Goma Call for Peace Campaign Launched at St George’s Cathedral
Religious leaders and civil society groups call for end to the war
Electricity
Government to spend more than R940bn on infrastructure
Government to spend more than R940bn on infrastructure
Government will spend more than R940 billion on infrastructure over the next three years.
“We are engaging local and international financial institutions and investors to unlock R100 billion in infrastructure financing,” President Ramaphosa said on Thursday, while delivering the State of the Nation Address (SONA) in Cape Town.
The President said government is developing innovative ways of funding infrastructure in a bid to achieve higher levels of economic growth.
"We are undertaking massive investment in new infrastructure, while upgrading and maintaining the infrastructure we have."
President Ramaphosa said a project preparation bid window has been launched to fast track investment readiness.
“This includes revised regulations for public-private partnerships, which will unlock private sector expertise and funds. This includes R375 billion in spending by State-owned companies.
“This funding will revitalise our roads and bridges, build dams and waterways, modernise our ports and airports, and power our economy. Through the Infrastructure Fund, 12 blended finance projects - worth nearly R38 billion - have been approved in the last year."
President Ramaphosa said the construction of the Mtentu Bridge continues.
“This bridge will rise above the river between Port Edward and Lusikisiki, and will become the tallest bridge in Africa. Working with international partners, we are revitalising small harbours, unlocking economic opportunities for coastal communities.
“We are steadily removing the obstacles to meaningful and faster growth. The economic reforms that we are implementing through Operation Vulindlela have created a new sense of optimism and confidence in our economy.
“We have made progress in rebuilding and restructuring a number of our network industries. We are seeing positive results in the improvement of the functioning of our network industries, as well as the investment opportunities that are opening up and are being taken by investors, leading to job creation,” the President said.
President Ramaphosa said over the coming year, government will initiate a second wave of reform to unleash more rapid and inclusive growth.
“Our immediate focus is to enable Eskom, Transnet and other State-owned enterprises that are vital to our economy to function optimally.
“We are repositioning these entities to provide world-class infrastructure, while enabling competition in operations, whether in electricity generation, freight rail or port terminals,” the President said.
President Ramaphosa has previously emphasised the seventh administration's commitment to expanding infrastructure investment, as a crucial part of driving economic growth and ensuring efficient service delivery. – SAnews.gov.za
Edwin
Thu, 02/06/2025 - 22:14
36 views
New wave of reforms to propel SA economy
New wave of reforms to propel SA economy
Over the next year, government will unleash a second wave of reforms aimed at unlocking the potential of South Africa’s economy.
This is according to President Cyril Ramaphosa who delivered the State of the Nation Address (SONA) – the first of the seventh administration – at the Cape Town City Hall, on Thursday evening.
“The [current] economic reforms that we are implementing through Operation Vulindlela have created a new sense of optimism and confidence in our economy. We have made progress in rebuilding and restructuring a number of our network industries.
“We are seeing positive results in the improvement of the functioning of our network industries as well as the investment opportunities that are opening up and are being taken by investors leading to job creation.
“Working together with business, labour and other social partners we must now finish this work. Over the coming year, we will initiate a second wave of reforms to unleash more rapid and inclusive growth,” President Ramaphosa said.
The President explained that the first point of focus for these reforms lies with state-owned enterprises (SOEs), particularly Eskom and Transnet, which he described as “vital to our economy to function optimally”.
To propel this work forward, a dedicated SOE Reform Unit is in the process of being established.
“We are repositioning these entities to provide world-class infrastructure while enabling competition in operations, whether in electricity generation, freight rail or port terminals.
“We continue with the fundamental reform of our state-owned enterprises to ensure that they can effectively fulfil their social and economic mandates. This includes the work underway to put in place a new model to strengthen governance and oversight of public entities,” President Ramaphosa explained.
Electricity reform
A key reform is in South Africa’s energy sector, with the implementation of the Electricity Regulation Amendment Act which came into effect this year.
The President described this Amendment Act as the “beginning of a new era” that will unlock a competitive electricity market.
“We now need to put the risk of load shedding behind us once and for all by completing the reform of our energy system to ensure long-term energy security. The Electricity Regulation Amendment Act, which came into effect on the 1st of January, marks the beginning of a new era.
“This year, we will put in place the building blocks of a competitive electricity market. Over time, this will allow multiple electricity generation entities to emerge and compete. We will mobilise private sector investment in our transmission network to connect more renewable energy to the grid,” he said.
With the current and a new wave of reforms, the President said, “we are steadily removing the obstacles to meaningful and faster growth”. – SAnews.gov.za
NeoB
Thu, 02/06/2025 - 20:58
36 views
Go-Slow at Hospital After CEO Suspended
Brief suspension came after a letter in the name of CEO Mziyanda Tshaka circulated about an acute shortage of doctors at Tambo Regional Hospital
Trump’s Aid Review Is a Win for Africa – Nations Must Reject Aid and Handouts
By NJ Ayuk, Executive Chairman, African Energy Chamber (wwwEnergyChamber.org).
After President Trump announced a 90-day overseas spending freeze, Secretary of State Marco Rubio said "every dollar" must be "justified" by evidence that it makes the US safer, stronger and more prosperous.
I acknowledge that stance may sound ungrateful. At first blush, many might counter that starving people have no agenda. Destitute parents still need to feed their children. Turning a blind eye to their plight is inhumane.
Let me explain why the African Energy Chamber (AEC) continues to push for free-market solutions rather than good-will handouts from USAID. There was an era when Africa and Western pop music were closely linked.
Western entertainers spearheaded a number of internationally renowned events to raise awareness about the plight of starving Africans and generate funds for famine relief.
In December 1984, the supergroup Band Aid sang about feeding the world, asking “Do They Know it's Christmas?” Within a year, the group had raised over $9 million. Three months later, USA for Africa released “We Are the World” and banked $44.5 million after one year for its African humanitarian fund. Then on a hot July day in 1985, the worldwide concert event Live Aid raised more than $150 million for famine relief in Africa.
These are just a handful of grand and noble gestures intended to lift Africa out of poverty. These famous events arguably raised both awareness and funds. Unfortunately, the efforts — and others like them — fall far short of making any real socioeconomic change. In fact, some argue that injecting monetary aid into Africa, time and time again, has actually done more harm than good.
History of ‘Help'
Even aid genuinely given to help Africa tends to do more harm than good.
Since 1960, more than $2.6 trillion has been pumped into Africa in the form of aid. From 1970 and 1998, when aid was at its peak, poverty actually rose alarmingly — from 11% to 66% — due in large part to this massive influx of foreign aid that counteracted its intended good.
