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Johannesburg, November 2023 – The 2023 Medium Term Budget Policy Statement (MTPBS) recognises, reflects and has been structured to respond to key headwinds facing the global and South African economy. The policy positions contained in this mini-budget are welcome for the fact that they communicate important reform signals. The only way to place the economy …
Andrew Maren, founder and CEO of Fintech company ProfitShare Partners, is giving entrepreneurs who lack access to funding an opportunity to succeed by cutting through the red tape that so often leaves small and medium enterprises (SMEs) hamstrung. “The failure rate of start-up businesses is high,” notes Maren, with around half failing to make it …
Celebrating our teachers
By Nomonde Mnukwa
Most of us have stories about a teacher or teachers who have had a great influence in our lives. These teachers not only taught us in class but were instrumental in instilling good values and became our mentors and counsellors. Throughout our history, teachers have taken the lead in inspiring generations of students to be the best they can be and have contributed to building an informed society.
The hard work and important role played by teachers should be celebrated throughout the year and not only in October when we commemorate National Teachers’ Month. Currently thousands of learners are busy writing the 2023 National Senior Certificate (NSC) exams, under the watchful eye of teachers, who have helped to prepare them for the final leg of their school career, and who continue to play a crucial part in government’s effort to reverse the legacy of apartheid education we inherited in 1994.
It is no secret that the apartheid government denied both black teachers and learners quality education and provided them with limited resources. Hendrik Verwoerd who was the architect of apartheid wanted black people to be made "hewers of wood and drawers of water" irrespective of their abilities and aspirations. The policies of the apartheid government affected not only learners but the quality of teachers as well.
As government, we are encouraged that we have since 1994 made progress in addressing the educational inequalities we inherited. We have successfully merged the racially separate education departments and ensured that both learners and teachers are provided with necessary resources to adequately prepare for the future.
We are encouraged that over 800 000, mostly full-time pupils in 2023, have registered for the NSC exams. The increase in the number of candidates did not happen by chance but as a result of years of planning and hard work by committed teachers who want nothing but the best for their learners.
Government salutes teachers who continue to go the extra mile and contribute in improving the quality of education in the country. We also wish the Class of 2023 well over the next few weeks and into the future.
Teachers are our greatest assets and as government we will continue to recognise them for their outstanding work. For instance, in October this year, we held the National Teaching Awards in Thaba Tshwane, Pretoria where teachers received awards for their excellence and they represented the diverse nature of schools across the country in a variety of categories.
These included though not limited to, Excellence in Grade R Teaching, Excellence in Primary School Teaching, Excellence in Secondary School Teaching, Excellence in Secondary School Leadership as well as the Lifetime Achievement Award.
Delivering the keynote address at the event, Deputy President Paul Mashatile highlighted the important role teachers play in developing a society. “Educators play a critical role in building the foundations upon which every society exists.” He added: “The task of a teacher is manifold – not only are you imparting knowledge, but you are also shaping characters, instilling values, and crafting the future leaders of our country.”
The awards took place after the release of the country’s ten-year review on the implementation of the National Development Plan (NDP). The NDP is our collective plan to build a prosperous South Africa as envisioned in the Constitution.
The review shows that South Africa has made notable progress in improving access to education and redressing the injustices of apartheid. We have expanded support for Early Childhood Development Centres, provided ICT equipment and connectivity that will prepare learners for the 4th Industrial Revolution and daily meals to over 9 million learners through the National School Nutrition Programme. This has resulted in close to 100 per cent attendance by children until at least the age of 15.
We have also exceeded the NDP target of 190 000 Bachelor level passes set for 2024. In 2021, 256 031 (36,4 per cent) learners obtained a Bachelor level pass. This achievement is thanks to hard working teachers who go above and beyond in their work and give their time without question.
Although the quality of education has improved when compared with other middle-income countries, the review reveals that we need to redouble our efforts in order to compete with the best in the world.
As government, we have given priority to some of the shortcomings highlighted in the review to ensure that we live up to our commitment to improve the lives of people through education. We are moving with speed to provide school infrastructure and ensure appropriate sanitation across the country.
Since 2018, 2 871 schools have been provided with sanitation facilities through the Sanitation Appropriate for Education programme, known as SAFE programme while 15,000 appropriate toilets were also constructed at 1,047 schools through the Accelerated Schools Infrastructure Delivery Initiative – ASIDI. About 511 schools are at various stages of implementation and DBE plans to provide these with sanitation facilities by end of the 2023/24 financial year.
We appeal to learners to look after infrastructure in their schools and to refrain from destroying, vandalising or burning schools. The destruction of educational infrastructure disadvantages our children and undermines the country’s effort to provide quality education.
