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SA-EU Summit a ‘watershed’ moment for trade and investment relations

Location: News

SA-EU Summit a 'watershed' moment for trade and investment relations

The 8th South Africa-European Union (EU) Summit held in Cape Town last week was a “watershed” moment for trade and investment relations between South Africa and the regional bloc.

This is according to President Cyril Ramaphosa who reflected on the summit in his weekly newsletter on Monday.

“As a bloc, the European Union (EU) is one of South Africa’s largest trading partners and the source of much investment in our country. Our economic ties with European countries go back to colonial times. Since the advent of democracy 30 years ago, we have steadily been growing the volume and value of trade.

“This summit will be remembered as a watershed moment in the development of our trade and investment relations. While expanding our traditional areas of cooperation, we are now focused on working together to develop the industries of the future,” the President said.

READ | South Africa-European Union Summit concludes 

He stated that South Africa and the EU agreed to work together towards a Clean Trade and Investment Partnership.

“This partnership will support the development of value chains that are more environmentally sustainable. It will make South Africa and the EU more competitive in a low-carbon global economy by improving conditions for investment in the extraction and local beneficiation of rare minerals, renewable energy, low carbon hydrogen and clean technology.

“This partnership will improve cooperation between South Africa and the EU on some of the regulatory issues that constrain greater levels of trade. This work should enable South African companies to export products like sustainable fuel and electric and hybrid vehicles to the EU,” he said.

A key outcome of the SA-EU Summit was an announcement of a €4.7 billion (approximately R90 billion) investment package aimed at supporting investment projects in the country.

READ | President Ramaphosa engages EU on new investment package 

According to the President, the package will “include grants and loans from European financial institutions and businesses”.

“Among other things, this investment will be used to build South Africa’s vaccine production capacity and boost local pharmaceutical value chains. 

“The package will also support South Africa’s just energy transition through the development of critical raw minerals and low carbon hydrogen. In addition to investments in transport and digital infrastructure, the package will provide resources for skills development,” President Ramaphosa said.

On the global stage

The summit also reaffirmed the “unwavering commitment of South Africa and the EU to multilateralism, the consistent application of international law and the centrality of the United Nations Charter”.

“We agreed that a collective effort was needed by all countries to overcome global challenges such as climate change, pandemics, rising inequality and conflict.

“The EU shares South Africa’s view that the UN Security Council needs to be reformed so that it is more inclusive, efficient and democratic. In its composition and actions, the Security Council needs to better reflect the realities of today’s world. We also agreed to strengthen efforts to safeguard and advance human rights across the world,” he said.

Furthermore, the EU expressed its support for South Africa’s G20 Presidency this year and welcomed the country’s “focus on forging partnerships between G20 members and other African countries”.

The President said the two parties agreed that collective global effort is needed to overcome current global challenges. 

“We share similar views on how to navigate these difficult times, by standing together to uphold the principles of the UN Charter, to adhere to international law and to strengthen the institutions of global cooperation.

“Above all, we are committed to the mutual well-being and development of the peoples of South Africa and all the member states of the European Union. We have a shared vision of the future and we are determined to work together to achieve it,” President Ramaphosa concluded. – SAnews.gov.za

 

NeoB
Mon, 03/17/2025 - 13:28
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SA is addressing port challenges, says Deputy President 

Location: News

SA is addressing port challenges, says Deputy President 

Deputy President Paul Mashatile has assured executives from Isuzu Motors Limited’s headquarters in Japan that South Africa is actively working to resolve its port and infrastructure issues.

This comes in the wake of significant congestion, infrastructure shortfalls, and equipment failures at the country’s major ports, which have affected both import and export operations.

“I am pleased to report that we have dealt with energy issues that affected our economy,” the Deputy President said on Monday. 

The Deputy President spoke at the Isuzu Fujisawa Plant where he is currently on a working visit with a delegation that includes Ministers, Deputy Ministers, and senior government officials. 

READ | Deputy President Mashatile arrives in Japan for a working visit

The purpose of the visit is to strengthen cooperation between the two nations in areas of mutual interest.

The multinational corporation that manufactures commercial vehicles, diesel engines, and automotive parts has a significant presence in South Africa. 

As a Japanese automobile manufacturer, Isuzu has been in South Africa for a long time and is well-known for its trucks and bakkies.

“As a country, we are honoured that the Isuzu Motors South Africa Struandale Plant in Gqeberha, in our Eastern Cape province, is the first fully-owned plant outside Japan whereas in other countries Isuzu produces vehicles through joint ventures and license agreements.

“This shows great confidence in our country and our people for the skills necessary to produce these trucks and bakkies.” 

According to the Deputy President, the Struandale Plant produces 28 500 vehicles per annum and has dealerships across 26 countries in Africa. 

With the Africa Continental Free Trade Area (AfCFTA), the Deputy President stated that the continent has created even more opportunities for Isuzu to export and operate in over 54 countries that have signed the agreement.

The AfCFTA creates the largest single free trade business area, with 1.3 billion people and a gross domestic product (GDP) of US$3.4 trillion. 

Isuzu also exports to the European Union (EU) under the Southern African Development Community (SADC) -EU Economic Partnership Agreement, in addition to being active in Africa. 

“Therefore, South Africa is the place to be, indeed a gateway into the continent and the rest of the world including Japan under the generalised system of preferences.” 

The country’s second-in-command described Isuzu as a model investor in South Africa, contributing to employment, skills development, and supplier and enterprise development.

“I also understand that Isuzu contracted 107 suppliers with over 700 parts being localised in South Africa and some integrated into Isuzu global supply chains,” he said, adding that Isuzu achieved Level 1 Broad-Based Black Economic Empowerment (BBBEE). 

He informed the delegation that the government, through the Automotive Production Development Programme, has provided essential support to Isuzu.

During the working visit, the Deputy President and his delegation will engage with the business community in Japan to enhance economic relations.

They will focus on key areas such as manufacturing and machinery, mining and mineral beneficiation, energy cooperation, the automotive industry, and improving market access for South Africa’s agricultural products.

He is also expected to meet with Dr Akihiko Tanaka, the President of the Japan International Cooperation Agency (JICA) today. 
JICA is a government agency that is actively involved in various development projects in South Africa. 

On Tuesday, he will pay a courtesy visit to Prime Minister Ishiba Shigeru of Japan and visit the Meiji Jingu Shinto Shrine. – SAnews.gov.za
 

 

Gabisile
Mon, 03/17/2025 - 11:45

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DPWI Minister to host Tanzanian Minister in the Presidency 

Location: News

DPWI Minister to host Tanzanian Minister in the Presidency 

Public Works and Infrastructure Minister Dean Macpherson will tomorrow host the Minister in the Presidency from the United Republic of Tanzania.

The Minister will be accompanied by his delegation on a collaboration engagement focused on South Africa’s largest poverty alleviation programme, the Expanded Public Works Programme (EPWP). 

“This flagship programme which is currently being enhanced to make more meaningful impact is receiving more recognition on the continent of Africa and globally,” the Department of Public Works and Infrastructure said in a statement. 

According to the department, the Tanzanian delegation will include senior government officials, the private sector and academia, which will gather under the theme: “Transformative impact of the EPWP through entrepreneurship and skills development”. 

The EPWP was established and mandated by Cabinet to create work opportunities according to the set targets and across all its four sectors, namely infrastructure, non-state, environment and culture and social sectors. 

One of the prescripts of the EPWP is to use labour-intensive methods which allow the drawing of a significant number of participants into the programme to do the work. 

The EPWP Unit in the department prepared a strategic review of the first phase of the EPWP which was presented to Cabinet in June 2008. 

This review was based on extensive evaluations of the first phase of the programme and made a number of key recommendations for the second phase of the programme in order to increase the scale and impact in the second phase.

