Budget Speech

19 February 2025

All eyes on the Budget: Godongwana to chart SA’s financial future

Location: News

All eyes on the Budget: Godongwana to chart SA’s financial future

Finance Minister Enoch Godongwana takes center stage this afternoon as he delivers the much-anticipated 2025 Budget Speech in Parliament, Cape Town - a moment that will outline South Africa’s economic trajectory for the year ahead.

With the nation watching, Godongwana will unveil the government's financial game plan, outlining how resources will be allocated to drive growth, tackle pressing challenges, and support vulnerable communities.

His speech follows President Cyril Ramaphosa’s State of the Nation Address, translating policy vision into financial reality.

Despite a tight fiscal environment, the budget aims to strike a delicate balance - stimulating economic progress while ensuring essential social safety nets remain intact. Key legislative measures, including the Appropriation Bill and the Division of Revenue Bill, will be introduced to determine how national funds are distributed across provinces and municipalities, Parliament said in a statement.

For those eager to follow the financial roadmap firsthand, the Budget Speech will be broadcast live on Parliament TV (DStv Channel 408) and streamed across Parliament’s digital platforms. South Africans can tune in to see how the numbers stack up and what lies ahead for the economy in 2025, across various Tv channels and Government platforms, including on www.SAnews.gov.za .

The Minister will deliver the Budget at 2pm.

-SAnews.gov.za

Neo
Wed, 02/19/2025 - 10:03
59 views

5 February 2025

MPs, invited guests encouraged to wear local attire for SONA

Location: News

MPs, invited guests encouraged to wear local attire for SONA

The Chairperson of the National Council of Provinces (NCOP), Refilwe Mtshweni-Tsipane, has urged Members of Parliament (MPs) and the nearly 2 000 guests attending tomorrow’s State of the Nation Address (SONA) to support local designers.

SONA is an event where President Cyril Ramaphosa provides updates on the government’s programmes and sets the agenda for the new financial year.

But, it is also where some MPs and bigwigs dress to the nines to make a fashion statement.

Parliament has since partnered with Proudly South African to support the local fashion industry under the ’Wear Local at SONA’ initiative, said Mtshweni-Tsipane on Wednesday.

“The campaign aims to elevate the local fashion industry calling on the nation’s leaders to showcase South African designed and manufactured fashion at the SONA,” she said.

In addition, Parliament has partnered with businesses in the agriculture, food, and beverage sectors to support the event.

“Some of these businesses represent the great success of our government in designating South Africa’s products as Geographical Indicators, such as in the case of the Karoo lamb and others.

“We extend our full gratitude and appreciation to all businesses and persons who continue to sponsor this event,” she told the media.

Mtshweni-Tsipane and the National Assembly (NA) Speaker Thoko Didiza were addressing journalists in Cape Town about Parliament’s preparations for the 2025 SONA.

Meanwhile, President Cyril Ramaphosa will be ushered by Inako Mateza, a 19-year-old Xhosa praise singer from the Eastern Cape, which aligns with long-standing traditions.

She took a moment to express sincere gratitude to the informal traders for their continued cooperation since Cape Town City Hall became the venue for the SONA after the 2022 fire that damaged the parliamentary complex.

“While we acknowledge that events of this magnitude inevitably cause some inconveniences within the Central Business District, we also recognise the broader economic value that SONA brings to the city.”

As a significant national event, the Chairperson said SONA garners both local and international attention, boosting economic activity through increased tourism, hospitality, and business opportunities.

“As with previous SONAs, alternative arrangements have been made, in collaboration with the City of Cape Town and the Informal Traders Association, to ensure that affected traders can continue operating at designated alternative venues.”

Post-SONA sittings

After tomorrow’s all-important SONA, the NA and the NCOP will reconvene for a joint session on 11 and 12 February 2025 to debate the President’s address.

The President will respond to the debate on February 13, while the Minister of Finance is scheduled to deliver the Budget Speech on 19 February.

“We encourage all South Africans to actively engage with SONA by tuning in and sharing their views across the various communication platforms provided by Parliament, the government, and the media.”

The SONA will be broadcast live across Parliament TV, mainstream broadcasters, and streaming services. – SAnews.gov.za

Gabisile
Wed, 02/05/2025 - 15:52

3 views

5 February 2025

Economic growth, job creation expected to take centre stage in President’s SONA

Location: News

Economic growth, job creation expected to take centre stage in President’s SONA

Economic growth, service delivery, infrastructural development, and job creation are some of the key issues that President Cyril Ramaphosa is expected to address in his highly anticipated State of the Nation Address (SONA) scheduled for Thursday, 6 February 2025.

Professor Dirk Kotze from the University of South Africa’s (Unisa) Department of Political Sciences, noted that economic growth will take centre stage in the President’s speech.

“I think first of all, what President Ramaphosa will focus on is, as always, on the economic matters - economic growth; the economic plan that he has developed since 2018,” Kotze told SAnews.

In addition, the Professor believes that the country’s commander-in-chief will zoom in on the water and electricity issues.

“Yes, electricity is definitely becoming more of a success story, but he will continue with that,” he added.

According to the political analyst, other important areas, including health, education, defence, and Home Affairs, will also be addressed.

Kotze explained that SONA focuses on the current year and outlines the government’s plans and the legislative agenda for Parliament.

This includes the introduction of new legislation, as well as a medium-term plan covering the next three years.

“He will also refer to some matters that will later be presented in more detail in the budget speech by the Minister of Finance [Enoch Godongwana]. So, these two, the budget speech and the SONA address, are very much linked to each other.

“I don’t think one can expect new issues,” he added.

In addition, the Professor stated that the President's address will reaffirm the government’s position on issues, such as climate change.

“Renewable energy will receive, I think, a lot of attention, given the developments in the US, President [Donald] Trump, who wants to move away from that,” he told SAnews.

