident that a multi-faceted approach that brings different spheres of government to collaborate in accelerating the delivery of benefits to military veterans was necessary. This would ensure that we sufficiently address the grievances of military veterans.
In advancing this holistic and integrated approach, the workstreams drawn from a cross-section of government departments and provinces are seized with the tasks of resolving issues that have been raised by military veterans.
Among other key issues, this work covers the improvement of socio-economic conditions, such as education, housing and employment, institutional support, heritage, the legislative review as well as pension and benefits of military veterans.
As reported by the President to Parliament on the 25th of November 2021, significant progress has been made by respective technical workstreams designated to focus on specific challenges.
More specifically, the Pension and Benefits Workstream, is currently finalising the pension policy that considers inadequacies that have been identified in the Military Pensions Act 84 of 1976.
In addition, discussions between the Department of Military Veterans and the National Treasury about the provisioning of military pension, as provided for by current legislation are at an advanced stage.
The draft Actuarial Report, which is required to support the proposed changes to the Pension Policy, will soon be presented to the Executive Authorities for consideration.
In relation to the proposed Military Veterans’ Amendment Bill, the Minister of Defense and Military Veterans has taken an approach that emphasises the importance of an extensive definition of a military veteran, the qualifying criteria for beneficiaries, and the role and existence of the South African National Military Veterans Association as a body that manages the affairs of military veterans.
The Department of Military Veterans is currently in a process of ensuring that all inputs of stakeholders are incorporated into the Bill.
Furthermore, as of March this year, the department has also started working with the Government Technical Advisory Centre in preparation for the costing of the implementation of the Bill.
Once all required processes like the Socio-Economic Impact Assessment System Report and certification by the Office of the Chief State Law Adviser are complete, the Bill will then be presented to the Cabinet system for approval to solicit public comments by the 3rd quarter of the 2022/2023 financial year.
Thank you!
5.Promoting the values of ethical leadership, good governance and accountability in local government:
Honourable Speaker,
We reiterate that Moral Regeneration Movement remains a critical platform to galvanise our society to advance the promotion of positive values and ethical conduct.
These positive values empower us to confront deep-seated challenges of moral decay within our communities, including in our public service.
This outlook is further underscored by the Auditor-General when announcing the Municipal Audit Outcomes of the 2019/20 financial year.
In that announcement, the Auditor-General pointed out that provincial leadership needs to work together with municipalities and focus on ensuring that political leadership sets the tone of ethical and courageous leadership, service-orientation, good governance and accountability.
We therefore support the Auditor-General’s call by encouraging Members of Parliament, Members of Provincial Legislature, Municipal Councillors to drive the desired change, especially in the local sphere of our government.
This call extends to political and administrative leadership in the executive branch, to effectively play its part in ensuring accountability in government spending, and to inculcate a culture of ethical and accountable leadership in service of the people.
To this end, the National School of Government has since introduced a training programme that will equip public officials including Municipal Councillors, with the required skills and competencies to make ethical decisions.
The programme is also aimed at equipping these officials to develop organisational integrity, prevent fraud, and combat corruption in the Public Sector.
This is in line with the ongoing work of the Moral Regeneration Movement to implement its Ethical Leadership Programme for public office-bearers, which includes the induction of newly elected Municipal Councilors.
To further augment the work of the Moral Regeneration Movement, the Department of Cooperative Governance and Traditional Affairs in partnership with South African Local Government Association is implementing a project on ethical leadership in municipalities, which is called Local Government Ethical Leadership Initiative.
The aim of the project is to develop a Code for Ethical Governance for municipalities, which will have a similar standing as the King Code on Corporate Governance in the private sector.
This is in line with one of the focus areas of the Local Government Anti-Corruption Strategy calling for a national dialogue on ethical leadership in local government. This project is on-going and is aimed at producing a Code of Ethical Governance for Municipalities.
The Moral Regeneration Movement will continue to engage local and district municipalities to incorporate their Anti-corruption strategies into the Integrated Development Plans for implementation, and sustainability support.
Thank you!
6. Enhancing the vaccination roll-out to reach population immunity:
Honourable Speaker,
As of the 28 March 2022, we have administered 33.5 million Covid-19 vaccines to 20.9 million individuals including 19.35 million adults and 1.55 million children aged 12 to 17 years.
This translates to 48.6 percent of adults having received at least one dose of Covid-19 vaccine.
The coverage is not equal across all age cohorts with more than 68 percent of people 60 years of age having been vaccinated, compared with only 35 percent in those between 18 and 34 years.
Of course, whilst reaching unvaccinated older people and providing ongoing protection to this group through provision of booster doses remain a priority, increasing coverage in younger cohorts especially in 18 to 34 years old, is also key to increase coverage at the population level.
This strategy, which is, protecting those most vulnerable and increasing overall population coverage, is important if the effects of any future waves are to be mitigated especially given the easing of restrictions as announced by the President on 22 March 2022.
It is critical that more people are vaccinated in order to reduce the number of infections, especially the number of hospitalisations and deaths associated with Covid-19 infections. This will also help a great deal to reduce the impact of any future waves.
Honourable Speaker,
Poor demand for and uptake of vaccination remains the largest barrier to increasing vaccination coverage. However, we are encouraged by efforts of a number of sectors of society that have implemented policies and programmes, aimed at increasing demand for and access to vaccination.
Moreover, surveys as indicated by CSIR have shown that many unvaccinated South Africans are not opposed to vaccination, and are willing to be vaccinated.
In this regard, we are addressing identified structural barriers like bringing vaccination sites closer to the people in order to address costs of getting to and from vaccination sites for those wanting to vaccinate.
We do hope that more people will step forward and vaccinate so that we move towards full normalcy, and open the economy to reverse the losses caused by the impact of the coronavirus.
On the issues of workplace vaccine mandates, workplaces, especially those with large numbers of employees, have actively played a role in providing vaccination to employees as well as in encouraging workers to vaccinate.
We will continue to encourage employers to develop and implement policies that promote the uptake of vaccination within workplaces.
The regulations recently published by the Minister of Cooperative Governance and Traditional Affairs provide an over-arching framework that guides various sectors to promote vaccination as part of incentives to participate in specific gatherings and sporting activities.
All these protocols are intended to persuade people to vaccinate in order to contain the spread of Covid-19 infections.
Thank you!
Speaker of the National Assembly, Ms Thandi Modise,
Chairperson of the National Council of Provinces, Mr Amos Masondo,
Deputy President David Mabuza,
Former President Thabo Mbeki and Mrs Mbeki,
Former Deputy President Phumzile Mlambo-Ngcuka,
Former Deputy President Baleka Mbete,
Chief Justice Mogoeng Mogoeng and esteemed members of the judiciary,
Ministers and Deputy Ministers,
Honourable Members of the National Assembly,
Honourable Members of the National Council of Provinces,
Dean of the European Region, representing the Diplomatic Corps, HE Mr Beka Dvali,
Distinguished Guests,
Fellow South Africans,
On this day, 31 years ago, President Nelson Mandela walked out of the gates of Victor Verster prison a free person, a living embodiment of the resilience and courage of the South African people.
For nearly 40 million years an extraordinary ecosystem has existed here at the southernmost tip of our continent.
The fynbos biome, which stretches across the Cape, has among the most distinctive features of any plants found on earth.
It can adapt to dry, hot summers and cold rainy winters. It is wondrous in its diversity.
Our national flower the Protea is a species of fynbos.
When I opened the third National Investment Conference last year I spoke of the Protea's unique properties that in so many ways resemble our national character.
What is most unique and special about fynbos is that to be sustainable and survive, it needs fire.
At least once every twenty years, fynbos must burn at extremely high temperatures to allow the ecosystem to be rejuvenated and grow afresh.
Throughout the summer, the burned foliage lies desolate. But when the autumn rains return, the seeds germinate, and its life cycle begins all over again.
The mountains bloom with new life as plants which once seemed lost grow back even stronger than before.
We, the people of South Africa, have over the past year experienced a terrible hardship.
Like a wildfire that sweeps across the mountainous ranges where the fynbos grows, a deadly pandemic has swept across the world, leaving devastation in its path.
And yet, like the hardy fynbos of our native land, we too have proven to be resilient in many ways.
For three centuries we were victims of oppression, dispossession and injustice.
And for three centuries we resisted.
The flames of injustice may have scarred us, but they did not consume us.
The rains of democracy brought rejuvenation and the birth of a new nation.
We have risen time and time again from the depths of darkness to herald a new day.
As we look on the grave damage that this disease has caused, we know that like the fynbos, like all those who have walked this land before us, we will rise again.
Nearly a year has passed since South Africa saw its first case of the novel coronavirus, COVID-19.
Since then, nearly one-and-a-half million people in our country are known to have been infected by the virus.
More than 45,000 people are known to have died.
Beyond these statistics lies a human story of tragedy and pain.
There is no family, no community, and no place of work that has not lost someone they knew, worked with, and loved.
It is also a story of courage and resilience.
The resilience of the hospital worker who – day after day, night after night – goes to work to save lives, knowing that they themselves are at risk of infection.
It is a wonderful account of the courage of the police officer, the soldier, the essential worker, the carer and all those on the frontline who have kept our country safe, our people fed and our economy going.
It is a story of solidarity and compassion.
Of a nation that has stood together to confront COVID-19 in ways not seen since the early days of our democracy.
More than anything else, this crisis has revealed the true character of our remarkable nation.
It has revealed a spirit of the people who refused to be defeated.
It is this South African spirit that must drive our resolve to build a new and more equal economy and a better, more just society.
The year ahead must be a time for change, for progress and for rebirth.
It must be a year in which we rise.
This is no ordinary year, and this is no ordinary State of the Nation Address.
I will therefore focus this evening on the foremost, overriding priorities of 2021.
First, we must defeat the coronavirus pandemic.
Second, we must accelerate our economic recovery.
Third, we must implement economic reforms to create sustainable jobs and drive inclusive growth.
And finally, we must fight corruption and strengthen the state.
In the coming weeks, we will address the other important elements of government’s programme for the year.
Fundamental to our nation’s recovery is an unrelenting and comprehensive response to overcome the coronavirus.
South Africa has just emerged from the second wave of infections since COVID-19 arrived on our shores in March last year.
Driven by a new variant of the virus, this second wave was more severe and cost many more lives than the first wave.
Nevertheless, the human cost could have been far greater.
Had we not moved quickly to restrict movement and activity, had we not prepared our health facilities, had South Africans not observed the basic health protocols, the devastation caused by this virus could have been far worse.
This year, we must do everything in our means to contain and overcome this pandemic.
This means intensifying our prevention efforts and strengthening our health system.
It also means that we must undertake a massive vaccination programme to save lives and dramatically reduce infections across the population.
Earlier this week, we were informed that one of the vaccines that we had procured, the AstraZeneca vaccine offers minimal protection from mild to moderate infection by the new variant known as 501Y.v2.
This is according to early findings of a study by our scientists and researchers.
We applaud these scientists for leading this research and providing new evidence that is vital for guiding our response.
Since this variant is now the dominant variant in our country, these findings have significant implications for the pace, design and sequencing of our vaccine programme.
While it should not delay the start of the vaccination programme by much, it will affect the choice of vaccines and the manner of their deployment.
The first phase of our vaccination programme, which is targeted at health and other frontline workers, will now use the Johnson & Johnson vaccine, which has been shown to be effective against the 501Y.V2 variant.
We have secured 9 million doses of the Johnson & Johnson vaccine.
The first batch, of 80,000 doses, will arrive in the country next week.
Further consignments will arrive over the next four weeks, totalling 500,000 Johnson & Johnson vaccines.
All provinces have roll-out plans in place as the first vaccines come through.
I wish to thank all provinces for their level of preparedness for this massive undertaking that we are about to embark upon.
In addition, we have secured 12 million vaccine doses from the global COVAX facility.
This will be complemented by other vaccines that are available to South Africa through the AU’s African Vaccine Acquisition Task Team facility as well.
Pfizer has committed 20 million vaccine doses commencing with deliveries at the end of the first quarter.
We are continuing our engagements with all the vaccine manufacturers to ensure that we secure sufficient quantities of vaccines that are suitable to our conditions.
The health and safety of our people remains our paramount concern.
All medication imported into the country is monitored, evaluated, investigated, inspected and registered by the South African Health Products Regulatory Authority.
We will continue to use the science-driven approach that has served us well since the earliest days of the pandemic.
The success of the vaccination programme will rely on active collaboration between all sectors of society.
We are greatly encouraged by the active involvement of business, labour, the health industry and medical schemes in particular in preparing for this mass vaccination drive.
As we have overcome before, we will overcome again and rise.
But it is not just this disease that we must defeat.
We must overcome poverty and hunger, joblessness and inequality.
We must overcome a legacy of exclusion and dispossession that continues to impoverish our people, and which this pandemic has severely worsened.
When I delivered the State of the Nation Address in this House last year, none of us could have imagined how – within a matter of weeks – our country and our world would have changed so dramatically.
Our plans had to be adapted in response to a global emergency.
Budgets had to be reprioritised and many programmes had to be deferred.
Over the past year, South Africa has experienced a sharp decline in growth and a significant increase in unemployment.
Poverty is on the rise. Inequality is deepening.
In the third quarter of 2020, our economy was 6% percent smaller than it was in the last quarter of 2019.
There were 1.7 million fewer people employed in the third quarter of 2020 than there were in the first quarter, before the pandemic struck.
Our unemployment rate now stands at a staggering 30.8%.
As a result of the relief measures that we implemented and the phased reopening of the economy, we expect to see a strong recovery in employment by the end of 2020.
As we worked to contain the spread of the virus, we also had to take extraordinary measures to support ordinary South Africans, assist businesses in distress and protect people’s livelihoods.
The social and economic relief package that we introduced in April last year is the largest intervention of its kind in our history.