We all have the collective responsibility to honour the legacy of teachers who ensure that every child is educated irrespective of background or circumstances.
*Mnukwa is the Acting Director-General of the Government Communication and Information System (GCIS)
Matona
Tue, 11/07/2023 - 15:39
The National Disaster Management Centre in its latest Circular declared the September floods as a National Disaster for the Western Cape and Eastern Cape provinces. “We are pleased with this declaration, as it now enables all three spheres of government to work together to fund and repair the damage left in the wake of the unprecedented rains experienced over the Heritage Day Long Weekend in September,” Anton Bredell, Western Cape Minister of Local Government, Environmental Affairs and Development Planning said in response.
Minister Bredell said the disaster classification makes it possible for the provincial government to approach the National Disaster Management Centre for relief funds to support the work needed to recover and repair damages suffered to public infrastructure such as buildings, roads, bridges, and water networks.
The damage assessments for the September floods are calculated at R441 million for provincial infrastructure and a further R154million for municipal damages. “We will now request the National Disaster Management Centre to approach National Treasury with these numbers. There is no certainty on how much or when we will receive any support from the national government. The provincial government will reprioritise existing budgets and continue with our own recovery efforts as best we can,” Minister Bredell said.
According to the latest figures from the provincial Department of Infrastructure, only 22 roads remain closed as repairs are prioritised for roads that connect communities and roads that are vital for economic activity. In the aftermath of the floods, both the N1 and N2 were closed, together with more than 150 other roads.
The Provincial Department of Environmental Affairs and Development Planning has so far received 238 applications to do emergency repairs in rivers and streams that under normal conditions would require lengthy environmental approvals. The department has already finalised 196 of these applications making use of Section 30A of the National Environmental Management Act, which allows for verbal approval in an emergency to carry out listed or specified activities to prevent or contain further damages to affected areas.
Distributed by APO Group on behalf of Western Cape Local Government, Environmental Affairs and Development Planning, South Africa.
Kubayi launches R430m bulk infrastructure project in Free State
Human Settlements Minister Mmamoloko Kubayi has unveiled a R430 million bulk infrastructure project in Moqhaka Local Municipality, Free State.
Unveiled on Friday, the bulk infrastructure project for Maokeng Extension 10 and 13 will yield 5 300 serviced stands to benefit the community of Moqhaka in the Fezile Dabi District Municipality.
The project also includes sites for public amenities like schools and recreational facilities.
Kubayi said the infrastructure project will provide a huge financial injection into the municipality.
“This will be in the form of labour, the procurement of materials, diesel and hiring of plant machines. As part of local economic development, 30% of the value of the project will be spent on local sub-contractors,” Kubayi explained.
The event was followed by a community engagement at Constantia Hall in Maokeng township, where the Minister handed over 445 title deeds to the rightful beneficiaries.
The handing over of title deeds is part of the Title Deeds Friday campaign, which the department is embarking on to restor dignity by fast-tracking the issuing of title deeds to the rightful owners.
Kubayi said about 30 000 title deeds are readily available for handing over to beneficiaries around the country, and the Free State province accounts for the highest number, at least 16 000 title deeds.
The Minister said the main obstacle to the delivery of title deeds to beneficiaries is township establishment. She urged municipalities to state their problems in the planning process, as they delay the issuing of titles.
Joined by Free State Premier Mxolisi Dukwana, Cooperative Governance Traditional Affairs and Human Settlements MEC, Ketso Makume and Moqhaka Local Municipality Mayor, Ellis Mokatsane, Kubayi used the opportunity to reiterate the department’s warning to contractors who leave projects incomplete.
“The worst scenario is if you take the money and do not complete the work. It disadvantages communities who must benefit. Some contractors fail to complete projects because of criminal elements who demand money from them and disrupt the implementation of projects.
“We are pleased the Security Cluster has come on board to rid the sector of these criminal elements. Communities must work with government, as the Security Cluster continues to be seized with resolving this untenable situation of project disruptions,” the Minister said.
Kubayi called on councillors to interact with communities, citing an agreement with Mokatsane that all ward councillors will, in the next two weeks, call community meetings to talk to the people about developments in their areas.
Makume reiterated government’s commitment to clear all backlogs, saying that a title deed “restores people’s dignity and confirms the ownership of property”.
“To many, it gives hope to their children that they will have a home to live in even when they pass on, and it is also means giving our people the land,” Makume said. – SAnews.gov.za
GabiK
Mon, 11/06/2023 - 13:44
SA recalls diplomats in Israel for consultation
Cabinet has decided to recall all South African diplomats from Tel Aviv for consultation.