While the EPWP achieved its target of one million work opportunities one year ahead of time, some constraints were identified that limited its further expansion. – SAnews.gov.za

Edwin
Mon, 03/17/2025 - 10:58
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Eastern Cape Government announces key leadership appointments

Location: News

Eastern Cape Government announces key leadership appointments

The Eastern Cape Provincial Government has reinforced its administrative leadership with the appointment of new Heads of Departments (HoDs) across several critical portfolios.

In a statement on Monday, the provincial government said the strategic decisions reflect the government’s commitment to enhancing service delivery, stability, and efficiency in the province.

Eastern Cape Premier, Lubabalo Oscar Mabuyane, confirmed the provincial government’s confidence in the three incumbents who previously served in an acting capacity.

The newly appointed HODs are Sharon Marsdorp, who has been appointed as the new Education Head of Department, Bonginkosi Dayimani in Agriculture, Edmond Desmond Quinton Venn in Human Settlements, and Phucuka Penny Penxa in Public Works and Infrastructure.

Mickey Mama’s contract as HOD in the Department of Economic Development, Environmental Affairs, and Tourism (DEDEAT) has been renewed.

Mabuyane also announced that the recruitment process for the Head of Departments for Community Safety is at an advanced stage, while the recruitment of HODs in the Departments of Sport, Recreation, Arts and Culture (DSRAC) and Cooperative Governance and Traditional Affairs (COGTA) is currently underway.

Mabuyane urged the newly appointed HoDs to remain steadfast in their commitment to ethical leadership.

“As we welcome our new Head of Departments, I urge them to embrace this opportunity to serve our people with dedication, integrity, and passion. Let us work together to strengthen government as a whole and make a meaningful difference in the lives of our citizens, where everyone has access to opportunities, resources, and services,” Mabuyane said.

He added that the appointments reaffirm the Provincial Government’s commitment to strengthening leadership and governance in the province, ensuring that the provincial administration is guided by capable and dedicated professionals who will play a pivotal role in advancing the Eastern Cape’s development agenda. – SAnews.gov.za
 

 

GabiK
Mon, 03/17/2025 - 10:05
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New fleet to aid Nelson Mandela Bay waste collection efforts 

Location: News

New fleet to aid Nelson Mandela Bay waste collection efforts 

In a move to enhance waste management services, the Nelson Mandela Bay Municipality has unveiled seven advanced waste collection trucks, which is an investment in the city’s public health infrastructure and an improvement in service delivery efficiency.

Member of the Mayoral Committee (MMC) for Public Health, Thsonono Buyeye, commended the arrival of the new fleet, describing it as a crucial financial boost that will ease the financial pressures faced by the municipality’s waste management department.
The municipality is located in the Eastern Cape. 

Speaking at the unveiling ceremony held on Wednesday, Buyeye said the introduction of the state-of-the-art waste collection compactor trucks serves as a significant step forward poised at improving waste management services.

“This investment demonstrates our unwavering commitment to providing efficient and effective services, thus underscoring the department’s dedication to maintaining a clean, healthy, and sustainable environment [for all residents],” Buyeye said.

The MMC explained that, as part of the city's strategy to reduce its reliance on outsourced waste collection services, the municipality has implemented a three-year fleet recapitalisation plan, which allocates R30 million annually starting this year.

“This acquisition will significantly alleviate financial pressures on the municipality, which previously spent substantial amounts outsourcing waste management collection trucks, compromising its ability to deliver other essential public health services,” the MMC said.

He added that the arrival of the trucks will significantly reduce the city’s financial burden previously placed on the municipality, due to outsourcing waste management.

The new trucks are equipped with cutting-edge technology and enhanced capacity, enabling them to manage larger volumes of waste with greater speed and efficiency. The advanced lifting gear of the trucks allows them to effortlessly collect a wider range of waste types, ultimately enhancing the waste collection and management process.

"As a municipality, we are thrilled, considering that the arrival of these trucks will significantly enhance our service delivery. Unfortunately, vandalism of municipal fleet, including waste collection fleet has been a great challenge.

“However, we are positive that together with law enforcement, and the community, we can protect these valuable waste compactor trucks, as our goal is to ensure that public health services reach every corner of our city,” Buyeye said.

Measures to prevent vandalism and theft

To address the persistent issue of vandalism, the MMC said the municipality has implemented a comprehensive security strategy to protect the new waste management fleet.

He said the municipality is also investigating recent incidents of vandalism that have affected the city’s existing waste collection vehicles.

He said a robust security strategy has been put in place to safeguard against vandalism and theft, ensuring its longevity and effectiveness.

The municipality also urged residents to work with the municipality, and law enforcement to protect and safeguard municipal assets that service all residents.

“This collective effort is crucial in preventing vandalism and theft, which severely impacts the delivery of essential waste management services, particularly in high-crime areas,” Buyeye said. – SAnews.gov.za
 

GabiK
Fri, 03/14/2025 - 11:14
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South Africa-European Union Summit concludes

Location: News

South Africa-European Union Summit concludes

President Cyril Ramaphosa has welcomed the European Union’s €4.7 billion Global Gateway Investment Package aimed at supporting strategic investment projects.

The President was speaking during a press briefing following the 8th South Africa-European Union Summit held in Cape Town on Thursday.

The package is aimed at supporting:
•    A clean and just energy transition in South Africa
•    Digital and physical connectivity infrastructure
•    The local pharmaceutical industry.

“The investment package covers areas such as critical raw mineral processing, green hydrogen, renewable energy, transport and digital infrastructure, local vaccine and pharmaceutical production, and resources for skills development.

“To boost the competitiveness of our economies, we agreed to launch negotiations towards a Clean Trade and Investment Partnership. This will support the development of cleaner value chains for raw materials and local beneficiation, renewable and low carbon energy, and clean technology,” President Ramaphosa said.

Furthermore, the partnership will also serve as a platform for “regulatory cooperation between the European Union and South Africa in areas of mutual interest related to clean supply chains”.

“This partnership is expected, for example, to deliver short and long term solutions to enable Sasol to export sustainable fuel, especially aviation fuel, to the European Union,” the President added.

Strengthening ties

President Ramaphosa noted that the summit – the first such held in seven years – reflects mutual commitment to “enhancing our Strategic Partnership for the mutual benefit of our people”.

As a regional bloc, the European Union (EU) is South Africa’s biggest trading partner recording some €49.5 billion in total trade in 2023 with EU foreign direct investment into South Africa reaching around €71 billion in 2022.

“Today’s Summit focused on strengthening our trade and investment relations, which are vital for the growth of our economies and the achievement of our development goals,” the President noted.

Discussions also focussed on other areas including green energy, science and health.

“We have prioritised the transition to green energy, ensuring that this process is just and inclusive and safeguards the livelihoods of those most affected by the transition. We also had discussions on our robust cooperation in education; science, technology and innovation; and health.

“We have recognised the vital importance of developing the skills and capabilities of young people, starting from early childhood development through to the training of young people in the skills of the future,” President Ramaphosa explained.

Global developments 

On the global stage, President Ramaphosa said, “we reaffirmed our commitment to multilateralism, the rule of law and the central role of the United Nations in maintaining global peace and security”.

“We also expressed our resolve to resist actions that undermine multilateral cooperation. We reinforced our belief that the institutions of global governance must be reformed to make them representative and fit for purpose. 

“We agreed that addressing the root causes of conflict is essential for achieving durable peace, security and stability in Africa.”

Turning to the conflict in the Democratic Republic of Congo (DRC), President Ramaphosa said South Africa calls on parties to assist in addressing the “dire situation of the people” caught in the blaze of the war.

“As South Africa, we have made a call for a humanitarian intervention for displaced people in the eastern Democratic Republic of the Congo. 