It identified measures worth a total of R500 billion – or about 10% of our GDP – to provide cash directly to the poorest households, to provide wage support to workers and to provide various forms of relief to struggling businesses.
A total of 18 million people, or close to one-third of the population, received additional grant payments through these relief measures.
It is estimated that this grant lifted more than 5 million people above the food poverty line, helping to alleviate hunger in a moment of great crisis.
To date, more than R57 billion in wage support has been paid to over 4.5 million workers through the Special UIF TERS scheme.
More than R1.3 billion has been provided in support mainly for small- and medium-sized businesses.
In addition, over R70 billion in tax relief was extended to businesses in distress.
Around R18.9 billion in loans have been approved for 13,000 businesses through the loan guarantee scheme.
Fellow South Africans,
It is nearly four months since I stood here before a Joint Sitting of this Parliament to present to the nation the Economic Reconstruction and Recovery Plan.
This evening, we stand here not to make promises but to report on progress in the implementation of the recovery plan and the priority actions we must now take to restore growth and create jobs.
Since the launch of the plan, we have focused on four priority interventions:
- a massive rollout of infrastructure throughout the country,
- a massive increase in local production,
- an employment stimulus to create jobs and support livelihoods,
- the rapid expansion of our energy generation capacity.
We announced that we would be embarking on a massive rollout of infrastructure throughout the country.
We knew that to achieve this objective we would need to steadily rebuild technical skills within government to prepare and manage large infrastructure projects.
We have now developed an infrastructure investment project pipeline worth R340 billion in network industries such as energy, water, transport and telecommunications.
Construction has started and progress is being made on a number of projects.
Since the announcement of the Reconstruction and Recovery Plan, we have launched two major human settlements projects that will provide homes to almost 68,000 households in the Gauteng province.
Similar human settlements projects are planned in other provinces.
Two years ago I spoke about the dream of building new cities that will enable us to make a break with apartheid’s spatial development.
New post-apartheid cities are being conceptualised in a number of places in our country.
The Lanseria Smart City, the first new city to be built in a democratic South Africa, is now a reality in the making.
The draft masterplan for this smart city – which will become home to between 350,000 to 500,000 people within the next decade – was completed in November 2020 and is now out for public comment.
Progress is being made on several major water infrastructure projects.
These include Phase 2A of the Mokolo and Crocodile River project, and the uMkhomazi Water Project.
The Infrastructure Investment Plan identifies roads projects worth R19 billion covering the spine of the South African road network.
Work is underway to finalise project finance structuring for these projects.
Resources have been committed from the fiscus to support the construction and rehabilitation of the major N1, N2, and N3 highways.
These infrastructure projects will lead to the revival of the construction industry and the creation of much-needed jobs.
The R100 billion Infrastructure Fund is now in full operation.
This Fund will blend resources from the fiscus with financing from the private sector and development institutions.
Its approved project pipeline for 2021 is varied and includes the Student Housing Infrastructure Programme, which aims to provide 300,000 student beds.
Another approved project is SA Connect, a programme to roll out broadband to schools, hospitals, police stations and other government facilities.
The second priority intervention of the Recovery Plan is to support a massive increase in local production and to make South African exports globally competitive.
This will encourage greater investment by the private sector in productive activity.
Key to this plan is a renewed commitment from government, business and organised labour to buy local.
This commitment should lead to increased local production, which will lead to the revival of our manufacturing industry.
All social partners who participated in the development of the Economic Reconstruction and Recovery Plan as part of our social compact have agreed to work together to reduce our reliance on imports by 20% over the next five years.
They have identified 42 products – ranging from edible oils to furniture, fruit concentrates, personal protective equipment, steel products and green economy inputs – that can be sourced locally.
If we achieve our target, we will significantly expand our productive economy, potentially returning more than R200 billion to the country’s annual output.
Last year, we undertook to create a larger market for small businesses and designate 1,000 locally produced products that must be procured from SMMEs.
As the COVID-19 pandemic forced the closure of global value chains, we have been able to speed up this initiative as the local supply chains became open for locally manufactured products.
To this end, Cabinet approved the SMME Focused Localisation Policy Framework which identified the 1,000 products.
Furthermore, the departments of Small Business Development and Trade, Industry and Competition are supporting SMMEs to access larger domestic and international markets.
These efforts are supported by robust manufacturing support programmes.
In the State of the Nation Address last year, I said that our vision for industrialisation is underpinned by sector master plans to rejuvenate and grow key industries.
Four master plans that have been completed and signed to date – which are part of the social compact between labour, business, government and communities – have already had an impact in their respective industries.
Through the implementation of the poultry master plan, the industry has invested R800 million to upgrade production.
South Africa now produces an additional one million chickens every week.
The sugar master plan was signed during the lockdown, with a commitment from large users of sugar to procure at least 80% of their sugar needs from local growers.
Through the implementation of the plan, last year saw a rise in local production and a decline in imported sugar, creating stability for an industry which employs some 85,000 workers.
Support for black small-scale farmers is being stepped up, with a large beverage producer committing to expand their procurement sharply.
Since the signing of the clothing, textile, footwear and leather masterplan in November 2019, the industry has invested more than half a billion rand to expand local manufacturing facilities, including SMMEs.
We have worked closely with the auto sector to help it weather the pandemic.
By the end of the year, the sector had recovered around 70% of its normal annual production, in difficult circumstances.
Last week, the Ford Motor Company announced a R16 billion investment to expand their manufacturing facility in Tshwane for the next generation Ford Ranger bakkie.
This investment will support the growth of around 12 small and medium enterprises in automotive component manufacturing.
Nearly half of the procurement spend on construction of the bulk earthworks and top structure at the Tshwane Special Economic Zone during this phase is expected to be allocated for SMMEs, an amount equal to R1.7 billion in procurement opportunities.
Toyota has invested in their KwaZulu-Natal facility to start production of the first generation of hybrid electric vehicles to come off a South African assembly line.
This follows investment announcements by Nissan, Mercedes Benz and Isuzu in expanded production facilities, all of which cement South Africa’s position as a global player in auto manufacturing.
This year, our focus will be on getting the industry back to full production, implementing the Black Industrialist Fund and working on a new platform for expanded auto trade with the rest of the continent.
This will be part of our concerted effort to boost the manufacturing sector.
This year, we will begin to harness the opportunities presented by the African Continental Free Trade Area, which came into operation on the 1st of January following the adoption of the Johannesburg Declaration by the African Union.
The AfCFTA provides a platform for the South African businesses to expand into markets across the continent, and for South Africa to position itself as a gateway to the continent.
To address the deep inequalities in our society, we must accelerate the implementation of broad-based black economic empowerment policies on ownership, control and management of the economy.
Last year, government agreed to landmark deals with companies that will advance black economic empowerment by transferring ownership to their workers.
In November last year, we held our third South Africa Investment Conference to review the implementation of previous commitments and to generate new investment into our economy.
Even under difficult economic circumstances, the Investment Conference managed to raise some R108 billion in additional investment commitments.
Together with investment confirmed from the two previous investment conferences, we have now received R773 billion in investment commitments towards our 5-year target of R1.2 trillion.
Firms have reported that some R183 billion of these investments has already flowed into projects that benefit the South African economy.
This shows that our country is still an attractive investment destination for both local and offshore companies.
We have worked to facilitate investment by increasing the ease of doing business, including by making it easier to start a business.
In the past year, more than 125,000 new companies have been registered through the BizPortal platform, completing their registration in just a matter of hours from the comfort of their homes or offices.
We are making it easier for business to do business.
Our third priority intervention is an employment stimulus to create jobs and support livelihoods.
The largest numbers of jobs will be created by the private sector in a number of industries as the economy recovers.
We continue to work in a social compact with the private sector to create a more conducive environment for them to be able to create jobs.
Our compact with the private sector is underpinned by a clear commitment to grow our economy and to create jobs.
However, the public sector has a responsibility to stimulate job creation both through its policies and through direct job creation opportunities.
The Presidential Employment Stimulus is one of the most significant expansions of public and social employment in South Africa’s history.
By the end of January 2021, over 430,000 opportunities have already been supported through the stimulus.
A further 180,000 opportunities are currently in the recruitment process.
These opportunities are in areas like education, arts and culture, global business services, early childhood development, and small-scale and subsistence farming.
It involves environmental programmes such as the clearing of alien trees, wetland rehabilitation, fire prevention and cleaning and greening across all municipalities.
These programmes are about real lives and real livelihoods.
Nearly half a million people are now receiving an income, developing new skills and contributing to their community and the country’s economy.
We will continue to support employment for as long as it is necessary while the labour market recovers, even as we work to promote stronger and more resilient growth in the private sector.
In the State of the Nation last year, in response to the huge challenge our country faces of youth unemployment, I announced that the National Youth Development Agency and the Department of Small Business Development would provide grant funding and business support to 1,000 young entrepreneurs within 100 days.
While the programme had to be put on hold due to the coronavirus restrictions, it nevertheless managed to reach its target of 1,000 businesses by International Youth Day on 12 August 2020.
This provides a firm foundation for our efforts to support 15,000 start-ups by 2024.
Last year, we said we would establish a national Pathway Management Network to provide support and opportunities to young people across the country.
I want to encourage every young South African to join the more than 1.2 million people who are already in the network, and take their next steps to a better future.
Of the many hardships our people had to experience last year, schooling disruption placed a huge burden on learners, teachers and families.
Despite this they persevered.
It is our priority for this year to regain lost time and improve educational outcomes, from the early years through to high school and post-school education and training.
The fourth priority intervention of the Recovery Plan is to rapidly expand energy generation capacity.
Restoring Eskom to operational and financial health and accelerating its restructuring process is central to this objective.
Eskom has been restructured into three separate entities for generation, transmission and distribution.
This will lay the foundations for an efficient, modern and competitive energy system.
Eskom is making substantial progress with its intensive maintenance and operational excellence programmes to improve the reliability of its coal fleet.
We are working closely with Eskom on proposals to improve its financial position, manage its debt and reduce its dependence on the fiscus.
This requires a review of the tariff path to ensure that it reflects all reasonable costs and measures to resolve the problem of municipal debt.
In December 2020, government and its social partners signed the historic Eskom Social Compact, which outlines the necessary actions we must take, collectively and as individual constituencies, to meet the country’s energy needs now and into the future.
Over the last year, we have taken action to urgently and substantially increase generation capacity in addition to what Eskom generates:
- The Department of Mineral Resources and Energy will soon be announcing the successful bids for 2,000 megawatts of emergency power.
- The necessary regulations have been amended and the requirements clarified for municipalities to buy power from independent power producers. Systems are being put in place to support qualifying municipalities.
- Government will soon be initiating the procurement of an additional 11,800 megawatts of power from renewable energy, natural gas, battery storage and coal in line with the Integrated Resource Plan 2019.
Despite this work, Eskom estimates that, without additional capacity, there will be an electricity supply shortfall of between 4,000 and 6,000 megawatts over the next 5 years, as old coal-fired power stations reach their end of life.
As part of the measures to address this shortfall, we will in the coming weeks issue a request for proposals for 2,600 megawatts from wind and solar energy as part of Bid Window 5.
This will be followed by another bid window in August 2021.
Recent analysis suggests that easing the licensing requirements for new embedded generation projects could unlock up to 5,000 megawatts of additional capacity and help to ease the impact of load shedding.
We will therefore amend Schedule 2 of the Electricity Regulation Act within the next three months to increase the licensing threshold for embedded generation.
This will include consultation among key stakeholders on the level at which the new threshold should be set and the finalisation of the necessary enabling frameworks.
Eskom has already started work to expedite its commercial and technical processes to allow this additional capacity onto the grid without undue delay.
As we mobilise all of the resources at our disposal to support economic recovery, we cannot lose sight of the threat that climate change poses to our environmental health, socio-economic development and economic growth.
We are therefore working to fulfil our commitments under the UN Framework Convention on Climate Change and its Paris Agreement which include the reduction of greenhouse gas emissions.
Eskom, our largest greenhouse gas emitter, has committed in principle to net zero emission by 2050 and to increase its renewable capacity.
Eskom will be looking to partner with investors to repurpose and repower part of its coal fleet.
This will be done in a way that stimulate investment, local economic activity and local manufacturing, as part of a just transition.
Our work on climate change will be guided by the Presidential Coordinating Commission on Climate Change, which is meeting for the first time this month.
The Commission will work on a plan for a just transition to a low-carbon economy and climate resilient society.
We will not achieve higher rates of growth and employment if we do not implement structural economic reforms.
These reforms are necessary to reduce costs and barriers to entry, increase competition, stimulate new investment and create space for new entrants in the market.
This work is being driven through Operation Vulindlela, which involves a team in National Treasury and the President’s office.
Operation Vulindlela is focusing on reforms in the electricity, water, telecommunications and transport sectors, as well as reforms to our visa and immigration regime.
The completion of digital migration is vital to our ability to effectively harness the enormous opportunities presented by technological change.
After many delays, we will begin the phased switch-off of our analogue TV transmitters from next month.
It is anticipated that this process, which will be done province-by-province, will be completed by the end of March 2022.
The process for the licensing of high demand spectrum is at an advanced stage.
We hope that the ongoing litigation on the licensing matter will provide legal certainty and will not unduly delay the spectrum auction process.
In the water sector, we are working through Operation Vulindlela to ensure that water license applications are finalised within the revised timeframe of 90 days; and to revive the Green Drop and Blue Drop programmes to strengthen water quality monitoring.
We will finalise and implement the revised raw water pricing strategy, and accelerate the establishment of a national Water Resources Infrastructure Agency.
Our ability to compete in global markets depends on the efficiency of our ports and rail network.
We are repositioning Durban as a hub port for the southern hemisphere and developing Ngqura as the container terminal of choice.
The rail corridor from Gauteng is being extended to enable the export of vehicles through Port Elizabeth.
These are crucial steps to move freight from road to rail and increase the competitiveness of the rail system.
