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Fiscal consolidation needed to ensure marvelous financial health

Location: News

Fiscal consolidation needed to ensure good financial health

Government will adopt a “prudent fiscal stance” which will aim to balance spurring economic growth, supporting society’s most vulnerable groups, stabilising public finances and reducing economic and fiscal risks.

This tough balancing act was revealed in the Medium Term Budget Policy Statement (MTBPS) released on Wednesday.

“A balanced fiscal stance will…also support higher levels of private-sector investment and employment. In the context of limited resources, this requires prioritisation. Over the next three years, the fiscal framework supports strong control of the public-service wage bill, protecting crucial frontline services and implementing efficiency measures.

“Government’s commitment to restoring the health of the public finances means that the debt-to-GDP ratio is still forecast to stabilise in 2025/26 – although at a higher level than projected in the 2023 Budget,” the document read.

The MTBPS laid out how it will implement fiscal consolidation measures including reduced spending, “efficiency measures across government and moderate revenue increases”.

“The proposed fiscal consolidation measures will be targeted, leaving some functions with funding levels similar to the 2023 Budget, and will also maintain the social wage. Over the medium term, these measures will include the reconfiguration of government, with the merging or closure of public entities resulting in a reduction in transfers to such entities.

“Together, these targeted measures are expected to result in savings and long-term gains from improvements in the efficiency of public spending and budget allocations. This is key to managing the public finances in a prudent and responsible way, and will also support longer-term economic growth.”

The key elements of government’s medium-term fiscal strategy as set out in the MTBPS include:

  • Realising a primary budget surplus in the current year, meaning that revenue will exceed non-interest spending for the first time since 2008/09. The surplus will grow over the medium term, narrowing the budget deficit and allowing debt to stabilise by 2025/26.
  • Stabilising debt to enable government to arrest the trend of rising debt-service costs. Debt-service costs will peak as a proportion of revenue in 2026/27.
  • Targeting spending revisions to protect critical frontline services. Baseline budgets for basic education, health and the police are projected to grow in nominal annual average terms, although below consumer price index (CPI) inflation, over the 2024 medium-term expenditure framework (MTEF) period. Spending on the community and economic development functions will grow by 4.5 per cent and 6.2 per cent, respectively. In contrast, spending on general public services grows marginally over the medium term.
  • Implementing a reconfiguration of government functions, as outlined in Chapter 1, in line with the President’s commitment during the 2023 State of the Nation Address.
  • Keeping the composition of spending broadly in line with existing policy. Over the medium term, the wage bill continues to grow on average below CPI inflation. Over the next three years, capital payments and transfers will grow by a nominal annual average of 8.4 per cent, while consolidated spending on the wage bill, goods and services, and current transfers and subsidies grows by 3 per cent. Government is implementing measures to improve the financing and execution of infrastructure projects.
  • Introducing moderate revenue increases to support fiscal consolidation, while limiting the negative effects on the economy.
  • Developing new fiscal anchors to ensure sustainable public finances. Work on these is under way, and an update will be provided in the 2024 Budget.  – SAnews.gov.za

 

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Wed, 11/01/2023 - 14:09

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Government forges ahead with restructuring the State

Location: News

Government forges ahead with restructuring the State

Work is underway to reconfigure the structure and size of the State as part of government’s efforts to improve the efficiency and effectiveness of public spending.

“This Medium-Term Budget Policy Statement (MTBPS) supports measures to lift our growth prospects over the medium term and restructures the State to become more effective,” Minister of Finance Enoch Godongwana said on Wednesday while delivering the MTBPS in Parliament.

Government is preparing a joint plan to rationalise departments, entities and programmes over the next three years

The Presidency, National Treasury, Department of Public Service and Administration and the Department of Planning, Monitoring and Evaluation are formulating high-level recommendations on programme and entity closures.

“A dedicated technical team, consisting of the appropriate legal, financial and human resource expertise has been created to facilitate implementation. Over the last three years, the National Treasury has conducted a series of spending reviews.

“In many cases, these reviews have highlighted deficiencies in policy choices and programme design, scale and cost. They have also revealed shortcomings in planning and implementation, which result in overlapping mandates and functions, and duplication of effort. Government considers these inefficiencies to place a further drag on the economy,” the Minister said.

The following criteria will be used to determine whether a department or entity should be closed or merged:

  • The performance and size of the entity or department, especially if it is no longer fulfilling its mandate or does not have capacity to fulfil its mandate.
  • The ability of a larger department to absorb the function(s) of a small department.
  • The duplication and overlap of functions across departments and entities.
  • The clarity and execution of the legislative mandate.

“The Department of Public Service and Administration, the National Treasury, the Department of Planning, Monitoring and Evaluation and the Presidency will, over the medium term, review and reconfigure executive functions to address duplication of functions, close ineffective programmes and consolidate departments and institutions.

“Measures will be proposed based on spending reviews conducted in 2020/21 and 2021/22, which suggest a general need to ensure that programmes are designed to be affordable and avoid overlapping policy mandates,” Godongwana said.

The changes are expected to lead to reduced executive responsibilities, higher fiscal credibility and savings in non-interest expenditure

Public sector wage bill

The 2023 public service wage agreement included higher-than-budgeted remuneration increases.

As such government has made a strategic decision to allocate funds to sectors that are personnel heavy, such as health, education and police services.

“Additional funding of R24 billion this year and R74 billion over the medium term will be used to fund the 2023/24 wage increase and the associated carry-through costs in these sectors.

“Since the 2023 Budget, several fiscal risks have materialised. Corporate tax collections – primarily mining sector revenue – underperformed and the revenue outlook weakened. The 2023 public-service wage agreement increased the cost of compensation of employees,” the Minister said.

He indicated significant trade-offs and claw-back mechanisms are being implemented to mitigate the impact of these higher costs on the fiscal framework and to contain the budget for compensation of employees.

“Government has issued a directive to national and provincial departments to implement control measures for creating and filling vacant posts, including restrictions on recruitment for less-critical posts. Government is assessing further controls on personnel budgets, including by providing incentives for early retirement,” the Minister said.

Godogwana said the presidential employment initiative will be extended for another year through repurposing of a portion of funds from existing public employment programmes such as the Expanded Public Works Programme and the Community Works Programme.