According to the analyst, international relations will be specifically addressed, particularly in light of the recent incidents in the eastern Democratic Republic of Congo (DRC).

Several soldiers serving with peacekeeping forces in the DRC have been killed by the M23 rebel group in recent days amid fierce fighting, including 14 members of the South African National Defence Force (SANDF).

The recent deadly clashes have intensified in eastern DRC after Kinshasa withdrew its diplomats from Kigali in Rwanda. Rebels have advanced toward the strategic city of Goma, which is rich in minerals.

The SANDF soldiers are part of the mission which aims to help restore peace, security, and stability in Africa’s second-largest country.

Tomorrow’s SONA will mark the President’s first SONA as the Head of the Government of National Unity (GNU) in the seventh administration.

This address holds particular significance as it coincides with the 30th anniversary of freedom and democracy in South Africa, as well as the country’s Presidency of the Group of 20 (G20).

Tomorrow's address also marks the official start of the parliamentary programme, which is followed by a debate in the National Assembly and the President’s response to that debate.

In an interview with SAnews on Tuesday, Deputy Minister in the Presidency, Kenny Morolong, emphasised the importance of this year’s SONA.

He noted that President Ramaphosa will be addressing the nation following an election that led to the formation of a GNU, as no single political party received enough support to govern independently.

“This SONA will outline the three priorities and strategic direction of the GNU which are to drive inclusive growth and job creation, to reduce poverty and tackle the high cost of living, and to build a capable, ethical and developmental State.”

Morolong said it was important for South Africans to tune in and watch the President and hear him deliver the plans of government that he leads, as the Head of State. – SAnews.gov.za

Gabisile
Wed, 02/05/2025 - 07:03

212 views

16 January 2025

Western Cape to hire 477 teachers for 2025 as number of learners increase

Location: News

Western Cape to hire 477 teachers for 2025 as number of learners increase

The Western Cape Education Department (WCED) has announced that the provincial department will fill 477 teaching posts this year to accommodate the increasing number of learners and the new schools opening this year.

“During my Adjustment Budget Speech in December 2024, I said that we would need to make provision for these new schools and new classrooms to have teachers and that we are considering all available options ahead of the 2025 school year.

“I said that we would fight for our teachers, and we continue to do so,” said Western Cape Education MEC David Maynier.

Through further budget reprioritisation, Maynier said the provincial department is now able to make up to 477 new “growth posts” available to schools.

The annual 10th-day snap survey will confirm the number of additional learners in the system, and posts will be allocated to both new and existing schools that have accepted significant numbers of extra learners.

“While this decision will have further implications for our budget deficit, our new and existing schools must have the resources they need to accommodate additional learners in 2025,” Maynier said.

The MEC stressed that the provincial education system continues to grow and that they are taking steps to accommodate the increase in learner numbers this year, despite severe budget constraints.

To create more space for learners, the provincial department is working to complete nine new schools and 265 additional classrooms in total for learners in the 2025 school year.

This includes six new schools and 180 classrooms for January 2025.

Meanwhile, the WCED has cut over 2 000 teaching posts due to a R3.8 billion budget shortfall.

First day of school

On Wednesday, Western Cape Premier Alan Winde and the MEC visited Timour Hall Primary School in Plumstead to welcome learners to the 2025 school year.

The province has over 1.2 million learners in public schools this year, with 107 000 Grade 1s entering “big school” for the first time, and 100 000 Grade 8s starting their high school career.

Winde told Grade 1s and their loved ones that it was alright to be a bit nervous on their first day of school but assured them that there is always someone to help them.

“Do not be afraid to ask for help. If you put in the effort, you will reap the rewards. However, at the same time remember to also make time to have some fun too. By creating a balance between your schoolwork and playtime you will be able to achieve so much more.”

The Premier also thanked the parents and caregivers for prioritising their child’s education.

“Succeeding at school is not just up to our learners, it is about the community of care that they receive from you, our communities, and of course our dedicated teachers, principals, and the whole team that supports education in this province. This province’s success and our commitment to driving economic prosperity and more jobs in the future continues with these learners who start school today,” he said.

Admissions

As of 14 January 2025, the province has allocated places for 118 914, or 98%, of the learners for whom applications were received for Grades 1 and 8 for the 2025 school year by 31 December 2024.

Placement is in progress for 2 478, or 2%, of Grade 1 and 8 learners.

However, since the start of the year, new extremely late applications have been received for over 300 Grade 1 and 8 learners for the current school year.

“We understand that this is a stressful and anxious period for parents who are waiting for a place, and we are asking parents to work with us as we try to accommodate their children as soon as possible.

“We urge any parent who has not yet applied for the 2025 school year to do so immediately at their education district office.”

The district office details are available at https://wcedonline.westerncape.gov.za/admissions-officials. – SAnews.gov.za

Gabisile
Thu, 01/16/2025 - 11:27

243 views

15 December 2024

Parliament highlights progress in first six months of the 7th democratic term

Location: News

Parliament highlights progress in first six months of the 7th democratic term

Parliament has celebrated a successful start to its 7th democratic term, highlighting significant achievements since the 2024 National and Provincial Elections.

In just six months, Parliament has passed key laws, conducted rigorous oversight, and strengthened public engagement, demonstrating a strong commitment to its constitutional mandate and the people it serves.

In a statement on Saturday, Parliament highlighted that since the establishment of the 7th democratic Parliament, the administration has hit the ground running.

“In this short period, Parliament has successfully convened multiple sittings, engaged in debates, and passed several key pieces of legislation. The various parliamentary committees have been particularly active, conducting oversight visits, holding public hearings, and scrutinising government actions with diligence,” the statement said.

Parliament said that its Presiding Officers, led by the Speaker of the National Assembly (NA), Thoko Didiza, and the Chairperson of the National Council of Provinces (NCOP), Refilwe Mtshweni-Tsipane, expressed satisfaction with the milestones achieved by the 7th Parliament so far.