Work is underway with the relevant departments to reform our visa and immigration regime to attract skills and grow the tourism sector.
As international travel starts to recover in the wake of COVID-19, we will undertake a full roll-out of eVisas to visitors from China, India, Nigeria, Kenya and 10 other countries.
The revised list of critical skills will be published for public comment by the Department of Home Affairs within one week to ensure that the final version reflects the skills needed by the economy.
The momentum that Operation Vulindlela has already built, and the support that it has received across government, shows that we are serious about reform.
We will continue to work relentlessly and without pause to create a more modern, efficient and competitive economy that is more open to all South Africans.
To support our reform process, the Presidential State Owned Enterprises Council has outlined a clear set of reforms that will enable these vital public companies to fulfil their mandate for growth and development.
Overarching legislation for state-owned companies will be tabled in Cabinet this financial year and Parliament in the next the financial year.
A centralised SOE model is being implemented this financial year, which will ensure a standardised governance, financial management and operational performance framework for all SOEs.
The mandates of all SOEs are being re-evaluated to ensure that they are responsive to the country’s needs and the implementation of the National Development Plan.
In the midst of the economic damage caused by COVID-19, South Africa’s agricultural sector has performed remarkably well.
In 2020, we became the world’s second-largest exporter of citrus, with strong export growth in wine, maize, nuts, deciduous fruit and sugar cane.
The favourable weather conditions in 2020 and the beginning of 2021 mean that agriculture is likely to grow in the near term.
This provides an opportunity for further public-private partnership in agriculture to promote transformation and ensure sustainable growth.
It is an opportunity to accelerate land redistribution through a variety of instruments such as land restitution, expropriation of land in order to boost agricultural output.
To date, government has redistributed over 5 million hectares of land, totalling around 5,500 farms, to more than 300,000 beneficiaries.
This is in addition to the land restitution process, which has benefited over two million land claimants and resulted in the transfer of around 2.7 million hectares.
We are also pursuing programmes to assist smallholder and emerging farmers with market access, to develop skills across the entire agricultural value chain and increase the number of commercial black farmers.
During the course of the next financial year, we will establish a Land and Agrarian Reform Agency to fast-track land reform.
The public service is at the coalface of government, and lack of professionalism doesn’t just impact service delivery; it also dents public confidence.
Advancing honesty, ethics and integrity in the public service is critical if we are to build a capable state.
Through the National School of Government, we continue to roll out courses and training programmes for government officials from entry level to senior management and the Executive.
In October last year, I signed off on Ministerial Performance Agreements with all Ministers, which have now been published online.
This will enhance accountability and focused performance by members of the executive.
We remain on course to build a capable and professional civil service that delivers on its mandate and is accountable to the South African people.
We are proceeding with our efforts to strengthen the local government infrastructure and accelerate service delivery through the District Development Model.
The Model brings all three spheres of government to focus on key priorities and implementation of critical high impact projects.
Working with both public and private sector partners, government is implementing a range of measures to support municipalities to address inadequate and inconsistent service delivery in areas such water provision, infrastructure build and maintenance.
We are focusing on the appointment of properly qualified officials at a local level to ensure effective management and provision of services.
As we prepare for local government elections, which are due take place this year, we will need to adjust to the conditions forced upon us by COVID so that we can ensure that the people of this country can determine who represents them at this crucial level of government.
Fellow South Africans,
Corruption is one of the greatest impediments to the country’s growth and development.
The revelations from the Zondo Commission of Inquiry lay bare the extent of state capture and related corruption.
Testimony at the Commission has shown how the criminal justice system was compromised and weakened.
It is therefore vital that we sustain the momentum of the rebuilding effort that we began three years ago.
There has been great progress in turning around law enforcement bodies.
Critical leadership positions have been filled with capable, experienced and trustworthy professionals.
There is improved cooperation and sharing of resources between the respective law enforcement agencies, enabling a more integrated approach to investigations and prosecutions.
We have started implementation of the National Anti-Corruption Strategy, which lays the basis for a comprehensive and integrated society-wide response to corruption.
We will shortly be appointing the members of the National Anti-Corruption Advisory Council, which is a multi-sectoral body that will oversee the initial implementation of the strategy and the establishment of an independent statutory anti-corruption body that reports to Parliament.
When reports started to surface last year about possible fraud and corruption in the procurement of COVID-related goods and services, we acted decisively to put a stop to these practices, to investigate all allegations and to act against those responsible.
We established a fusion centre, which brings together key law enforcement agencies to share information and resources.
The Fusion Centre has brought many cases to trial and preserved or recovered millions of rands in public funds.
The Special Investigating Unit was authorised to investigate allegations of unlawful conduct with respect to COVID procurement by all state bodies during the National State of Disaster.
As it reported last week, the SIU has finalised investigations into 164 contracts with a total value of R3.5 billion.
In a significant advance for transparency and accountability, the Political Party Funding Act will come into operation on the 1st of April this year.
This will regulate public and private funding of political parties. Among other things, it requires the disclosure of donations to parties and establishes two funds that will enable represented political parties to undertake their programmes.
Crime and violence continues to undermine people’s sense of safety and security.
Tackling crime is central to the success of our recovery.
Crimes like cable theft, railway infrastructure vandalism, land invasions, construction site disruptions and attacks on truck drivers hamper economic activity and discourage investment.
We have taken steps and will continue to stop these crimes and deal with those responsible in terms of the law.
Task teams have been set up in a number of provinces to deal with extortion and violence on sites of economic activity.
We are also fast-tracking the implementation and capacitation of the Border Management Agency to curb illegal immigration and cross-border crime.
Ending gender-based violence is imperative if we lay claim to being a society rooted in equality and non-sexism.
When I launched the National Strategic Plan on Gender-Based Violence in April last year I made a promise to the women and children of this country that we were going to strengthen the criminal justice system to prevent them being traumatised again, and to ensure that perpetrators face justice.
To give effect to this, three key pieces of legislation were introduced in Parliament last year to make the criminal justice system more effective in combatting gender-based violence.
To ensure that perpetrators are brought to book, we are making progress in reducing the backlog of gender-based violence cases.
We continue to provide care and support to survivors of gender-based violence.
In the State of the Nation Address last year, I said that we would prioritise the economic empowerment of women.
Last year, Cabinet approved a policy that 40% of public procurement should go to women-owned businesses.
Several departments have started implementing this policy and are making progress.
Last week we also launched a groundbreaking private sector-led GBVF Response Fund.
Several South African companies and global philanthropies made pledges to the value of R128 million.
Over the next three years, government will allocate approximately R12 billion to implement the various components of the National Strategic Plan.
Gender-based violence will only end when everyone takes responsibility for doing so in their homes, in their communities, in their workplaces, in their places of worship and in their schools.
Equally we need to give attention to issues affecting children including improving school-readiness, ECD planning and funding, protection against preventable diseases, policy reform around child welfare and reducing violence against children.
In the year ahead we are also going to forge ahead with efforts to provide greater opportunities for persons with disabilities to participate in the economy and in society in general.
As we rebuild our economy in the midst of a pandemic, it is necessary that we continue – within our means – to provide support to those businesses and individuals that continue to be most affected.
Businesses in several sectors are still struggling and many families continue to suffer as the job market slowly recovers.
Over the last few months, we have had ongoing discussions with our social partners in business and labour, who proposed an extension of some of the social and economic support.
We have therefore decided to extend the period for the Special COVID-19 Grant of R350 by a further three months.
This has proven to be an effective and efficient short-term measure to reduce the immediate impact on the livelihoods of poor South Africans.
We have also decided to extend the COVID-19 TERS benefit until 15 March 2021 only for those sectors that have not been able to operate.
The conditions of this extension and the sectors to be included will be announced after consultations with social partners at NEDLAC.
The National Treasury will work with its partners and stakeholders on improvements to the loan guarantee scheme so that it better addresses the realities of SMMEs and other businesses as they strive to recover.
We will work with our social partners to ensure that these and other interventions provide the relief to those who most need it.
Fellow South Africans,
Just as a harsh fire gives new life to our country’s fynbos, this crisis is an opportunity to build a different, better South Africa.
Rebuilding our country requires a common effort.
It requires that every South African takes responsibility and plays their part.
Let us work together as government, as business, as labour and as all of society to clear away the rubble and lay a new foundation.
Above all, let us return this country to the values upon which it was founded.
On the day of his release, 31 years ago, Madiba gave his first public address here in Cape Town, where he reminded South Africans there were difficult days ahead, and that the battle was far from won.
Madiba said:
“Now is the time to intensify the struggle on all fronts.”
“To relax our efforts now would be a mistake which generations to come will not be able to forgive.”
In counting the great cost to our society over the past year, we may be tempted to lose faith.
But we can get through this. Because we are a nation of heroes.
I am referring not to the glorious lineage of struggle icons, but to the everyday heroes that walk among us, who work hard every day to put food on the table, to keep the company running, and to give support, help and care to our people.
It is your resilience that will help this country recover.
In addition to the many challenges that beset our people we have heard that his Majesty King Goodwill Zwelithini has not been well in recent days.
I wish to convey my wishes for the speedy recovery of His Majesty King Goodwill Zwelithini ka Bhekuzulu.
Our thoughts and prayers are with the Royal Household and the Zulu nation at this time.
It is our collective wish that Isilo Samabandla Wonke is soon restored to good health.
As we prepare for the difficult path ahead, we can draw strength From Maya Angelou’s great poem ‘I rise’.
She writes:
Out of the huts of history’s shame
I rise
Up from a past that’s rooted in pain
I rise
I’m a black ocean, leaping and wide,
Welling and swelling I bear in the tide.
Leaving behind nights of terror and fear
I rise
Into a daybreak that’s wondrously clear
I rise
Bringing the gifts that my ancestors gave,
I am the dream and the hope of the slave.
I rise I rise I rise.
People of South Africa, it is your country that calls on you to rise.
Let us march forward together to equality, to dignity and to recovery.
May God bless South Africa and protect her sons and daughters.
I thank you.
11 February 2021 - 8:30pm
Speaker of the National Assembly, Ms Nosiviwe Mapisa-Nqakula,
Chairperson of the National Council of Provinces, Mr Amos Masondo,
Deputy President David Mabuza,
Former President Thabo Mbeki,
Former Deputy President Phumzile Mlambo-Ngcuka,
Former Deputy President Baleka Mbete,
Former Speaker of the National Assembly, Mr Max Sisulu,
Acting Chief Justice Raymond Zondo,
Mayor of the City of Cape Town, Mr Geordin Hill-Lewis,
Dean of the Diplomatic Corps, Mr Bene M'Poko,
Members of the Judiciary,
Heads of Institutions Supporting Democracy,
Members of Parliament,
Fellow South Africans,
This year, for the first time since the dawn of our democracy, the State of the Nation Address is not being delivered in the Chamber of the National Assembly.
As we entered this new year, a huge fire engulfed the seat of our democracy.
We all watched in outrage and sadness as the flames devoured the buildings in which our democratic Constitution was born, in which laws of transformation and progress have been passed, in which the freely-chosen representatives of the people have shaped our young nation.
For many, what happened in Parliament speaks to a broader devastation in our land.
For many, the fire was symbolic of the devastation caused by the COVID-19 pandemic, by rising unemployment and deepening poverty.
It spoke to the devastation of a pandemic that over the past two years has taken the lives of tens of thousands of South Africans, put two million people out of work and brought misery to families.
The fire in Parliament reminded us of the destruction, violence and looting that we witnessed in parts of the country in July last year, of the more than 300 lives lost and many more livelihoods ruined.
As we reflect on the past year, we recall the words of President Thabo Mbeki who reminded us that: “Trying times need courage and resilience. Our strength as a people is not tested during the best of times.”
That we are gathered together in the Cape Town City Hall instead of the National Assembly Chamber reflects the extraordinary circumstances of this time.
It reflects the determination of the Presiding Officers of Parliament and indeed all the members of our two Houses that the work of this democratic institution should continue without interruption.
There are moments in the life of a nation when old certainties are unsettled and new possibilities emerge.
In these moments, there is both the prospect of great progress and the risk of reversal.
Today, we are faced with such a moment.
The path we choose now will determine the course for future generations.
That is why we are taking steps to strengthen our democracy and reaffirm our commitment to a Constitution that protects us all.
We are working together to revitalise our economy and end the inequality and injustice that impedes our progress.
We are standing together against corruption and to ensure that those who are responsible for state capture are punished for their crimes.
We are rebuilding the state and restoring trust and pride in public institutions.
If there is one thing we all agree on, it is that the present situation – of deep poverty, unemployment and inequality – is unacceptable and unsustainable.
There is agreement among a broad and diverse range of South Africans that fundamental reforms are needed to revive economic growth.
There is a need both to address the immediate crisis and to create conditions for long-lasting stability and development.
To achieve this, South Africa needs a new consensus.
A consensus that is born out of a common understanding of our current challenging situation and a recognition of the need to address the challenges of unemployment, poverty and inequality.
This should be a new consensus which recognises that the state must create an environment in which the private sector can invest and unleash the dynamism of the economy.
But equally an environment in which South Africans can live a better life and unleash the energy of their capabilities.
This should also be a new consensus which embraces our shared responsibility to one another, and acknowledges that we are all in this together.
As the social partners – government, labour, business and communities – we are working to determine the actions we will take together to build such a consensus.
We have begun discussions on what trade-offs are needed and what contribution we will each need to make.
We have given ourselves 100 days to finalise a comprehensive social compact to grow our economy, create jobs and combat hunger.
This work will build on the foundation of the Economic Reconstruction and Recovery Plan, which remains our common programme to rebuild the economy,
We remain focused on the priorities we identified in the State of the Nation Address last year:
- overcoming the COVID-19 pandemic,
- a massive rollout of infrastructure,
- a substantial increase in local production,
- an employment stimulus to create jobs and support livelihoods,
- the rapid expansion of our energy generation capacity.