“Cabinet is disappointed by the refusal of the Israeli government to respect international law and its continued undermining of the United Nations resolutions for the implementation of a ceasefire with impunity,” Minister in The Presidency Khumbudzo Ntshavheni said on Monday.
Addressing a media briefing in Pretoria, Ntshavheni said the humanitarian corridors for the people of Palestine remain closed, with dire consequences for children, women and innocent civilians.
“The genocidal airstrikes by the government of Israel on the people of Palestine continue, with a rising death toll that includes women and children.
“In the last two days, the world has sat helplessly and watched as intensifying airstrikes on Gaza and the West Bank have destroyed schools, health facilities, ambulances and civilian infrastructure, and supposedly safe roads travelling to the South of Gaza,” the Minister said.
"For these, the Cabinet has decided to recall all South African diplomats from Tel Aviv for consultation."
According to the latest data, the Department of International Relations and Cooperation (DIRCO) said at least 9 227 Palestinian civilians have been killed in Israeli attacks on Gaza since 7 October.
Meanwhile, more than 1 400 Israelis, including settlers and soldiers, have been killed in Israel.
Cabinet also noted with disquiet the continuing disparaging remarks of the Israeli’s ambassador to South Africa, Eliav Belotsercovsky, against South Africans, the leadership of South Africa both in and outside government, including civil society, who are speaking against the holocaust being committed by the Israeli government against Palestinians.
“The disparaging remarks of Ambassador Belotsercovsky are contrasted by the statements of two former Israeli ambassadors to South Africa (Illan Baruch and Dr. Alon Liel), who have been consistent in describing the actions of their government against Palestinians as apartheid.
“The disparaging remarks against those speaking up against the atrocities and the country’s leaders make Ambassador Belotsercovsky's position more and more untenable.
“As such, Cabinet has directed the Department of International Relations and Cooperation to convey the South African government displeasure with the ambassador formally through diplomatic channels,” the Minister said.
Minister Ntshavheni was briefing the media on the outcomes of the Cabinet meeting held on 1 November. – SAnews.gov.za
nosihle
Mon, 11/06/2023 - 14:37
Cabinet notes progress in addressing Vaal water, sanitation woes
Cabinet has noted interventions by government in addressing water and sanitation infrastructure challenges, which had resulted in the collapse of the Vaal waste water system.
Cabinet made the remarks after the recent Presidential Oversight Visit to Emfuleni Municipality.
The oversight visit was a follow-up on engagements with the community during the District Development Model (DDM) visit to Emfuleni in 2022, where issues of poor infrastructure maintenance by municipalities were identified.
Addressing media during post Cabinet briefing on Monday, Minister in The Presidency Khumbudzo Ntshavheni said work has been undertaken to improve water supply, including proper functioning of the waste water infrastructure, thus “eliminating the problem of the sewer effluent running on the streets and people’s yards".
“Progress noted during the visit includes improvements in critical bulk pipelines and water pump stations, resurfacing and resealing of roads, and a massive rollout of streetlights to improve lighting and safety,” Ntshavheni said.
Progress in infrastructure development and maintenance
Cabinet also commended progress being made with infrastructure development and maintenance, which has seen the completion of 36 rural bridges under the Welisizwe Rural Bridges programme, and the construction of 20 projects in human settlements, roads and water, which are currently underway.
The Welisizwe bridges project is a government initiative aimed at addressing the backlog of bridges in rural and disadvantaged communities.
The bridges will improve community access to health facilities, schools and economic amenities.
The project involves the Public Works and Infrastructure Department, the South African National Defence Force (SANDF) and provincial Transport Departments.
Speaking at the recent launch of the project, Public Works and Infrastructure Minister Sihle Zikalala said an amount of R1.1 billion will be spent per year in the Eastern Cape - which is the pilot for Welisizwe Bridges; KwaZulu-Natal; Free State; Mpumalanga; Limpopo and the North West.
The programme targets rural provinces where there is a backlog in the construction of bridges and a threat to life during rainy seasons. – SAnews.gov.za
GabiK
Mon, 11/06/2023 - 15:27
The integration of Drone and AI technologies has emerged as a transformative force, reshaping industries and fostering a future marked by enhanced safety measures and sustainable practices. This synergistic alliance offers a myriad of applications across diverse sectors, contributing to a technologically advanced and environmentally conscious landscape. One notable area where this collaboration excels is …
Committee concludes oversight visit to Mpumalanga
Parliament’s Ad Hoc Joint Committee on Flood Disaster Relief and Recovery has expressed satisfaction with progress made by Mpumalanga municipalities that were hit by floods last year.