The key achievements of Parliament are:

•    Committees and Oversight: Parliamentary committees have held 468 meetings since the start of the 7th democratic Parliament through the end of October. During this period, approximately 24 oversight visits were conducted to various service delivery points across the country.
•    Public Engagement: New initiatives, including online streaming of debates and hearings, have made Parliament more accessible and transparent.
•    Legislative Work: 20 Bills from the previous term were revived, with 11 already passed. Parliament is currently processing 21 new Bills aimed at addressing national priorities like poverty, unemployment, and inequality.
•    Clean Audit: Parliament achieved its 10th consecutive clean audit, underscoring sound financial management.

Focus on Provinces

From 16 to 20 September, Permanent delegates to the NCOP undertook the first Provincial Week Programme of the new term of Parliament, an essential initiative aligned with the NCOP's constitutional role as the voice of provinces in the national sphere of government.

The NCOP’s Provincial Week spotlighted delays in critical infrastructure projects, such as schools and health facilities, gathering recommendations to address these issues.

“This effort highlights the NCOP’s commitment to addressing issues that directly impact provinces and communities, ensuring that challenges exposed during the visits are resolved without further delays. Through this programme, the NCOP continues to strengthen accountability and advocate for the effective delivery of services to the people,” Parliament said.

Looking Ahead

Parliament’s official business for the New Year will begin with the State of the Nation Address (SONA), scheduled for Thursday, 6 February, at 7 pm at the Cape Town City Hall.

The two-day debates on the President’s Address will take place at a temporary dome structure to be erected at the Nieuwmeester Parking. The debates are scheduled for Tuesday, 11 February, and Wednesday, 12 February, with the President’s reply set for Thursday, 13 February 2025

Finance Minister Enoch Godongwana is set to deliver the Budget Speech on Wednesday, 19 February.

Hosting of the Speakers of G20 Nations

The Parliament of the Republic of South Africa has proudly announced that, in alignment with South Africa's rotational hosting of the G20 in 2025, it will host the Speakers' Summits (P20) of the G20 national parliaments.

“The P20 Summits play a crucial role in bringing a parliamentary perspective to global governance by raising awareness, building political support for international commitments, and ensuring their effective implementation at the national level,” Parliament said.

These summits also foster inter-parliamentary cooperation, strengthen engagement between governments, parliaments, and stakeholders, and advance the implementation of the 2030 Agenda for Sustainable Development.

“As a longstanding participant in P20 summits, the Parliament of the Republic of South Africa looks forward to hosting this prestigious event, advancing parliamentary diplomacy, strengthening democratic governance, and fostering global cooperation,” it said. – SAnews.gov.za

DikelediM
Sun, 12/15/2024 - 12:13

445 views

8 September 2024

DTIC Minister committed to stabilising governance at department

Location: News

DTIC Minister committed to stabilising governance at department

The Department of Trade, Industry and Competition (DTIC) has moved to assure the nation that Minister Parks Tau remains committed to “stabilising governance and leadership at the DTIC and its entities."

“At the beginning of the seventh administration, the Minister focused on addressing issues related to vacancies and governance. The Minister underscored that for the DTIC to fully and effectively discharge its mandate, it is essential to stabilise governance within our department and its listed entities.

“This will help the DTIC function optimally in executing the mandate of transformation, industrialisation underpinned by localisation, and an export-led growth strategy,” the department said in a statement.

The Minister committed – during the department’s budget speech earlier this year – to filing critical vacancies.

“The process of filling the vacancies has begun and is currently underway. On Friday, 13 September 2024…entities' vacancies will be advertised. We believe this is the right step towards achieving good corporate governance and stability.

“We invite qualified individuals who meet the requirements to apply and assist us in stabilising these entities so they can optimally execute their mandates. The finalisation of these appointments will be completed efficiently,” the department said.

“Additionally, [the Minister] committed to reviewing the organisational structure to ensure it is aligned and optimised to support the Department’s mandate and prioritised programmes. This review will promote a value chain approach, integrating the work of the department and its entities, thereby eliminating silos, duplication, and inefficiencies,” the statement read. – SAnews.gov.za

NeoB
Sun, 09/08/2024 - 14:21

100 views

8 August 2024

We asked nine provinces and a national department for information on the billions of rands they spend annually: here’s what happened

Location: News

Several provincial social development departments are in breach of their own policy on disclosure. We list the provincial responses from best to worst.

2 August 2024

Have your say on tax proposals

Location: News

Have your say on tax proposals

The National Treasury and the South African Revenue Service (SARS) has published draft tax bills and draft regulations for 2024, for public comment.

The bills and draft regulations contain tax proposals made in the Budget Speech.

These proposals include the 2024 draft Taxation Laws Amendment Bill (2024 draft TLAB), the 2024 draft Revenue Laws Amendment Bill (2024 draft RLAB), the 2024 draft Tax Administration Laws Amendment Bill (2024 draft TALAB), draft Regulations on the method for determining the VAT liability in respect of casino table games of chance, issued in terms of section 74(2) of the Value-Added Tax Act, 1991, draft Regulations on amendments to the Carbon Offset Regulations prescribing carbon offsets in terms of section 19(c) of the Carbon Tax Act, 2019, and draft Regulations on domestic reverse charge relating to valuable metal in terms of 74(2) of the Value-Added Tax Act.

The 2024 draft tax bills, the accompanying draft Explanatory Memoranda containing a comprehensive description of the proposed tax amendments contained in the 2024 draft TLAB, 2024 draft RLAB, draft TALAB, the draft Regulations on determining the VAT liability in respect of casino table games of chance, draft Regulations on domestic reverse charge, draft Regulations on electronic services and Carbon Offset Regulations, can be found on the National Treasury (www.treasury.gov.za) and SARS (www.sars.gov.za) websites.