To be effective, this social compact needs to include every South African and every part of our society.
No-one must be left behind.
Fellow South Africans,
When I last addressed the state of our nation, we were deep in the throes of the worst pandemic in more than a century.
Since COVID-19 reached our shores, we have endured successive waves of infection, the emergence of new variants and the devastating cost of nearly 100,000 recorded COVID-19 deaths.
South Africans have responded to this grave threat with courage and resilience, with compassion and restraint.
Over the past two years, we have taken unprecedented actions to strengthen our health system, build laboratory capacity and prevent infections.
The nation owes a great debt of gratitude to the dedicated health care workers and other frontline staff who put their health and their lives at risk to care for the ill and vulnerable during this pandemic.
Within weeks of the first reported infection in our country, I announced the establishment of the Solidarity Fund, with the goal of uniting the country in the fight against the pandemic.
In a wave of generosity that swept the country, the Fund raised R3.4 billion from more than 300,000 individuals and 3,000 companies and foundations. More than 400 individuals and 100 companies volunteered their time and services.
The Fund has played a pivotal role in supporting the national health response and alleviating the humanitarian crisis.
I would like to thank everyone who contributed to the Solidarity Fund and the great many who came together in countless other initiatives to support those affected by the pandemic.
As the trajectory of the pandemic has continued to change, we have had to adapt and evolve.
Our approach has been informed throughout by the best available scientific evidence, and we have stood out both for the quality of our scientists and for their involvement in every step of our response.
During the past year, we have focused on accelerating our vaccine rollout.
So far, we have administered 30 million doses of COVID-19 vaccines. Consequently, nearly 42% of all adults and 60% of everyone over 50 is fully vaccinated.
We are now ready to enter a new phase in our management of the pandemic.
It is our intention to end the national state of disaster as soon as we have finalised other measures under the National Health Act and other legislation to contain the pandemic.
Nearly all restrictions on economic and social activity have already been lifted.
Vaccines have proven to be the best defence we have against illness and death from COVID-19.
If we all get vaccinated, continue to observe basic health measures and remain ever vigilant, we will be able to get on with our lives even with the virus in our midst.
The state of the nation is linked inextricably to the state of our economy.
In addition to the divides of race, geography and education, COVID-19 has exacerbated the divide between those who are employed and unemployed.
Last year, our unemployment rate reached its highest recorded level.
Unemployment has been caused by low growth, which has in turn resulted from a long-term decline in investment.
In the last year, we have benefited from a clear and stable macroeconomic framework, strong commodity prices and a better-than-expected recovery.
However, we have been held back by an unreliable electricity supply, inefficient network industries and the high cost of doing business.
We have been taking extraordinary measures to enable businesses to grow and create jobs alongside expanded public employment and social protection.
We all know that government does not create jobs. Business creates jobs.
Around 80 per cent of all the people employed in South Africa are employed in the private sector.
The key task of government is to create the conditions that will enable the private sector – both big and small – to emerge, to grow, to access new markets, to create new products, and to hire more employees.
The problems in the South African economy are deep and they are structural.
When electricity supply cannot be guaranteed, when railways and ports are inefficient, when innovation is held back by a scarcity of broadband spectrum, when water quality deteriorates, companies are reluctant to invest and the economy cannot function properly.
With a view to addressing these challenges we are accelerating the implementation of far-reaching structural reforms to modernise and transform these industries, unlock investment, reduce costs and increase competitiveness and growth.
The electricity crisis is one of the greatest threats to economic and social progress.
In the last few days, we have once again been reminded of the fragility of our electricity system.
Load shedding continues to have a huge impact on the lives of all South Africans, disrupting business activities, and placing additional strains on families and communities.
Due to our aging power stations, poor maintenance, policy missteps and the ruinous effects of state capture, our country has a shortfall of around 4,000 MW of electricity.
During the past year, we have taken firm steps to bring additional generation capacity online as quickly as possible to close the shortfall.
As a result, several new energy generation projects will be coming online over the next few years. This includes:
- Over 500 MW from the remaining projects in Bid Window 4 of the renewable energy programme, which are at advanced stages of construction.
- 2,600 MW from Bid Window 5 of the renewable energy programme, for which the preferred bidders were announced last year,
- up to 800 MW from those risk mitigation power projects that are ready to proceed,
- 2,600 MW from Bid Window 6 of the renewal energy programme, which will soon be opened,
- 3,000 MW of gas power and 500 MW of battery storage, for which requests for proposals will be released later this year,
- an estimated 4,000 MW from embedded generation projects in the mining sector,
- approximately 1,400 MW currently in the process of being secured by various municipalities.
In addition to closing the energy supply shortfall, we are implementing fundamental changes to the structure of the electricity sector.
Eskom has established a separate transmission subsidiary, and is on track to complete its unbundling by December 2022.
The utility has continued with its intensive maintenance programme, to reverse many years of neglected maintenance and underperformance of existing plants.
To regulate all of these reforms, Cabinet yesterday approved amendments to the Electricity Regulation Act for public comment.
These far-reaching amendments will enable a competitive market for electricity generation and the establishment of an independent state-owned transmission company.
Our economy cannot grow without efficient ports and railways.
Over several years, the functioning of our ports has declined relative to ports in other parts of the world and on the African continent. This constrains economic activity.
The agricultural sector, for example, relies heavily on efficient, well-run ports to export their produce to overseas markets.
Fresh produce cannot wait for days and even weeks stuck in a terminal.
This hurts businesses and compromises our country’s reputation as an exporter of quality fresh produce.
Transnet is addressing these challenges and is currently focused on improving operational efficiencies at the ports through procuring additional equipment and implementing new systems to reduce congestion.
Transnet will ask for proposals from private partners for the Durban and Ngqura Container Terminals within the next few months, which will enable partnerships to be in place at both terminals by October 2022.
Transnet will start the process of providing third-party access to its freight rail network from April 2022 by making slots available on the container corridor between Durban and City Deep in Gauteng.
Transnet has developed partnerships with the private sector to address cable theft and vandalism on the freight rail network through advanced technologies and additional security personnel.
This collaborative effort is already showing results in reduced disruptions to rail operations.
The poor state of passenger rail in South Africa has a direct and detrimental impact on the lives of our people.
We are therefore working hard to rehabilitate the passenger rail network in 10 priority corridors.
The Southern Line in Cape Town and the Mabopane Line in Pretoria have been re-opened to be followed by the remaining lines in the next year.
One of the greatest constraints on the technological development of our economy has been the unacceptable delay in the migration of broadcasting from analogue to digital.
The switch-off of analogue transmission has been completed in a number of provinces.
As I announced in the State of the Nation Address last year, the other provinces will move to digital signal by the end of March 2022.
As part of this process, government will continue to subsidise low-income households so that they can access a set-top box and make the switch to digital TV.
Our communications regulator, ICASA, will commence with the auctioning of the high frequency communications spectrum in about three weeks from now.
This will unlock new spectrum for mobile telecommunications for the first time in over a decade.
In addition, we will facilitate the rapid deployment of broadband infrastructure across all municipalities by establishing a standard model for the granting of municipal permissions.
These reforms will revolutionise the country’s technological development, making faster broadband accessible to more people and reducing the costs of digital communications.
The world over, the ability to attract skilled immigrants is the hallmark of a modern, thriving economy.
We are therefore streamlining and modernising the visa application process to make it easier to travel to South Africa for tourism, business and work.
As we committed last year, the eVisa system has now been launched in 14 countries, including China, India, Kenya and Nigeria.
The revised Critical Skills List has been published for the first time since 2014, following detailed technical work and extensive consultations with business and labour. The updated list reflects the skills that are in shortage today, to ensure that our immigration policy matches the demands of our economy.
A comprehensive review of the work visa system is currently underway, led by a former Director-General of Home Affairs, Mr Mavuso Msimang.
This review is exploring the possibility of new visa categories that could enable economic growth, such as a start-up visa and a remote working visa.
Water is the country’s most precious natural resource.
It is vital to life, to development and to economic growth.
That is why we have prioritised institutional reforms in this area to ensure future water security, investment in water resources and maintenance of existing assets.
We have embarked on the process of institutional reform in capacitating the Department of Water and Sanitation and reviewing water boards in as far as their mandates are concerned and ensuring that they serve municipalities in terms of the District Development Model.
These reforms are being championed by the Minister of Water and Sanitation, who has visited every water source in the country.
A comprehensive turnaround plan is being implemented to streamline the process for water use license applications. The target is to clear the backlog of applications by June 2022 and to process 80% of all applications within 90 days during the next financial year.
Legislation has been prepared for the establishment of the National Water Resources Infrastructure Agency, and will be published for public comment within the next month.
The water quality monitoring system has been reinstated to improve enforcement of water standards at municipal level, and enable the Department of Water and Sanitation to intervene where water and sanitation services are failing.
We will review the policy and regulatory framework for industrial hemp and cannabis to realise the huge potential for investment and job creation.
While structural reforms are necessary for us to revive economic growth, they are not enough on their own.
This year, we are undertaking far-reaching measures to unleash the potential of small businesses, micro businesses and informal businesses.
These are the businesses that create the most jobs and provide the most opportunities for poor people to earn a living.
We have started discussions with social partners as part of the social compact process to review labour market regulations for smaller businesses to enable them to hire more people, while continuing to protect workers’ rights.
A new, redesigned loan guarantee scheme is being introduced to enable small businesses to bounce back from the pandemic and civic unrest.
This new bounce-back scheme incorporates the lessons from the previous loan guarantee scheme.
It will involve development finance institutions and non-bank SME providers in offering finance, expand the types of financing available and adjust eligibility criteria to encourage greater uptake.
The National Treasury is working with industry stakeholders to finalise the scheme and will provide details soon.
We are reviewing the Business Act – alongside a broader review of legislation that affects SMMEs – to reduce the regulatory burden on informal businesses.
There are too many regulations in this country that are unduly complicated, costly and difficult to comply with. This prevents companies from growing and creating jobs.
We are therefore working to improve the business environment for companies of all sizes through a dedicated capacity in the Presidency to reduce red tape.
If we are to make progress in cutting unnecessary bureaucratic delays for businesses, we need dedicated capacity with the means to make changes.
I have therefore appointed Mr Sipho Nkosi to head up a team in my office to cut red tape across government.
Mr Nkosi has extensive experience in business, including as the CEO of Exxaro Resources, and is currently the Chairperson of the Small Business Institute.
The red tape team will identify priority reforms for the year ahead, including mechanisms to ensure government departments pay suppliers within the required 30 days.
The team will also work with other departments and agencies to unblock specific obstacles to investment and business growth. It will support current initiatives to simplify processes relating to property registration, cross-border trade and construction permits.
Infrastructure is central to our economic reconstruction and recovery.
Through innovative funding and improved technical capabilities, we have prioritised infrastructure projects to support economic growth and better livelihoods, especially in energy, roads and water management.
The Infrastructure Fund is at the centre of this effort, with a R100 billion allocation from the fiscus over 10 years.
The Infrastructure Fund is now working with state entities to prepare a pipeline of projects with an investment value of approximately R96 billion in student accommodation, social housing, telecommunications, water and sanitation and transport.
Several catalytic projects to the value of R21 billion are expected to start construction this year. Of this, R2.6 billion is contributed by government and the balance from the private sector and developmental finance institutions.
Government will make an initial investment of R1.8 billion in bulk infrastructure, which will unlock seven private sector projects to the value of R133 billion.
For millions of South Africans in rural areas, roads and bridges provide access to markets, employment opportunities and social services.
Yet, many children still have to brave overflowing rivers to reach schools and motorists have to battle impassable roads to reach the next town.
We are therefore upscaling the Welisizwe Rural Bridges Programme to deliver 95 bridges a year from the current 14.
Our South African National Defence Force is the implementing agent of the Welisizwe programme, and has demonstrated the expertise of SANDF engineers in bridge construction.
Earlier this week I was in Thakgalane village Limpopo to launch a new road that is going to make a huge difference in the lives of neighbouring communities. This road was constructed using block paving and other materials, which is a method that enables us to build durable roads faster and more cost-effectively.
The rural roads programme will use labour intensive methods to construct or upgrade 685 kilometres of rural road over the next three years. This social enterprise programme includes access roads in Limpopo and Eastern Cape, gravel to surface upgrades in Free State and North West, and capacity and connectivity improvements in the Western Cape.
Government has initiated the process of delivering the uMzimvubu Water Project.
The project is made of the Ntabelanga Dam and Lalini Dam, irrigation infrastructure and hydro-electric plant, Ntabelanga water treatment works and bulk distribution infrastructure to reticulate to the neighbouring communities.
The closing date for the first of the two-stage procurement process is scheduled to close later this month, with the preferred bidder likely to be announced in September 2022.
Government is introducing an innovative social infrastructure delivery mechanism to address issues that afflict the delivery of school infrastructure.
The mechanism will address the speed, financing and funding, quality of delivery, mass employment and maintenance.
The new delivery mechanism will introduce a Special Purpose Vehicle, working with prominent DFIs and the private sector, to deliver school education infrastructure.
This approach is being piloted in schools in the Northern Cape and Eastern Cape.
Over the past year, government has built on its successful Hydrogen SA strategy to make major strides in positioning South Africa as a global leader in this new market.
This includes the development of a Hydrogen Society Roadmap for the next ten years as well as a Green Hydrogen Strategy for the Northern Cape, supporting the development of a green hydrogen pipeline worth around R270 billion.
The damage caused by the theft of scrap metal and cable on our infrastructure like electricity, trains and other vital services is enormous. We will take decisive steps this year both through improved law enforcement and by considering further measures to address the sale or export of such scrap metal.
An important pillar of our Economic Reconstruction and Recovery Plan is to revitalise our manufacturing base and create globally competitive export industries.
In the past year, we launched new master plans in the steel industry, furniture and global business services.