The committee met with the mayors, councillors and senior management of the Lekwa Local Municipality in Gert Sibande District Municipality and Mbombela Local Municipality in the Ehlanzeni District Municipality. The committee also received comprehensive progress reports from the provincial departments of Cooperative Governance and Traditional Affairs and Social Development.
This as the committee concluded a two-day oversight visit to the province on Friday.
In a statement, the committee said the reports gave a provincial overview of interventions to address infrastructure damage in the municipalities and the humanitarian support offered to victims of the flooding.
“While the committee was generally satisfied with the progress, it also believes there is room for improvement. Some of the work done in the two municipalities included the rebuilding of a bridge, restoring water pump stations and repairing roads washed away during the floods.”
The provincial authorities told the committee that the flooding has raised the importance of adhering to the Spatial Land Use Management Act, as most of the affected houses were built on floodplains.
The committee also advised the provincial government and the municipalities to ensure that their disaster management plans incorporate the impact of climate change.
“We are satisfied with the progress of the intervention process. We now have a better appreciation and sense of what is happening. The reports that were presented in the meetings are a true reflection of the situation on the ground,” said Jomo Nyambi, the co-chairperson of the committee. – SAnews.gov.za
Neo
Sat, 11/04/2023 - 16:48
Power utility has spent more than R50-million to repair and replace stolen and vandalised infrastructure
Kanana Park residents in Johannesburg have had to finish construction at their own cost if they can afford it
US Secretary reiterates President Biden's commitment to extend AGOA
United States Secretary of State Antony Blinken has reiterated President Joe Biden’s commitment to extend the African Growth and Opportunity Act (AGOA) beyond 2025 when it expires.
“President Biden fully supports the reauthorisation of AGOA. But we don’t just want to extend AGOA – we want to work with the United States Congress to make it better. And that’s what this week’s dialogue is about,” he said on Friday.
Blinken was addressing delegates through a video speech at the three-day AGOA Forum at the Nasrec Expo Centre in Johannesburg.
Launched in 2000, AGOA grants exports from qualifying African countries duty-free access to the United States market.
“Last year, I travelled to South Africa to lay out the United States strategy to sub-Saharan Africa and to its core, it’s about partnerships -- what the United States can do with African nations and not for African nations.”
Blinken believes that AGOA is critical to realising this vision as thousands of people in sub-Saharan Africa have benefited in the past two decades.
“AGOA has meant new jobs, new skills, new connections and new investment. It has meant less corruption and greater human and labour rights.”
The piece of legislation, according to the United States Secretary of State, has translated into partnerships to advance new solutions to shared challenges from the climate crisis to food insecurity, to supply chain disruptions and vulnerabilities.
“More inclusive, sustainable growth is good for Africa and good for America and good for the world,” Blinken said.
In addition, he said America was dedicated to December’s African Leaders’ Summit commitments, which are essential to creating economies and societies where trade and investment can flourish.
Through the Partnership for Global Infrastructure Investment, Blinken believes his country is lending a helping hand to finance projects like the Lobito Corridor between the Democratic Republic of Congo (DRC), Zambia and Angola, which will enhance connectivity and make it easier to do business in and with Africa.
In addition, the United States, Blinken said, is mobilising US$8 billion in private and public investments to bolster climate resistance and advance women’s economic empowerment.
“We remain the single biggest country investor by far in food security and public health in the region and we’re working on new efforts like our VACS initiative to strengthen African seeds and soils,” he said, adding that they will support elevating African voices in global diplomacy.
Blinken welcomed the African Union joining the G20 and International Monetary Fund, which is working to expand sub-Saharan representation on its Executive Board.
On the other hand, he said the United States remain committed to reforming the United Nations Security Council to include permanent representation for Africa.
“This flourishing partnership between the United States and Africa gives me tremendous hope. And through gatherings like this, we continue to shape a future where workers and businesses are equipped and empowered, where governments are transparent and accountable, where all our people can thrive, and where our nations can come together for the good of our people and the world.”
AGOA is a United States Trade Act enacted on 18 May 2000 as Public Law 106 of the 200th Congress.
The AGOA legislation has been renewed on different occasions, most recently in 2015, when its period of validity was extended to September 2025.
The legislation significantly enhances market access to the United States for qualifying sub-Saharan African countries by allocating special programme indicators to about 6 800 tariff lines in the American tariff schedule.
This allows United States importers to clear goods sourced from eligible African countries duty-free under AGOA. – SAnews.gov.za
Gabisile
Fri, 11/03/2023 - 13:06
Cosatu backs SA’s continued AGOA membership
Congress of South African Trade Unions (Cosatu) President Zingiswa Losi says the federation has thrown its weight behind the African Growth and Opportunity Act (AGOA) and for its renewal as the country continues to fight joblessness.