Aid decreased long-term economic growth by fuelling systemic corruption, in which powerful aid recipients funnelled foreign funds into a personal stash instead of public investment. Many leaders realized that they no longer needed to invest in social programs for their constituents because of the revenues from foreign donors.
Large inflows of aid also caused higher inflation, hindering African nations' international competitiveness in exporting. That resulted in diminishing the manufacturing sector – which is critical in helping developing economies grow — across the continent. And well-intentioned Westerners who saw the economic shrink just kept pouring more and more money at “the problem” — leading to a vicious cycle that furthered corruption and economic decline.
But here's the kicker: The World Bank has admitted that 75% of the agricultural projects it implemented to help Africa failed. So why do they and other aid providers continue to fund these failing efforts?
Examples of Failure
Across the continent, we see example after example of failed aid projects, with agricultural projects routinely providing little or no benefit to African farmers.
In Mali, the U.S. Agency for International Development (USAID) injected $10 million into “Operation Mils Mopti” to increase grain production. The government imposed “official” prices on the grain, which forced farmers to sell their crops at these below-market rates and resulted in grain production falling by 80%.
USAID also spent $4 million to help livestock producers grow the number of cattle in the Bakel region from 11,200 to 25,000 — but ultimately only succeeded in increasing it by 882 head. Another $7 million was injected into the Sodespt region, but that investment managed to sell only 263 cattle and failed to sell any goats or sheep.
Then we see example after example of Westerners wastefully “helping” without any understanding of the local situation. Norwegian aid agencies built a fish-freezing plant to improve employment in northern Kenya — a region where the local people traditionally do not fish because of their semi-nomadic pastoralist lifestyle. Couple the lack of fishing experience with the unfortunate reality that the plant required more power than was available in the entire region, and the result was that the brand-new processing plant sat idle.
The World Bank financed a $10+ million expansion of Tanzania's cashew-processing capabilities, which resulted in 11 factories with the capacity to process three times as many cashews as the country was growing on a yearly basis. The plants were too efficient for the available workforce and cost so much to run that it was cheaper to process the raw nuts in India. Half the plants were inoperable, and the other half only ran at about 20% capacity.
I'm not saying that we Africans are ungrateful for the outpouring of heartfelt care. The compassion of the West is certainly real. However, the outcome of said compassion is the concern: The more foreign aid African governments receive, the worse they perform. As long as the aid keeps flowing, government leaders and their employees who administer development programs may prosper while the rest of the citizenry continues to suffer the effects of a mismanaged economy.
Questionable Benefits
We also must acknowledge that, in far too many cases, aid has also been given to African nations and communities in attempts to manipulate and control.
“While hungry faces are used on posters and in media reports to sell the virtues of foreign aid, it is the hungry who rarely see any of the funds,” James Peron, executive director of the Institute for Liberal Values in Johannesburg, South Africa, lamented in a piece for the Foundation for Economic Education. “Poverty may be used to justify the programs, but the aid is almost always given in the form of government-to-government transfers. And once the aid is in the hands of the state it is used for purposes conducive to the ruling regime's own purposes.”
And now we witness the international community talking about aid for African countries as a substitute for our oil and gas activities. Western environmentalists argue that Africa should keep all of its petroleum resources in the ground to prevent further climate change. In exchange for that sacrifice, African nations would be compensated and inject that money into other opportunities like developing their sustainable energy technologies.
I've said it before, and I'll say it again: What a horrible idea!
I‘m offended by foreign stakeholders feeling that providing humanitarian assistance gives them the right to influence our domestic decisions. With Africa poised to participate in the worldwide energy transition, my fear is that international donors will feel justified to dictate Africa's policy regarding the lengths to which, and speed with which, our energy transition occurs. This would be a huge step backward in our energy, economic, and even individual independence.
Aid packages to incentivize giving up our oil and gas operations will be detrimental to Africans. Because let's be honest: History has shown that this assistance could never replace the oil and gas industry's ability to create jobs and business opportunities, grow local capacity, open the door to technology sharing, facilitate economic growth, and alleviate energy poverty.
Instead of continuing a pattern that clearly does more harm than good, why aren't African nations encouraged to leverage the wealth of resources at our feet?
The AEC is determined to make a case for African nations harnessing their oil and gas solutions to help themselves. We will not be bullied, or manipulated with aid, into a path that is not in our best interests.
Use What We Have!
One reason why the AEC is an outspoken advocate for Africa's oil and gas industry is because it represents more than big revenue for African governments. It is a free-market solution that creates pathways for Africans to help themselves. And, ultimately, empowering Africans is our number one goal.
We endorse an energy mix approach that allows Africa to use and sell our own hydrocarbon reserves to alleviate energy poverty, while at the same time moving toward a future in which renewable energy sources power the continent. The energy mix method can help more people more quickly because it takes a practical, people-first approach to helping those who have traditionally been left behind by the energy sector, while moving us toward greener energy sources.
Natural gas, in particular, can transform African lives and communities. Its potential benefits range from eradicating energy poverty to allowing Africans to develop skills for good jobs to creating hope for our youth.
Ramping up gas production to help alleviate the lack of access to electricity will create thousands of new employment opportunities in Africa. In addition, the new sources of energy can be exported to Western countries and also used to industrialized Africa. Then, as Europe transitions to alternative energy, a larger portion of Africa's natural gas can power domestic needs. By the time other countries complete their transitions to carbon-neutral sources, Africa will have a much more expansive and reliable grid system, which will allow for an easier transition.
And before we argue about the evils of hydrocarbons, let me point out that, although it might seem counterintuitive, it is possible for Africa to make use of its abundant fossil fuels while moving toward a future sustained by renewable energy sources. In fact, I believe that African nations must do everything they can to ensure that these two things work in tandem. Considering that 600 million people on the continent have no access to electricity and 900 million people lack access to clean cooking technologies, it's impossible — if not altogether inhumane — to discuss climate change without looking at energy poverty.
As I recently wrote in an article published by Medium, we cannot transition from the dark to the dark. We must deliver energy to the people of Africa and then worry about transitioning to environmentally friendly alternatives, just like we have everywhere else in the world.
This has been our platform, and we will continue to stand by it in 2025 and beyond. Looking at Africa and only pushing for aid is not in the interest of the everyday Africans. It caters to the egos of the elites and latte intellectuals who believe they have the solutions to why the continent is still poor.
Distributed by APO Group on behalf of African Energy Chamber.
Storms Damage Hundreds of Homes and Schools in Northern KZN
Homes damaged across Msinga and Abaqulusi municipalities
Economic growth, job creation expected to take centre stage in President’s SONA
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
President to deliver first SONA of the seventh administration
President to deliver first SONA of the seventh administration
In just a few hours, President Cyril Ramaphosa will deliver the State of the Nation Address (SONA) which will provide a country roadmap charting the way forward for the country in what one could call a mixed bag of domestic and global circumstances.