“As we work to achieve a ceasefire and achieve a peaceful resolution of the conflict in the DRC, we are calling on the United Nations, African Union and EU to help to address the dire situation of the people affected by the fighting,” he said.
Reflecting on the outcomes of the Summit, President Ramaphosa described it as having further strengthened the strategic partnership.

“Today’s Summit has further strengthened our Strategic Partnership, which will support our efforts to drive inclusive economic growth, create jobs, eradicate poverty and address global challenges in a spirit of solidarity, collaboration and partnership.

“On behalf of the Government and people of South Africa, it has been a pleasure to host you today, reaffirming our commitment to building strong, mutually beneficial relations with the European Union,” President Ramaphosa concluded. 

In his opening remarks at the summit, the President said that as one of South Africa’s most important trade and investment partners, the European Union can play a catalytic role in unleashing the productive capacity of our economy and equip our people, especially the youth, to participate in the economy of the future.

READ | President Ramaphosa engages EU on new investment package

“We hope we can continue to rely on the support of the European Union and its member states in our efforts to alleviate poverty, transition to a low-carbon economy, invest in climate-resilient infrastructure and grow our industrial capacity,” the President explained. – SAnews.gov.za

 

NeoB
Thu, 03/13/2025 - 19:06
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Access Bank’s Africa Trade Conference Ignites New Era of Intra-Africa Commerce

Location: Business
Access Bank PLC

Access Bank PLC (www.AccessBankPLC.com) successfully hosted the inaugural Africa Trade Conference in Cape Town, South Africa, bringing together industry leaders, policymakers, and trade experts to drive solutions for accelerating intra-African trade and unlocking the continent's economic potential. The conference tackled critical challenges, including limited access to capital, market information gaps, trust deficits between trading partners, and the urgent need for modernised trade infrastructure.

Roosevelt Ogbonna, Managing Director/CEO of Access Bank, delivered the opening remarks, setting the tone for discussions by highlighting the critical barriers hindering trade across Africa. He emphasised the urgent need for financial sector collaboration to facilitate seamless access to capital and foster a business environment where African enterprises can scale and compete globally.

“We must invest in the initiatives that ensure that we can bring businesses together, forge trust, and create the connections necessary for trade. In doing so, we must stamp out the narrative that 'Made in Africa' is inferior to any product made anywhere else in the world. We must buy Africa, be proud to wear Africa, and invest in Africa because that is what the continent needs to leap forward into the next generation,” Ogbonna stated.

With Africa's population projected to surge to 2.5 billion by 2050 from 1.2 billion, the African Continental Free Trade Area (AfCFTA) stands as the most significant free trade initiative since the formation of the World Trade Organisation. By fostering economic integration, AfCFTA has the potential to reshape trade dynamics across the continent, creating a unified market that enhances industrialisation, boosts employment, and strengthens Africa's global competitiveness. Recognising this transformative opportunity, H.E. Wamkele K. Mene, Secretary-General of AfCFTA, emphasised the urgency of fully implementing the agreement to unlock its immense benefits.

"The AfCFTA is not just a trade agreement; it is an instrument for Africa's industrialisation and economic sovereignty. It is a tool that will enable us to break down historic trade barriers and build an Africa that is self-sufficient, competitive, and prosperous. But for this to happen, we must commit to operationalising the agreement fully, ensuring that businesses, particularly SMEs and women-led enterprises, have access to the information, capital, and platforms they need to thrive,” Mene stated.

Also, Kanayo Awani, Executive Vice President of Afreximbank, emphasised the importance of financing mechanisms that support African businesses in their expansion across borders. She reaffirmed Afreximbank's commitment to championing trade finance solutions and infrastructure investments that will unlock Africa's trade potential.

“At Afreximbank, we understand that trade finance is the lifeblood of economic development. Without it, businesses cannot scale, industries cannot innovate, and Africa cannot fully realise its trade potential. This is why we have developed instruments such as the Pan-African Payment and Settlement System (PAPSS) to facilitate seamless transactions across borders, reducing reliance on foreign currencies and strengthening intra-African trade,” Awani remarked.

The conference featured an insightful testimonial from Nathalie Louat, Global Director at the IFC/World Bank Group, who pointed out the pivotal role of trade finance in enabling cross-border transactions and supporting financial inclusion. She underscored the long-standing partnership between IFC and Access Bank in fostering Africa's economic resilience.

Several high-level panel discussions explored strategies to overcome trade barriers and enhance market access through innovative solutions. Experts from leading institutions, including Deutsche Bank, Traydstream, OWP Partners, Fiducia International, and more, examined how infrastructure improvements, digital solutions, and policy harmonisation could drive economic growth and boost intra-African trade.

Dr. Marc Auboin from the World Trade Organization (WTO) shared key insights on how digital transformation is reshaping Africa's supply chain landscape, creating efficiency and unlocking new global market opportunities. Tanya Dos Santos-Ford from GIBS Business School also led a session on sustainable trade practices, emphasising the need for environmentally responsible economic growth strategies.

The event culminated in an awards ceremony recognising outstanding contributions to intra-African trade and economic transformation. Tradepass Commodities Limited (Ghana), Chemaf International FZE (DR Congo), and Harvest Group of Companies (Zambia) were honoured for their impact on SMEs and women-led trade enterprises. Bulkstream Limited (Kenya) and Electricidade de Moçambique (Mozambique) received awards for advancing intra-African trade, while Tennant Metals South Africa Pty Ltd was recognised as an Emerging Leader in Trade.

The International Finance Corporation (IFC) was awarded the Climate Finance Leadership Award, while Afreximbank received the Champion of Intra-African Trade Award. The African Development Bank (AfDB) and Africa Finance Corporation (AFC) were celebrated for their roles in economic transformation and infrastructure finance, respectively. The prestigious African Icon Award was presented to IHS Group, Dangote Industries Limited, and MTN Group Limited for their significant contributions to Africa's economic progress.

As the conference ended, Seyi Kumapayi, Executive Director, African Subsidiaries at Access Bank, reaffirmed the institution's commitment to supporting trade finance, fostering regional integration, and championing policies that create an enabling environment for businesses across Africa.

For inquiries:

Distributed by APO Group on behalf of Access Bank PLC.

About Access Bank PLC:
Access Bank PLC, a wholly owned subsidiary of Access Holdings PLC, is a leading full-service commercial bank operating through a network of more than 700 branches and service outlets spanning three continents, 24 countries and over 60 million customers. The Bank employs over 28,000 people in its operations in Africa and Europe, with representative offices in China, Lebanon, India, and the UAE.

Access Bank's parent company, Access Holdings PLC, has been listed on the Nigerian Stock Exchange since 1998 (now Nigerian Exchange (NGX)). The Bank is a diversified financial institution which combines a strong retail customer franchise and digital platform with deep corporate banking expertise, proven risk management and capital management capabilities. The Bank services its various markets through three key business segments: Corporate and Investment Banking, Commercial Banking, and Retail Banking. The Bank has enjoyed what is Africa's most successful banking growth trajectory in the last 20 years, becoming one of the continent's largest retail banks.

As part of its continued growth strategy, Access Bank is focused on mainstreaming sustainable business practices into its operations. The Bank strives to deliver sustainable economic growth that is profitable, environmentally responsible, and socially relevant, helping customers to access more and achieve their dreams.

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China-Africa Business Ties a Key Focus

Location: News
African Energy Chamber

China has reaffirmed its commitment to supporting Africa's drive for enhanced energy access and industrialization, according to speakers at the Invest in African Energies Shanghai Forum. Leveraging China's expertise in technology-driven oil, gas and energy development, African firms can tap into a valuable partnership and greater investment by Chinese firms would further efforts to make energy poverty history in Africa.