“As a trade federation movement, our responsibility is towards ensuring we protect jobs and that is why we have always had support for our government.
“But beyond that, we continue to advocate and request our sister federation in the US to be our voice on that side that the United States of America and the Biden administration will be able to renew AGOA for the next 10 years before they go for their elections next year,” she said on Friday.
Losi was speaking during a media briefing on the sidelines of the AGOA Forum, which is currently underway at the Nasrec Expo Centre in Johannesburg.
Launched in 2000, AGOA grants exports from qualifying African countries duty-free access to the United States market.
She reflected on the impact of the piece of legislation, which has created 450 000 jobs linked to the United States-Africa trade in different sectors. Losi said the mining, manufacturing, auto manufacturing, clothing, agriculture and jewellery industries have benefited from the legislation through exports.
The Cosatu President said the federation supports South Africa’s continued AGOA membership.
“It is also important that that unaligned role is strengthened when we deal with the geopolitics and it’s critical for government and business to simultaneously expand the trade and investment with other large trading partners such as the European Union, China and Japan and as you know we’re also part of the BRICS Trade Union Forum.”
Diversification, Losi believes, will ensure South Africa is able to trade with all countries to address the 42% unemployment rate, of which 60% of those are youngsters.
“Importantly, for us to do that we need to address issues of energy in the country, crime and corruption and also the issues of rail and infrastructure.”
Meanwhile, during President Cyril Ramaphosa’s main address, he said he remains concerned about the negative effects that trade restrictions on products like steel, aluminium or citrus fruit have on AGOA utilisation rates.
President Ramaphosa said he hopes the forum will help lay the basis for these to be addressed in future and that more targeted efforts to promote greater levels of investment can help unlock AGOA’s opportunities. – SAnews.gov.za
Gabisile
Fri, 11/03/2023 - 15:36
Clanwilliam Dam project revival brings hope to West Coast
The resuscitation of Clanwilliam Dam engineering work has sparked optimism among the West Coast corridor communities.
This comes after Water and Sanitation Minister Senzo Mchunu conducted an oversight visit to the construction work underway at the dam site on Thursday.
The R4 billion project, situated on the Olifants River near the town of Clanwilliam in Cederberg Local Municipality, is one of the biggest government infrastructure investments in the Western Cape.
The project involves raising the dam wall by 13 metres. A total of R400 million has been allocated for the current financial year to implement the project.
The project includes extension of the dam wall on the downstream side, and raising it to a higher level by 13 metres.
The additional yield of water will provide an opportunity to develop resource poor farmers to promote food security and decent employment through inclusive economic growth.
During the visit, Mchunu said, unlocking the bottlenecks that caused the collapse of the project and seeing it to its completion is the biggest priority for the Department of Water and Sanitation.
Mchunu said the yield from the extended infrastructure will bring a lifeline to many livelihoods in this region.
“What we see happening here at the dam construction site is encouraging and there is no stopping until we finish. The dam currently yields about 123 million cubic meters of water and when the project is completed, it is expected to yield 343 million cubic meters of water, thus bringing into the system almost double the current yield,” Mchunu said.
Addressing stakeholders and residents that converged at the town’s local church hall, Mchunu said government is committing many resources to building projects across the country, and that through projects like Clanwilliam, the department strives for quality water to flow to South African households.
“We have built a solid, tight management team for the Clanwilliam Dam project, and we will support them to see it through to the end. The revival of the project is a hit for the Western Cape province.”
Mchunu said government is aware of the delays in the implementation of the Clanwillliam Dam project over the years, and assured that with the recent resuscitation of the project, the department remains committed to completing the work within the revised timeframes, budgets and specifications.
Among the direct benefits associated with the project, include more than 500 job opportunities for skilled, semi-skilled and unskilled workers, and the development of skills and learning opportunities; and new business opportunities for the locals.
Western Cape Infrastructure MEC Tertuis Simmers, who joined Mchunu during the visit, said the province welcomed the resuscitation of the dam project, noting there is a long history associated with the project.
“We welcome that work has commenced and interventions by stakeholders to unbundle the hindrances. This will now further accelerate the hydro-energy projects planned for the West Coast corridor and bolster the agricultural sector.
“As the spheres of government alongside the private sector, we remain committed to the successful delivery of this project,” Simmers said.
Francois Swaartbooi, a local businessperson, said the project has provided renewed hope for stakeholders of the West Coast, and they are happy it is being revived.
Swartbooi said they have established a business forum to ensure that local small medium enterprises benefit from the project.