“More general information underlying the changes in rates, thresholds or any other tax amendments can be found in the 2024 Budget Review, available on the National Treasury website.

“With respect to the 2024 RLAB published for comment on 21 February 2024 and public workshops held on 6 June 2024, National Treasury and SARS invite a second round of comments in writing on this revised 2024 draft RLAB,” the Ministry of Finance said on Thursday.

The public can forward written comments to the National Treasury’s tax policy depository at 2024AnnexCProp@treasury.gov.za and SARS at acollins@sars.gov.za by close of business on 16 August 2024.

National Treasury and SARS invites comments in writing on the 2024 draft TLAB, 2024 draft TALAB, the draft Regulations on determining the VAT liability in respect of casino table games of chance, draft Regulations on domestic reverse charge and draft Regulations on electronic services and Carbon Offset Regulations.

Written comments can be sent to the National Treasury’s tax policy depository at 2024AnnexCProp@treasury.gov.za and SARS at acollins@sars.gov.za by close of business on 31 August 2024. -SAnews.gov.za

nosihle
Fri, 08/02/2024 - 09:44

542 views

25 July 2024

Call to reform Expanded Public Works Programme

Location: News

Call to reform Expanded Public Works Programme

Public Works and Infrastructure Minister, Dean Macpherson, believes that urgent reform is needed for the Expanded Public Works Programme (EPWP) to provide a sustainable pathway to permanent employment.

This follows the ongoing protest action by former EPWP employees in Ethekwini, KwaZulu-Natal.

The Minister has condemned any violence or damage to public property during the protests, particularly as it has halted key municipal service delivery such as the removal of waste which creates a health hazard.

“The EPWP program was always designed to be a short-term program to give recipients work experience and training in order for them to find permanent employment,” Macpherson said, adding that due to the stubbornly high unemployment rate in South Africa, many have grown dependent on the program, having been employed as an EPWP worker for many years.

“As mentioned during the Department of Public Works and Infrastructure budget speech last week, it is therefore imperative that the EPWP program be re-imagined to become skills outcomes-based which leads to South Africans climbing up the opportunity ladder, rather than being stuck in EPWP for years on end,” he said in a statement on Wednesday.

Macpherson looks forward to working with all stakeholders in the coming months to look at a better outcome for recipients nationwide.

The Expanded Public Works Programme is one of the government’s strategies to alleviate poverty through the creation of work opportunities using labour-intensive methods. The programme is implemented in four sectors namely: infrastructure, social, environment and culture, and non-state.

All spheres of government and state-owned entities are expected to implement the programme.

The EPWP participants (beneficiaries) work on different projects such as the Community Work Programme (CWP), Early Childhood Development Programmes, Home Community Based Care Programmes, Extra School Support Programmes, Working on Fire, Working for Water and roads maintenance projects.

Since its inception on 01 April 2004 to 31 March 2022, more than 13 million work opportunities have been created in the EPWP space across all spheres of government. – SAnews.gov.za

Edwin
Thu, 07/25/2024 - 10:01

513 views

17 July 2024

CoGTA Minister talks tough on underperforming municipalities

Location: News

CoGTA Minister talks tough on underperforming municipalities

Newly appointed Cooperative Governance and Traditional Affairs (CoGTA) Minister, Velenkosini Hlabisa, has stated that the seventh administration is committed to working towards turning around dysfunctional municipalities, including the eThekwini Metro.

Hlabisa used his Budget Vote Speech in Parliament on Tuesday to acknowledge some of the challenges faced by local municipalities.

Going forward, the Minister stated that the department will continue to implement and enforce compliance with Municipal Support and Intervention Plans (MSIPs) and employ financial recovery plans in distressed municipalities.

Municipalities in distress

He told Parliamentarians that the current leadership plans to prioritise five additional municipalities that are in severe financial and governance distress which has negatively impacted service delivery.

“Some have struggled to pay salaries over the past three to six months. Some have debts that seem insurmountable as well as prolonged and expensive litigation,” he explained.

These municipalities are Ditsobotla in the North West, Kopanong and Mafube in the Free State, Emfuleni in Gauteng and Thabazimbi in Limpopo.

“Additionally, we will address the challenges faced by the eThekwini Metro, which is grappling with governance, institutional, and service delivery issues.”

According to the Inkatha Freedom Party (IFP) President, eThekwini is currently also receiving support from the national government led by the Presidency and KwaZulu-Natal CoGTA.

“It is important to note that this prioritisation does not imply that other municipalities are not facing similar challenges. Our commitment remains to support all municipalities that are experiencing difficulties.”

The Cooperative Governance budget is sitting at R395.7 billion, with a significant portion of 95.9% (R379.61 billion) to be transferred to municipalities and affiliated entities.

The R379.61 billion of the department’s total budget over the Medium-Term Expenditure Framework (MTEF) period, will primarily cover the local government equitable share, disaster relief grant and the municipal infrastructure grant.

In addition, he stated that the Municipal Infrastructure Support Agent (MISA) will continue its efforts to assist the 22 distressed municipalities that are increasingly confronted with the need for infrastructure investments to deliver essential municipal services.

“They also struggle to mobilise resources for this infrastructure due to their borrowing limitations and reduced transfers from the national government amid fiscal constraints,” he explained.

He believes government’s success depends on the collective efforts of Parliament, departments, municipalities, traditional leaders, civil society, and every citizen.

He stated that his department aims to eliminate fragmentation in the planning, budgeting, implementation, and monitoring of government programs by the end of the seventh administration’s term.

“We cannot sit on the sidelines whilst the taxpayers’ money is not used as planned and infrastructure that could benefit our communities remains a dream,” he said.

Traditional leadership

Hlabisa also used his Budget Speech Vote to throw his weight behind traditional leadership, including the Khoi-San community.