With over 600 million people living without access to electricity and 900 million people without access to clean cooking solutions, Africa is seeking to leverage global partnerships to fast-track energy production and development. China stands to play a major part in facilitating this growth and the Shanghai Forum - co-organized by the African Energy Chamber (AEC) and the Shanghai Development Research Foundation - drew insight into strategic areas of collaboration.

“We want to see investments in African energy. The AEC will continue to support Chinese businesses that want to invest in China and give you the priority needed for you to invest in our beautiful continent,” stated NJ Ayuk, Executive Chairman, AEC. 

For emerging African players seeking to unlock the full potential of their underdeveloped resources, Chinese partnerships have the ability to unlock new capital and technology to advance projects. Partnerships also serve to support mature players enhance their production capacity as Africa drives long-term energy development. Phuti Joyce Tsipa, Consul General, South African Consulate-General Shanghai, highlighted the value of enhanced cooperation with China.

“Together, China and South Africa can work towards building a high-quality international community that can work on a prosperous future, centered on balanced economic growth. Increased energy investment in Africa is at the heart of our future prosperity. We see China as a critical country to partner with, not only with South Africa, but the entire continent,” she said.  

The Shanghai Forum sought to bolster China-Africa relations by facilitating market entry and expansion by Chinese firms in Africa. The Forum featured the participation of 100 companies, including consulates, private firms, investors and policymakers, with presentations centering on opportunities for Chinese firms in Africa, strategies for advancing African industrialization and electrification and the impact Chinese technology will have on the African energy market.

Dr. Bieni Da, Chief Representative for China at the AEC and Yide Qiao, Vice Chairman and Secretary General, Shanghai Development and Research Foundation, underscored the need to facilitate energy ties between China and Africa. According to Qiao, “China has strong technology in green energy and cooperation can be extended to Africa.”

Chinese firms are leading in terms of innovative, low-carbon energy solutions. With a national goal of becoming carbon neutral by 2060, China is supporting domestic companies through policy improvements, capital and research and development. Africa stands to leverage this expertise to advance its own development agenda. This expertise extends to the oil and gas sectors and Chinese companies have begun to expand their footprint in Africa.

Dr. Wang Zengye, Deputy Director-General of Policy Research Office, China National Petroleum Corporation (CNPC) provided an overview of the projects CNPC has led in Africa. He said: “Bilateral relationships between China and Africa is already quite strong and high-level cooperation has been established. This ensures that investment can flow.”

China has also effectively established industrial hubs which support the economy by centralizing manufacturing. Bi Mingze, CFO of Yunan County Chuangxing Industrial Investment Group, said that the company has established an industrial hub in Yunan in China. This hub can be replicated across Africa.

The Shanghai Forum served as a prelude to the African Energy Week (AEW): Invest in African Energies conference, slated for September 29 to October 3 in Cape Town. As the largest event of its kind in Africa, AEW: Invest in African Energies fosters collaboration and investment in Africa. For Chinese companies, the event offers a strategic opportunity to gain insight into African projects while strengthening ties with African firms.

“If you work in any energy field, we are able to help you connect with key stakeholders. We support policy that enhances local content and infrastructure development. It is time to invest in Africa,” stated Johnson Kayode Obembe, Sales Director, African Energy Week.

Distributed by APO Group on behalf of African Energy Chamber.

AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.

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Africa Tech Festival Announces Leadership Council for 2025

Location: Business
Africa Tech Festival

Africa Tech Festival (www.AfricaTechFestival.com), the continent's leading platform for technology innovation and connectivity, is proud to announce the esteemed members of its Leadership Council for 2025. Comprising influential leaders from across Africa's technology, business, and investment sectors, the Leadership Council will play a pivotal role in shaping the festival's agenda, ensuring it remains at the forefront of industry trends, policy discussions, and digital transformation.

The Africa Tech Festival 2025 Leadership Council comprises of:

  • Brelotte Ba, Deputy CEO of Orange Middle East and Africa, Orange​
  • Antoinette Kwofie, Chief Financial Officer, MTN Ghana
  • Bunmi Adeleye, Chief Strategy Officer, Retail Supermarkets Nigeria (Shoprite Nigeria)
  • Charles Murito, Regional Director, Government Affairs & Public Affairs, Sub-Saharan Africa, Google​
  • Dido wa Kalonji, Chief Information Officer, First National Bank – Eswatini​
  • Faith Burn, Chief Information Officer, Eskom​
  • Nicolas Pompigne-Mognard, Founder and Chairman, APO Group​
  • Nina Triantis, Global Head Telecoms, Media and Technology, Client Coverage, Corporate and Investment Banking, Standard Bank​
  • Nomsa Chabeli, Group CEO, SABC​
  • Mary Mahuma, Chief Information Officer, Southern Africa, Philip Morris​
  • Philip Besiimire, CEO, Vodacom Tanzania​
  • President Ntuli, Managing Director, South Africa, Hewlett Packard Enterprise​
  • Ravi Bhat, Chief Technology and Solutions Officer, Microsoft Africa​
  • Ayanda Peta, Chief Information Security Officer, African Rainbow Minerals​
  • Richard Cazalet, Executive: Strategy and Transformation, Telkom SA​
  • Shamiela Letsoalo, Director: Public Affairs, Naspers Limited

Bringing together a wealth of expertise, the Leadership Council will provide strategic guidance to ensure Africa Tech Festival continues to address the most pressing issues and opportunities within Africa's digital economy. Their insights will help drive meaningful discussions on connectivity, AI, fintech, cybersecurity, cloud, and the future of digital infrastructure across Africa.

“Africa Tech Festival serves as a platform for connection, collaboration, and innovation across the continent,” said James Williams, Event Director of Africa Tech Festival. “With the guidance of our Leadership Council, we will continue to curate an event that drives impactful conversations, supports industry growth, and fosters Africa's position as a global technology leader.”

Distributed by APO Group on behalf of Africa Tech Festival.

Media Contact:
Tori Wilson
Senior Marketing Manager
tori.wilson@informa.com

About Africa Tech Festival 2025:
Now in its 28th edition, Africa Tech Festival 2025 will take place from 11 to 13 November 2025 at the Cape Town International Convention Centre (CTICC), bringing together over 15,000 technology leaders, policymakers, investors, startups, and visionaries. The festival encompasses four anchor events:

  • AfricaCom – The continent's largest telecoms and connectivity event
  • AfricaTech – The hub for technology, innovation, and enterprise growth
  • AfricaIgnite – Driving growth and impact in Africa's startup ecosystem
  • The AI Summit Cape Town – Where commercial AI comes to life

With over 500 speakers, 300 exhibitors, and multiple networking opportunities, Africa Tech Festival remains the largest and most influential tech event on the continent.

For more information about Africa Tech Festival 2025 and its Leadership Council, visit www.AfricaTechFestival.com.

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Department prepares for Pongolapoort Dam water release

Location: News

Department prepares for Pongolapoort Dam water release

The Department of Water and Sanitation (DWS) is preparing for the imminent release of water from the Pongolapoort Dam in Jozini, northern KwaZulu-Natal.

This follows weeks of heavy rainfall that have caused several dams in the region to exceed their capacity.

The department issued a statement this week, noting that the Pongolapoort Dam has reached 90.8% of its capacity due to continuous inflows, prompting it to implement the standard operating rule of the dam safety protocol.

“This decision [to release the water] underscores the critical importance to maintain dam safety and prevent potential risks associated with overcapacity. Water release is a necessary measure to ensure the structural integrity of the dam and safeguard surrounding communities from the dangers of uncontrolled spillage or dam failure,” the department said.

If the current inflows persist, the department said it may be required to activate releases by Friday, 14 March 2025.

It also noted that the inflows are unpredictable and may change at any time.

“For instance, current inflows may significantly increase, requiring the department to release water before the anticipated time. On the contrary, inflows may significantly reduce, necessitating a halt to the release.