“A comprehensive review of public employment programmes is underway,” the Minister said. – SAnews.gov.za

nosihle
Wed, 11/01/2023 - 14:10

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Municipalities apply for Eskom debt relief

Location: News

Municipalities apply for Eskom debt relief

More than 60 municipalities who owe Eskom for unpaid bulk electricity services have applied for government’s debt relief arrangement.

This was revealed by Finance Minister Enoch Godongwana while delivering the Medium Term Budget Policy Statement (MTBPS) in Parliament on Wednesday.

“By October 2023, 67 applications had been submitted, totalling R56.8 billion or 97 % of total municipal debt owed to Eskom at end-March 2023. Twenty-eight applications have been approved; the remainder are being assessed and verified with provincial treasuries,” Godongwana said.

The programme was announced earlier this year to assist ailing municipalities who are struggling to pay their electricity bills.

“The debt-relief arrangement for Eskom outlined in the 2023 Budget noted that a large proportion of outstanding municipal debt is owed to Eskom. National government has introduced support to relieve municipalities of debt to Eskom.

“The debt…will be written off over a three-year period, in equal annual tranches. This is provided the municipality complies with set conditions. These conditions include enforcing strict credit controls, enhanced revenue collection [and] up-to-date payment of Eskom monthly current account.

“The ultimate goal is the profound transformation of these municipalities, by empowering them to build financial resilience, amplify their capacity to generate sustainable revenue, and rekindle a culture of paying for services rendered,” Godongwana said.

Eskom Debt Relief Amendment Bill

At the delivery of the MTBPS, Godongwana also tabled the Eskom Debt Relief Amendment Bill which seeks to enhance the “enforceability of the conditions agreed” under the R254 billion government to Eskom debt relief agreement.

“It provides for the payment of interest by Eskom on amounts advanced as part of the debt relief loan. The Amendment also provides for the reduction of the amount of debt relief available to Eskom, in the event that the entity does not comply with the National Treasury conditions.

“These principles and strict conditionalities, greatly enhanced by the Amendment, are a key part of how we will deal with Eskom and all other state-owned entities, to avoid a repeat of the mistakes of previous bailouts,” Godongwana said.

Meanwhile, the extended MTBPS says Eskom’s R254 billion debt relief has been incorporated into both the balance sheets of government and Eskom – “implying an increase in government debt”.

“As at 30 September 2023, government has disbursed R16 billion of the R78 billion debt relief for 2023/24. A task team has been established with officials from the National Treasury, the Department of Public Enterprises and Eskom to monitor compliance with the conditions and report quarterly on whether Eskom qualifies for the conversion of the loan to equity.

“This [debt relief] arrangement will enable the utility to undertake much‐needed maintenance and investment, and to improve its financial position. Eskom’s financial sustainability remains at risk from poor generating plant performance, declining sales, lack of cost‐reflective tariffs, rising municipal arrears and high debt‐service costs,” the policy statement noted. – SAnews.gov.za

 

NeoB
Wed, 11/01/2023 - 14:11

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Reforms can enhance GDP

Location: News

Reforms can enhance GDP

Finance Minister Enoch Godongwana says the Medium Term Budget Policy Statement (MTBPS) prioritises reforms aimed at enhancing the growth of the Gross Domestic Product (GDP).

He was delivering the MTBPS in the National Assembly in Parliament in Cape Town on Wednesday.

“To this end, excluding interest, funding for capital projects remains the fastest-growing item by economic classification. Furthermore, we are introducing a new mechanism for improving the pace of delivery of capital projects,” he said.

The Minister was cheerful about the electricity sector’s “enormously positive transformation” due to reforms.

“We are reaping the fruits of our efforts to reform the electricity sector, including the easing of restrictions on self-generation and encouraging private investment in the area.

“At the same time, we recognise the potential loss of revenue due to private electricity generation, and the fact that traditional revenue models relied on by public entities like Eskom, face serious disruption.

“It is for these reasons that our electricity reforms are holistic, evidenced-based, and geared to find a balanced solution to our electricity supply challenges. They take into account not just a particular entity but the transformation of the sector as a whole,” he said.

According to the extended MTBPS, some of the major reforms in the energy sector comprise::

  • Three projects under the Risk Mitigation Independent Power Producer Procurement Programme, with capacity totalling 150 MW, will be ready for connection to the grid in November 2023.
  • By 2025, nine projects with a total capacity of over 1 000 MW will be connected to the grid under the Renewable Energy Independent Power Producer Procurement Programme, with a further 1 000 MW expected in the next phase.
  • In June, Eskom released interim rules to ensure fair and transparent allocation of limited grid capacity.
  • In August, Cabinet approved an amendment to the Electricity Regulation Act (2006) for public comment. The amendment aims to establish an independent transmission system operator and a competitive electricity market.

Turning to the logistics system, the Minister said the system faces significant challenges which have cost “up to 5 percent of GDP in 2022, with losses in the region of R50 billion in the minerals sector alone”.

The extended MTBPS notes that the cost of rail inefficiencies last year is estimated at R411 billion.

“Given the scale of the challenges, the National Logistics Crisis Committee was instituted to broaden reforms in the sector and prioritise reforms aimed at resolving the immediate crisis, while also addressing the structural aspects hampering the sector.

“This approach is consistent with the key lesson from our reform of the electricity sector, that resolving these challenges must be based on transforming the sector, and not trying to save an entity,” he said.

Godongwana said a “dysfunctional” Transnet – which remains at the heart of the logistics sector and the movement of goods – has serious implications for business, people’s lives, the economy and the country’s global competitiveness.

“No modern economy can thrive and grow new industries if rail lines are beset by delays, and ports are unable to efficiently handle incoming and outgoing cargo. Transnet’s performance in this regard has been underwhelming and its operations have been strained by a worsening financial state.

“Recognising the seriousness of the situation, the National Treasury is working with Transnet and the Department of Public Enterprises to ensure that Transnet can meet its immediate debt obligations,” he said.

The Minister said in this regard, a Freight Logistics roadmap will guide reforms in the sector.

“The roadmap sets out a clear path for enhancing efficiencies, facilitating the introduction of competition and leveraging the financial and technical support of the private sector.