Through these plans, business, government and labour are working together to increase production and create more jobs in the sector.
In the clothing industry, a number of retailers have announced ambitious localisation sourcing plans.
One of these retailers, Foschini, kindly made the suit that I am wearing today at its new formal wear factory, Prestige Epping.
Five years ago, more than 80 per cent of all Foschini Group merchandise came from the East. Today, nearly half of the merchandise is locally made.
The genuine leather shoes I am wearing were made by members of the National Union of Leather and Allied Workers from Bolton Footwear in Cape Town and Dick Whittington Shoes in Pietermaritzburg.
Nearly four years ago, we set ourselves a target of mobilising R1.2 trillion in new investment over five years.
By the time of the third South Africa Investment Conference in November 2020, we had reached R776 billion in investment commitments.
Next month, on the 24th of March, we will be holding the fourth South Africa Investment Conference in Johannesburg.
We will showcase the many investment opportunities available as South Africa continues its recovery from the COVID-19 pandemic, and report back on the progress of previous commitments.
Following the resolutions of the African Union Summit over the past weekend, trading can now begin under the African Continental Free Trade Area agreement
South African companies are poised to play a key role in taking up the opportunities that this presents for preferential access to other African markets.
The Free Trade agreement is about Africa taking charge of its destiny and growing its economies faster.
We will continue to pursue Africa’s health sovereignty, working with other African countries and international partners to support the strengthening of the continent’s capacity to respond to pandemics.
We will increase our efforts to develop Africa’s ability to manufacture vaccines.
We have made significant progress here in South Africa.
We now have two South African companies – Aspen and Biovac – with contracts to produce COVID-19 vaccines. Two additional vaccine projects have also been announced.
In addition, we have full local production capability for ventilators, hand sanitisers, medical-grade face masks and gloves and therapeutic drugs and anaesthetics.
This production capability worth many billions of rands of production annually, has been put in place in less than two years.
South African products have been exported to other African countries, securing them vital supplies and expanding jobs for young South Africans.
While we help existing industries to grow, we are also nurturing new opportunities for growth and jobs.
Government and the private sector have worked closely together to grow the global business services sector from a small group of companies to one of the world’s leading players.
The global business services sector is on track to create 500,000 new jobs over the next few years.
The hemp and cannabis sector has the potential to create more than 130,000 new jobs.
We are therefore streamlining the regulatory processes so that the hemp and cannabis sector can thrive like it is in other countries such as Lesotho.
Our people in the Eastern Cape, KwaZulu-Natal and elsewhere are ready to farm with this age-old commodity and bring it to market in new and innovative forms.
The social economy, including early childhood development, nursing, social work and community services, has significant potential not only to create jobs, but to provide vital services that communities need.
Some of the country’s mature industries also have a lot to offer in revamping the industrial and manufacturing potential of our country.
The agriculture sector has significant potential for job creation in crops such as citrus, table and dried grapes, subtropical fruit, avocadoes, berries and nuts.
Masterplans in the sugar and poultry industries are contributing significantly to increased investment, improved production and transformation.
To attract investors into the mining minerals needed in the new global economy, we will soon be finalising our mining exploration strategy.
We will continue to support the development of the upstream gas industry, as it holds huge potential for job creation and broader economic development.
We will ensure that this is done in strict accordance with the environmental and other laws of our country, and that where there are differences, we work together to resolve them in the interest of our country and its people.
We live in one of the regions of the world that is most affected by climate change.
We frequently experience droughts, floods and other extreme weather events associated with global warming. Recently floods have affected a number of provinces including KwaZulu-Natal, Gauteng and the Eastern Cape.
These have already caused enormous damage to infrastructure and livelihoods.
In the last year, we have made important strides in the fight against climate change, and, at the same time, securing our economic competitiveness.
For the first time, our climate targets are compatible with limiting warming to 1.5°C.
This is the goal that all countries agreed to as part of the Paris Climate Agreement, and is essential to prevent the worst effects of climate change.
Since I established the Presidential Climate Commission a little more than a year ago, it has done much work to support a just transition to a sustainable, inclusive, resilient and low-carbon economy.
At the international climate conference in Glasgow last November, South Africa struck a historic R131 billion deal with the European Union, France, Germany, United Kingdom and the United States.
This first-of-its-kind partnership will involve repurposing and repowering some of the coal plants that are reaching the end of their lives, and creating new livelihoods for workers and communities most impacted by this change.
To ensure that South Africa is able to derive the full benefit of this and other partnerships, I have appointed Mr Daniel Mminele, a former Deputy Governor of the Reserve Bank, as Head of the Presidential Climate Finance Task Team to lead the mobilisation of funds for our just transition.
Properly managed, the energy transition will benefit all.
Renewable energy production will make electricity cheaper and more dependable, and will allow our industries to remain globally competitive.
Investments in electric vehicles and hydrogen will equip South Africa to meet the global clean energy future.
We will be able to expand our mining industry in strategic minerals that are crucial for clean energy, like platinum, vanadium, cobalt, copper, manganese and lithium.
We also have a unique opportunity in green hydrogen, given our world-class solar and wind resources and local technology and expertise.
All of these measures – from structural reforms to support for SMMEs, investments in infrastructure and the emergence of new sectors – will drive a turnaround in economic growth driven by the private sector growth over the coming years.
We know, however, that even with the best business environment and much faster rates of economic growth, it will take time for the private sector to create enough jobs for the millions of South Africans who need them.
Our intent is to leave no one behind.
That is why we are expanding public and social employment.
The first two phases of the Presidential Employment Stimulus programmes, which we launched in October 2020 have supported over 850,000 opportunities.
More than 80 per cent of participants were young people, and over 60 per cent were women.
It has supported young women like Tracy Nkosi from Springs, who was employed as an education assistant at Welgedag Primary School, and who says this opportunity has motivated her to further her studies in the educational sphere.
It has also supported Mama Nosipho Cekwana from Impendle in KwaZulu-Natal who used her farming input voucher to buy maize, manure and supplements for her livestock.
The total number of direct beneficiaries will soon rise to over one million South Africans.
This includes over half a million young people appointed as education assistants, making it the largest youth employment programme ever undertaken in our history.
The employment stimulus will also enable the Department of Home Affairs to recruit 10,000 unemployed young people for the digitisation of paper records, enhancing their skills and contributing to the modernisation of citizen services.
The Social Employment Fund will create a further 50,000 work opportunities using the capability of organisations beyond government, in areas such as urban agriculture, early childhood development, public art and tackling gender-based violence.
In addition to expanding public employment, we are providing support to young people to prepare them for work and link them to opportunities.
To encourage hiring by smaller businesses, we will be increasing the value and expanding the criteria for participation in the Employment Tax Incentive.
For several years, this has been an effective way to encourage companies to hire new work seekers. The changes to the incentive will make it easier for small businesses in particular to hire young people.
The Minister of Finance will announce the details of these changes in the budget.
We call on companies to support this effort, take up the incentive and give young people a place in the world of work.
The SAYouth.mobi platform for young work seekers to access opportunities and support now has more than 2.3 million young South Africans registered.
Of these over 600,000 have been placed into employment opportunities.
A revitalised National Youth Service will recruit its first cohort of 50,000 young people during the next year, creating opportunities for young people to contribute to their communities, develop their skills and grow their employability.
The Department of Higher Education and Training will place 10,000 unemployed TVET graduates in workplaces from April 2022.
In preparing this State of the Nation address I was assisted by two young South Africans who are working as interns in the Presidency, Ms Naledi Malatji and Ms Kearabetswe Mabatle.
They told me about the pain felt by young people who find themselves with a qualification, but are unemployed because of lack of experience.
This forces many into jobs that have little or nothing to do with what they studied.
All of the measures I have outlined are essential to provide young people with the work experience that they need to take their first step into the labour market.
We are calling on the private sector to support these measures – and, wherever possible, to drop experience as a hiring requirement – to give as many young people as possible their first job.
As we work to grow the economy and create jobs, we will expand support to poor families to ensure that no person in this country has to endure the pain and indignity of hunger.
Our social protection system is among the greatest achievements of the democratic government, reaching more than 18 million people every month.
Without this support, millions more people would live in dire poverty.
Since the onset of COVID-19, the Social Relief of Distress Grant has provided support to more than 10 million unemployed people who were most vulnerable to the impact of the pandemic.
Some people used that money to start businesses.
Mr Thando Makhubu from Soweto received the R350 grant for 7 months last year, and saved it to open an ice-cream store that now employs four people.
Mr Lindokuhle Msomi, an unemployed TV producer from KwaMashu Hostel, saved the R350 grant he received for nine months to start a fast food stall and to support his family.
As much as it has had a substantial impact, we must recognise that we face extreme fiscal constraints.
A fiscal crisis would hurt the poor worst of all through the deterioration of the basic services on which they rely.
Mindful of the proven benefits of the grant, we will extend the R350 SRD Grant for one further year, to the end of March 2023.
During this time, we will engage in broad consultations and detailed technical work to identify the best options to replace this grant.
Any future support must pass the test of affordability, and must not come at the expense of basic services or at the risk of unsustainable spending.
It remains our ambition to establish a minimum level of support for those in greatest need.
Expanding access to land is vital for our efforts to reduce hunger and provide people with meaningful livelihoods.
We are moving ahead with land reform in terms of the Constitution, and anticipate the approval of the Expropriation Bill during this year.
The establishment of the Agriculture and Land Reform Development Agency will be finalised this year.
The Department of Public Works and Infrastructure will finalise the transfer of 14,000 hectares of state land to the Housing Development Agency.
We have enough arable land to support millions of thriving small-scale farmers in poultry, livestock, fruit and vegetables.
Through the Presidential Employment Stimulus and the Solidarity Fund, over 100,000 farmers have already received input vouchers to expand their production.
This scheme has proven to be effective and impactful.
The agriculture sector has also recognised the importance of supporting small-scale farmers and integrating them into value chains.
Through the sugar master plan, the industry has provided R225 million to over 12,000 small-scale sugar cane growers as part of a R1 billion commitment to support black farmers.
We will be expanding the provision of input vouchers and calling on other sectors to join this effort, so that we can collectively reach up to 250,000 small-scale farmers this year.
None of our efforts to revive our economy will succeed if we do not tackle the scourge of corruption once and for all.
Since the beginning of the year, I have been provided with the first two parts of the report of the Commission of Inquiry into State Capture headed by Acting Chief Justice Raymond Zondo.
While the definitive conclusion has yet to be delivered at the end of this month, the first two parts of the report make it plain that there was indeed ‘state capture’.
This means that public institutions and state-owned enterprises were infiltrated by a criminal network intent on looting public money for private gain.
The reports have detailed the devastating effects of this criminal activity on SAA, Transnet, Denel, South African Revenue Service and Government Communications.
State capture had a direct and very concrete negative impact on the lives of all South Africans, but especially the poorest and most vulnerable members of our society.
It has weakened the ability of the state to deliver services and to meet the expectations and constitutional rights of people.
We must now do everything in our power to ensure that it never happens again.
My responsibility is to ensure that the Commission report is properly and carefully considered and then acted upon.
By no later than 30 June, I will present a plan of action in response to the Commission’s recommendations.
We will, as the Commission’s first report recommends, strengthen the system to protect whistle-blowers, who are a vital safeguard in the fight against corruption and who take huge personal risk in reporting wrong-doing.
We are doing a detailed review of all applicable legislation and a comparative study of other jurisdictions to strengthen whistle-blower protection.
The relevant law enforcement agencies are taking the necessary steps to address the immediate concern about the safety of whistle-blowers.
Many individuals and companies that the Commission has found were responsible for state capture must now be held to account.
I have every confidence that the National Prosecuting Authority will carry out the further investigations that the Commission has recommended, and that it will bring the members of the criminal network that infiltrated government and captured the state swiftly to justice.
The Investigating Directorate in the NPA is now poised to deliver on its crucial mandate, and a dedicated team has been established to pursue these cases.
We will be appointing a new head of the Investigating Directorate following the departure of Adv Hermione Cronje from that position.
An amendment to the State Capture Commission regulations in June 2020, empowered the sharing of information between the Commission and law enforcement agencies.
This amendment also permitted the employment of the State Capture Commission personnel by law enforcement agencies.
These empowering provisions has geared the Investigating Directorate to more effectively pursue the investigations emanating from the Commission.
We have gratefully acknowledged the offer of support from the private sector to assist in providing those skills which we lack in government to enable investigation and prosecution of crime.
To ensure that the prosecuting authority remains true to its constitutional obligation and to ensure transparency, we are developing a framework for private sector cooperation that will be managed through National Treasury.
There are also discussions underway with the Judiciary for the creation of special court rolls for state capture and corruption cases.
While we have taken decisive steps to end the era of state capture, we know that the fight against corruption is far from over.
Even as the country was suffering the devastation of the COVID-19 pandemic, companies and individuals were conspiring with public officials to defraud the government of billions of rands in COVID-related contracts.
As soon as evidence emerged of this corruption we acted.
We withdrew certain emergency procurement regulations, set up a fusion centre that brought together various law enforcement agencies, published the details of all COVID-related contracts online and instituted the most extensive investigation that the Special Investigating Unit has undertaken since its formation.
In December, the SIU submitted its final report on its investigation into COVID-related contracts.
As a result, 45 matters, with a combined value of R2.1 billion, have been enrolled with the Special Tribunal.
The SIU has referred 224 government officials for disciplinary action and referred 386 cases for possible prosecution to the NPA.
The Presidency has set up mechanisms to monitor implementation of the recommendations of the SIU and ensure that government departments and entities act against those who have violated regulations and broken the law.
The fight against corruption will take on a new intensity thanks to the outcomes of the State Capture Commission, the strengthening of law enforcement agencies and the implementation of new anti-corruption practices in the public service.
State-owned enterprises play a vital role in our economy.
From water and roads, to energy and ports, to defence and aviation, these strategic assets are necessary to keep our country running.