“Currently, the inflow slightly exceeds the outflow, and the dam level continues to rise steadily. It is for this reason that communities are notified of the imminent release to ensure preparedness and safety,” the department said.

Communities in and around Jozini, and Makhathini Flats (Welcome, Hlazane, Mboza, KwaShukela, Mzinyeni, Skhemelele, KwaLulwane, Bhekabantu, Mamfene, Shemula, Hlokohloko, Madonela, and Ndumo), have been urged to exercise extreme caution during and after the water release.

Additionally, the department is continuously engaging with the Lower Pongola Water User Association, representing water users and communities in the riparian of the river, to keep stakeholders informed on the department’s emergency preparedness plan.

The increased flow into the Pongola River will raise water levels, potentially affecting low-lying areas, floodplains, low-level bridges, and agricultural activities.

Residents downstream have been advised to remain vigilant, as the release may lead to localised flooding.

The department emphasised that the Pongolapoort Dam remains a vital infrastructure for water management and flood control.

The department will continue to monitor the dam’s performance, including inflow rates, to ensure the safe and efficient operation of the dam.

It emphasised that the proactive approach highlights the importance of balancing water storage with safety, ensuring the well-being of communities and the environment, while maintaining the dam’s functionality.

“The DWS follows operating rules and procedures when releasing water from dams necessitated by floods as a result of heavy rains and will gradually implement the releases in line with the established flood management protocols in coordination with the National Disaster Management Centre (NDMC), Provincial Disaster Management Centres (PDMCs), and affected local municipalities.” – SAnews.gov.za
 

 

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President Ramaphosa engages EU on new investment package

Location: News

President Ramaphosa engages EU on new investment package

With the 8th South Africa-European Union (SA-EU) Summit underway, President Cyril Ramaphosa says South Africa intends to hold further constructive discussions on a new investment package by the EU, to South Africa.

“Through this we aim to consolidate cooperation in areas such as science and technology, education and skills development, climate action, peace and security, health and critical minerals,” the President said on Thursday.

This as he is co-chairing the summit with the President of the European Council, António Luís Santos da Costa, and the President of the European Commission, Dr. Ursula von der Leyen, at Tuynhuys, in Cape Town.

READ | Summit to strengthen SA-EU relations

Held in the Western Cape, the 8th Summit takes place within the framework of the Strategic Partnership between South Africa and the European Union. 

“As one of South Africa’s most important trade and investment partners, the European Union can play a catalytic role in unleashing the productive capacity of our economy and equip our people, especially the youth, to participate in the economy of the future. 

“We hope we can continue to rely on the support of the European Union and its member states in our efforts to alleviate poverty, transition to a low-carbon economy, invest in climate-resilient infrastructure and grow our industrial capacity,” the President explained.

In addition, the President welcomed the EU’s support for multilateral institutions and the fundamental principles of the United Nations.

“This Summit is taking place at a time of global uncertainty characterised by rising unilateralism, economic nationalism and a retreat from international law and human rights.

“We hope to work closely with the European Union and other partners to strengthen and reform institutions of global governance to make them more inclusive and capable of meeting the challenges of the present and the future. 

We should collectively strengthen our voice in defence of human rights, democracy and the rule of law, including respect for international law and international humanitarian law. We welcome the support of the European Union for Africa’s developmental needs.”

Partnership

He emphasised that African relations with the European Union should be built on a mutually beneficial partnership in the spirit of shared ownership, responsibility, respect and mutual accountability. 

“Today we will discuss our shared interest to advance peace, security, stability and sustainable development on the continent and across the world. This Summit affirms our long-standing and close relationship, which is underpinned by the South Africa-European Union Strategic Partnership. 

“This is a partnership based on shared values and common interests. A partnership that seeks to create prosperity for our citizens and promote peace, safety and stability.

“We share a commitment to inclusive multilateralism as the most effective means to address the most pressing challenges facing the world.  We agree on the need to strengthen economic cooperation and resolve challenges in our trade relations,” the President said.

Reforms 

He mentioned that South Africa is forging ahead with far-reaching structural reforms to support economic recovery. 

“We are modernising and transforming key industries such as energy, water, transport and digital communications. We have already made considerable progress, supported by institutions such as the European Investment Bank. 

“These reforms are contributing to the improvement of the country’s competitiveness and investment environment,” the President said. 

According to the Presidency, the Summit follows a series of preparatory engagements that included the Joint Cooperation Council (JCC) held in January in Brussels. -SAnews.gov.za

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South Africa successfully hosts key G20 Working Groups and Task Force Meetings

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South Africa successfully hosts key G20 Working Groups and Task Force Meetings

As part of its G20 Presidency, South Africa has successfully hosted a series of high-level G20 working groups and task force meetings during this month, focusing on global challenges such as corruption, food security, disaster risk reduction, agriculture, and tourism.

The first Anti-Corruption Working Group Meeting, held in Cape Town from 3 to 5 March 2025, focused on mechanisms to enhance the implementation of legal instruments to fight corruption. 

Cabinet said in a statement that this meeting was an opportunity for participants to establish the agenda and lay the groundwork for future discussions, encouraging dialogue and collaboration to strengthen anti-corruption strategies. 

“During this meeting, participants discussed and agreed on these several key priorities which are strengthening Public Sector Integrity; Increasing Asset Recovery Efficiency; Inclusive Participation; and Whistle-Blower Protection,” Cabinet said.

Agriculture Working Group

The First Agriculture Working Group Meeting, held virtually on 3 and 4 March, discussed critical issues that affect agricultural stakeholders worldwide and agreed on priorities for the year ahead. 

The group established four key priorities:

  • Promoting inclusive market participation and food security;
  • Empowering youth and women in agrifood systems;
  • Fostering innovation and technology transfer and
  • Building climate resilience for sustainable agriculture

Tourism Working Group

On 5 March, the First Tourism Working Group Meeting, also held virtually, deliberated on how tourism can be used to change people’s lives, communities and the world. 

The group also identified four focus areas for the year ahead namely:

  • Leveraging People-Centered Artificial Intelligence (AI) and Innovation to support travel and tourism start-ups and SMMEs,
  • Enhancing tourism financing and investment to promote equality and sustainability,
  • Improving air connectivity for seamless travel, and
  • Boosting resilience for inclusive, sustainable tourism development.

Disaster Risk Reduction Working Group

First Disaster Risk Reduction Working Group Meeting also held virtually on 5 March, discussed the acceleration of early warnings for all initiatives which is a key global target set by the United Nations and reinforced the implementation of the Sendai Framework for Disaster Risk Reduction 2015-2030. 

“South Africa sees this meeting as a key international forum to drive the agenda of a shared responsibility to build resilience, strengthen our cooperation, and drive meaningful action that is needed to prevent an escalation or exacerbation of risk,” Cabinet said. 

Key priorities included:

  • addressing Inequalities and Reducing Vulnerabilities
  • Global Coverage of Early Warning Systems
  • Disaster Resilient Infrastructure
  • Financing for Disaster Risk Reduction
  • Disaster Recovery, Rehabilitation and Reconstruction; and
  • Ecosystems-Based Approaches for DRR/Nature-Based Solutions. 

Food Security Task Force

The First Task Force Meeting on Food Security, held virtually on 5 March, discussed policies and programs to improve food security. 

“Participants agreed to build a stronger, fairer, and more sustainable food system. They also committed to address key challenges like trade barriers, funding for food production, and the impact of climate change on food supply chains,” Cabinet said. 

Some of the priorities outcomes discussed are the following: 

  • Stronger food security policies
  • Stable food prices
  • Clear regulations & standards
  • G20 Action Plan for Food Security; and
  • Ministerial approval & implementation

G20 Outreach Programme

On 7 March 2025, the G20 Outreach Programme was held at the University of Venda in Thohoyandou, to encourage public engagement in South Africa’s G20 presidency.