The current work at the construction site includes excavations to prepare platforms for the drilling and blasting operations; blast proposal and design by the Drill and Blasting sub-contractor, and geologists to inspect the vertical faces of the excavation to determine the rock anchor details. – SAnews.gov.za
GabiK
Fri, 11/03/2023 - 15:03
Government on course to manage expenditure
The sixth administration is on course to prudently manage government expenditure while retaining the focus on infrastructure, health, education and policing as critical areas of growth and development.
This is according to President Cyril Ramaphosa who was responding to Questions for Oral Reply in the National Assembly on Thursday.
Leader of the opposition party (Democratic Alliance), John Steenhuisen asked the President the reasons for the drastic budget cuts to government departments, which will have an impact on government’s delivery of frontline services at a time when citizens are being battered by the cost-of-living crisis.
The President highlighted that the Minister of Finance tabled the Medium-Term Budget Policy Statement (MTBPS) on Wednesday, which outlined the country’s fiscal position and provided information on government’s spending priorities over the next three years.
“Among other things, the Minister of Finance indicated in the MTBPS that we are resolved to stabilise public finances while maintaining support for the most vulnerable and protecting frontline services.
“At the same time, we are fast tracking growth-enhancing reforms, which includes a new financing mechanism for large infrastructure projects. Work is underway to reconfigure the structure and size of the state, while strengthening its capacity to deliver quality public services,” the President said.
President Ramaphosa told Members of Parliament that the cost containment guidelines issued by the National Treasury give advice and guidance to government departments to ensure a sound and prudent management of public finances in the context of significant constraints.
“The increase in fiscal constraints is mainly due to reduced revenues. The cost containment guidelines target non-critical spending items such as travel, catering, accommodation and capital items that have not yet commenced,” he said.
Turning to the discussions that the President and Deputy President Paul Mashatile have had with Ministers on an ongoing basis, President Ramaphosa said the meetings are focused on how programmes and activities undertaken by departments advance economic growth, social development and service delivery.
“Ministers and their departments engage with National Treasury on how best to implement any budget restructuring and delay projects where necessary without compromising the needs of communities,” he said. - SAnews.gov.za
DikelediM
Fri, 11/03/2023 - 09:10
COVID-19 social grant extended until 2025
Government has extended the COVID-19 Social Relief of Distress Grant (SRD Grant) until March 2025 while it considers social security policy reforms and a funding model.
The grant was introduced to support low-income individuals affected by the lockdowns during the COVID-19 pandemic.
Delivering the Medium Term Budget Policy Statement (MTBPS) to Parliament on Wednesday, Minister of Finance Enoch Godongwana said R34 billion has been allocated to extend the grant by another year.
“Over the medium term, a provisional allocation is retained while a comprehensive review of the entire social grant system is finalised. The 2023 Budget indicated that the COVID-19 Social Relief of Distress grant was only funded until March 2024.
“Government proposes that the fiscal framework make provision for funding for the grant for 2024/25. Beyond this, a comprehensive review of the entire social grant system by the Department of Social Development and the National Treasury is required,” Godongwana said.
Over the 2024 medium-term expenditure framework (MTEF) period, 61% of consolidated non-interest spending goes to the social wage — combined public spending on health, education, housing, social protection, transport, employment and local amenities.
“Of this amount, R945.9 billion will be spent on social protection transfers, including the old age grant, the child support grant, the disability grant and the COVID-19 social relief of distress grant. South Africa’s social protection expenditure programme, measured as a percentage of gross domestic product (GDP), is one of the largest among developing countries,” he said.
The 2019 MTBPS noted that by 2040/41, social assistance beneficiaries – excluding the temporary COVID-19 social relief of distress grant – were projected to increase to 22.5 million, necessitating spending on social grants amounting to 3 % of GDP annually.
“This is in line with current grants spending, excluding the temporary grant. If that or a similar type of new grant is made permanent, beneficiaries are projected to expand from 27.3 million in 2023/24 to 40.4 million in 2040/41, which will cost 3.8 % of GDP in 2040/41 and require a corresponding permanent source of funding, such as additional revenue measures,” he said.
Education
Although additional funding has been provided to implement the 2023 public-service wage agreement, provincial education departments are constrained in hiring additional teachers.
The Minister warned that this could lead to larger class sizes and higher learner-teacher ratios, possibly resulting in weaker educational outcomes.
“To mitigate this, the sector will improve the approach to allocating teachers to schools, ensure that learner and teacher support materials are used cost-effectively, manage infrastructure projects more tightly and focus on plans to catch up on lost teaching time,” Godongwana said.
Institutions in the post-school education and training sector, including the National Student Financial Aid Scheme, will need to bring their student enrolment and bursary allocations in line with their budgets.
Planned infrastructure spending will be brought in line with institutions’ ability to spend.