“Time for lamenting is over; we must join hands to make an impact by turning dysfunctional municipalities around and improve support for institutions of traditional and Khoi-San leadership. The seventh administration has opened a new chapter which must be a turning point for the CoGTA sector post 30 years of freedom and democracy.”

The Traditional Affairs department has been allocated a budget that amounts to R187.3 million, which has been reduced by R5.8 million compared to the previous year’s allocation.

According to the Minister, the institution of traditional and Khoi-San leadership has raised several issues with the government through various engagement platforms during previous administrations.

“Our traditional and Khoi-San leaders also face their own set of challenges which include uneven provision of support and resources to fulfil their roles effectively, challenges in integrating traditional and Khoi-San leadership structures with municipal governance frameworks, and the need to finalise the formal recognition of khoi-San leaders and to promote respect for the cultural heritage which traditional and Khoi-San leaders are custodians of.”

During the current financial year, the department will continue to support the Commission on Khoi-San Matters (CKSM) to ensure it completes its work and submits recommendations.

The CKSM was established to handle applications for the recognition of Khoi-San communities and leaders and to submit recommendations to the Ministry.

The Commission has received 124 applications and conducted 62 Applicant Member Investigations (AMIs) to ensure application completeness.

“Let me remind this August House that the 2026 Local Government Elections are around the corner and the present term of local government comes to an end. We owe it to our communities to better their lives through effective and impactful service delivery.” – SAnews.go.za

Gabisile
Wed, 07/17/2024 - 10:31

116 views

5 June 2024

Thousands of special needs learners still not placed at schools

Location: News

Parents of children with disabilities protested in May, demanding that government do more to help their children

23 April 2024

M&A Activity in South Africa expected to remain muted in 2024 amidst global economic headwinds and regulatory uncertainty

Location: MyPR

Chris Green, Managing Partner, Hogan Lovells SA M&A activity in South Africa declined sharply in 2023 relative to the two preceding years, in line with global trends. The factors driving this included, amongst others, global economic headwinds particularly high inflation and high interest rates, the well-documented geopolitical uncertainty in Europe and the Middle East, ongoing …

19 April 2024

Nxesi calls on all spheres of government to work together to fight unemployment

Location: News

Nxesi calls on all spheres of government to work together to fight unemployment

Employment and Labour Minister, Thulas Nxesi, says government spheres must do away with a “silos mentality” as it prevents service delivery programmes from reaching ordinary citizens.

In an effort to eradicate unemployment in South Africa, particularly among the youth, Nxesi engaged several potential employers and work-seekers at the Saldanha and Vredenburg areas in the Western Cape on Thursday.

The Department of Employment and Labour is hosting a two-day jobs fair and service delivery initiative, where Nxesi has paid a visit to work-seekers at the local Vredenburg Sports Ground.

The two-day event commenced with an Employer Breakfast Session where the Minister led discussions on labour market issues and addressing unemployment in the province.

Nxesi said unemployment and employment have nothing to do with politics.

“I want to repeat this, employment or no employment knows no politics. It is a crisis facing our young people. Therefore, when we deal with the issue of unemployment, we must know that we are dealing with a crisis, which is facing our young people.

“And we are saying, we are interacting with all the Premiers, but our intention is very simple because the Premiers have the authority to talk with their departments and their municipalities. At the end of the day, if we want these programmes to be relevant they must come to the district and local municipalities and that is our logic,” he said.

He is of the view that the problem with the state is not allowing each sphere of government to conduct programmes in provincial, district and local government.

“The District Development Model (DDM) says we must come down to the people to talk with them. The President said he wants integration and coordination of all the programmes between national and all spheres of government.

“We should do away with the silos. The problem with government is silo mentality and territorial,” he added.

The department and the Minister have since embarked on the initiative to provide a platform for employers to share information, engage with stakeholders and develop partnerships.

The jobs fair initiative is championed by the department’s Public Employment Services (PES) branch and seeks to create opportunities for work seekers and provide a platform to interact with prospective employers.

“These efforts should be understood against President [Cyril] Ramaphosa’s 2019 Budget Speech in which he committed government to the roll-out of a new integrated district-based approach – popularly known as the DDM tailored to promote and support local businesses and local communities.”

Nxesi raised concerns about the unemployment rate on the West Coast, which he said was “alarmingly high”.

“In an attempt to mitigate this, the department has considered the Jobs and Careers Fair as a useful platform where the unemployed, especially the youth, can meet with prospective employers from different sectors to access both jobs and learning opportunities,” said the Minister.

The inter-departmental jobs fair involves the Departments of Small Business Development and Higher Education, Science and Innovation.

The session also provides a platform where people can get access to career information and employment counselling; registration of work-seekers and exhibitions by various departments; registration of vacancies and or recruit work-seekers on the Employment System of South Africa. – SAnews.gov.za

Gabisile
Fri, 04/19/2024 - 09:09

259 views

16 April 2024

Deadline for Budget Facility for Infrastructure submissions extended

Location: News

Deadline for Budget Facility for Infrastructure submissions extended

The deadline for submissions of proposals to the Budget Facility for Infrastructure has been extended to 17 May 2024.

This, according to National Treasury, is in a bid to add more time for project sponsors to package and submit their proposals.

“The department earlier published a call for proposals for consideration by the Budget Facility for Infrastructure [BFI]. The BFI is a reform established in 2016 to support the execution of priority infrastructure projects and programmes through a more rigorous planning, appraisal, and selection process.

“This call for proposals was announced by the Minister of Finance [Enoch Godongwana] during the 2024 Budget Speech. The National Treasury intends to utilise this BFI Window to develop a pipeline of projects and programmes to test alternative financing and funding models,” Treasury said.

Public institutions, including national, provincial, municipal and public entities are qualified to submit proposals with projects and programmes set to form part of the pipeline.

“The primary purpose of this BFI Special Window is to close funding gaps and provide viability gap funding for projects and programmes that will leverage private sector financing and technical assistance.

