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Government welcomes the latest economic figures released by Statistics South Africa, which indicate that the country's gross domestic product (GDP) grew by 0.8% in the second quarter of 2025 (April–June), following a modest increase of 0.1% in the first quarter.

This growth reflects a broad-based recovery across key sectors of the economy. The manufacturing industry expanded by 1.8%, contributing 0.2 percentage points to overall GDP growth. Seven of the ten manufacturing divisions reported positive growth, with the largest contributions coming from petroleum, chemical products, and rubber and plastic products. The motor vehicles, parts and accessories, and other transport equipment divisions also supported growth.

The trade, catering, and accommodation sector showed strong performance, increasing by 1.7% and contributing 0.2 percentage points to GDP growth. This was driven by increased activity in retail trade, motor trade, accommodation, and food and beverages.

Amid challenging global economic conditions, these figures demonstrate the resilience of South Africa's economy. Government views this as a positive sign of the impact of ongoing initiatives to stimulate growth, support local industries, and create jobs. Government remains committed to policies that foster inclusive and sustainable economic development for all South Africans.

Distributed by APO Group on behalf of South African Government.

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The Portfolio Committee on Water and Sanitation welcomes the apparent collaboration between the Department of Water and Sanitation and the Department of Cooperative Governance in providing support to struggling municipalities but raised concerns that the tangible impact is negligible. The alignment of interventions was a resolution made at the Water Indaba.

The committee today held an interaction with both departments and the South African Local Government Association on municipal support initiatives. “While the alignment of efforts and standards is critical to effectively drive implementation, solutions should be systematic and overarching. The continued channelling of resources without a complete systematic overhaul and strengthening of municipalities to deliver services will be futile,” said Mr Leon Basson, the Chairperson of the committee. The committee remains of the view that interventions remain piecemeal and do not address the root causes of the challenges faced by water services authorities.

The reality is that South African municipalities are not well capacitated to manage and implement water and sanitation infrastructure projects. While the committee welcomed the intention to convert direct grants to indirect grants aimed at improving spending and delivery of projects, the overarching challenge of the lack of capacity and governance challenges at the local government level make the interventions superficial, especially in the context that these municipalities will have to operate and maintain the infrastructure in the long run.

The committee has also called for the sharing of good practice between municipalities and avoiding a silo mentality, guided by the desire to ensure quality service delivery. “It is concerning that 105 municipalities out of 144 water services authorities (WSAs), amounting to 73% of all WSAs, are underperforming in the delivery of their mandates. This has a direct socio-economic impact and undermines the drive for inclusive economic growth and improving access to quality water,” Mr Basson emphasised.

While the committee welcomed the information that the department will soon table the Water Services Amendment Bill and the National Water Bill in Parliament following the approval granted by Cabinet, it also highlighted that while the legislation might assist in providing a legal framework, the need to strengthen water service authorities remains urgent.

The lack of planning and consequences within municipalities is also a point of serious concern for the committee. “What the blue drop and green drop reports have highlighted is the lack of planning at the municipal level and subsequent consequence management in implementing corrective measurement plans in response to the reports,” Mr Basson said.

The committee has emphasised the need for comprehensive implementation of all resolutions made at the Water Indaba to ensure a wide-ranging intervention on the water value chain. “While this alignment is a start, the full and comprehensive implementation of all recommendations might have the necessary ripple effect to resolve challenges within the system,” Mr Basson noted.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.

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The joint parliamentary oversight delegation concluded its engagements with municipalities in Gauteng on Friday, emphasising the need for cooperation, accountability and consequence management in municipal governance.

The delegation, comprising the Portfolio Committee on Cooperative Governance and Traditional Affairs, the Standing Committee on Public Accounts and the Standing Committee on the Auditor-General, conducted oversight last week in North West and Gauteng together with the provincial legislatures. This oversight visit formed part of a broader programme engagement with underperforming municipalities across provinces.

Chairperson of the delegation, Dr Zweli Mkhize, stressed that this oversight process was not only about compliance, but about forging a new model of oversight rooted in cooperative governance. “The spirit we are trying to build is one of partnership between the different spheres of government. This engagement has shown that we must strengthen cooperation across councils, legislatures, provincial executives, and national bodies if we are to achieve real change.”

He acknowledged the presence of the MEC for COGTA in Gauteng, Mr Jacob Mamobelo, who was delegated by the Premier to represent the provincial executive. Dr Mkhize also noted that the delegation felt the Speaker and the provincial legislature could have made a stronger effort to participate in the oversight engagement. “We also believe that their absence has not assisted in strengthening the spirit we are trying to build of cooperative governance and intergovernmental relations, which drive this model of oversight visits. It is something that we need to raise,” he said, adding that the sentiment of working together in monitoring the turnaround of municipalities does need a formal commitment from the Speaker and the provincial legislature.

Dr Mkhize said the oversight visits aim to strengthen the government's capacity and ensure that it can offer the people of South Africa the services they deserve. The success of what we do will not be measured by whether we can talk among ourselves, but by whether there is a difference in service delivery, he noted.

He reminded those present that oversight is ultimately about improving people's lives. “The success of what we do will not be measured by whether we issue reports. It will be measured by whether there is a difference in how people experience services and in how we address poverty, local economic development, water supply, sanitation and the daily needs of our communities. All these are important issues,” he said, “and the people will ultimately judge whether we have risen to the occasion."

Said Dr Mkhize: "Accountability is about outcomes. Whether a document is signed or moved one step further, it is not about an individual or a salary increase. It is about changing somebody's life. When people voted for this new dispensation, for the end of apartheid, they voted for the kind of society where there is a sense of equality. This would be provided by the efficiency with which we deliver services to them.”

He said the delegation found that capacity and resources are not the primary obstacles facing municipalities. “The real challenge is political will and leadership stability. We must build a culture of cooperation, responsibility, accountability, and consequence management. At the end of the day, these are the issues that determine whether municipalities succeed or fail," said Dr Mkhize. “Our people did not vote for us to preside over excuses. They voted for a society with equity, delivered through efficient services.”

Dr Mkhize reiterated that the delegation expects provincial and local leaders to monitor and report on commitments made during the engagements. This will ultimately culminate in joint reports that will be tabled in Parliament. The delegation aims to cover two more provinces before the end of the year, as it seeks to inform the next auditing cycle. “So it is important that interventions are timely. The measure of our success will not be in the words we write but in the lives we change.”

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.