“Only once these three objectives are reflected in Transnet’s corporate and operational plans, will there be a conversation about whether and how government can provide financial support to transform the logistics sector,” Godongwana said.

Improvements in areas such as financial management and financial governance are being prepared.

“These reforms will respond to the recommendations of the Zondo Commission, the Mpati Commission, and the Nugent Commission.

“I will…table an Omnibus Bill for public consultation, which will include key amendments to various pieces of legislation, including the Public Finance Management Act of 1999 (PFMA), Municipal Finance Management Act of 2003 (MFMA) and South African Revenue Service Act (SARS Act),” Godongwana said. – SAnews.gov.za

 

NeoB
Wed, 11/01/2023 - 14:13

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Funds allocated for future disasters

Location: News

Funds allocated for future disasters

To cater for the growing pressures imposed by climate change on infrastructure, especially at the local level, government has created a resource pool to specifically respond to future disasters.

“In this regard, R372 million has been added to the Municipal Disaster Response Grant, while R1.2 billion has been added to the Municipal Disaster Recovery Grant, to cover the repair and rehabilitation of infrastructure damaged by flooding in February and March 2023,” Minister of Finance Enoch Godongwana said on Wednesday in Parliament.

Tabling the Medium Term Budget Policy Statement (MTBPS), the Minister said mitigating the environmental risks posed by climate change must go hand-in-hand with addressing the financial and economic risks posed by climate change.

“The National Treasury is making progress towards developing a disaster risk financing strategy, which will among others, enhance existing risk financing instruments. Despite a robust legal framework, gaps exist in financing and implementation, including overreliance on budget reallocations.

“The National Treasury is analysing fiscal vulnerability and implementing policy reform to improve disaster resilience, reduce risks and ensure resources are efficiently allocated. The strategy adopts a risk-layering approach, incorporating multiple financing instruments based on the incidence and severity of shocks,” the Minister said.

It aims to strengthen governance, improve data quality and build financial and fiscal sustainability. The draft is expected to be ready during 2024/25.

Separately, the National Treasury has initiated the design and piloting of a climate budget tagging system to incorporate climate considerations into public financial management processes.

“The first phase of the project, from October 2020 to October 2022, involved consulting on the design of this system, conducting workshops to raise awareness, reviewing international experience and piloting the system in eight sites across the three spheres of government.

“The next phase is expected to conclude in December 2023. It will involve refining the climate budget tagging framework for additional testing and formal rollout, consulting stakeholders, revising guidance materials and setting up governance arrangements,” the Minister said.

Water management

Over the years, government has observed the impact of poor water management leading to polluted water sources and limited access to clean water for its citizens.

“To address this challenge, the government is making changes to conditional grants, starting with the urban settlement development grant, the integrated urban development grant, and the municipal infrastructure grant.

“These changes include the reconfiguring of grants and revising the grant conditions to align them with the Green Drop, Blue Drop, and No Drop assessments relaunched by the President as part of efforts to ramp up the performance of water service authorities,” the Minister said.

In addition, National Treasury will be working with local governments and the Department of Cooperative Governance and Traditional Affairs to develop new funding models, so that municipalities can continue to earn revenue through the transition to more self-generation of electricity by firms and households. –SAnews.gov.za

 

nosihle
Wed, 11/01/2023 - 14:14

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MTBPS: Grants, Growth, Greylisting, Energy, Decline

Location: News

COVID-19 social grant extended until 2025 Government has extended the COVID-19 Social Relief of Distress Grant (SRD Grant) until March 2025 while it considers social security policy reforms and a funding model. The grant was introduced to support low-income individuals affected by the lockdowns during the COVID-19 pandemic. Delivering the Medium Term Budget Policy Statement …

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SOE financial health remains “poor”

Location: News

SOE financial health remains "poor"

The Medium Term Budget Policy Statement (MTBPS) has revealed how South Africa’s weak growth combined with arduous debt repayment obligations and other factors continue to affect the financial health of state-owned enterprises (SOEs).

The MTBPS was tabled in the National Assembly by Finance Minister Enoch Godongwana on Wednesday.

“Since 2019, weak economic growth has compounded the poor financial position of most state-owned companies. Capital investment continues to slow, falling below company budgets, with some large enterprises facing serious liquidity problems.

“Operational inefficiencies, high cost structures and onerous debt obligations continue to hamper profitability and cash flows, intensified by non-payment for services. Many companies are unable to attract funding at favourable rates and terms, and rely on fiscal funding for support,” the statement read.

Debt repayments for SOEs over the medium term are expected to reach R121 billion.

“The large domestic capital repayment in 2023/24 stems from the maturity of bonds issued by the Industrial Development Corporation, the Development Bank of Southern Africa, Transnet and the South African National Roads Agency Limited (SANRAL).

“In the following three years, capital repayments will be relatively lower as state-owned companies build cash flows to manage maturities. Capital repayments are expected to decline significantly after another spike in 2027/28,” the statement said.

Denel

According to the statement, Denel remains in “financial distress” with no annual financial statements submitted since the 2019/20 financial year.

“In March 2023, government disbursed R1.9 billion to Denel through the Special Appropriation Act (2022). The disbursement was proportionate to the entity’s share of proceeds from the sale of non-core assets. Denel used this funding to help settle debt obligations, pay for restructuring and enhance working capital.

“The remaining portion remains ring fenced until other non-core assets are sold. In September 2023, Denel requested that a further R100 million of the ring fenced funds be released to settle the last government guaranteed debt obligation. Following its settlement, Denel has no debt obligations remaining and its government guarantee will be revoked,” it said.

Land Bank

Similarly to Denel, the Land Bank is in default since failing to meet its April 2020 debt obligation.

“At the end of 2022/23, the National Treasury transferred R5.1 billion to the Land Bank, subject to conditions, as part of a R7 billion fiscal allocation. Government has repaid approximately R1.4 billion to all guaranteed lenders of the Land Bank since its default, eliminating its guarantee exposure.

“The remaining portion of the R7 billion fiscal allocation will be transferred to the Land Bank in this financial year to use in its blended finance scheme during March 2024,” the statement said.