Citizens were urged to welcome international delegates, promote South Africa’s cultural heritage, and share positive narratives about the country.

“The gathering was used to encourage the people of this country to get involved in welcoming our guests to the country as we continue to host meetings in various parts of the country and to promote their culture and heritage. South Africans were also encouraged to tell a good story about their country,” Cabinet said. 

The following G20 Working Groups and Task Forces meetings are scheduled to take place until the end of March 2025: 

  • First Task Force Meeting: Inclusive Economic Growth, Industrialisation, Employment, and Reduce Inequality: 17 March 2025 – virtual.
  • First Trade and Investment Working Group Meeting: 18-20 March 2025 – virtual.
  • Second Health Working Group: 26-28 March 2025 – Durban.
  • First Climate and Environment Sustainability Working Group Meeting: 25-28 March 2025 – virtual.

For more information on these various G20 meetings and their outcomes can be accessed on www.g20.org OR www.g20.org.za– SAnews.gov.za

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Government steps in to assist citizens affected by severe weather

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Government steps in to assist citizens affected by severe weather

Government has called on all citizens to exercise caution in parts of the country that experience severe weather conditions.

This after a national state of disaster was declared in KwaZulu-Natal, where heavy downpours have battered the coastal province – leaving at least nine dead, infrastructure and housing destroyed and people displaced.

During a post-Cabinet media briefing on Thursday in Cape Town, Minister in the Presidency Khumbudzo Ntshavheni urged residents to exercise caution.

“Cabinet calls on all South Africans to exercise extreme caution whenever there is inclement weather. Heavy rain poses a risk of localised flooding, particularly in low-lying areas, bridges and roads.

“In cases of heavy rains, communities are urged to avoid flooded roads and to monitor news broadcasts, radio bulletins, and government official social media pages for real-time updates and alerts,” she said.

The Minister also assured those impacted by the severe weather that government is stepping in to assist.

“The impact of severe weather conditions in KwaZulu-Natal has led to a national state of disaster being declared - to allow the provincial Department of Corporate Governance and Traditional Affairs (CoGTA) to mobilise all organs of State to augment support measures, limiting the impact of the disaster on communities.

“Government continues to provide flood victims with assistance and the Department of Human Settlements has allocated R100 million to KwaZulu-Natal to assist managing the flood aftermath,” Ntshavheni said. – SAnews.gov.za

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Cabinet welcomes GDP growth in fourth quarter of 2024

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Cabinet welcomes GDP growth in fourth quarter of 2024

The 0.6% increase in South Africa’s gross domestic product (GDP) in the fourth quarter of 2024 signals a recovery across the economy, says Minister in The Presidency, Khumbudzo Ntshavheni.

“Cabinet is confident that the increased focus and pace of delivery on economic structural reforms, improved service delivery and State capacity, and increased participation of the private sector will spur further growth of the economy in 2025 and beyond,” the Minister said during a post-Cabinet media briefing in Cape Town on Thursday.

According to Statistics South Africa (Stats SA), South Africa’s GDP increased by 0.6% in the fourth quarter of 2024, following a decrease of 0.1% in the third quarter of 2024.

“The agriculture, forestry and fishing industry increased by 17.2%, contributing 0.4 of a percentage point to the positive GDP growth. This was primarily due to increased economic activities reported for field crops and animal products.

“The finance, real estate and business services industry increased by 1.1%, contributing 0.3 of a percentage point. Increased economic activities were reported for financial intermediation, real estate activities and other business services,” Stats SA said earlier this month.

The trade, catering and accommodation industry increased by 1.4%, contributing 0.2 of a percentage point. Increased economic activities were reported for wholesale trade, retail trade and motor trade.

Investments

Meanwhile, Cabinet welcomed the announcement by Microsoft South Africa that it will invest R5.5 billion in artificial intelligence (AI) infrastructure in the country. 

“This investment will strengthen South Africa’s position as a leading Artificial Intelligence hub on the African continent and builds Microsoft South Africa’s R20.4 billion investment over the past three years.

“Microsoft South Africa also announced their contribution to developing South Africa’s digital literacy by paying for technical certification for 50 000 individuals in high-demand digital skills.

“In further uplifting our investment profile, Indian car manufacturer, Mahindra, signed a memorandum of understanding (MoU) with South Africa’s Industrial Development Corporation (IDC) to explore the possibility of setting up a full-scale vehicle assembly plant in the country,” the Minister said.

Mahindra already has an assembly plant of Pik Up range of vehicles in Durban operated by AIH Logistics.

The company recently celebrated the production of their 25 000th locally assembled Pik Up vehicles [range of bakkies].

“Cabinet reminded every South African as direct shareholder in South Africa Incorporated (SA Inc.) of their vested interest in promoting our country as an investment destination in a globally competitive environment. We must continue to speak with one voice in defence of our national interest, our sovereignty and our constitutional democracy,” the Minister said. - SAnews.gov.za

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Cabinet welcomes 2025 National Budget 

Location: News

Cabinet welcomes 2025 National Budget 

Cabinet has welcomed the 2025 National Budget as it seeks to maintain a balance between South Africa’s fiscal framework, fund the priorities of the seventh administration while mitigating negative impact on poor and middle-income households.

The budget was tabled by the Minister of Finance, Enoch Godongwana, in the National Assembly, on Wednesday. 

He outlined all the financial, economic and social commitments the government will prioritise in its planned expenditure and provided a detailed plan for 2025 spending. This includes proposals for revenue collection to help fund the government’s planned interventions and commitments.

“The allocation of over R1 trillion to infrastructure development over the Medium-Term Expenditure Framework (MTEF), the establishment of alternative infrastructure financing through a credit guarantee vehicle and the introduction of multiple bid windows on the Budget Facility for infrastructure is a demonstration of commitment to grow the economy through a strong infrastructure-build programme, whilst simultaneously improving service delivery. 

“Mechanisms for private sector participation as announced with the Budget, which are part of Operation Vulindlela driven reforms, in the energy, transport and freight logistics sectors indicate government’s commitment to fast-tracking private sector investment and inclusive economic growth,” Minister in The Presidency, Khumbudzo Ntshavheni, said on Thursday.

Minister Ntshavheni was briefing the media in Cape Town, following Cabinet’s meeting on Wednesday.

Operation Vulindlela is aimed at stabilising the supply of electricity; creating a competitive and efficient freight logistics system; reducing the cost and improving the quality of digital communication; ensuring a stable, quality supply of water; and reforming the visa regime to facilitate skilled immigration and support tourism.

READ | Operation Vulindlela records notable progress

Since its establishment in 2020, Operation Vulindlela has made real progress in achieving these objectives.

In light of new and persistent spending pressures in health, education, transport and security, government decided to raise value-added tax (VAT) by 0.5 percentage points in each of the next two years, which will bring VAT to 16% in the 2026/27 financial year.

READ | Government proposes VAT increase over two years

The first 0.5 percentage point increase in the VAT rate will take effect on 1 May 2025 and the second 0.5 percentage point increase will take effect on 1 April 2026.

“Acknowledging the impact of the tax increases, the Budget provides for mitigation measures against the increases such as no increase in the fuel levy, above inflation increases to social grants, with old age and disability grants increasing by R130 to R2315 in 2025 and significant funding allocation to PRASA [ Passenger Rail Agency of South Africa] to improve passenger rail transport which will reduce household income spend on transport costs.