Thursday night will mark the first SONA to be delivered under the seventh administration’s Government of National Unity (GNU) following the outcomes of the historic 29 May 2024 elections.
And while the faces of government Ministers has changed with every administration, the SONA, held every year since the dawn of democratic South Africa in 1994, continues to hold strong and is a reflection of democracy in action, no matter who is in the driver’s seat of the sitting government of the day.
The State of the Nation Address (SONA) is an important fixture in the nation’s journey forward and provides the President with an opportunity to hold perhaps the year’s “biggest family meeting,” outlining the key plans and programmes of the year ahead. The address also affords the President the chance to look into the rearview mirror to assess the journey traversed to date.
As the President fine-tunes his notes before delivering the speech in an environment that changes by the second, government is cognisant that in every family unit, every member has a role to play in ensuring and preserving the family name and that it has to do so by ensuring the provision of services and responding to challenges facing the South African family.
This as government continues to respond to the challenges of poverty, inequality, unemployment and illegal mining among others.
“As much as we have made progress, we have to do much more to overcome the challenges that confront our nation. We need to work with urgency and purpose to grow an inclusive economy and create jobs,” the President said in his New Year’s Eve message to the nation in December 2024.
In that address, he called on the nation to look at the year 2025 with hope.
“As a people, our unity, determination and resilience has seen us through hard times. Just as this has been a year of great change, we look to the next year with great hope,” he said at the time.
And while our South African family is by no means perfect, there are valid reasons not to be glum about the future.
G20
At tomorrow night’s joint sitting of the National Assembly and the National Council of Provinces (NCOP) in Parliament, the President is expected to speak on the country’s hosting of the Group of 20 (G20) Summit in November, making the country the first do so on the African continent. This as the nation assumed the Presidency of the grouping on 1 December 2024 under the theme: “Solidarity, Equality, Sustainability”.
Having taken over the baton from Brazil, South Africa's G20 Presidency is the fourth consecutive emerging market Presidency and follows the admission of the African Union (AU) as the second permanent African member.
The G20 was established to tackle pressing global economic and financial issues. Together, G20 members account for around 85% of global GDP and 75% of international trade. The hosting of the Summit is expected to help accelerate the performance of the economy.
The economy
President Ramaphosa is likely to also reflect on the performance of the economy in an environment where the rising cost of living has many on edge. However, the prospects of South Africa’s purse strings are predicted to improve with the country in 2024 having achieved its first primary budget surplus in 15 years.
A recent economic and financial assessment by the International Monetary Fund (IMF) showed that the country’s economic growth prospects are poised to recover in 2025 following a lacklustre economic performance for the past two years.
Last month, the fund published the findings of its Article IV Consultation with South Africa, which was held in November 2024.
According to the IMF, the real Gross Domestic Product (GDP) output growth is expected to accelerate from an estimated 0.8 % in 2024 to 1.5 % in 2025 driven by improved electricity generation, monetary policy easing, and a return of investor and consumer confidence post the elections.
The IMF acknowledged progress in banking-resolution and safety-net reforms and praised macro-prudential measures to bolster capital buffers. However, it also raised concerns on the rising public debt and the challenges South Africa faces to meet climate goals.
The ongoing electricity and logistics reforms aimed at alleviating critical supply constraints were also welcomed. National Treasury noted that the fund’s concerns are aligned with government’s response to addressing immediate and long-term economic challenges.
“The National Treasury is committed to implementing reforms that will enhance inclusive economic growth, achieve a sustainable public debt level, further repair and strengthen network industries, and strengthen state capacity to support economic activity.”
In its 2024 Medium Term Budget Policy Statement (MTBPS) in October, Treasury estimated economic growth to increase from 1.1 % in 2024 to 1.7% in 2025.
It attributed the gains in the economy to household consumption gradually increasing, supported by rising purchasing power, employment recovery and wealth gains.
The current focus of South Africa’s reform agenda includes the stabilisation of the electricity grid, enhancing the efficacy of freight and ports operations, implementing e-Visas, as well as prioritising the advancement of targeted industries to enhance the business climate and promoting equitable growth.
Legislation
In the past year, government has passed laws that aim to improve lives as well as respond to pressing challenges.
In January this year, the President signed into law the Expropriation Bill, which sets out how organs of State may expropriate land in the public interest for varied reasons.
The new legislation repeals the pre-democratic Expropriation Act of 1975, aligns expropriation processes with the Constitution and marks the culmination of a five-year process of public consultation and Parliamentary deliberation.
“The Bill assented to by President Ramaphosa outlines how expropriation can be done and on what basis. This law will assist all organs of State - local, provincial and national authorities - to expropriate land in the public interest for varied reasons,” the Presidency said.
Section 25 of the Constitution recognises expropriation as an essential mechanism for the state to acquire someone’s property for a public purpose or in the public interest, subject to just and equitable compensation being paid.
The law has drawn criticism from the United States of America with South Africa saying it looks “forward to engaging” with US President Donald Trump’s administration on bilateral relations and other issues.
The Presidency said the legislation is not a confiscation instrument.
“The recently adopted Expropriation Act is not a confiscation instrument, but a constitutionally mandated legal process that ensures public access to land in an equitable and just manner as guided by the constitution.
“South Africa, like the United States of America and other countries, has always had expropriation laws that balance the need for public usage of land and the protection of rights of property owners."
Among other laws passed is the Employment Equity Amendment Act, which is aimed at reducing the regulatory burden for small employers to allow them to focus on job creation, which came into effect on 1 January 2025.
President Ramaphosa signed last year, the proclamation notice giving effect to the start date of implementation of the Employment Equity (EE) Amendment Act, No. 4 of 2022.
In terms of the notice gazetted on 28 November 2024, small businesses that employ less than 50 employees are no longer bound to comply with Chapter III of the Employment Equity Act, 1998 (EEA) - for example in relation to the submission of their EE reports starting from the 2025 EE Reporting period.
Employment and Labour Minister Nomakhosazana Meth said the regulatory flexibility will enable small businesses to now focus on growing their businesses and create jobs.
In addition, in December, the President announced his intention to sign a Presidential Proclamation that will bring the Basic Education Laws Amendment (BELA) Act into operation, immediately.
The BELA Bill was passed by the 6th democratic Parliament on 26 October 2023 after which the first citizen assented to the Bill on 13 September 2024.
President Ramaphosa said the BELA Act is vital to the transformation of the country’s education system and is an important part of ongoing efforts to build an education system that is more effective and more equitable in line with the precepts of the Constitution.