It is essential that we reverse their decline, and position them to contribute positively.
We have therefore embarked on several immediate measures to restore these companies to health, at the same time as we undertake far-reaching reforms that will make our SOEs more efficient, competitive, accountable and sustainable.
The Presidential SOE Council, which I appointed in 2020, has recommended that government adopt a centralised shareholder model for its key commercial state-owned companies. This would separate the state’s ownership functions from its policy-making and regulatory functions, minimise the scope for political interference, introduce greater professionalism and manage state assets in a way that protects shareholder value.
As part of this, preparatory work has begun for the establishment of a state-owned Holding Company to house strategic SOEs and to exercise coordinated shareholder oversight.
To ensure that state-owned enterprises are effectively fulfilling their responsibilities, the Presidential SOE Council is preparing recommendations on state-owned entities to be retained, consolidated or disposed of.
Any recommendations would be subject to extensive consultation with all stakeholders.
We are taking steps to safeguard our democracy, protect our economic infrastructure and build safer communities for all.
Earlier this week, we released the report of the expert panel into the civil unrest in July last year.
The report paints a deeply disturbing picture of the capabilities of our security services and the structures that exist to coordinate their work.
The report concludes that government’s initial handling of the July 2021 events was inept, police operational planning was poor, there was poor coordination between the state security and intelligence services, and police are not always embedded in the communities they serve.
The expert panel said that if the violence has exposed anything it was the poverty and inequality that is the root cause of the desperation of the people of South Africa.
The expert panel found that Cabinet must take overall responsibility for the events of July 2021.
This is a responsibility that we acknowledge and accept.
We will, as recommended by the panel, develop and drive a national response plan to address the weaknesses that the panel has identified.
We will begin immediately by filling critical vacancies and addressing positions affected by suspensions in the State Security Agency and Crime Intelligence.
We will soon be announcing leadership changes in a number of security agencies to strengthen our security structures.
The staffing of the public order policing unit of the South African Police Service will be brought to an appropriate level, with appropriate training courses in place.
The ongoing damage to and theft of economic infrastructure has damaged confidence and severely constrained economic growth, investment and job creation.
At the same time, we need to confront the criminal gangs that invade construction sites and other business places to extort money from companies.
This requires a focused and coordinated response.
Government has therefore established specialised multi-disciplinary units to address economic sabotage, extortion at construction sites and vandalism of infrastructure.
We will make resources available to recruit and train an additional 12,000 new police personnel to ensure that the SAPS urgently gets the capacity it needs.
Another area of immediate attention will be the re-establishment of community policing forums to improve relations and coordination between local police and residents of the areas they serve.
It is clear from the observations of the expert panel that we need to take a more inclusive approach to assessing the threats to our country’s security and determining the necessary responses.
I am calling on all South Africans through their various formations to participate in developing our National Security Strategy.
I will be approaching Parliament’s Presiding Officers to request that Parliament plays a key role in facilitating inclusive processes of consultation.
The security services have been tasked by the National Security Council to urgently develop implementation plans that address the range of recommendations made by the expert panel.
These measures will go a long way to address the serious concerns about the breakdown of law and order in society.
This year, we are intensifying the fight against gender-based violence and femicide through implementation of the National Strategic Plan on GBVF and other measures to promote the empowerment of women.
Earlier this month, I signed into law three new pieces of legislation, which has strengthened the criminal justice system, promoting accountability across the state and supporting survivors.
The implementation of this legislation will go a long way to ensuring that cases are successfully prosecuted, that survivors are protected and that there are more effective deterrents in place.
We have made significant progress in reducing the backlog in DNA processing, reducing it from 210,000 exhibits in April 2021 to around 58,000 at present.
However, the fight against gender-based violence will never be won unless, as a society, we mobilise all formations and all citizens behind a sustained programme of social action.
As the COVID-19 pandemic has starkly demonstrated, a nation’s health is inextricably linked with its economic progress and social development.
We will therefore continue with the work underway to ensure universal health coverage for everyone in South Africa, regardless of their ability to pay.
While public hearings on the National Health Insurance Bill are continuing in Parliament, much progress is being made in preparing for the introduction of NHI.
More than 59 million people are registered in the Health Patient Registration System.
By September 2021, more than 56,000 additional health workers had been recruited and more than 46,000 community health workers integrated into the public health system.
For the last two years, the education of our children and young people has been severely disrupted.
As we return to normal educational activity, we will work harder to ensure that all learners and students get the quality education they need and deserve.
Fellow South Africans,
Government must work for the people.
That is why our foremost priority is to build a capable, ethical and developmental state.
We will soon be finalising a framework for the professionalisation of the public service.
This will include tighter measures for recruitment of public servants, continuous professional development through the National School of Government and partnerships between state bodies, professional associations and universities.
Lifestyle audits are already being implemented across the public service.
This year, we will continue with the implementation of the District Development Model.
This Model brings all three spheres of government together with other social partners in every district to grow inclusive local economies and improve the lives of citizens.
In particular, the DDM facilitates integrated planning and budgeting across spheres of government and improves integration of national projects at a district level.
While there are many parts of the state that require much work, there are institutions that continue to serve the people of this country effectively and efficiently.
One such institution is the South African Revenue Service, which will be 25 years old this year.
While SARS was badly damaged by state capture, it has made remarkable progress in restoring its integrity, credibility and performance.
Since its formation, SARS has collected some R16 trillion for the country’s social and economic development. This revenue has enabled government to improve the lives of millions through the provision of health care, education, social grants and other basic services.
A capable state is not only about the quality of public servants and the efficiency of institutions.
It is also, fundamentally, about how citizens are empowered to participate.
We must work together to ensure that platforms like schools governing bodies and community policing forums are more active and inclusive.
A vibrant civil society is crucial for a capable state and for development.
We will therefore be working with social partners to convene the long-awaited social sector summit.
This Summit will seek to improve the interface between the state and civil society and address the challenges that NGOs and CBOs face.
Our country has suffered several damaging blows in recent times.
A confluence of forces, many of them outside of our control, has brought us to where we are now.
We face steep and daunting challenges.
Indeed, we are engaged in a battle for the soul of this country.
But there can be no doubt that we will win.
I ask every South African to rally together in our fight against corruption, in our fight to create jobs, in our fight to achieve a more just and equal society.
We have faced many crises in our past, and we have overcome them.
We have been confronted with difficult choices, and we have made them.
In trying times, we have shown courage and resilience
Time and time again, we have pulled ourselves back from the brink of despair and inspired hope, renewal, and progress.
Now, we must do so again.
Let us forge a new consensus to confront a new reality, a consensus that unites us behind our shared determination to reform our economy and rebuild our institutions.
Let us get to work.
Let us rebuild our country.
And let us leave no one behind.
I thank you.
10 February 2022 - 9:00pm
A. Issues in the environment
1. Russia-Ukraine conflict
1.1. Cabinet remains deeply concerned by the ongoing Russia-Ukraine conflict. The socio-economic cost of the conflict is devastating and its impact will be felt around the world.
1.2. Cabinet calls for a negotiated diplomatic solution and urged all parties to uphold and protect human rights, and abide by their obligations in terms of international law and international humanitarian law.
1.3. Government continues to assist South African citizens to leave Ukraine and a number of them have since returned home. We have also expressed our concern at the ill treatment of Africans trying to cross international borders during this time.
1.4. We believe that developing countries must enjoy a greater share of voice and influence in institutions of global governance. South Africa therefore advocates for a more equitable international system and for the reform of multilateral institutions to promote greater equality.
2. South Africa Investment Conference (SAIC)
2.1. South Africa will host its fourth SAIC on Thursday, 24 March 2022 at the Sandton Convention Centre in Johannesburg. The conference is part of government’s investment drive to attract R1.2 trillion over five years, and it attracts delegates from South Africa and worldwide to discuss investment opportunities.
2.2. Since the first investment conference in 2018, South Africa has attracted R774 billion in commitments across a wide range of economic sectors. Of the 152 investment announcements made previously, 45 projects have already been completed. A further 57 projects are currently under construction.
2.3. As of February 2022, those firms who have completed their reporting, have advised that R314 billion (40,6%) of the committed investment pledges have been expended.
2.4. These new investments will help us to grow the economy, create much-needed jobs and improve the lives of people.
3. Update on the Coronavirus Disease (COVID-19)
3.1. Cabinet acknowledged the country’s efforts towards the fight against COVID-19 but cautioned that the battle is not yet over, and urged all people in South Africa to remain vigilant and continue protecting themselves to stop the spread of the deadly virus.
3.2. Cabinet is pleased that almost 32 million COVID-19 vaccine doses have been administered and that over 42 percent of our adult population is fully vaccinated.
3.3. However, unvaccinated people still remain unprotected against COVID-19 and pose a health risk to themselves and those around them. Vaccination remains the best way to fight COVID-19, and Cabinet calls on everyone aged 12 years and above to vaccinate without further delay.
3.4. Booster shots are now freely available for most people and Cabinet calls on those who are eligible to get boosted as soon as possible. We must also continue to wear masks that cover both the mouth and nose, wash or sanitise our hands frequently, keep a safe social distance and ensure adequate ventilation by opening windows.
4. Africa Energy Indaba
4.1. Cabinet welcomed the successful conclusion of the hybrid Africa Energy Indaba held in Cape Town from 1 to 3 March 2022 under the theme: “The Business Meeting of Choice for the African Energy Sector”. The gathering brought together influential global and local players from the energy sector to deliberate on how the African continent can use energy as a catalyst to grow the economy and improve the lives of people.
4.2. South Africa remains committed to achieving an energy mix that is consistent with its development goals and its climate change goals while ensuring security of supply.
5. Security Cluster appointments
5.1. Cabinet welcomed the recent high-level appointments in the National Prosecuting Authority (NPA) and the State Security Agency (SSA). President Ramaphosa appointed Adv Andrea Johnson to head the NPA’s Investigating Directorate and Ambassador Thembisile Majola as the new Director-General (DG) of the SSA.
5.2. The President also appointed Adv Navilla Somaru as Director of Public Prosecutions (DPP) in the Free State; Adv Matodzi Rachel Makhari-Sekhaolelo as DPP in North West and Adv Nicolette Bell as DPP in the Western Cape.
5.3. These appointments will strengthen our capacity to investigate and prosecute all acts of crime and corruption.
6. Service delivery oversight visit
6.1. Cabinet welcomed the successful oversight visit by the Minister of Public Works and Infrastructure, Ms Patricia de Lille and the Minister in The Presidency, Mr Mondli Gungubele, to the N2 Nodal Project in the Nelson Mandela Bay Municipality in the Eastern Cape on Tuesday, 8 March 2022.
6.2. The visit forms part of government’s initiative towards a more regular direct assessment of the progress made on the implementation of the Infrastructure Investment Plan to reignite the economy and create jobs.
6.3. This specific project comprises 12 100 new housing opportunities with over 500 000 m² retail, commercial, office and industrial facilities, as well as the full spectrum of community and social facilities.
7. International Women’s Day
7.1. South Africa joined the international community in commemorating International Women’s Day on Tuesday, 8 March 2022. This day is an opportunity to reflect how far we have come in advancing gender equality and what needs to be done to become a more gender equal nation.
7.2. Cabinet is impressed by the many successes worth celebrating since the dawn of democracy. South Africa has made progress in promoting equality for women in areas like government, civil society, the administration of justice, sport and culture. However, Cabinet reiterates that more still needs to be done to ensure full and equal participation of women in South Africa's economy.
7.3. Cabinet also welcomed the appointment of South Africa to the Chairship of the sixty-sixth session of the United Nations Commission on the Status of Women to be held from Monday, 14 March to Friday, 25 March 2022.
8. State security
8.1. Cabinet noted the United States Treasury’s arrest of individuals allegedly involved in money laundering. We continue to work with our international partners to stem the flow of illicit funds.
8.2. Our security forces remain on high alert and are in constant liaison with foreign intelligence services, both within South Africa and abroad. Their work includes information exchange on threats presented by violent extremism and terrorism.
9. Public violence
9.1. Cabinet condemned the recent incidents of violence and public clashes in Alexandra near Sandton. No amount of discontent can justify the violation of people’s rights in the country.
9.2. Cabinet welcomed the speedy intervention by law-enforcement agencies, which resulted in calm being restored in the area and the arrest of several alleged perpetrators of public violence.
9.3. Communities are urged to use peaceful means to resolve disputes and to report all illegal activities to law-enforcement agencies.
10. Economy
10.1 Cabinet has noted the gross domestic product (GDP) figures released by Statistics South Africa recently which showed that South Africa’s GDP grew by 1.2 percent in the fourth quarter of 2021, after shrinking by 1.7 percent in the third quarter of 2021. This brings South Africa’s annual growth rate for 2021 to 4.9 percent. The main contributors to this growth were recorded in, agriculture, manufacturing, services and transport.
10.2. Cabinet remains resolute to continue working with its social partners towards our inclusive economic growth and create an environment where we will be able to address the challenges of unemployment, poverty and inequalities.
11. Auction of the high demand radio frequency spectrum
11.1. Cabinet congratulated the Independent Communications Authority of South Africa for the commencement of the auction of the high demand radio frequency spectrum, despite the ongoing litigations.
11.2. It also congratulated the bidders who participated in the auction on Tuesday, 8 and Thursday, 10 March 2022, which shows the intent by the telecommunications industry to continue investing in the digital infrastructure in South Africa.
11.3. Government remains committed to creating an enabling environment for radio spectrum to be used optimally, not only by the telecommunications industries but also to benefit the economy and society.
11.4. The licensing of high demand radio spectrum will improve the ability of mobile telecommunications operators to build robust telecommunications with greater penetration and reach. Great benefits of this long-awaited process include the reduction of the costs of data and voice communication.
11.5. The spectrum is also expected to contribute to economic transformation in the various sectors and the proceeds of the auction will inject over R8 billion into the national fiscus.