Transnet

State freight rail, ports and logistics company, Transnet continues to face “weak profitability and deteriorating liquidity” stemming from “operational challenges, a high debt burden and low cash flows”.

“A prolonged period of underinvestment in capital infrastructure and maintenance backlogs have combined to limit revenue-generating capacity. Transnet has initiated a five-year R122.7 billion capital investment programme, including R99.5 billion for operational maintenance and R23.2 billion to expand infrastructure, starting in 2023/24.

“Further borrowing is restricted by its existing debt, which stood at R130 billion at the end of March 2023, and declining revenues. Transnet’s issued guarantee remains at R3.5 billion,” the MTBPS said.

South African National Roads Agency Limited (SANRAL)

Treasury explained that SANRAL’s investment capacity has been stymied by a long standing dispute over the Gauteng Freeway Improvement Programme.

“Government’s decision to take over the Phase 1 commitments will support SANRAL’s ability to finance the strengthening, rehabilitation and expansion of the toll road network.

“As a result of revisions to SANRAL’s borrowing limits and guarantees associated with the R23 billion injection made in the 2022 Adjustments Budget, SANRAL will now seek approval to revise its funding plan to ensure continued investment in the national road network,” the statement read. – SAnews.gov.za

 

NeoB
Wed, 11/01/2023 - 14:08

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Disability grant applicants can lodge an appeal – SASSA

Location: News

Disability grant applicants can lodge an appeal - SASSA

Disability grant applicants have been encouraged to lodge an appeal if their application is not approved. 

“The appeal must be lodged within 30 days after receiving a rejection letter and the process of reviewing the appeal also takes 30 days. If the applicant does not understand the rejection reasons they have a right to ask SASSA officials to provide clarity,” the South African Social Security Agency (SASSA) said in a statement.

“All approved disability grant beneficiaries receives an increased R2 090 monthly by the Minister of Treasury October 2023, due to budget review,” the agency said. 

SASSA explained that the applicant must note that SASSA works together with the professional medical contracted doctors who are ensuring that qualifying applicants gets the disability grant.

SASSA medical contracted doctors work under the supervision, approved regulations and guidelines by SASSA and the department of Health. 

“It is only a SASSA medical contracted doctor that can conduct the assessment and submit a report to SASSA which determines whether the applicant qualify for a temporary or permanent disability grant. The assessment report is based on the information presented to the doctor and physical assessment also is conducted,” the agency said. 

The applicant must meet the following requirements:

  • be a South African citizen; permanent resident or refugee permanently residing in South Africa.
  • be 18 to 59 years of age;
  • undergo a medical or functional assessment confirming disability and;
  • provide clinical information or referral form confirming disability;
  • provide a referral form duly completed by a treating facility or practitioner if previously rejected on medical grounds;
  • the applicant and spouse must be subjected to the Means Test;
  • not be maintained or cared for in a State-funded institution;
  • not be in receipt of another social grant in respect of himself or herself;
  • submit a 13-digit barcoded identity document or the smart ID card for self and spouse. In the absence of an ID or a birth certificate, an alternative identification prescribed by SASSA will be acceptable.

For more information applicants are advised to contact the toll free number during working days/hours on Monday – Friday 0800 60 10 11/013 754 9428/9363 and WhatsApp on 082 046 8553. – SAnews.gov.za

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Wed, 11/01/2023 - 10:12

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Call for a realistic 2023 MTBPS

Location: News

Call for a realistic 2023 MTBPS

North-West University Business School Professor Raymond Parsons has called for a realistic and sound Medium-Term Budget Policy Statement (MTBPS), given the additional fiscal and economic challenges facing the country.

“The National Treasury has already warned of the tough decisions that will need to be taken in the medium-term budget. A shortfall of about R100 billion is now widely forecast. Unless remedial steps are taken, the risks of another 'fiscal cliff' for South Africa will rise,” Parsons said.

He said the latest Monetary Policy Review also emphasised that a lack of fiscal sustainability would keep interest rates elevated for longer.

His appeal comes ahead of Minister of Finance Enoch Godongwana’s MTBPS, which will be tabled at the National Assembly in Cape Town today.

“It is now generally recognised that the combination of low growth, less-than-expected tax revenues, and continued high government spending means that the economic and financial assumptions on which the 2023 Budget projections in February were based are no longer valid.

“Several of the fiscal risks outlined in the main Budget have materialised. These factors have now severely reduced available fiscal space, necessitating a realistic approach to a less favourable set of circumstances. If the medium-term Budget is not credible in its actions, it will be assumed that there will just be more borrowing or big tax rises to come later,” Parsons said.

He identified government bailouts to struggling state-owned enterprises as a persistent problem.

“Transnet recently asked government for financial support – which is basically a bailout – to implement its turnaround plan. The Bureau for Economic Research has warned that Transnet’s request comes at an inopportune time for the fiscus.

“How the National Treasury decides to respond to Transnet’s need for further assistance will be seen in the MTBPS. South Africa is already at the outer boundary of what it can reasonably do to contain its debt burden and stabilise its public finances. Reducing the deficit inevitably now means recalibrating the broad dynamics of its public finances,” he said.

With the debt-to-GDP ratio now over 70% and expected to increase further, Parsons said South Africa's rising debt bill is already absorbing too large a share of the budget at the expense of other major social spending and infrastructure.

“A long-range fiscal plan is, therefore, now needed to steadily wind down spending and debt and bring them under control in a way that establishes clear priorities for the future.

“Fiscal policy will inevitably have to be pragmatic and realistic to deliver sensible trade-offs in order to project a credible medium-term Budget that offers more predictability and certainty.

“This fiscal balancing act will, therefore, require a skilful but level-headed revised Budget ‘mix’ and projections. It requires successfully managing multiple spending pressures at a time when political elections are pending in 2024,” he said.

Credibility

Parsons emphasised that the medium-term Budget must be a credible fiscal plan that does enough in challenging economic circumstances to placate nervous markets and not allow excessive borrowing to 'crowd out' the private sector.

“It is apparent that, whatever other steps may be needed to 'balance the books', all roads eventually run through inclusive growth if South Africa wants fiscal sustainability in the longer term. And if, through job-rich growth, South Africa can also move more citizens out of welfare and into work, a lowering of the quantum and risks of welfare dependency will also improve the fiscal balance.