“Most significantly, the tax increases are going to finance sustainability of this country, by maintaining 11,000 teachers in the classrooms, 9300 health-workers in their jobs, the employment of 800 post-community service doctors and allow an additional 700, 000 children (4-years of age) access to early childhood development which is the necessary foundation education they need for a successful education journey,” Ntshavheni explained. –SAnews.gov.za 
 

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DBE committed to addressing school infrastructure backlogs 

Location: News

DBE committed to addressing school infrastructure backlogs 

The Department of Basic Education (DBE) has reiterated its committed to working with stakeholders in delivering safe, functional, and dignified learning spaces for learners.

“The department remains committed to working with National Treasury, provincial governments, the private sector and development partners to accelerate progress in delivering safe, functional and dignified learning spaces for all South African learners,” the DBE said in a statement on Wednesday.

Basic Education Minister Siviwe Gwarube on Tuesday briefed the National Council of Provinces (NCOP) on the DBE’s efforts to deal with infrastructure challenges in the sector. Gwarube estimated that an amount of R129 billion would be required to address the critical infrastructure backlog currently affecting schools across the country. 

In its statement, the DBE said the urgent need for funding underscores the pressing challenges facing the sector, where inadequate infrastructure continues to hinder effective teaching and learning.

The backlog includes the eradication of unsafe pit latrines, the replacement of mud schools and unsafe structures, and the provision of essential infrastructure such as proper sanitation, classrooms and fencing to ensure that all learners have a safe and conducive learning environment.

Despite the fiscal constraints facing the country, the department said the urgent need for investment in school infrastructure must still remain a priority.

The DBE committed to continue to engage with stakeholders to explore funding solutions that will allow it to meet its mandate and ensure that every child in South Africa learns in a safe, well-equipped and dignified school environment. – SAnews.gov.za

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Government expenditure to reach R2.59 trillion in 2025/26

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Government expenditure to reach R2.59 trillion in 2025/26

Consolidated government spending is expected to increase from R2.4 trillion in 2024/25 to R2.83 trillion in 2027/28, at an annual average of 5.6%.

Consolidated expenditure will reach R2.59 trillion in 2025/26.

This according to National Treasury’s 2025 Budget Review document.

The majority of that spend will fund the social wage, which includes spend on health, education, social protection (grants), community development and employment programmes.

“Over the medium-term, economic development is the fastest-growing function at an annual average rate of 8.1%, driven by higher allocations to infrastructure projects.

“Spending is highly redistributive, with the social wage making up 61% of total consolidated non-interest spending over the next three years,” the Budget Review read.

Consolidated government expenditure by function is as follows:

  • Learning and Culture: R508.7 billion
  • Health: R298.9 billion
  • Social Development: R422.3 billion
  • Community Development: R286.6 billion
  • Economic Development: R289.8 billion
  • Peace and Security: R266.1 billion
  • General Public Services: R78.7 billion
  • Contingency Reserve: R5 billion

Spending pressures

The 2025 Budget will fund spending pressures of R232.6 billion over the Medium-Term Expenditure Framework (MTEF) period, including “provisional allocations for frontline service delivery departments amounting to R70.7 billion”.

“These spending additions are partially offset by drawdowns on provisional allocations and contingency reserves, resulting in a net increase in non-interest expenditure of R142 billion. 

“The main spending additions are for critical infrastructure investments, social protection and a higher-than-anticipated public-service wage agreement, alongside provisional allocations for critical frontline services,” the Budget Review said.

Spending additions over the medium-term are attributed mainly to:

  • R46.7 billion for infrastructure investments.
  • R35.2 billion to extend the COVID-19 social relief of distress grant until March 2026.
  • R23.4 billion for the costs of the 2025 public service wage agreement.
  • R8.2 billion to increase the value of social grants by more than inflation.
  • R11 billion to implement early retirement measures in 2025/26 and 2026/27.
  • R5 billion for the carry-through costs for the deployment of South African National Defence Force (SANDF) troops in the Democratic Republic of Congo.
  • R4.6 billion in 2025/26 for public employment programmes.
  • R3.2 billion in 2025/26 for national government’s share of the debt repayment for the South African National Roads Agency Limited (SANRAL). Gauteng province will pay R13.4 billion for its share of the debt repayment to SANRAL.

Addressing government debt

During the Budget Speech on Wednesday, Finance Minister Enoch Godongwana said government debt is expected to stabilise at 76.2% of gross domestic product in 2025/26, with the consolidated budget deficit expected to narrow to some 3.5% by 2027/28.

“[As] debt stabilises, a growing primary surplus will enable government to reduce debt-service costs as a proportion of revenue.

“Debt service costs will amount to R389.6 billion in the current financial year. This translates to 22 cents of every rand we raise in revenue. It is more than what we spend on health, the police and basic education.

“We must reverse this trend and prevent the cost of debt from taking away resources that could otherwise be spent on our pressing social needs, or to invest in growth. In this regard, our fiscal strategy stabilises debt service costs as a percentage of revenue in 2024/25 by maintaining a primary budget surplus,” he said. – SAnews.gov.za

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Government’s three-year plan to spend R1 trillion on infrastructure

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Government’s three-year plan to spend R1 trillion on infrastructure

The South African government will spend more than R1 trillion over the next three years on public infrastructure in a show of government’s commitment to driving economic growth.

This is according to Minister of Finance Enoch Godongwana who delivered the 2025 Budget speech in Parliament on Wednesday.

“[Infrastructure] is a key pillar of our growth strategy. It is the bedrock for economic development, a key source of jobs, and an avenue to scale-up service delivery.

“This budget reflects that understanding. Allocations towards capital payments are the fastest growing area of spending by economic classification. Public infrastructure spending over the next three years will amount to more than R1 trillion,” Godongwana said.

Current infrastructure focus is geared towards:

•    R402 billion on roads infrastructure
•    R219.2 billion on energy infrastructure
•    R156.3 billion on water and sanitation infrastructure
The Minister highlighted some of the key projects that will be underway.

“In transport, the South African National Roads Agency will spend R100 billion over the medium term to keep the national road network in good condition. Provincial roads departments will reseal over 16 000 lane-kilometres of roads in their areas of authority.

“The Passenger Rail Agency of South Africa is making steady progress to rebuild infrastructure to provide affordable commuter rail services.

“In water, we are investing in several large-scale dam projects that are ramping up or entering construction. The Mkhomazi Project is expected to commence construction in November 2027, transferring water to the Mngeni Water Supply System. This will increase the total capacity of the system to 5 million households in eThekwini and 4 district municipalities in KwaZulu Natal,” Godongwana said.

In the 2025 Budget Review, National Treasury explained that investment in economic infrastructure – mainly by state owned entities – accounts for some 81.5% of the medium-term estimate.

“These funds are used to expand power-generation capacity, upgrade and expand the transport network and improve sanitation and water services. Social services infrastructure accounts for 15.5% of the total, with the two largest sectors, health and education, contributing 4.4 % and 5.5% respectively,” the review read.

Public-Private Partnerships

The department explained that infrastructure reforms are “underpinned by a commitment to significantly increase partnerships with the private sector”.

Some of these measures and reforms include:

•    From June 2025, projects below a total value of R2 billion will no longer have to clear onerous approval processes intended for large projects before proceeding.
•    A clear framework is being established to receive and process unsolicited PPP proposals or bids from the private sector.
•    New legislative amendments and regulations for municipal PPPs will also be introduced in 2025
•    Revised manuals and guidelines on PPPs are being produced and will be made available to the public

“During 2025/26, a single structure overseen by the National Treasury will be established to coordinate state participation in project preparation and planning, public-private partnerships (PPPs), funding and credit guarantees. 

“It will be established by merging two units currently in the Government Technical Advisory Centre that coordinate PPPs and capital appraisals with the Infrastructure Fund in the Development Bank of Southern Africa,” Treasury said. – SAnews.gov.za

 

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Government allocates R19.1 billion for teachers over the medium term 

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Government allocates R19.1 billion for teachers over the medium term 

The government has added R19.1 billion over the medium term to keep approximately 11 000 teachers in classrooms.