Continued health services
The Minister said the health sector is aiming to maintain service delivery amid budgetary constraints.
“While additional funding is provided to cover wage increases, baseline reductions are being implemented as part of fiscal consolidation. To minimise negative effects, the sector will need to improve efficiency in areas such as overtime payments, medical supplies and security services, and to delay infrastructure projects.”
The South African Law Reform Commission is finalising a report on legal reform to manage medico-legal claims, which constitute a significant financial risk.
“To address funding fragmentation for oncology services, allocations will be shifted from the national health insurance grant to the national tertiary services grant.
“A single grant is also proposed to consolidate the existing personal and non-personal services components of the national health insurance indirect grant. Funding is also redirected towards the Office of Health Standards Compliance to strengthen the Health Ombud,” the Minister said. –SAnews.gov.za
nosihle
Wed, 11/01/2023 - 14:07
Finance Minister Enoch Godongwana announces extension of Covid-19 grant
Fiscal consolidation needed to ensure good financial health
Government will adopt a “prudent fiscal stance” which will aim to balance spurring economic growth, supporting society’s most vulnerable groups, stabilising public finances and reducing economic and fiscal risks.
This tough balancing act was revealed in the Medium Term Budget Policy Statement (MTBPS) released on Wednesday.
“A balanced fiscal stance will…also support higher levels of private-sector investment and employment. In the context of limited resources, this requires prioritisation. Over the next three years, the fiscal framework supports strong control of the public-service wage bill, protecting crucial frontline services and implementing efficiency measures.
“Government’s commitment to restoring the health of the public finances means that the debt-to-GDP ratio is still forecast to stabilise in 2025/26 – although at a higher level than projected in the 2023 Budget,” the document read.
The MTBPS laid out how it will implement fiscal consolidation measures including reduced spending, “efficiency measures across government and moderate revenue increases”.
“The proposed fiscal consolidation measures will be targeted, leaving some functions with funding levels similar to the 2023 Budget, and will also maintain the social wage. Over the medium term, these measures will include the reconfiguration of government, with the merging or closure of public entities resulting in a reduction in transfers to such entities.
“Together, these targeted measures are expected to result in savings and long-term gains from improvements in the efficiency of public spending and budget allocations. This is key to managing the public finances in a prudent and responsible way, and will also support longer-term economic growth.”
The key elements of government’s medium-term fiscal strategy as set out in the MTBPS include:
NeoB
Wed, 11/01/2023 - 14:09
Funds allocated for future disasters
To cater for the growing pressures imposed by climate change on infrastructure, especially at the local level, government has created a resource pool to specifically respond to future disasters.
“In this regard, R372 million has been added to the Municipal Disaster Response Grant, while R1.2 billion has been added to the Municipal Disaster Recovery Grant, to cover the repair and rehabilitation of infrastructure damaged by flooding in February and March 2023,” Minister of Finance Enoch Godongwana said on Wednesday in Parliament.
Tabling the Medium Term Budget Policy Statement (MTBPS), the Minister said mitigating the environmental risks posed by climate change must go hand-in-hand with addressing the financial and economic risks posed by climate change.
“The National Treasury is making progress towards developing a disaster risk financing strategy, which will among others, enhance existing risk financing instruments. Despite a robust legal framework, gaps exist in financing and implementation, including overreliance on budget reallocations.
“The National Treasury is analysing fiscal vulnerability and implementing policy reform to improve disaster resilience, reduce risks and ensure resources are efficiently allocated. The strategy adopts a risk-layering approach, incorporating multiple financing instruments based on the incidence and severity of shocks,” the Minister said.
It aims to strengthen governance, improve data quality and build financial and fiscal sustainability. The draft is expected to be ready during 2024/25.
Separately, the National Treasury has initiated the design and piloting of a climate budget tagging system to incorporate climate considerations into public financial management processes.
“The first phase of the project, from October 2020 to October 2022, involved consulting on the design of this system, conducting workshops to raise awareness, reviewing international experience and piloting the system in eight sites across the three spheres of government.
“The next phase is expected to conclude in December 2023. It will involve refining the climate budget tagging framework for additional testing and formal rollout, consulting stakeholders, revising guidance materials and setting up governance arrangements,” the Minister said.
Water management
Over the years, government has observed the impact of poor water management leading to polluted water sources and limited access to clean water for its citizens.
“To address this challenge, the government is making changes to conditional grants, starting with the urban settlement development grant, the integrated urban development grant, and the municipal infrastructure grant.
“These changes include the reconfiguring of grants and revising the grant conditions to align them with the Green Drop, Blue Drop, and No Drop assessments relaunched by the President as part of efforts to ramp up the performance of water service authorities,” the Minister said.