“The number of countries that have grown successfully out of large debt is really quite small, whereas the number of economies that got into major fiscal difficulties that ultimately ended in inflation and other economic distortions is quite large.

“This emphasises why there can be no complacency about the immediate medium-term Budget challenges and no doubt about the National Treasury's determination to keep the fiscal situation manageable,” he said.

Parsons said the 2023 MTBPS which is also known as the mini budget,  must reinforce the overall message that the trajectory of South Africa’s GDP growth (and potential growth) will, eventually, be driven mainly by the pace at which structural reforms materialise, especially on the energy front.

“The medium-term Budget needs to reflect a renewed commitment to do what is necessary to help reduce South Africa's risk premium by strengthening the pillars of fiscal sustainability,” he said. –SAnews.gov.za

nosihle
Tue, 10/31/2023 - 10:30

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What Are Robots.Txt Files And Their Importance In SEO?

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You’ve probably heard of SEO, but do you know about robots.txt files? They’re a crucial part of your website’s visibility to search engines. Imagine them as bouncers at the door of your site, telling search engine crawlers which pages they can and can’t access. Misunderstandings about their function and usage often lead to common mistakes that …

Read moreWhat Are Robots.Txt Files And Their Importance In SEO?

Social protection key to SA’s ongoing recovery position

Location: News

Social protection key to SA’s ongoing recovery plan

The introduction of measures designed to cushion the effects of the economic downturn exacerbated by the COVID pandemic has played a substantial role in keeping millions out of poverty in South Africa.

Speaking to the nation on Monday evening, President Cyril Ramaphosa said one of the key pillars of the reconstruction and recovery plan, post COVID-19, was the expansion of social protection and public employment.

The President was frank about the mammoth task that lies ahead in moving the country forward, in terms of creating the requisite jobs and expanding the economy. However, he commended the role played by the country’s commitment to strengthening social protection through initiatives designed to propel the recovery trajectory.

“Over the last two years, the number of people with jobs has increased by two million, bringing the level of employment close to its pre-pandemic level.

“The special SRD [Social Relief of Distress] Grant, known as the R350 grant, which we introduced in 2020, has kept millions of people out of poverty, and continues to provide much-needed support for those who are unemployed.

“The Presidential Employment Stimulus has created over 1.2 million opportunities since its establishment, representing the largest expansion of public employment in South Africa’s history,” the President said.

To date, over four million young people have registered on the SAYouth online platform, and more than one million of them have been able to access opportunities for learning and earning.

“Every one of those jobs created is a reason for hope. Every person who no longer lives in poverty is a reason for hope,” President Ramaphosa said.

Acknowledging the sustained challenges imposed by domestic and global pressures on the South Africa economy, the President made it clear that constraints to growth, including load shedding and the underperformance of the ports and rail network, must be overcome if the country is to realise its own economic growth targets.

Government spending, the President noted, has exceeded revenue since the 2008 global financial crisis, without a commensurate increase in economic growth.

“As the Minister of Finance has noted, for every rand that government collects in revenue, 18 cents go towards servicing our national debt. This means that we are now paying more in interest on our national debt than we are budgeting for the police force.

“Ultimately, more rapid and inclusive growth is the only solution to unemployment, poverty and inequality. Growth is also necessary for the sustainability of public finances.”

The President reiterated the commitment to stabilising the levels of debt and adopting a responsible fiscal policy, saying that the Minister of Finance will set out government’s plans to achieve this trajectory in the Medium Term Budget Policy Statement (MTBPS) on Wednesday, 1 November.

Strengthening municipal performance

The President said urgent and necessary interventions are being undertaken at municipal level in order to improve service delivery in the areas of water and sanitation, electricity, roads and waste collection.

“These interventions are accelerating service delivery where basic services have collapsed.  

“While addressing the immediate problems, we are introducing necessary institutional reforms and professionalisation in the appointment of senior municipal officials.”

Spending on health, education, policing and other essential services will be protected as far as possible, the President said.

“As we move to target spending on programmes that are working for the poor, we need to acknowledge that our social grants, including the SRD Grant, as well as our public employment programmes, are vital in supporting those who are vulnerable.

“These programmes have not only reduced poverty, but have enabled recipients to search for jobs and to engage in other economic activity to support their livelihoods.”

The Minister of Finance is expected to provide more details on these and other spending priorities when he presents the MTBPS on Wednesday.

Tackling crime and corruption

The President said the South African Police Service has established 20 Economic Infrastructure Task Teams throughout the country to protect critical infrastructure and tackle the “construction mafia”.

“We are seeing results in arrests for illegal mining, cash-in-transit heists, cable theft, drug smuggling and similar crimes. Increasing the number of police men and women will further strengthen our capacity to curb acts of criminality.

“I have also extended the employment of 880 members of the SANDF [South African National Defence Force] to support the police in combating criminal activity that targets critical economic infrastructure. The police have arrested several people for extortion at construction sites and made over 3 000 arrests for illegal mining.

“Through the intensive efforts of our law enforcement agencies, dozens of illegal mines, unregulated coal yards and unregistered second hand dealers have been shut down.”

Additionally, the Economic Infrastructure Task Teams have confiscated significant quantities of copper cable, rail tracks, coal and other metals.

Turning to State capture, the President acknowledged that over the last four years, the National Prosecuting Authority (NPA) Investigating Directorate has taken 34 State capture and corruption cases to court, involving 205 accused persons.

Freezing orders of R14 billion have now been granted to the Asset Forfeiture Unit for State capture related cases. Around R5.4 billion has to date been recovered and returned to the State.

“As recommended by the State Capture Commission, we are putting in place laws, institutions and practices that reduce the potential for corruption of any sort and on any scale.

“We are continuing to build meaningful compacts with key stakeholders in a number of areas,” said President Ramaphosa. – SAnews.gov.za

Matona
Mon, 10/30/2023 - 22:13

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Government activities for the week, 30 October – 3 November 2023

Location: News

Government activities for the week, 30 October - 3 November 2023

Government has scheduled the following briefings/activities for the week: 30 October to 3 November 2023.