“The call for proposals is open to projects and programmes that are undertaken under alternative financing and delivery mechanisms and private sector participation frameworks such as public-private partnership and concessions,” Treasury said.

Further information and guidelines can be accessed at https://bit.ly/3U1dnB3. - SAnews.gov.za

NeoB
Tue, 04/16/2024 - 09:37

111 views

9 April 2024

Wheelchair users demand better access to transport

Location: News

We spend R600 out of our R2,180 grant on transport, say disability activists

2 April 2024

Consumers to dig deeper as petrol, diesel prices increase

Location: News

Consumers to dig deeper as petrol, diesel prices increase

Motorists are expected to feel the pinch even further this month when the prices of all grades of fuel increase.

The following are the increases that have been announced by the Central Energy Fund (CEF):

Petrol (93 ULP & LRP): 65 cents increase
Petrol (95 ULP & LRP): 67 cents increase.
Diesel (0.05% sulphur): 3 cents increase.
Diesel (0.005% sulphur): 1 cent decrease.
Illuminating paraffin (wholesale): 29 cents decrease.
Single Maximum National Retail Price for illuminating paraffin: 58 cents decrease.
Maximum LP Gas retail price: 19 cents decrease

This means a litre of 95 petrol, which used to cost R24.45 a litre in Gauteng, will now cost R25,12.

“The average international product prices for petrol increased, while diesel and illuminating paraffin decreased during the period under review.

“The rand appreciated against the US dollar during the period under review, on average, when compared to the previous period. The average rand/US dollar exchange rate for the period 1 March 2024 to 26 March 2024 was 18.8689 compared to 19.0186 during the previous period. This led to a lower contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 10.78 c/l, 10.88 c/l and 10.74 c/l respectively,” the CEF said.

Furthermore, Finance Minister Enoch Godongwana announced, during the Budget Speech in February, increases to the Carbon Fuel levy of some 1c per litre on petrol and 3c per litre on diesel.

“No increases will be made to the General Fuel and Road Accident Fund levy on both petrol and diesel.

“With effect from 03 April 2024, the Fuel Levy in the price structure of petrol and diesel will increase to 396.0 c/l and 384.0 c/l respectively and the Road Accident Fund Levy in the price structure of both petrol and diesel will remain at 218.0 c/l,” the CEF said. – SAnews.gov.za

NeoB
Tue, 04/02/2024 - 09:53

501 views

27 March 2024

Call for proposals for consideration by Budget Facility for Infrastructure

Location: News

Call for proposals for consideration by Budget Facility for Infrastructure

The National Treasury has issued a call for proposals for consideration by the Budget Facility for Infrastructure (BFI).

The BFI is a reform established in 2016 to support the execution of priority infrastructure projects and programmes through a more rigorous planning, appraisal, and selection process.

This call for proposals was announced by the Minister of Finance during the 2024 Budget Speech.

“The National Treasury intends to utilise this BFI Window to develop a pipeline of projects and programmes to test alternative financing and funding models. Public institutions are being invited to submit proposals in respect of projects and programmes that will form part of this pipeline.

“Public institutions that qualify to submit proposals include those in the National, Provincial and Municipal spheres of government as well as Public Entities. The Call for Proposals is open to projects and programmes that are undertaken under alternative financing and delivery mechanisms and private sector participation frameworks such as Public Private Partnerships (PPPs) and concessions,” National Treasury said.

To be eligible, proposals should closely follow the BFI Guideline for this window, which can be accessed at https://www.treasury.gov.za/publications/guidelines/. – SAnews.gov.za

nosihle
Wed, 03/27/2024 - 11:02

328 views

28 February 2024

Regent Business School hosts thought-provoking webinar unveiling insights from National Budget 2024 analysis

Location: MyPR

In the wake of the annual Budget address delivered by South Africa’s Minister of Finance, Enoch Godongwana, on 21 February, Regent Business School took the helm in fostering an illuminating webinar. This hybrid gathering, spearheaded by the school’s respected Dean, Dr Shahiem Patel (who is also a Non-Executive Director of the Institute of Bankers) alongside …

22 February 2024

Challenges can be overcome by working together – Enoch Godongwana

Location: News

Challenges can be overcome by working together - Enoch Godongwana

Minister of Finance Enoch Godongwana has called on South Africans – both citizens and private business – to work together with government to resolve the challenges the country faces.

The Minister was speaking during a post-Budget Speech discussion held in Cape Town on Thursday morning.

In his Budget Speech on Wednesday, Godongwana highlighted electricity and logistics challenges as two of the key issues facing the economy.

“We need to work together to address these challenges. For instance, there are a number of business people who have come forward, business associations that have come forward and bringing in talent to work with government in what is called NECOM [National Energy Crisis Committee] to address the electricity challenges.

“Building on that template, business has come forward, working with government, and developed what is called now the [Freight] Logistics Roadmap. We need, as South Africans and even as government, not to be arrogant and accept solutions from different people across the board,” he said.

Godongwana said on crime, government has brought in business “to work with us on how we can deal with crime”.

In a frank discussion regarding the country’s challenges, the Minister said government takes responsibility for some issues.

“We have got challenges. The government has got to take the responsibility for some of these challenges. I can’t say I’m happy with the fact that we’ve not been able to deal with the electricity challenge for 16 years. It is a fundamental flaw…which has cost the economy substantially,” he said.

On the question of why National Treasury left most taxes – barring sin taxes and carbon tax – unchanged, the Minister said solutions to broadening revenue lie elsewhere.

“Our tax strategy is to broaden the base than increasing taxes. If you…compare us to our peers, tax to GDP, we are not comparing favourably. So…we should not be working hard to say how much should we tax people more; we should be saying how do we broaden that tax base.