The Act amends sections of the South African Schools Act of 1996 (SASA) and the Employment of Educators Act, 1998 (EEA) to account for developments in the education landscape since the enactment of the original legislation.
Community safety
In a move to ensure the safety of citizens, the South African Police Service (SAPS) trained and deployed over 20 000 new constables in various units across the country in the past three years.
In addition, operations like Operation Shanela continues to make strides since its inception in May 2023. Shanela consists of regular stop and searches, roadblocks, high visibility patrols and the tracing of wanted suspects.
Operation Vala Umgodi which is aimed at combating illegal mining also continues to make strides.
At the release of the Quarterly Crime Statistics in November 2024, Police Minister Senzo Mchunu announced that the SAPS had recorded a downward trend in some categories of crime, including murder, robbery and carjacking.
From 1 July to 30 September 2024, the 17 community-reported serious crimes showed an overall decline of 5.1%. Specifically, contact crime decreased by 3%, property-related crime saw a reduction of 9.9%, and other serious crime decreased by 3.4%.
“Focusing on contact crime, the statistics indicate that murder decreased by 5.8%, sexual offenses by 2.5%, and robbery with aggravating circumstances by 8.8%. Additionally, rape decreased by 3.1%, while robbery at residential premises and non-residential premises decreased by 1.3% and 21.1%, respectively,” he said at the time.
Load shedding
While the country suffered a bout of Stage 3 load shedding recently, November 2024 marked the longest stretch of no-load shedding in five years.
Eskom marked the longest stretch of uninterrupted power supply in five years, with load shedding suspended for more than 240 consecutive days at the time which was followed by 300 days of no-load shedding on 21 January 2025.
The power utility’s performance has been on a steady upward trajectory since the implementation of the Energy Action Plan introduced by President Ramaphosa in July 2022, as well as the implementation of the power utility’s own Generation Recovery Plan.
ICJ case
South Africa in 2024 continued its work on the application of the Convention on the Prevention and Punishment of the Crime of Genocide in Gaza (South Africa v. Israel) matter.
This as it said that it had no regrets about becoming the first country to file a lawsuit against Israel at the International Court of Justice (ICJ) to end its “deadly and relentless genocidal bombardment” of Gaza.
In October 2024, it formally filed its Memorial to the International Court of Justice (ICJ) marking a significant step in the ongoing legal action, which aims to hold Israel accountable under international law.
The action taken by South Africa since December 2023, culminating in the filing of the Memorial, has generated overwhelming national and international interest.
In his Opening of Parliament Address (OPA) in July last year, the President appealed to the larger South African family to behave as weaver birds.
“We would like all of us as South Africans to behave like ‘weaver birds’. Weavers are among the most gregarious birds in that they build complex structures together and cooperate.
"Despite all the challenges, despite our differences, despite all the headwinds, as South Africans we are called upon to remain firmly committed to pursue the path of cooperation, growth and inclusion,” he said at the time.
As the larger South African family, let us gather around our television and radio sets to hear what the President has to say.
The SONA will get underway at 7pm on Thursday, 6 February 2025. -SAnews.gov.za
Neo
Wed, 02/05/2025 - 09:15
44 views
KZN Flood Victims Housed in Leaking Building
Landlord battles with inconsistent payments from eThekwini Municipality
Municipalities face challenges but they ‘can be fixed’ – Deputy President Mashatile
Municipalities face challenges but they 'can be fixed' - Deputy President Mashatile
South African municipalities may be grappling with challenges, but they are "fixable", according to Deputy President, Paul Mashatile
Mashatile made the remarks when he was delivering the keynote address at the South African Local Government Association (SALGA) National Executive Committee Lekgotla, in Cape Town, on Tuesday afternoon.
South African municipalities are grappling with several challenges, including the inability to pay for bulk water and electricity supply, deteriorating infrastructure, service delivery issues, and poor governance.
However, Mashatile insists that, despite these challenges, coordinated efforts from all sectors can revive local government.
“I believe that our municipalities can be fixed. We just need more concerted efforts in the implementation of the Professionalisation Framework, which applies to the National, Provincial, Local Government, and SOEs (State Owned Entities). The Framework focus on accelerating service delivery, addressing poor performance and the skills gap in the public service.
“Professionalisation is critical to ensuring that government is capable of delivering essential services to its citizens,” Mashatile told the lekgotla.
The Deputy President emphasized that intergovernmental integration is crucial for local government to turn the corner and achieve progress.
“Intergovernmental integration is critical for promoting collaboration, coordination, and communication across different levels of government. Through coordinating our efforts and resources, we can solve the complex difficulties that our communities face and, ultimately, provide better services to our residents.
“Together, we can streamline processes and leverage each other’s strengths to achieve greater impact. It is through this collaborative approach that we can unlock innovative solutions and drive sustainable development across our nation,” he said.
Mashatile highlighted government interventions aimed at “fixing” local government, including:
- Harmonising planning and budgeting as part of adopting the District Development Model.
- Implementing a Public-Private Partnership model in water supply with the National Treasury and the Department of Water and Sanitation to ensure that the current water crisis facing several communities is resolved
- The Minister of COGTA has proposed a one-stop solution to resolve the interlinked financial challenges between municipalities, water boards, and other stakeholders.
Coalition councils
Following the 2021 Local Government Elections, about 70 municipalities required coalitions to form governments as no single political party gained a majority.
The Deputy President acknowledged that although this is necessary, some of these municipalities have been plagued by instability and dysfunction.
“[In] practice, coalition governments have been unstable and are often terminated before the end of their term of office. Instability in local government coalitions has contributed to severe inefficiencies and service delivery challenges.
“Coalition arrangements have compromised the ability of municipalities to adopt policies, pass budgets, adopt by-laws, and make senior management appointments,” he said.
However, growing instability in ‘hung’ municipalities, led to a government-convened National Dialogue on Coalition Governments.
The results of the dialogue was the development of a Framework for Coalitions in Local Government by SALGA.
“We have since used this framework as part of our source documents, amongst others, to develop a discussion document during the National Dialogue on Coalition governments, I convened in August 2023 at the University of the Western Cape.
“To this end, with the assistance of the Dullah Omar Institute and MISTRA (Mapungubwe Institute For Strategic Reflection), we have been able to develop a Coalitions Framework for South Africa.
“This framework has been handed over to Minister of Cooperative Governance and Traditional Affairs (CoGTA), as a basis for the development of the Municipal Structures Amendment Bill 2024 [Coalitions Bill] by CoGTA, which will be submitted for Cabinet approval and introduction to Parliament this year,” he revealed.
Working together
The Deputy President also implored the lekgotla to work with government to ensure that local government improves its responsiveness to communities.