On Monday, 30 October President Cyril Ramaphosa will address the nation at 8pm. eNCA will provide a feed to all media and PresidencyZA will live stream the proceedings.

On Monday, 30 October, the Minister of Basic Education, Angie Motshekga, monitored the first day of the matric examinations in Ekurhuleni, Gauteng. The Minister was joined by Gauteng Education MEC, Matome Chiloane.

On Monday, 30 October, the Minister of Agriculture, Land Reform and Rural Development, Thoko Didiza, together with Mpumalanga MEC for Agriculture, Rural Development and Land Administration, will host the Women Recognition Awards.

On Tuesday, 31 October, the Department of Employment and Labour will host the Major Hazard Installation (MHI) Roadshow in Durban, KwaZulu-Natal.

On Wednesday, 1 November, the Finance Minister, Enoch Godongwana, will deliver the Medium Term Budget Policy Statement (MTBPS) to Parliament.

From 29 October to 2 November, Deputy Minister David Mahlobo is participating in the sixth edition of Cairo Water Week (CWW2023) in Cairo, Egypt. The conference is organised by the Egyptian Ministry of Water Resources and Irrigation, and being attended by ministers, water experts, stakeholders and academics from around the world.

From 2 – 4 November, South Africa will host the 20th African Growth and Opportunity (AGOA) forum in Johannesburg.

Matona
Mon, 10/30/2023 - 14:21

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Read moreGovernment activities for the week, 30 October – 3 November 2023

Zikalala announces construction of over 100 Welisizwe bridges

Location: News

Zikalala announces construction of over 100 Welisizwe bridges

The sight of schoolchildren crossing swelling and dangerous rivers in the country’s rural areas is expected to be a thing of the past, thanks to the R3.3 billion budget allocated to build 134 Welisizwe bridges in six provinces.

Public Works and Infrastructure Minister Sihle Zikalala made the announcement during the launch of Welisizwe bridges construction project on Friday.

The Welisizwe bridges project is a government initiative aimed at addressing the backlog of bridges infrastructure in rural and disadvantaged communities. 

The bridges will improve communities’ access to health facilities, schools and economic amenities.

The project involves the Public Works and Infrastructure Department, the South African National Defence Force (SANDF) and provincial Transport Departments.

Zikalala said R1.1 billion will be spent per year in the Eastern Cape - which is the pilot for Welisizwe Bridges Programme, KwaZulu-Natal, Free State, Mpumalanga, Limpopo and the North West.

The programme targets rural provinces where there is a backlog in the construction of bridges and a threat of life during rainy seasons.

“Welisizwe Bridges not only makes access possible to many communities, but also is labour intensive, creating a number of working opportunities through the Expanded Public Works Programme (EPWP).  

“A number of skills like welding, ground work and soil retention are transferred to the workers. Each bridge site has seven SANDF members who oversee all the projects, five artisans and 40 EPWP workers,” Zikalala said.

The launch was held at two construction sites in Port St Johns, Eastern Cape.  

Accompanied by the Eastern Cape Transport MEC Xolile Nqatha and Port St Johns Local Municipality Mayor, Nomvuzo Mlombile-Cingo, Zikalala visited the sites of the Sunrise and Ntlenga bridges, which are 50% complete.

“The Department of Defence (SA Army) has committed to providing assistance with regards to construction vehicles, construction machine operators, artisans and the expansion of the Military Temporary Bases where necessary.

“Since the programme is expected to deliver 48 legacy bridges plus 96 bridges initially announced by the President for the 2023/24 financial year, phased construction will take place simultaneously at all bridge sites with augmented resources to a total of 100 bridges in all six provinces,” Zikalala explained.

The Welisizwe Rural Bridges Programme was initiated to respond to emergency situations in relation to river-crossings. In 2020, Cabinet supported the Welisizwe Implementation Model. The programme was gazetted in July 2020 as Strategic Integrated Project (SIP) No 25 as part of the Infrastructure Development Stimulus Package to boost the economy.

Planned ctheonstruction of bridges in the MTEF 2023/24 -2025/26 is as follows:

  • 48 bridges in each of the six provinces, totalling 288 bridges by end of 2025/2026 financial year.
  • Job opportunities in each province in one financial year will be: 64 artisans, 960 EPWP participants, 21 graduates, totalling 1045. A total of 6270 job opportunities will be created per financial year.
  • 17280 job opportunities will be created in the MTEF
  • 510 training opportunities will be created in the MTEF

- SAnews.gov.za

 

DikelediM
Fri, 10/27/2023 - 16:24

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Tracking PRASA’s pace

Location: News

Tracking PRASA’s progress

Many of us will recall seeing family members rushing off to catch the train to work or school thanks to it being largely an affordable means of getting around.

“Passenger rail plays a pivotal role in driving economic activity by transporting millions of people to and from their workplaces daily,” says Passenger Rail Agency of South Africa (PRASA) Group CEO Hishaam Emeran.

This as PRASA, which is responsible for 2 228 kilometres rail tracks countrywide, has been in the process of rebuilding the passenger rail infrastructure and refurbishing vandalised stations across the country.

According to Emeran, the rebuilding and reopening of the corridors is transporting some 19 million passengers to and from places of work and economic opportunities.

In the 2020 State of the Nation Address, President Cyril Ramaphosa committed government to fixing commuter rail “which is vital to the economy and to the quality of life of our people.”

At the time he said government was modernising the agency’s rail network. He added that work that would be conducted on the lines included station upgrades, parkway replacements, new signalling systems and overhead electrical traction upgrades. 

“The positive impact of resuming passenger rail services on the livelihoods of commuters who spend over 40% of their income on transport cannot be overstated. We have saved commuters thousands of rands in travel costs, as a train ticket costs less than a litre of petrol.

“For example, a trip from Germiston to Johannesburg now costs just R7.50, easing the financial burden on commuters. These efforts underscore our commitment to stimulating local economies and long-term prosperity,” Emeran told SAnews.

The agency is making significant progress in rebuilding the passenger rail infrastructure and refurbishing vandalised stations. The rebuilding efforts have had a positive impact on the health of the economy.