12. National Lotteries Commission (NLC) investigations
12.1. Cabinet noted the remarkable progress achieved by the Special Investigating Unit Investigation in their intensive investigation of maladministration and corruption within the NLC, and urged other law-enforcement agencies dealing with this matter to complete their work as soon as possible. This will ensure the necessary steps can be taken to hold accountable persons or organisations implicated in the unlawful misappropriation of funds earmarked to benefit the poor.
B. Cabinet decisions
1. National Infrastructure Plan (NIP) 2050
1.1. Cabinet approved the NIP 2050 for implementation. The NIP provides catalytic projects that are meant to contribute towards the country’s long-term economic and social developmental goals.
1.2. The plan received a number of written comments after it was published for public comment in August 2021. Inputs were also received from public consultations with various stakeholders in the infrastructure sector. The consultation also included regional and continental bodies such as the Southern African Development Community and African Union Commission for Infrastructure.
1.3. The NIP provides for the development of the country’s infrastructure networks that are aligned to the National Spatial Development Framework and the District Development Model (DDM). It also focuses the construction of infrastructure towards socio-economic development, and also to generate employment and broad-based black economic empowerment opportunities.
2. Liquefied Petroleum Gas (LPG) Rollout Strategy of 2022
2.1. Cabinet approved the publication of the LPG Rollout Strategy of 2022 in the Government Gazette for public comment. The strategy seeks to contribute towards addressing the country’s energy supply challenges.
2.2. The strategy deals with, amongst others, the structural features of the current LPG market, existing infrastructure, the pricing structure and the current local manufacturing capacity of the LPG cylinders. The strategy also deals with the safety and awareness campaign to raise the profile of domestic gas as an environmentally friendly fuel.
3. Exploration Strategy for the Mining Industry of South Africa
3.1. Cabinet approved the Exploration Strategy for the Mining Industry of South Africa. The strategy will, amongst others, provide immediate interventions in its implementation plan to undertake a comprehensive geoscience mapping to improve the country’s geoscience data.
3.2. The strategy also proposes a collaboration between the Department of Mineral Resources and Energy with the Industrial Development Corporation to ensure that exploration provides for the inclusion of the emerging exploration companies. It also reinforces the research role to be played by research institutions such as MINTEK and the Council for Scientific and Industrial Research, and the skills development programme.
3.3. The strategy is the product of a broader consultation between government, industry and other social partners. The mining industry remains the vital lifeblood of the country’s economic ecosystem.
4. Operationalisation of the Batho Pele Revitalisation Strategy of 2021
4.1. Cabinet approved the operationalisation of the Batho Pele Revitalisation Strategy of 2021. The strategy is an outcome of a number of researches conducted by both government and non-governmental institutions on the effectiveness of the 1997 Batho Pele Policy.
4.2. The strategy provides the five pillars which will guide the minimum standards to be adhered to by all departments. The proposed interventions will give effect to a citizen-centred public service delivery programme.
4.3. This strategy will give effect to the strengthening of a capable, ethical and developmental state, which remain a critical intervention in serving the citizens of South Africa. It will also strengthen the implementation of the eight principles of Batho Pele. Ultimately, it seeks to drive behavioural change within the Public Service.
5. Amendment to the policy on high-demand spectrum and the policy direction on the licensing of a wireless open access network (WOAN)
5.1. Cabinet approved the amendmentof the policy on high-demand spectrum and the policy direction on the licensing of a WOAN to be published for public comment. The proposed amendments remove the requirements to license the WOAN.
5.2. Cabinet had in 2019 approved this policy on high-demand spectrum and the policy direction on the licensing of a WOAN to give effect to the Electronic Communications Act, 2005 (Act 36 of 2005). The licensing of high-demand spectrum remains critical to the country’s economic recovery drive.
6. Taxi Relief Fund (TRF) to mitigate the impact of COVID-19
6.1. Cabinet approved the extension of the cut-off date for applications for the COVID-19 TRF, from 31 March 2022 to 31 March 2023. The TRF, with a budget of about R1,135 billion, was allocated as a once-off payment to mitigate the negative financial impact of COVID-19 on the taxi industry.
6.2. The National Empowerment Fund is responsible for the disbursement of the compensation to all legal taxi operators with valid operating licences, including minibus-taxis, metered taxis and e-hailing partners.
C. Bills
1. South African Post Office (SAPO) Amendment Bill of 2021
1.1. Cabinet approved the publication of the SAPO Amendment Bill for public comment. The Bill seeks to amend the SAPO Act, 2011 (Act 22 of 2011).
1.2. The proposed amendments seek to enable SAPO to take advantage of the technological developments in its environment. It will be able to revise its duties and expand its mandate. It will be a service provider of a universal postal and courier; an integrated logistics; e-commerce, and will be a digital hub for business and communities. The proposed amendments, which are aligned to the National Integrated ICT Policy White Paper of 2016, also make improvements to the governance provisions of the SAPO.
2. South African Postbank Amendment Bill of 2021
2.1 Cabinet approved the submission of the South African Postbank Amendment Bill of 2021 to Parliament. The Bill amends the Post Bank Act, 2010 (Act 9 of 2010) to align it with the Banks Act, 1990 (Act 94 of 1990). It provides for the establishment of the South African Postbank Holding Company in terms of the Banks Act of 1990.
2.2 The Bill has gone through public consultation to strengthen it. Once adopted into law, the Postbank will be able to operate as a separate entity with its regulatory framework outside of the SAPO.
3. Radioactive Waste Management Fund Bill
3.1 Cabinet approved the publication of the Radioactive Waste Management Fund Bill for public comment. The Bill provides for the creation of the fund as directed by the Radioactive Waste Management Policy.
3.2 The funds will be collected to be used towards the management of radioactive waste. It will enable the setting up of the infrastructure to handle, provide storage and oversee the permanent disposal of the radioactive waste. The fund will be managed through the National Radioactive Disposal Institute.
3.3 South Africa benefits on clean energy generated through the Koeberg Nuclear Power Station. Also, South Africa remains one of the biggest producers of the radiopharmaceuticals products that diagnose and treat cancer in the world.
D. Upcoming Events
1. Official Visit by the President of Mozambique
1.1. President Cyril Ramaphosa will be hosting his Mozambican counterpart, His Excellency President Filipe Nyusi on Friday, 11 March 2022.
1.2. The visit will further strengthen mutual, regional and continental cooperation between the two nations. It also reinforces bilateral relations and cooperation between South Africa and Mozambique, both politically and economically.
2. Presidential Imbizo in North West
1.1. On Saturday, 12 March 2022, President Ramaphosa will lead a delegation to North West to conduct a Presidential Imbizo. During this event, the President and leaders from all three spheres of government will interact with communities in North West.
1.2. The inaugural Presidential Imbizo of 2022 provides a platform for the President to engage with communities on their experiences of daily life and service delivery by government. Citizens will also engage directly on their proposals on how we can grow South Africa together, without leaving anyone behind.
1.3. Building on the DDM, which calls for greater cooperation between citizens and public representatives, Cabinet urges communities in North West to use this opportunity to engage directly with the President and to make their concerns or proposals heard.
2. Human Rights Day
2.1. Cabinet welcomes the series of dialogues and events under the theme: “The Year of Unity and Renewal: Protecting and Preserving our Human Rights Gains” being conducted as part of commemorating this year’s Human Rights Day on Monday, 21 March 2022. This also contributes to assessing the progress of the nation’s constitutional democratic project.
2.2. Cabinet calls on all South Africans to use Human Rights Month to foster greater social cohesion, nation-building and a shared national identity. It is our duty as a nation to strive for inclusive socio-economic development, while ensuring that we combat racism, racial discrimination and all related intolerances.
3. National Water Week
3.1. The National Water Week campaign takes place from Sunday, 20 to Saturday, 26 March 2022, and focuses on the need to protect and conserve our water resources.
3.2. Despite much heavier than normal rainfall in many parts of the country over the past few months, South Africa remains a water-scarce country. It is one of the 30 driest countries in the world and most of its water comes from rainfall.
3.3. Cabinet reassures citizens that our tap water is safe for human consumption, as confirmed by the National Institute for Communicable Diseases, and reports about unsafe drinking water linked to typhoid fever are false. Government is prioritisng water reticulation in communities.
E. Messages
1. Congratulations
Cabinet extended its congratulations and well-wishes to the:
- South African Women’s cricket team, who are flying the national flag high at the ICC Women’s Cricket World Cup in New Zealand.
- Athlete Stephen Mokoka, who has broken the men’s 50 km world record in a time of two hours, 40 minutes and 13 seconds, in the Nedbank Runified Breaking Barrriers race held in Gqeberha, Eastern Cape, on Sunday, 6 March 2022.
2. Condolences
Cabinet expressed condolences to the family and friends of:
- Mr Mandla Ka-Mabuza (47), an artist, orator and former President of the South African Students’ Congress. He was the former public servant in the Department of Public Works and Infrastructure.
F. Appointments
All appointments are subject to the verification of qualifications and the relevant clearance.
1. Mr Zane-Udien Dangor as DG at the Department of International Relations and Cooperation.
2. Ms Phindile Patronella Mkwanazi as Deputy DG: Learning and Professional Development at the National School of Government.
3. Mr David Mamphitha as Chief Executive Officer of the Mine Health and Safety Council.
4. Persons to serve in the International Air Services Council:
(a) Ms Nomveliso Ntanjana (Chairperson);
(b) Mr Nare Thupana (Vice Chairperson);
(c) Mr Grant Reagon Son;
(d) Mr Tumelo Chipfupa; and
(e) Ms Pfumelani Dorcas Mbulayeni.
5. Persons to serve in the Air Services Licensing Council:
(a) Mr Leroy Musa Nsibande (Chairperson);
(b) Ms Raesibe Sharon Kekana (Vice Chairperson);
(c) Mr Rickie Rodger Rennie;
(d) Ms Zonica Leanda Mtshali; and
(e) Mr Ramovha Emmanuel Mbuwe.
Enquiries:
Ms Phumla Williams – Cabinet Spokesperson
Cell: 083 501 0139
A. Issues in the environment
1. National State of Disaster
1.1. The South African Government responded to the Coronavirus Disease (COVID-19) global pandemic by declaring the National State of Disaster in March 2020, in terms of the Disaster Management Act, 2002 (Act 57 of 2002). This facilitated an integrated and coordinated response to save lives and livelihoods.
1.2. The country has been under regulations of the National State of Disaster on COVID-19 since March 2020, when South Africa recorded its first cases of the virus. The President has announced further interventions that are meant to get the country to embark on a new phase in the management of the COVID-19 pandemic.
1.3. The recent extension of the National State of Disaster to 15 April 2022 takes into consideration the need to continue augmenting the existing legislation and contingency arrangements undertaken by organs of state to address the impact of the disaster.
1.4. Cabinet has called for the consideration of health regulations to regulate non-pharmaceutical safety measures such as the wearing of masks, social distancing, limits for gatherings and vaccinations. They will also allow us to set up emergency, rapid and effective response systems to mitigate the severity of COVID-19.
2. COVID-19 vaccination
2.1. Cabinet reminded all people in South Africa to remain vigilant as COVID-19 has not yet been defeated, and called on those aged 12 years and older to vaccinate. Vaccination remains our best defence against the virus, and reduces the risk of serious illness, hospitalisation and death.
2.2. Although infections and deaths currently remain low, we face a possible fifth wave in the coming weeks. The only defence we have is the scientific evidence showing the power of vaccines to save lives. Our country has already administered over 33 million doses of the COVID-19 vaccines.
2.3. Cabinet further welcomed the Code of Practice on the management of COVID-19 exposure in the workplace issued by the Department of Employment and Labour. The Code of Practice was developed following public consultation with the National Economic Development and Labour Council and will take effect when the National State of Disaster is lifted.
2.4. The Code of Practice will guide employers and employees in conducting or updating a risk assessment plan to limit COVID-19 infections in the workplace. It lists measures such as vaccination, social distancing and personal hygiene to safeguard workspaces.
3. South Africa Investment Conference (SAIC)
3.1. Cabinet welcomed delegates from across the country and world to the fourth SAIC taking place on Thursday, 24 March 2022 in Johannesburg.
3.2. The conference is showcasing the many investment opportunities and comparative advantages that South Africa offers investors, in a period of growing African integration through the African Continental Free Trade Area (AfCFTA), which promotes intra-African trade.
3.3. Local and foreign investments play an important role in growing our economy and creating sustainable jobs. The SAIC spurs a cycle of economic activity, employment and consumer demand that can support the growth trajectory of the country.
3.4. Our past investment conferences have attracted a total of R774 billion in commitments. Of the 152 investment projects announced, 45 have already been completed and a further 57 are under construction.
3.5. Cabinet is confident that this year’s conference will build on our investment tally, as part of our nation’s drive to attract R1.2 trillion in investment over five years.
4. Impact of the Russia and Ukraine conflict on the economy
4.1. Cabinet is considering the impact the current conflict between Russia and Ukraine will have on the country’s economy, as its effects are being felt on financial markets and prices across the world.
4.2. The best way to protect our economy and welfare of our people is to proceed with the implementation of the Economic Reconstruction and Recovery Plan (ERRP).
4.3. Government is committed to using all of the levers at our disposal to cushion South Africans from the effects of the rising cost of living and ensure that our economy withstands these turbulent times.
5. Auction of the high-demand radio frequency spectrum
5.1. Cabinet welcomed the successful conclusion of the country’s first auction of the high-demand radio frequency spectrum by the Independent Communications Authority of South Africa. The R14.4-billion revenue collected from the auction will go to the national fiscus to support our national priorities, which include rebuilding the economy, creating much-needed jobs, and fighting corruption, crime and gender-based violence and femicide.