“There are a number of ways of doing it and first, fundamentally, is to grow the economy but we can only grow the economy if we bring all of our solutions and I think we can do it working together,” he said. – SAnews.gov.za

NeoB
Thu, 02/22/2024 - 11:37

167 views

22 February 2024

Government to introduce global minimum corporate tax

Location: News

Government to introduce global minimum corporate tax

Over the next few years, government plans to implement a global minimum corporate tax to limit the negative effects of tax competition.

“Multinational corporations with annual revenue exceeding €750 million will be subject to an effective tax rate of at least 15%, regardless of where their profits are generated. The proposed reform is expected to yield an additional R8 billion in corporate tax revenue in 2026/27,” Finance Minister Enoch Godongwana said on Wednesday in Parliament.

Delivering the 2024 National Budget Speech, Godongwana encouraged interested parties to provide comments on the draft Global Minimum Tax Bill published today.

The draft Global Minimum Tax Bill aims to limit the race to the bottom of effective corporate tax rates for large multinationals, with countries competing to attract income by offering low tax rates and tax incentives.

“Implementing the minimum tax in South Africa will bolster the corporate tax base. South Africa helped develop tax rules to address base erosion and tax challenges arising from the digitalisation of the economy as a member of the Steering Group of the OECD [Organisation for Economic Co-operation and Development] /G20 Inclusive Framework on Base Erosion and Profit Shifting.

“These rules are designed to limit the channels that multinationals use to shift profits from high- to low-tax countries. The 2023 Budget Review outlined the two pillars of this framework, which were endorsed by more than 135 countries in 2021. The first focuses on the digital economy and the coherent tax treatment of multinationals,” the 2024 Budget Review said.

The framework will be implemented through a multilateral convention to ensure that the biggest and most profitable multinationals reallocate part of their profit to all countries where they sell their products and provide their services.

“The second pillar introduces the global minimum tax. It ensures that any multinational with annual revenue exceeding €750 million will be subject to an effective tax rate of at least 15 %, regardless of where its profits are located. Government proposes to introduce two measures to effect this change – an income inclusion rule and a domestic minimum top up tax – for qualifying multinationals from 1 January 2024.

“The income inclusion rule will enable South Africa to apply a top-up tax on profits reported by qualifying South African multinationals operating in other countries with effective tax rates below 15%.

“The domestic minimum top-up tax will enable SARS [South African Revenue Service] to collect a top-up tax for qualifying multinationals paying an effective tax rate of less than 15 % in South Africa,” National Treasury said.

The Explanatory Memorandum and Draft Global Minimum Tax Bill will contain more details on these proposals as well as a request for public input.

Broadening the tax base

“Our long-term tax policy strategy remains focused on broadening the tax base while improving tax compliance and administrative efficiency. Visible progress has been made in rebuilding and modernising the South African Revenue Service.

“The tax authority has expanded the tax register, improved debt collections and reduced fraudulent refunds and trade valuations. This has led to improvements in revenue collection,” the Minister said.

To address the high levels of illicit tobacco, SARS is deploying CCTV and related technologies at licensed tobacco manufacturers.

“Investigations and prosecutions have resulted in R10 billion in additional assessments from the key players in the illicit gold and tobacco industry, of which over R4 billion from key players in the illicit gold and tobacco industry.

“These and other efforts have assisted with the improvement in revenue. Our bigger challenge, as I have stated earlier, is that our pie is not growing fast enough and this limits our ability to generate sufficient revenues to distribute among our priority areas,” Godongwana said. –SAnews.gov.za

nosihle
Wed, 02/21/2024 - 14:08

632 views

22 February 2024

Government ups the ante against crime

Location: News

Government ups the ante against crime

Some R765 billion has been allocated to the security cluster to up the ante in Government's fight against crime and to support the defence forces.

This was revealed during Finance Minister Enoch Godongwana’s Budget Speech delivered in Cape Town on Wednesday.

“In the coming financial year, 10 000 new police recruits will be trained. As part of the country’s responsibility to promote regional peace and stability, this budget will also allocate funding for the deployment of soldiers in Mozambique and the DRC.

“Work on costing and identifying the needs for these critical missions will continue throughout the year and funding will be allocated as such.

“R628 million has been allocated to the Department of Justice and Constitutional Development [DJCOD] for the implementation of FATF [Financial Action Task Force] and State Capture Commission recommendations - bringing the total funding to these efforts to R2.3 billion,” he said.

Godongwana added that some R2.9 billion from the Criminal Asset Recovery Account is being used to combat illegal mining and other priority crimes “with 60% allocated for police deployments, including vehicle procurement”.

In the 2024 Budget Review, National Treasury explained that the total allocation includes “additional allocations of R39.4 billion to selected departments to cover the carry‐through costs of the 2023/24 public‐service wage increase”.

“Of this, R22 billion is allocated to the Department of Police. To improve efficiency, the department will rationalise its organisational structure, align police districts with municipal districts, implement cost containment measures and improve operations. It is also fostering strategic partnerships with local communities to enhance safety.

“The [DJCOD] is allocated R627.8 million over the medium term to implement recommendations from the [FATF] and the State Capture Commission. For land rights representation, R156 million is shifted from the Department of Agriculture, Land Reform and Rural Development to Legal Aid South Africa.

“The Department of Defence will prioritise acquiring vehicles and technology to safeguard the country’s borders. An amount of R1.9 billion is reallocated within the Department of Defence for day‐to‐day maintenance and emergency repairs.

“Measures are being implemented to reduce the pressure on employee compensation and sustain critical defence capabilities,” the department said. – SAnews.gov.za

NeoB
Wed, 02/21/2024 - 14:11

536 views

21 February 2024

Economic growth to stay low over the next three years

Location: News

Economic growth to stay low over the next three years

South Africa’s economy is expected to grow at some 1.6% over the next three years, with real Gross Domestic Product (GDP) reaching 0.6% in 2023.