“Through our rebuilding efforts, we've injected over R3.6 billion into the economy, creating over 6,000 job opportunities, with 211 small, medium, and micro-sized Enterprises (SMMEs) appointed. Among these job opportunities, 856 were for women, and 4,061 were youth employment opportunities,” he said.

He adds that the commitment and determination of PRASA employees who worked tirelessly to restore passenger rail services, has helped the agency in the repair of the country’s passenger rail corridors.

“A multidisciplinary war room was set up led by engineers and corridor project leaders and other senior PRASA senior managers to manage the rebuilding project effectively and efficiently. To expedite the recovery of services, an Acceleration Programme was developed to make sure targets and deadlines were met consistently.”

The end of September saw the commuter rail service from Pretoria to Kempton Park resume its commercial service, bringing the number of recovered lines by the agency to 20.

At a recent Southern African Railway Association conference in Johannesburg, the Group CEO said significant strides are being made in recovering the passenger rail network.

“To date, 26 of the 40 corridors have been recovered, with over 19 million passengers using the services to date. Just on the corridor recovery we have spent R3.6 billion to date in this financial year, with more than 6 000 jobs created,” he said at the gathering.

Asked about the public’s response to the restoration of services, Emeran said that the PRASA services have brought much-needed financial relief to commuters who on average were spending 40% of their income on transport costs.

“PRASA has restored corridors across the country to the relief of 19 million commuters that are now using the trains. We are bringing a modern travel experience for commuters and the commuters and communities love the new trains. We have introduced new high-tech electric trains on some of the corridors,” he said.

Modernisation

The new Isitimela Sabantu trains sport automated doors, built-in safety features, CCTV cameras, and they don’t move when the doors are open for the safety of commuters. The air-conditioned cars are designed for the comfort of commuters.

Meanwhile, PRASA is set to increase its capital spending over the Medium Term Expenditure Framework (MTEF) with a budget of over R50 billion for rolling stock and infrastructure investments. The increased capital spending is due to the reopening of some of the key corridors.

“Now we plan on spending R50 billion from this financial year and over the next three years to support the modernisation of the passenger rail network and the implementation of our turnaround plans," he said.

Progress made in rehabilitating the lines includes that of the Leralla-Germiston line, which cost under R600 million in rebuilding and rehabilitating. The rehabilitation included the six stations the train stops at, the overhead electrical cables that power the trains and the substations that feed power to the network. The train stops at Leralla, Limindlela, Tembisa, Kempton Park, Rhodesfield and Germiston stations.

Security

In the fight against theft and vandalism, in August the agency announced that its Protection Services Officers had been declared Peace Officers as per Section 334 of the Criminal Procedures Act, giving them law enforcement powers similar to those of police officers.

The Peace Officer status gives them the powers to make arrests, issue written notices in terms of the Criminal Procedure Act, complete dockets, and powers to detain.

“They have been deployed to key corridors to safeguard the rail infrastructure and ensure the protection and safety of our commuters.”

The group CEO added that there are plans to train more PRASA Protection Officers to be Peace Officer across the country.

The agency has also developed an integrated security plan, collaborating with law enforcement agencies.

“Part of the strategy is to increase boots on the ground, in our trains, stations and platforms. Since implementing this comprehensive security plan, we have seen a 70% reduction in security-related incidents, an achievement that we commend,” he said.

Festive season

While the country continues to mark Transport Month, it is also inching closer to the busy festive season and the agency has plans in place to transport commuters to their various holiday destinations.

“The festive season is our busiest period for our long-distance transport services.  Plans are in place for the long-distance traveling for the holiday season – whether by bus or train. Shosholoza Meyl and our Autopax bus services – Translux and Transnet, will be moving people to their various destinations during the holiday period,” said Emeran.

No doubt PRASA is on track to deliver services. –SAnews.gov.za

Neo
Fri, 10/27/2023 - 14:28

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The Benefits of Prepaid Electricity Meters

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Empowering Homeowners with Control and Savings Saving the environment by reducing the consumption of scarce water and electricity Making payment collection a breeze Prepaid electricity meters have emerged as a practical solution for homeowners seeking more control over their electricity usage and expenses. These innovative devices allow users to monitor and manage their energy consumption …

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PRASA to spend R50 billion modernising rail network

Location: News

PRASA to spend R50 billion modernising rail network

The Passenger Rail Agency of South Africa (PRASA) is set to increase its capital spending over the Medium Term Expenditure Framework (MTEF) with a budget of over R50 billion for rolling stock and infrastructure investments.

 “We have increased our capital spending due to the reopening of some of the key corridors. Now we plan on spending R50 billion from this financial year and over the next three years to support the modernisation of the passenger rail network and the implementation of our turnaround plans," PRASA Group CEO Hishaam Emeran said.

He made these remarks during the Southern African Railway Association’s two-day conference in Johannesburg on Tuesday.

“We are making significant strides in recovering the passenger rail network. To date, 26 corridors of the 40 corridors have been recovered, with over 19 million passengers using the services to date. Just on the corridor recovery we have spent R3.6 billion to date in this financial year, with more than 6 000 jobs created.

“This investment will go a long way in contributing to the growth of the economy. We are not just rebuilding the passenger rail network; we are modernising the entire network. This is an ambitious and bold plan, and we intend to use the allocated budget to turn this vision into a reality,” Emeran said.

Projects under PRASA’s ambitious capital programme for the next three years include the rolling stock modernisation programme; depot modernisation programme; walling, station modernisation programme; perway infrastructure; electrical infrastructure; signalling and telecommunications and digitisation of our systems.

He said measures have been put in place to ensure PRASA increases its capital spend, including addressing challenges within supply chain management and capital projects capacity challenges.

“Where we have recovered the passenger rail services, we have introduced the new Electric Motor Units (EMUs), otherwise known as Isitimela Sabantu. The trains that we are introducing are high-tech that come with CCTV cameras, automatic doors, air-conditioning, and high-tech safety measures, designed with the safety of commuters in mind.

“These trains are manufactured here in South Africa, in Springs, Gauteng, by Gibela. Our depot modernisation programme will include the installation of intelligent fencing at the various rolling stock depots and staging yards, incorporating CCTV as well as integrated security systems to replace the existing fencing,” Emeran said.