5.2. The availability of additional high-demand spectrum will speed up the roll-out of new technologies such as 5G, reduce the cost of mobile data and ensure greater internet connectivity. The licensing of the new spectrum is accompanied by agreed social obligations to connect public schools, health facilities and police stations over the next three years.
6. Human Rights Day
6.1. Cabinet thanked all South Africans for joining in the country’s Human Rights Day celebrations on Monday, 21 March 2022 under the theme: “The Year of National Unity and Renewal: Promoting and Protecting our Human Rights.”
6.2. Advancing human rights in our country is a catalyst for nation-building, which is a process we must continue to nurture and defend at all times. Through our diversity, we can strengthen our unity and build a cohesive society.
6.3. In the continuing spirit of working together, as we move towards Freedom Month in April, Cabinet called on all South Africans to renew our fight against racism, racial discrimination, xenophobia and all related intolerances in their area of influence.
7. Appointment of the Chief Justice of South Africa
7.1. Cabinet noted and congratulated the former Deputy Chief Justice Raymond Zondo on being appointed as the new Chief Justice of South Africa, with effect from 1 April 2022, and wished him well in his new responsibilities.
7.2. Cabinet further noted President Cyril Ramaphosa’s intention to nominate Justice Mandisa Maya, the President of the Supreme Court of Appeal of South Africa, for the position of Deputy Chief Justice when it becomes vacant.
8. Interim order granted on humantarian aid to the Republic of Cuba
8.1. Cabinet has noted the interim order granted in the Pretoria High Court, pausing implementation of the humanitarian aid that South Africa had agreed to provide to the Republic of Cuba. The matter will again be before the courts in 20 days’ time and government will present its argument then.
8.2 South Africa’s bonds of friendship with Cuba are deeply rooted in our region’s struggle for liberation. Were it not for the selfless intervention of the Cubans in Southern Africa over three decades, it would have taken far longer to liberate this region from colonial oppression. Former President Nelson Mandela understood this, which is why Cuba was the first country outside the continent Madiba visited upon his release from prison in 1990.
8.3. Cuba made monumental sacrifices to fight alongside African liberation movements at a time when the small island nation had been struggling under the United States’ economic embargo for a decade and a half. Cuba’s economic crisis has become untenable and the Cuban Government is in need of assistance. Mexico, Bolivia and Russia are among the countries which have provided humanitarian aid to ease the island’s worst economic crisis in decades.
8.4. Cabinet this week joins in commemorating the Battle of Cuito Cuanavale in Angola that took place from 1987 to 1988. Cuba played the critical role in assisting African liberation movements to realise their objectives. There was no material gain for the Cubans who came to our support, but their overriding incentive was to fight for the liberation of Southern Africa from colonial and reactionary forces. Then President Fidel Castro was driven by revolutionary zeal and he told his comrades they were fighting “the most beautiful cause of mankind”. From Angola to Namibia and Algeria to Guinea Bissau, Cuba played a decisive role in contributing to the liberation of these African countries from colonial occupation.
8.5. Cuba has continued to consistently provide medical and other assistance to South Africa in the post-1994 period, most recently during the COVID-19 pandemic, and it is our moral obligation to show solidarity with the people of Cuba at a time when they are struggling to survive.
9. Visit by His Majesty King Letsie III
9.1. Cabinet noted and welcomed the courtesy call from His Majesty King Letsie III of the Kingdom of Lesotho to President Ramaphosa that took place on Friday, 18 March 2022 in Pretoria.
9.2. President Ramaphosa, in his capacity as the Southern African Development Community (SADC) Facilitator to the Kingdom of Lesotho, exchanged views with His Majesty King Letsie III on bilateral relations and progress regarding the SADC facilitation process in the Kingdom of Lesotho. It is envisaged that Basotho, through the facilitation of President Ramaphosa, will work in earnest to complete the reforms process before holding the next general elections scheduled for September 2022.
B. Cabinet decisions
1. Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS MLI)
1.1. Cabinet approved the submission of the BEPS MLI to Parliament for ratification. As one of the 95 countries participating in the convention initiated by the Organisation for Economic Cooperation and Development (OECD) to reduce opportunities for tax avoidance and base erosion by multinational companies, South Africa signed the tax treaty in June 2017. Once the tax treaty is ratified, South Africa will apply it alongside other tax treaties it has signed with other countries.
1.2. South Africa is a member of the OECD and is committed to working with other countries to stop company profits being artificially shifted out of the country to low or no tax environment.
2. Amendment of the Tax Treaty Protocol between South Africa and Kuwait
2.1. Cabinet approved the submission of the amended Tax Treaty Protocol signed between South Africa and Kuwait to Parliament. Amendments to this treaty, which came into force in 2006, were made and signed in 2021.
2.2. The tax protocol deals with the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income between the two countries.
2.3. Apart from dealing with tax evasion, such treaties seek to encourage tax transparency between countries.
3. Integrated Crime and Violence Prevention Strategy (ICVPS)
3.1. Cabinet approved the ICVPS for implementation. The strategy will serve as an implementation tool of the White Paper on Safety and Security adopted in 2016. It advocates for a whole of government and society approach in fighting crime and preventing violence.
3.2. The ICVPS consists of six interdependent and interrelated pillars namely, (1) an effective criminal justice; (2) early interventions in preventing crime; (3) victim support interventions; (4) effective and integrated service delivery; (5) safety through environmental design and (6) active public and community participation.The strategy acknowledges the need for complimentary interventions to address the drivers of crime such as poverty, inequality, unemployment, social welfare health and education.
3.3. It is inclusive in terms of both urban and rural areas, including traditional councils, as stakeholders. It has been fully consulted with all the spheres of government, business, research institutions and civil-society organisations. The approved strategy replaces the current National Crime Prevention Strategy.
4. South Africa’s Country Investment Strategy (CIS)
4.1. Cabinet approved the publication of the CIS for public comment. The strategy seeks to position the country as a key African investment destination of choice by leveraging quality foreign and domestic direct investments.
4.2. The strategy is anchored on the country’s priority investment and economic development sectors such as (i) finance, insurance, real estate and business services; (ii) transport and logistics, (iii) manufacturing; (iv) mining and quarrying, (v) electricity, gas and water, and (vi) agriculture and agro-processing.
4.3. It provides investment mechanisms to attract small, medium and micro enterprises into the economic growth drive. The strategy also taps into a number of multilateral, regional and bilateral agreements which South Africa has signed.
4.4. The strategy is aligned to the goals of the National Development Plan, ERRP, Re-imagined Industrial Strategy and the recently adopted National Infrastructure Plan 2050.
4.5. The nine provinces and their eight respective metropolitan key economies are central in driving the strategy, which will be a living document that will constantly be adaptable to the changing economic environment.
5. Revised National Biodiversity Framework (NBF)
5.1. Cabinet approved the NBF for implementation. The NBF, which Cabinet approved for public consultation in November 2020, was developed in line with the National Environmental Management: Biodiversity Act, 2004 (Act 10 of 2004). It provides for an integrated, coordinated and uniform approach to biodiversity management by all organs of state, non-governmental organisations (NGOs), the private sector and communities.
5.2. In 2018, the South African National Biodiversity Institute conducted a comprehensive scientific assessment of the state of biodiversity and ecosystem in South Africa. The revised NBF sectoral plan of action addresses the threats identified from this assessment.
5.3. The revised framework was consulted with all the spheres of government; state-owned entities (SOEs), conservationist entities; NGOs and local communities. The implementation of the NBF is guided by the adopted National Biodiversity Strategy and Action Plan (2015-2025). South Africa is a signatory to the United Nations’ Convention on Biological Diversity, which promotes the conservation of biological diversity, sustainable use of its components, and the fair and equitable sharing of benefits arising from genetic resources.
6. Draft National Spatial Development Framework (NSDF)
6.1. Cabinet approved the draft NSDF for implementation. It was prepared in terms of the Spatial Planning and Land Use Management Act, 2013 (Act 16 of 2013) and approved for public consultation in 2019. Inputs were obtained from various stakeholders, including professional bodies, all spheres of government, SOEs and members of the public.
6.2. The framework seeks to deal with the eradication of the colonial and apartheid spatial legacies in an orderly and coordinated manner. It provides a long-term spatially focused developmental approach towards planning and a land use management system. The document will be accessible through the website of the Department of Agriculture, Land Reform and Rural Development (www.dalrrd.gov.za).
7. Official Identity Management Policy
7.1. Cabinet approved the Official Identity Management Policy, following an extensive public consultation in 2021. This policy will replace the current Identification Act, 1997 (Act 68 of 1997), which establishes the National Population Register (NPR) and also specify its scope in the mandatory records that are captured on it. This Act is not aligned to the constitutional principles of equality, non-discrimination and human dignity.
7.2. The adopted policy proposes a single digital NPR of all people – irrespective of citizenship and sex status – who live and have lived in the country. It also provides for a biometric National Identity System (NIS) that will enable a single view of a person. The NIS will also be able to interface with other government and private sector identity systems.
7.3. The policy will also ensure the protection of the rights of members of the Lesbian, Gay, Bisexual, Transgender, Intersex, Queer and Asexual community.
8. White Paper on Marriages in South Africa
8.1. Cabinet approved the White Paper on Marriages in South Africa for implementation. The White Paper responds to many court judgements that have found some elements of the current marriage legislation to be unconstitutional. It has aligned all marriages to be concluded in accordance with the principles of equality, non-discrimination and human dignity as provided for in the Constitution of the Republic of South Africa of 1996.
8.2. The approved White Paper will allow South Africans and residents of all sexual orientations, religious and cultural persuasions to conclude legal unions in line with the constitutional principles. The White Paper outlines some of the unions that are excluded such as child marriages and those done in the absence of the other party
9. One-Stop Border Post (OSBP) Policy
9.1. Cabinet approved the OSBP and its implementation strategy. The policy seeks to harmonise the movement of people and goods between South Africa’s land ports of entry and its neighbouring countries. It gives effect to the One-Stop Border Framework that was adopted by Cabinet in 2018.
9.2. The application of the policy will alleviate current congestions at our land ports of entry for cross-border travellers and traders. These interventions are also key in the country’s efforts in driving the AfCFTA agreement.
9.3. Once fully operationalised with relevant legislation and infrastructure upgrades, we envisage that the processing of goods, vehicles and people will be done in a seamless and faster manner.
10. Interim hosting of the Presidential Climate Commission
10.1. Cabinet approved the transitional hosting of the Presidential Climate Commission by the National Economic Development and Labour Council (Nedlac). Nedlac will host the commission with its secretariat for two years or shorter to enable the promulgation of the Climate Change Act.
10.2. The period will also afford the commission – in collaboration with the Department of Forestry, Fisheries and the Environment – to finalise the feasibility study and business case for the future establishment of the commission as determined by the Climate Change Bill.
11. Draft White Paper on National Rail Policy
11.1. Cabinet approved the draft White Paper on National Rail Policy. The policy will guide in creating an efficient transport system that will be able to compete locally and internationally.
11.2. The policy proposes focused interventions that will promote investments in both the feight and passenger services. It will also improve rural access and increase mobility to promote economic growth. It will also contribute substantially towards reducing the country’s emissions as it proposes rail genetic technologies in upgrading the rail stock.
11.3. The policy will be made public once the Department of Transport has published it in the Government Gazette.
C. Bill
1. Independent Municipal Demarcation Authority (IMDA) Bill of 2022
1.1. Cabinet approved the submission of the IMDA Bill of 2022 to Parliament for further processing. The Bill was published for public comment in June 2020 and subsequent engagements on the comments received from the public.
1.2. The Bill provides the governance regime of the IMDA. Its proposals include clarifying the terms of the Board members and that they are to serve on a part-time basis, except for the Chairperson who may serve on a full-time basis. It also guides the IMDA on the process towards the delimiting of boundaries.
D. Upcoming event
1. Visit to the Middle East
1.1. President Ramaphosa will lead a delegation of Ministers to the World Expo Dubai in the United Arab Emirates on Monday, 28 March 2022. South Africa is participating at the expo with a pavilion showcasing the country’s rich heritage and investment opportunities.
E. Messages
1. Congratulations
Cabinet extended its congratulations and well-wishes to the:
2. Condolences
- Cabinet joined President Ramaphosa in extending condolences to the government and people of the Republic of Zambia following the passing of former President Rupiah Bwezani Banda (85).
Cabinet expressed condolences to the family and friends of:
- Mr Michael Spicer (68), the former Chief Executive Officer (CEO) of Business Leadership South Africa, who played a significant role in forging a stronger relationship between business and government.
- Mr Luzuko Koti (47), the former Director of Communication and Marketing at the Nelson Mandela Foundation and Business Manager of Channel Africa.
- Mr Sheik Abdul Gamiet Gabier (86), Life President of the Muslim Judicial Council South Africa, who was a renowned scholar, community activist and a pioneer of the Al-Azhar Institute of Cape Town.
F. Appointments
All appointments are subject to the verification of qualifications and the relevant clearance.
1. Non-Executive Board members of the National Housing Finance Corporation:
(a) Mr Luthando Vutula;
(b) Mr Thembinkosi Bonakele;
(c) Ms Seithati Bolimpobo;
(d) Ms Thembisile Chiliza;
(e) Ms Palesa Kadi;
(f) Ms Philisiwe Mthethwa;
(g) Mr Thulani Mabaso;
(h) Mr Paul Heeger;
(i) Mr Velile Cecil Dube;
(j) Ms Tshepiso Kobile; and
(k) Ms Ayesha Seedat.
2. Mr Lwazi Mboyi as CEO of the Cross-Border Road Transport Agency.
3. Ms Nozipho Mdawe as CEO of the Air Traffic and Navigation Services.
4. Ms Tshepo Kgare as CEO of the Railway Safety Regulator.
5. Mr Brenton Van Vrede as Executive Manager: Grants Operations Management at the South African Social Security Agency.
Enquiries:
Ms Phumla Williams – Cabinet Spokesperson
Cell: 083 501 0139
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