“[It] is important that SALGA and all three spheres of government collaborate in order to find solutions to service delivery challenges.
“Let us harness the power of intergovernmental integration to build a more responsive, effective, and inclusive system of governance that truly serves the needs of our people,” Mashatile said. – SAnews.gov.za
NeoB
Tue, 02/04/2025 - 15:35
70 views
No Money to Fix Broken Colchester Clinic, Says Health Department
Patients say no maintenance has been done on Colchester’s health facility since 2020
Africa must assert minerals advantage – Minister Mantashe
Africa must assert minerals advantage - Minister Mantashe
Africa must “assert its advantage” in order to benefit from the booming demand for industrially valuable minerals in which the continent is abundantly rich.
This according to Mineral and Petroleum Resources Minister Gwede Mantashe, who delivered the keynote address at the 31st Investing in Africa Mining Indaba, currently underway at the Cape Town International Convention Centre.
“[There] is evidence that the African continent hosts significant reserves of industrially important minerals, such as manganese, copper, coal, nickel, cobalt, titanium, vanadium, lithium and rare earth minerals.
“With the growing demand for these minerals, Africa needs to assert its advantage and take charge of the growing demand,” Mantashe said.
He insisted that with all the mineral endowments that Africa possess, it should take the opportunity to grow to become one of the most developed continents.
“The truth of the matter is that Africa is the world’s richest mining jurisdiction, possessing at least 90% of the world’s chromium and platinum, 40% of the world’s gold, and the largest reserves of the world’s cobalt, vanadium, manganese and uranium.
“Despite having these abundant mineral resources, Africa remains poor and this must change.
“There is no other point in time that will be more opportune for Africa to take control of its development, while still pursuing our strategic partnerships with the rest of the world,” Mantashe said.
Local perspective
Turning to South Africa, Mantashe noted that while the country holds 37% of the world’s manganese ore reserves, only 2% is processed locally.
This, he added, is being looked into by government.
“In [recognition] of this reality and the fact that a lot of value is derived in the processing of these resources, we will this year intensify our engagements with the manganese producers and investors to invest in local beneficiation and thereby add value to these minerals.
“We are mindful that for local beneficiation to succeed, we need to guarantee consistent, reliable, and affordable electricity supply. Despite the recent setback, I can assure you that now that we have reached over nine months with no electricity interruptions, government is working on measures to reduce administered prices and in so doing, reduce the cost of doing business in South Africa,” he said.
Mantashe outlined government’s plans to turn South Africa into an exploration hub.
“We are… alive to the fact that there can be no mining or beneficiation without exploration; hence, our steadfastness to reignite exploration investment and in so doing, turn South Africa into an exploration site.
“Our efforts in this regard are beginning to take shape, as evidenced by progress made since we launched the country’s exploration fund during the last mining indaba.
“We are buoyed by the fact that of the eight beneficiaries to receive funding from the first funding call, at least three of the projects are 100% black-female-owned, whereas all other beneficiaries are more than 50% black-owned,” he said.
Furthermore, some 20 projects are expected to receive funding to the tune of R67 million as part of government’s artisanal and small-scale mining fund.
Mining licensing
The Minister assured investors and mining companies that South Africa’s commitment to putting in place a new mining licensing system is well underway.
“The department and the PMG Consortium are currently finalising the design and configuration phase which is at the heart of the new system. This phase covers all aspects of mining regulations value chain including, inter alia, the client management functionality, rights application submission and processing, and the rights application tracking functionality
“This phase of the project is anticipated to be completed in the next few weeks, and will, thereafter, be followed by the testing and deployment of the new system into the department’s ICT system,” he said.
While that work is underway, the backlog in prospecting and mining applications is also being attended to, with at least 114 mining rights, 982 prospecting rights, and 385 mining permits and ancillaries processed and finalised.
On the international stage and with South Africa being the first African country to hold the Group of 20 (G20) Presidency, Mantashe had this to say to African countries: “With this being the very first time that an African economy leads the G20 for a full one-year term, let us leverage on this opportunity to shape a new era of the African mining industry that meaningfully contributes to the socioeconomic development of our continent, and in building the Africa we want.” – SAnews.gov.za
NeoB
Mon, 02/03/2025 - 12:45
279 views
Eskom Appoints Leslie Mkhabela as Lead Independent Director
Monday, 03 February 2025: The Eskom Board is pleased to announce that Mr Leslie Mkhabela has been appointed as the Lead Independent Director, effective 31 January 2025. Mr Mkhabela joined the Eskom Board as an Independent Non-Executive Director on 01 October 2022, when the new board was appointed by the late Minister of Public Enterprises...
Langa residents outline expectations ahead of President Ramaphosa’s SONA
Langa residents outline expectations ahead of President Ramaphosa’s SONA
As South Africa prepares for the highly-anticipated State of the Nation Address (SONA) on Thursday, residents of Langa, Cape Town’s oldest township, have voiced their expectations.
Most of the community members said they hope President Cyril Ramaphosa will address the pressing issues affecting their community. From economic opportunities to service delivery, residents have highlighted key areas they believe government should prioritise to improve their daily lives.
Many have expressed concerns over rising unemployment, inadequate housing and crime, which they say have hindered progress in their area.
Vuyolwethu Siyaka told SAnews that crime remains a major concern in Langa, so he would like there to be more visible policing and effective crime prevention strategies.
The 21-year-old expressed that many residents feel unsafe in their own homes due to high levels of gang-related violence and drug abuse in the community.
“I would like to tell President Ramaphosa about the crime situation in our communities and what happens at our local SAPS [South African Police Service]. We ask that government equips our local police station so it can provide more services and employ more officers who can efficiently deal with criminals and keep communities safe,” he said.
Sanele Sifile, 19, advocated for better opportunities for children from disadvantaged backgrounds.
“We want the President to help kids from poor backgrounds get access to quality education and employment opportunities after completing school. At the moment, the high youth unemployment rate is a major concern, and it often pushes young people toward crime,” he told SAnews.
Anelisiwe Thembisa, from Bennie Street in Langa, said her burning issue was the allocation of budget for the housing projects in her area.
“We've been waiting since 2019 for the second phase of the housing project. Phase 1, the Nkandla Housing Project, was completed but Phase 2 has yet to begin. While we've heard that a budget has been allocated, there has been no visible progress. We would appreciate it if the President could address this in his SONA speech and provide clarity on the delays. We will be happy if we can get answers about this issue,” she said.
Thozama Rhenqe, a pensioner, told SAnews that her expectations for the seventh administration were very high.
“Our expectations for this administration are high, but my main concern is the SASSA [South African Social Security Agency] grant for pensioners. As a pensioner, I hope the President increases the grant to R3 000,” she said.