“Despite the improved global outlook for 2024, South Africa’s near-term growth remains hamstrung by lower commodity prices and structural constraints. We estimate real GDP growth of 0.6% in 2023. This is [revised] down from 0.8% growth estimated during the 2023 MTBPS [Medium Term Budget Policy Statement].

“The revision is due to weaker-than-expected outcomes in the third quarter of 2023, particularly in household consumption and fixed investment,” said Finance Minister Enoch Godongwana, who delivered the Budget Speech at the Cape Town City Hall on Wednesday.

Godongwana said despite this, between 2024 and 2026, growth is projected to average 1.6%.

“The growth outlook is supported by the expected easing of power cuts as new energy projects begin production, and as lower inflation supports household consumption and credit extension.

“But, there are also risks to the domestic outlook. These include persistent constraints in electricity supply, freight rail and ports, and a high sovereign credit risk. Our challenge… is that the size of the pie is not growing fast enough to meet our developmental needs,” he said.

National Treasury’s 2024 Budget Review explained that load shedding and challenges in freight rail and the ports “continue to disrupt economic activity and limit the country’s export potential”.

“Comprehensive reforms are underway in these sectors, although it will take time to see a recovery in growth. Household consumption is under pressure from high living costs, and investment remains low due to weak confidence and challenging business conditions linked to structural constraints.

“To turn the tide and raise economic growth sustainably, government is prioritising energy and logistics reforms, along with measures to arrest the decline in state capacity.

“Successful efforts to improve the fiscal position, complete structural reforms and bolster the capacity of the State will, in combination, reduce borrowing costs, raise confidence, increase investment and employment, and accelerate economic growth,” National Treasury said.

The department said as reforms begin to bear fruit, GDP will be on the rise.

“[This] as the frequency of power cuts declines, lower inflation supports household consumption, and employment and credit extension recover gradually. New energy projects will improve fixed investment and business sentiment.

“To accelerate GDP growth after an extended period of weak economic performance, South Africa needs large‐scale private investment. Government is working to improve the fiscal position, complete structural reforms and bolster the capacity of the State to reduce borrowing costs, raise confidence, increase investment and put the economy on a higher, job‐creating growth path,” Treasury said.

Meanwhile, global growth is forecast higher at some 3.1% for 2024 and 3.2% for 2025.

“The moderate improvement is due to better‐than‐expected growth in the second half of 2023, particularly in the United States and several large emerging market economies, as well as fiscal support for disaster relief in China.

“Robust US economic growth has partially offset weaker‐than‐expected outcomes in the Euro area, which, nevertheless, is expected to recover gradually. Commodity prices are expected to continue to decline in 2024 and 2025,” Treasury said. – SAnews.gov.za

NeoB
Wed, 02/21/2024 - 14:13

507 views

21 February 2024

Government raises US$3.3 billion to support climate change initiatives

Location: News

Government raises US$3.3 billion to support climate change initiatives

Government has raised US$3.3 billion so far from Multilateral Development Banks and International Finance Institutions to support climate change, energy, and just transition objectives.

Delivering the 2024 National Budget Speech, Finance Minister Enoch Godongwana said National Treasury plays a crucial role in mobilising resources, designing incentives, and influencing policy to mainstream climate change.

“As climate-related disasters intensify, a multi-layered risk-based approach is being developed to manage the associated fiscal risks. This considers various funding instruments from grants to contingency funds, including the Climate Change Response Fund, depending on the incidence and intensity of the disaster event.

“The National Treasury is reviewing disaster response grants to improve efficiency and create incentives for disaster planning, preparedness and risk reduction. It is also developing a climate-budget tagging framework to influence policy, planning, and budget decisions, by tracking climate-related expenditures in public budgets,” the Minister said on Wednesday in Parliament.

He said the support of concessional funding providers, such as Multilateral Development Banks, is going a long way to support the country’s climate adaptation, mitigation, energy transition, and sustainability initiatives.

“Crowding-in the private sector is necessary to managing the climate disaster funds. We are actively participating in climate negotiations, aligning with the government's advocacy for reforming multilateral finance institutions.

“We are also working with eight municipalities to adapt and mitigate the effects of climate and weather-related events, by providing technical assistance for climate-responsive capital projects,” the Minister said.

According to the 2024 National Treasury Budget Review, the department is finalising a disaster risk financing strategy, centred on innovative financing and risk transfer to effectively mitigate climate impacts.

The strategy will boost state capacity to fund disaster recovery efforts and expand insurance mechanisms to protect against the financial strain of natural disasters.

“Recent years have seen a significant increase in extreme weather events and economic losses amid mounting concern over the effects of climate change. Between 1980 and 2021, 86 notable weather-related disasters have been recorded, affecting more than 22 million people and causing economic losses of about R113 billion.

“The 2017 Knysna wildfires, Cape Town (2015–2018) and Eastern Cape (2015–2020) droughts and KwaZulu-Natal floods in 2022 have heavily affected agriculture and tourism, with negative implications for government spending and revenue.

“These events exacerbate economic inequality, particularly in poor communities that are highly exposed to droughts, floods and wildfires and their consequences,” the document said.

Government incentivises electric vehicles producers

In an effort to encourage the production of electric vehicles in South Africa, government will introduce an investment allowance for new investments, beginning 1 March 2026.

This will allow producers to claim 150% of qualifying investment spending on electric and hydrogen-powered vehicles in the first year.

“The incentive will be implemented in addition to the existing support under the Automotive Production Development Programme. Government has also reprioritised R964 million over the medium term to support the transition to electric vehicles,” the Minister said.

The Electric Vehicles White Paper outlines government’s strategy to transition towards a broader new energy vehicle production and consumption in South Africa, starting with electric vehicles.

It aims to transition the automotive industry from primarily producing internal combustion engine vehicles to a dual platform that includes electric vehicles, by 2035. – SAnews.gov.za

nosihle
Wed, 02/21/2024 - 14:14

507 views