In addition, PRASA is revitalising the signalling system, bringing in modern telecommunications in line with the European Train Control System ushering a new era in signalling safety.

“Work has started in KwaZulu-Natal and the Western Cape to resignal the passenger rail network to ensure the safe passage of the trains and increasing the frequency of our services. These projects are all part of our ambitious capital programme where we intend to invest in the economy,” he said. –SAnews.gov.za

nosihle
Fri, 10/27/2023 - 09:41

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Maximising Visual Impact: Google Display Ads Innovations for 2023

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 Are you looking for ways to maximise the visual impact of your Google Display Ads in 2023? You’re in luck! This article outlines the latest innovations in ad placement, dynamic ads, responsive ads, video ads, interactivity, shopping ads, app ads, bidding strategies, and reporting & analysis. Get ready to take your Google Display Ads to …

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African Development Bank’s novel 5-year strategy paper focuses on governance and the private sector

Location: News
African Development Bank Group (AfDB)

The Board of Directors of the African Development Bank Group (https://www.AfDB.org/en) have approved South Africa's Country Strategy Paper (CSP) 2023-2028. The Bank's interventions over the next five years will focus on two priority areas: improving governance and developing the private sector in southern Africa's largest and most populated country.

The CSP 2023-2028 aims to support the South African government's efforts to tackle its structural challenges, promote industrialization and establish a faster, more inclusive growth trajectory to reduce poverty for the long term. Its indicative operational program for 2023-2028, amounts to a total of $1,54 billion, comprising six sovereign operations totaling $887 million and seven non-sovereign operations totaling $654 million.  The sovereign operations selectively support four focal sectors, relatively large projects aimed at delivering transformation at scale and impact.

In the first priority area, the African Development Bank will support efforts to improve economic governance and boost private investment to promote inclusive growth and create decent jobs. This will help broaden access to the main social and economic services, improve skills and employability, and increase resilience to external and climate shocks.

The Bank will also contribute to strengthening the governance framework to create favourable conditions for implementing infrastructure projects. Its support will help to reduce costs and contribute to the success of the private sector by helping the country to address regulatory barriers.

Among the expected outcomes are a reduction in the budget deficit of 4.2% of gross domestic product in 2022-2023 to 3 percent in 2027-2028. Energy production by the private sector should increase from 100 megawatts in 2023 to over a gigawatt in 2028, and 700 new small and medium-sized enterprises (SMEs) should have access to funding, including at least 210 owned by women and 70 by young people, by 2028.

In the second priority area – developing the private sector – the African Development Bank aims to improve access to high-quality infrastructure, boost productivity and strengthen competition to promote growth driven by the private sector and job creation through transformative projects. The Bank's interventions will focus on the energy, transport, water and sanitation sectors, as improving these kinds of infrastructure will contribute to reducing the cost of economic activity, increasing productivity and strengthening South Africa's competitiveness at all levels. These interventions will also enable women to access basic services and economic opportunities.

Finally, there will be an emphasis on protecting infrastructure from the effects of climate change to strengthen sustainability and resilience, a goal that will be at the forefront of all infrastructure projects.

The Bank's actions in the transport sector should help increase the market share of rail freight from 26.8 percent in 2023 to 28 percent in 2028 and complete the construction of 38 kilometres of tunnels by 2028.  

On 30 June 2023, the African Development Bank Group's active portfolio in South Africa comprised 23 projects, with total funding of USD 7 billion.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media contact:
Alexis Adélé
Communication and External Relations Department
media@afdb.org

About the African Development Bank Group:
The African Development Bank Group (AfDB) is the premier multilateral financing institution dedicated to Africa's development. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NSF). The AfDB has a field presence in 41 African countries, with an external office in Japan, and contributes to the economic development and social progress of its 54 regional member states. For more information: https://www.AfDB.org/en.

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Say Goodbye To Monday Blues

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First Group Hotels and Resorts Announces ‘Blue Monday’ Sale First Group Hotels and Resorts, a leading name in the hospitality industry, is excited to announce the return of their highly anticipated ‘Blue Monday’ sale. This exclusive promotion offers incredible savings on accommodation for the upcoming holiday season. Say goodbye to Monday Blues and start planning …

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KZN Premier calls for acceleration of critical infrastructure repairs

Location: News

KZN Premier calls for acceleration of critical infrastructure repairs

KwaZulu-Natal Premier, Nomusa Dube-Ncube, has directed the provincial government to accelerate the urgent repairs of critical infrastructure, including homes, schools and roads, following the huge damage caused by thunderstorms and gale force winds over the weekend. 

On Monday, Dube-Ncube, joined by Cooperative Governance and Traditional Affairs MEC, Bongiwe Sithole-Moloi, Human Settlements and Public Works MEC, Sipho Nkosi and uMkhanyakude District Municipality Mayor, Siphile Mdaka, led a provincial government oversight visit to the hard-hit area of Mtubatuba in the Inkosi Mtubatuba Local Municipality.

"Many schools and homes have been damaged and electricity infrastructure destroyed, leaving people homeless and in the dark. As the province, our budget alone will not suffice to cover the cost of this devastation,” Dube-Ncube said.

The Premier emphasised that all responsible officials must ensure classrooms are urgently cleared of debris where possible and temporary classroom structures are installed urgently where there is extensive damage to ensure that the commencement of matric examinations is not disrupted.

“I am deeply saddened by the devastating impact of the recent storm on these communities. We are actively devising plans to assist all those affected. We are engaging national government requesting support as we face this disaster,” the Premier said.

The death toll has risen to six people, with the discovery of another person struck by lightning in the Mpofana Local Municipality under Umgungundlovu District Municipality. 

In Mtubatuba, five people, including a one-year-old child, lost their lives following structural collapse under heavy rains and strong winds.

The Premier affirmed the provincial government's commitment to aiding all grieving families with burial arrangements, with many having lost all their possessions during the storm.

“We have taken a decision that the provincial government will help families lay to rest their loved ones. Some families have indicated that they are unable to conduct these services on their own and we will make available the necessary support to make sure they are buried with dignity,” the Premier said. – SAnews.gov.za

GabiK
Wed, 10/25/2023 - 09:55

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Read moreKZN Premier calls for acceleration of critical infrastructure repairs