Meanwhile 85-year-old pensioner, Nomalungelo Peter, expressed her concerns about the pensioners' grant, saying it is too little to cover essential expenses like rent, electricity and municipal rates.
“I would like President Ramaphosa to speak about the grant for pensioners. It is little because we are renting, paying for electricity, including municipal rates, and sometimes they just estimate, even when you are not home and utilising the services, yet you still have to pay. You can be on holiday, however, they will still add charges for collecting waste.
“Another one is the issue of housing. I don’t have a house of my own. I have been living in the house I am currently situated at for more than 65 years, but I don’t own it. If the President could increase the grant and assist with housing, it would make a big difference in our lives,” Peter said.
SAnews also spoke to a local artist, Banzi Tema, who hopes the President will address the challenges faced by creatives. He expressed that many artists struggle financially and die in poverty.
“Hopefully the President can address the issue of how we look after our creatives because some of them are dying paupers. While government has taken some steps. It is not enough.
“There is some funding that has been allocated to creatives but there is a lot of red tape, mostly people who are supposed to get the money do not get it, so if the President can include this is his speech, it would make a significant difference,” he said.
As the nation awaits President Ramaphosa’s SONA, the voices of Langa residents reflect the pressing issues faced by many South Africans, who are looking to the President for decisive action that will bring meaningful change to their communities.
President Ramaphosa will deliver the State of the Nation Address on Thursday at 7pm. – SAnews.gov.za
DikelediM
Mon, 02/03/2025 - 15:14
234 views
Communities urged to help keep public assets safe
Communities urged to help keep public assets safe
Nelson Mandela Bay Municipality is on a drive to curb the ongoing vandalism crisis that is crippling the metro's electricity infrastructure, which has cost millions of rands in repairs.
The municipality has now launched an education and awareness campaign aimed at addressing vandalism. The metro’s Electricity and Energy Portfolio Head, Ziyanda Mnqokoyi, said after three major incidents of vandalism in January alone, it is evident that the vandalism of the metro’s electricity infrastructure has reached crisis levels, leaving communities severely impacted by the criminal activities.
Mnqokoyi said the most recent incident took place last Tuesday at the Mabandla substation in KwaNobuhle, Kariega, leading to major power outages in the area.
"Such incidents not only disrupt essential services but also pose significant safety hazards for the perpetrators, community members and response teams. The seriousness of these attacks on our infrastructure cannot be ignored, and we cannot fight the scourge alone. We need the residents to work with us.
“Through the enhanced educational programme, we will highlight the dangers of unsafe electricity use and educate our people about the impact of electricity theft. We cannot continue as if it is business as usual.”
Mnqokoyi urged communities to work with law enforcement agencies and municipal authorities to prevent further vandalism.
She said the investigation and assessment at Mabandla showed that the 66 kilovolts (kV) power cables supplying the substation were damaged due to vandalism, and cutting tools were found at the site. Cables were found burnt and severely damaged, leaving KwaNobuhle without power.
"It was also reported by the community that suspects were seen walking away from the site. Cables were burnt and left on site, which badly damaged two of these 66kV power cables without any possible way of supplying electricity to the residents of KwaNobuhle.
Mnqokoyi said excavation work to expose the damaged cables is underway and material orders have been placed.
Appointment of CFO
Meanwhile, the municipality has appointed Jackson Ngcelwane as the permanent Chief Financial Officer (CFO).
The appointment is aimed at improving the financial administration, revenue collection and the audit outcomes of Nelson Mandela Bay.
Ngcelwane has served the municipality for 35 years, with nine of these years as a Senior Director for Budget and Financial Accounting.
Nelson Mandela Bay Municipality Executive Mayor, Babalwa Lobishe, has expressed optimism that the appointment will help to address the challenges in administration and finance management, a situation that is "reflected by the latest Auditor-General’s report".
"The immediate assignments are to improve compliance to the MFMA [Municipal Finance Management Act], MSCOA [Municipal Standard Chart of Accounts], our audit outcomes, supply chain management and put systems in place for better financial planning, management and accountability, while improving the revenue of the municipality.
“I am pleased that council has approved the appointment of the disciplinary board that will take those who are found guilty of financial misconduct through a consequence management process. This will also assist the city manager and the new CFO’s office, as they execute their duties of steering the metro’s finances towards the right direction,” Lobishe said. – SAnews.gov.za
GabiK
Mon, 02/03/2025 - 09:58
31 views
Eskom Suspends Loadshedding
Sunday, 02 February 2025: After a temporary setback that necessitated the implementation of loadshedding over the weekend, Eskom has suspended loadshedding as of 06:00 today due to the recovery of sufficient emergency reserves. This follows more than 10 months of uninterrupted electricity supply, reflecting the effectiveness of the Generation Recovery Plan. This past Friday, Eskom...
SADC Extraordinary Summit condemns escalating violence in DRC, calls for urgent action
SADC Extraordinary Summit condemns escalating violence in DRC, calls for urgent action
By Dikeledi Molobela
Harare, Zimbabwe - The Southern African Development Community (SADC) leaders have strongly condemned the ongoing violence in the Democratic Republic of Congo (DRC), where recent clashes have left soldiers dead and displaced thousands of civilians.
The Heads of State and Government also reaffirmed their commitment to restoring peace and stability in the region.
The SADC leaders convened an Extraordinary Summit in Harare, Zimbabwe, on Friday which was chaired by the President of the Republic of Zimbabwe and Chairperson of SADC, Emmerson Dambudzo Mnangagwa.
The summit brought together regional leaders, including President Cyril Ramaphosa and Tanzania’s President Samia Suluhu Hassan.
The summit acknowledged that despite previous peacekeeping efforts, the security situation remains dire. SADC troops deployed under the SADC Mission in the DRC (SAMIDRC) have come under repeated attacks, undermining the 2024 Luanda ceasefire agreement.
“The summit expressed concern that the recent attacks continued to worsen the security and humanitarian situation in the DRC and called for the immediate restoration of essential utilities such as water, electricity, means of communication and supply lines for food and other essential commodities.
“The summit condemned in the strongest terms the attacks on the SAMIDRC troops by the M23 operating in the Eastern DRC, as such actions violated the ceasefire that was brokered through the Luanda Process on 30 July 2024 and undermined peace and security of the DRC and the SADC region,” the leaders said in a joint communique issued at the conclusion of the summit.
The latest wave of violence has led to casualties among SADC peacekeepers, including 13 from the South African National Defence Force.
In a solemn moment, leaders paid tribute to the fallen soldiers from Malawi, South Africa and Tanzania, vowing to ensure their sacrifices would not be in vain.