“Our learner-teacher ratios remain higher than we would like, meaning that we still need more teachers in classrooms,” Minister of Finance Enoch Godongwana said on Wednesday in Parliament.

According to the Minister, paying salaries constitute 76% of provincial education budgets. 

“This means that only R24 out of every R100 of their budget is left for funding school infrastructure, meals for learners from poor backgrounds, and stationery and textbooks, amongst others.

“To prevent compensation of employees from crowding out other equally important areas of spending, R19.1 billion is added over the medium term to keep approximately 11 000 teachers in classrooms,” the Minister said during the Budget Speech.

He said the foundation to building the next generation of citizens who contribute economically and socially to the nation is in early childhood development (ECD).

“Despite this, the subsidy for ECD has not increased from the 2019 level of R17 per day, per child. To remedy this, an additional R10 billion over the medium term is allocated to increase the subsidy to R24 per day per child. The extra funding will also support increased access to ECD for approximately 700 000 more children, up to the age of four years old.”

Meanwhile, the Department of Higher Education is implementing a pilot student funding model for the “missing middle”, which refers to students from families with annual incomes ranging from R350 000 to R600 000. 

The National Student Financial Aid Scheme will manage these loans using funds provided by the National Skills Fund, amounting to R1.5 billion in 2024/25 and R3 billion over the Medium-Term Expenditure Framework (MTEF) period.

“The apprenticeship and skills development levy systems will be reviewed. The goal, in collaboration with the private sector, is to double the number of artisans completing trade tests in the next three years through increased work-based learning opportunities.

“The arts, culture, sport and recreation sector is allocated R38.4 billion over the medium term to support school sports, national recreation events and selected sporting codes, as well as to preserve and promote the cultural, heritage and linguistic diversity of South Africa,” Treasury’s  2025 Budget Review document noted.

Health

Health spending will grow from R277 billion in 2024/25 to R329 billion in 2027/28 to support the equitable provision of public health services, including free primary healthcare.

“Like in provincial education, a significant portion of the provincial health budget is spent on the salaries and wages. R28.9 billion is added to the health budget, mainly to keep about 9 300 healthcare workers in our hospitals and clinics.

“It will also be used to employ 800 post-community service doctors, and to ensure that our pharmacies do not run out of medicines,” the Minister said.

National Health Insurance (NHI) policy

As part of strengthening the health system and preparing for the National Health Insurance (NHI) policy, the Department of Health will fund the development of a patient information system, a centralised chronic medicine dispensing and distribution system, and a facility medicine stock surveillance system. 

Over the MTEF period, the indirect and direct conditional grants for NHI are allocated R8.5 billion and R1.4 billion respectively.
“Sustained allocations for direct and indirect infrastructure grants, including potential additional funding through the Budget Facility for Infrastructure (BFI), as outlined in the 2024 MTBPS, will focus on new or replacement buildings, upgrades, rehabilitation and maintenance. 

“The total infrastructure allocation is R37.4 billion over the MTEF period, including provisional allocations from the BFI and new allocations for Siloam District Hospital and Tygerberg Hospital equipment through a public-private partnership in 2027/28,” National Treasury said. -SAnews.gov.za

 

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Economic development initiatives to spur economic growth

Location: News

Economic development initiatives to spur economic growth

Over the next three years, government spending on economic development will be the fastest-growing function at an annual average rate of 8.1%, driven by higher allocations to infrastructure projects.

According to the 2025 National Treasury Budget Review, medium-term spending for economic development will grow from R252.4 billion in 2024/25 to R318.4 billion in 2027/28.

The Department of Land Reform and Rural Development will expedite the finalisation of outstanding land claims, prioritising older claims. 

The department has been allocated R11.6 billion over the medium-term to settle about 844 land restitution claims, with R3 billion earmarked to allocate 138 000 hectares of land.

“Over the medium-term, the Department of Science, Technology and Innovation will invest R3 billion in the construction of the MeerKAT array and efforts to secure the hosting of part of the Square Kilometre Array. 

“Guided by evidence and targeted public policy interventions, R2.9 billion will be invested annually in postgraduate development and research support. Additionally, R3.8 billion will be allocated annually to provide access to cutting-edge research infrastructure,” the Budget Review document said.

To enhance productivity, competitiveness and the green economy, government will spend R18.4 billion over the medium term to support businesses through various incentive programmes under the Department of Trade, Industry and Competition.

These programmes include the automotive investment scheme, business process outsourcing, film and television production incentives, special economic zones, clothing and textile competitiveness programmes, the industrial park revitalisation programme and industrial development support for electric vehicle production.

“The Department of Small Business Development is allocated R2.1 billion over the medium-term to support about 120 000 competitive small businesses, particularly those owned by women, youth and people with disabilities in marginalised areas, such as townships and rural regions. 

“In addition, government has allocated R313.7 million over the medium-term for the establishment of micro, small and medium enterprise hubs to support business expansion,” National Treasury said.

Government will merge the comprehensive agricultural support programme grant and the Ilima/Letsema projects grant into a single grant with the existing consolidated baseline of R7.3 billion over the Medium-Term Expenditure Framework (MTEF) period. 

This merger aims to streamline grant administration, improve resource allocation, and support commercial and subsistence farming. 

“To minimise outbreaks of pests and diseases that affect agricultural production, the department will accelerate regulatory compliance and monitoring interventions costing R30.3 million over the medium term.

“The Independent Communications Authority of South Africa is allocated R102 million in 2025/26 for the second phase of the licensing of spectrum through an auction process.

“This is expected to increase investment in networks, improve network quality, contribute to economic growth and lower data costs,” National Treasury said. -SANews.gov.za

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Operation Vulindlela records notable progress

Location: News

Operation Vulindlela records notable progress

Minister of Finance Enoch Godongwana has highlighted the real progress achieved by implementing structural reforms through Operation Vulindlela, which is a joint initiative between the Treasury and the Presidency.

Operation Vulindlela is aimed at stabilising the supply of electricity; creating a competitive and efficient freight logistics system; reducing the cost and improving the quality of digital communication; ensuring a stable, quality supply of water; and reforming the visa regime to facilitate skilled immigration and support tourism.

Since its establishment in 2020, Operation Vulindlela has made real progress in achieving these objectives.

“The energy reforms have created a 22 500 mega-watt pipeline of projects. More than 10 000 mega-watts are formally registered with NERSA [National Energy Regulator of South Africa], which is one of the last steps in the regulatory process. These projects will contribute to reducing power cuts.

“The Freight Logistics Roadmap was approved. The roadmap allows private sector participation and gives third-party access to any operator without discrimination in accordance with the network statement.

“The cost of a 1.5GB data bundle has declined by 51%, allowing individuals and small businesses to access more affordable data,” Godongwana said on Wednesday during his Budget Speech.

He noted that the water-use licenses backlog has been cleared, unlocking billions in investment and freeing projects that had stalled because of the backlog.

The water quality regulatory system was reinstated for the first time since 2014.

“This is the Green Drop, Blue Drop and No Drop certification that enables effective intervention in supporting failing municipalities to provide clean water to citizens. e-Visas for travellers from 34 countries have been introduced to significantly boost tourism. The trusted employer scheme has been established to fast-track visa process for major investors,” the Minister said.

These achievements have eased economic bottlenecks. 

Building on the successes of the initiative, Phase 2 of Operation Vulindlela will focus on:

  • Following through on existing reforms in energy, water, logistics and visa systems;
  • Strengthening local government and improving the delivery of basic services;
  • Harnessing digital public infrastructure as a driver of growth and inclusion; and
  • Creating efficient, productive and inclusive cities. - SAnews.gov.za

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Wed, 03/12/2025 - 14:43
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