With growing frustration over continued external involvement in the DRC conflict, SADC leaders signalled a shift towards stronger diplomatic and security measures. The summit also emphasised the need for urgent diplomatic engagement.
In a significant move, leaders called for an immediate joint summit between SADC and the East African Community (EAC) to develop a unified approach to ending the crisis.
The summit also mandated the SADC Organ Troika on Politics, Defence and Security to engage both State and non-State actors in renewed ceasefire negotiations.
The meeting reinforced SADC’s unwavering support for the DRC’s sovereignty and territorial integrity.
Leaders praised the resilience of SAMIDRC troops and welcomed Madagascar’s pledge to provide medical support to the wounded and displaced.
“The summit expressed solidarity with the DRC and extended its appreciation to the men and women deployed in the SAMIDRC for their dedication, resilience and service to the preservation of peace and security in the region.”
The summit also welcomed Mozambique’s new President, Daniel Francisco Chapo, to the regional fold, while commending Tanzania’s President Samia Suluhu Hassan for her leadership in peace and security matters.
While diplomatic efforts will continue through the Luanda and Nairobi processes, SADC made it clear that regional security forces remain on high alert.
Ministers of defence and military chiefs from SADC countries will be dispatched to the DRC to assess the situation on the ground and ensure the safety of troops.
“The summit called for the immediate dispatch of ministers of defence, chiefs of defence and troop contributing countries to the DRC to ensure that the SAMIDRC troops are safe, and facilitate the immediate repatriation of the deceased troops and those who are injured,” the communique said. – SAnews.gov.za
Janine
Fri, 01/31/2025 - 23:14
95 views
Eskom Implements Stage 3 Loadshedding – Misses 1 Year Milestone
Friday, 31 January 2025: Following over 10 months of uninterrupted electricity supply due to the success of the Generation Recovery Plan, Eskom has encountered a temporary setback. As a result, Stage 3 loadshedding is being implemented from 17:00 today until Sunday midnight. Eskom will give an update on Sunday, 2 February 2025. “This is a...
Eskom implements Stage 3 load shedding from today
Eskom implements Stage 3 load shedding from today
Eskom will implement Stage 3 load shedding from 5pm today, which will continue throughout the weekend.
The power utility had managed to stave off the implementation of load shedding for the past 10 months, in accordance with the Generation Recovery Plan and the Energy Action Plan.
During a media briefing at Megawatt Park on Friday, Electricity and Energy Minister Dr Kgosientsho Ramokgopa explained that several factors led to a “perfect storm” – triggering the necessity of initiating load shedding.
“We got hit by a perfect storm. We had the units out for planned maintenance… We have been doing [that] consistently to allow us a significant amount of headspace for... [maintenance].
“[However] we had a situation where at two of our best performing power stations, Matimba and Lethabo, we had a number of units failing at the beginning of the week... and... there were other units that delayed in coming back [online],” he said.
As a result, the power utility was forced to rely on the open cycle gas turbines (OCGTs) – Eskom’s diesel burning reserves – which are now depleted.
“We are at a point where for the purposes of protecting the grid and the integrity of the system, we need to maintain the reserve margins.
“We have taken a conscious decision that we are not following records (sic). Ideally, we would want to say: a year without load shedding. But no, that can’t be at the expense of the system. [We are] informed by prudent and judicious engineering consideration and the expectations of the system operator, so we will initiate load shedding.
“It gets to be initiated because we are pulling back and replenishing all the reserves,” Ramokgopa said.
Eskom Group Chief Executive, Dan Marokane, said teams at Matimba and Lethabo power stations are already working to bring units back online.
“We are well progressed in terms of getting these units back on track… [and] into operation. They’ll be coming through over the weekend and early in the new week.
“However, what we saw… is the fact that come next week, as the demand picks up, we’ll not have any reserves if we do not create some [head room] for ourselves over this weekend,” Marokane said.
He assured that Eskom remains committed to addressing unit unreliability.
“Overall availability is still high but we need to create this space for unexpected breakdowns, as they do happen. This is well within the forecast that we shared for the summer plan.
“Our teams’ [focus]… is to return these units back into operation and get back to the new normal of no load shedding,” Marokane said. – SAnews.gov.za
NeoB
Fri, 01/31/2025 - 15:27
215 views
Electricity and Energy Ministry notes NERSA electricity tariff decision
Electricity and Energy Ministry notes NERSA electricity tariff decision
The Ministry of Electricity and Energy has expressed its confidence in the National Energy Regulator of South Africa (NERSA) – highlighting the regulator’s ability to maintain “independence and integrity” while balancing the diverse interests involved in electricity tariff decisions.
This following NERSA’s announcement of its decision on Eskom’s Sixth Multi-Year Price Determination (MYPD6) revenue application for the 2025/26, 2026/27 and 2027/28 financial years.
The regulator approved a 12.74% price hike for electricity starting at the beginning of the 2025/26 financial year in April 2025.
For 2026/27, NERSA greenlit increases of some 5.36% with a further increase of 6.19% from the start of the 2027/28 financial year.
Electricity and Energy Minister, Dr Kgosientsho Ramokgopa said: “We welcome the fact that these tariff adjustments take into account the need to mitigate inflationary pressures on communities and businesses, helping to stabilise the broader economic environment”.
Independent regulator
The Electricity and Energy department expressed confidence in the regulator’s ability to fulfil its mandate.
“We reaffirm our confidence in the independence and integrity of NERSA in fulfilling its mandate to ensure that electricity pricing balances the financial sustainability of Eskom with the economic realities faced by households, businesses, and industries.
“Whilst the approved tariff adjustments will place pressure on Eskom to stay the course with its investment strategy to strengthen and modernise its generation, transmission and distribution infrastructure, the Ministry remains committed to working closely with Eskom to drive greater efficiency gains.
“This will ensure that operational improvements and cost reductions contribute to the utility’s long-term financial sustainability while safeguarding the affordability and reliability of electricity supply,” the department said.
Furthermore, in recognition of rising energy concerns, the department will “continue introducing measures to provide relief to vulnerable households and small businesses to cushion them from rising electricity costs”.
“As part of our broader energy strategy, the government remains committed to pursuing an energy mix that delivers affordable, secure, and sustainable electricity for all South Africans, in line with our decarbonisation commitments and long-term energy security goals.
“We call on all stakeholders to engage constructively in shaping our energy future, ensuring a transition that is inclusive, just, and responsive to South Africa’s developmental needs.
“The Ministry will continue working towards long-term energy affordability and reliability, ensuring that no South African is left behind in the country’s energy transition,” the department concluded. – SAnews.gov.za
NeoB
Fri, 01/31/2025 - 08:34
356 views
Eskom Issues Alert of High Risk of Loadshedding
Friday, 31 January 2025: After more than 10 months of uninterrupted electricity supply due to the success of the Generation Recovery Plan, Eskom has issued an alert indicating a high risk of loadshedding at short notice. “This is a potentially temporary setback. Loadshedding is largely behind us due to the structural improvements in our generation...
SA’s economy on recovery trajectory
SA’s economy on recovery trajectory
South Africa’s economic growth prospects are poised to recover in 2025 following a lacklustre economic performance for the past two years.
According to an economic and financial assessments by the International Monetary Fund (IMF), the real Gross Domestic Product (GDP) output growth is expected to accelerate from an estimated 0.8 percent in 2024 to 1.5 percent in 2025 driven by improved electricity generation, monetary policy easing, and a return of investor and consumer confidence post elections.
On Thursday, the IMF published the findings of its Article IV Consultation with South Africa, which was held from 11-25 November 2024.
As part of the surveillance role, the IMF conducts periodic economic and financial assessments with each member country.
The IMF acknowledged progress in banking-resolution and safety-net reforms and praised macro-prudential measures to bolster capital buffers. However, it raised concerns on the rising public debt and the challenges South Africa’s faces to meet climate goals.
In addition, the IMF welcomed the ongoing electricity and logistics reforms aimed at alleviating critical supply constraints and called for the ambitious implementation of these reforms.
The Fund indicated that meeting South Africa’s climate goals requires further efforts to increase effective carbon taxation and accelerate the rollout of renewable energy.
The IMF projects growth to reach 1.8 percent by the end of the decade, supported by ongoing electricity and logistics reforms.
“Risks are tilted to the downside, related to a possible intensification of geoeconomic fragmentation and protectionist policies in the context of an uncertain global environment.
“With fiscal deficits moderating but still elevated over the medium term, the IMF projects public debt to continue to rise under its baseline scenario, recommending a more-ambitious-than-envisaged fiscal consolidation,” the IMF said.
The IMF expects inflation to stabilise around the midpoint of the central bank’s target range.
The Fund recommended that the central bank continues to manage the normalization of the policy rate toward the neutral level in a flexible and data-driven manner.
The IMF argues that transitioning from a target band to a lower point target with a well-calibrated tolerance band at an appropriate time can help strengthen macroeconomic stability.
National Treasury’s response
National Treasury noted that the IMF’s concerns are aligned with government’s response to addressing immediate and long-term economic challenges.
“The National Treasury is committed to implementing reforms that will enhance inclusive economic growth, achieve a sustainable public debt level, further repair and strengthen network industries, and strengthen state capacity to support economic activity.”
In its 2024 Medium Term Budget Policy Statement (MTBPS), the National Treasury estimated economic growth to increase from 1.1 percent in 2024 to 1.7 percent in 2025.
It attributed the gains in the economy to household consumption gradually increasing, supported by rising purchasing power, employment recovery and wealth gains.
“South Africa is committed to fiscal consolidation and to setting debt on a sustainable path. The fiscal year 2023/24 was a significant success, with the first primary surplus in 15 years being recorded in 2023/24.
“An overall main budget deficit of 4.7 per cent of GDP is expected for the current fiscal year. This is projected to decline to 4.3 per cent in 2025/26. Meanwhile, debt as a percentage of GDP is expected to stabilize in the 2025/26 financial year, with debt-service costs as a percentage of revenue also peaking at the same time,” National Treasury said.
The current focus of South Africa’s reform agenda includes the stabilisation of the electricity grid, enhancing the efficacy of freight and ports operations, implementing e-Visas, as well as prioritizing the advancement of targeted industries to enhance the business climate and promoting equitable growth.
Nearly 94 percent of the reforms aimed for implementation by 2024 have been accomplished or are significantly progressing.
“Following its successful first phase, Operation Vulindlela, will be going into its second phase with new initiatives aimed at reversing local government decline, tackling spatial inequality and advancing a digital government to improve service delivery,” National Treasury said.
These enhance the key focus areas of the first phase - namely, reducing power cuts, improving the performance of the logistics system, lowering data costs, improving water supply and enabling the country to attract critical skills.
The SARB performed its first stress test of South Africa's key insurance firms during the 2023/24 cycle, of which climate-related risks were prominent. Ongoing efforts to exit the Financial Action Task Force (FATF) grey list during 2025 are well underway, with 16 out of 22 action items having been addressed,” National Treasury said. - SAnews.gov.za
nosihle
Fri, 01/31/2025 - 09:07
103 views
NERSA approves Eskom electricity price hike
NERSA approves Eskom electricity price hike
South African consumers will have to brace for another blow to their cost of living, as the National Energy Regulator of South Africa (NERSA) has approved a 12.74% electricity price hike for Eskom, set to take effect in the next financial year.
The regulator has also approved further hikes of 5.36% for 2026/27 and a further increase of 6.19% for the 2027/28 financial year.
The decision comes as part of Eskom’s Sixth Multi-Year Price Determination (MYPD6) revenue application for the 2025/26, 2026/27, and 2027/28 financial years, which was announced on Thursday afternoon.
Tough balancing act
NERSA Board Chairperson, Thembani Bukula, described the complexity of the decision-making process as a “delicate balancing act” of "conflict" that took into account the needs of all stakeholders.
“We are required to ensure that Eskom is sustainable within the short and the long term. At the same time, we are required to ensure that the electricity services that Eskom provides are affordable.
“This is never an easy task. For inevitably, it is also influenced not just by our methodologies and rules but by the greater economic environment both locally and internationally. We remain guided and directed by the policies and the legislation of this country,” Bukula said.
A question of affordability
Last year, Eskom applied to NERSA for increases of 36% in 2025/26, 11.81% in 2026/27, and 9.1% for the financial year 2027/28.
This proposal sparked significant public and business outcry, with many deeming the increases unaffordable.
Bukula highlighted that the regulator took extensive steps to ensure that public participation inputs from all stakeholders were considered.
Stakeholder meetings and public hearings were held with written submissions also accepted by the regulator.
“During this process, we received various inputs from the stakeholders who came to our presentations as well as inputs that we got from the written comments. Top of the list was the affordability of electricity if the prices applied for by Eskom were approved. This was voiced by domestic customers as well as the business customers.
“Domestic customers stressed the fact that if these prices are approved, they then have to choose between buying food or buying electricity. Businesses on the other side made it clear that if these increases are approved, a lot of them would be forced to close their businesses,” he said.
The first price hike is set to be implemented on 1 April 2025. – SAnews.gov.za
NeoB
Fri, 01/31/2025 - 08:09
93 views
Tense Standoff Between Police and Kliptown Tenants
City Power officials chased away by angry group