In addition, National Treasury will be working with local governments and the Department of Cooperative Governance and Traditional Affairs to develop new funding models, so that municipalities can continue to earn revenue through the transition to more self-generation of electricity by firms and households. –SAnews.gov.za
nosihle
Wed, 11/01/2023 - 14:14
I. Introduction A. Definition of Technical SEO: Technical SEO refers to the various techniques and practices applied to a website and its server that aid search engine spiders in crawling and indexing the site to improve organic rankings. It’s a crucial component of SEO that works behind the scenes, focusing on enhancing the infrastructure of a site, …
SOE financial health remains "poor"
The Medium Term Budget Policy Statement (MTBPS) has revealed how South Africa’s weak growth combined with arduous debt repayment obligations and other factors continue to affect the financial health of state-owned enterprises (SOEs).
The MTBPS was tabled in the National Assembly by Finance Minister Enoch Godongwana on Wednesday.
“Since 2019, weak economic growth has compounded the poor financial position of most state-owned companies. Capital investment continues to slow, falling below company budgets, with some large enterprises facing serious liquidity problems.
“Operational inefficiencies, high cost structures and onerous debt obligations continue to hamper profitability and cash flows, intensified by non-payment for services. Many companies are unable to attract funding at favourable rates and terms, and rely on fiscal funding for support,” the statement read.
Debt repayments for SOEs over the medium term are expected to reach R121 billion.
“The large domestic capital repayment in 2023/24 stems from the maturity of bonds issued by the Industrial Development Corporation, the Development Bank of Southern Africa, Transnet and the South African National Roads Agency Limited (SANRAL).
“In the following three years, capital repayments will be relatively lower as state-owned companies build cash flows to manage maturities. Capital repayments are expected to decline significantly after another spike in 2027/28,” the statement said.
Denel
According to the statement, Denel remains in “financial distress” with no annual financial statements submitted since the 2019/20 financial year.
“In March 2023, government disbursed R1.9 billion to Denel through the Special Appropriation Act (2022). The disbursement was proportionate to the entity’s share of proceeds from the sale of non-core assets. Denel used this funding to help settle debt obligations, pay for restructuring and enhance working capital.
“The remaining portion remains ring fenced until other non-core assets are sold. In September 2023, Denel requested that a further R100 million of the ring fenced funds be released to settle the last government guaranteed debt obligation. Following its settlement, Denel has no debt obligations remaining and its government guarantee will be revoked,” it said.
Land Bank
Similarly to Denel, the Land Bank is in default since failing to meet its April 2020 debt obligation.
“At the end of 2022/23, the National Treasury transferred R5.1 billion to the Land Bank, subject to conditions, as part of a R7 billion fiscal allocation. Government has repaid approximately R1.4 billion to all guaranteed lenders of the Land Bank since its default, eliminating its guarantee exposure.
“The remaining portion of the R7 billion fiscal allocation will be transferred to the Land Bank in this financial year to use in its blended finance scheme during March 2024,” the statement said.
Transnet
State freight rail, ports and logistics company, Transnet continues to face “weak profitability and deteriorating liquidity” stemming from “operational challenges, a high debt burden and low cash flows”.
“A prolonged period of underinvestment in capital infrastructure and maintenance backlogs have combined to limit revenue-generating capacity. Transnet has initiated a five-year R122.7 billion capital investment programme, including R99.5 billion for operational maintenance and R23.2 billion to expand infrastructure, starting in 2023/24.
“Further borrowing is restricted by its existing debt, which stood at R130 billion at the end of March 2023, and declining revenues. Transnet’s issued guarantee remains at R3.5 billion,” the MTBPS said.
South African National Roads Agency Limited (SANRAL)
Treasury explained that SANRAL’s investment capacity has been stymied by a long standing dispute over the Gauteng Freeway Improvement Programme.
“Government’s decision to take over the Phase 1 commitments will support SANRAL’s ability to finance the strengthening, rehabilitation and expansion of the toll road network.
“As a result of revisions to SANRAL’s borrowing limits and guarantees associated with the R23 billion injection made in the 2022 Adjustments Budget, SANRAL will now seek approval to revise its funding plan to ensure continued investment in the national road network,” the statement read. – SAnews.gov.za
NeoB
Wed, 11/01/2023 - 14:08
The “energy trilemma” of delivering lower carbon energy that is affordable and secure is an issue facing all businesses and policymakers in the energy space. We believe that the world’s leading energy companies meaningfully want to achieve all three priorities. In January 2023, the New York Times reported that 2022 was the fifth-hottest year on …
The Portfolio Committee on Water and Sanitation welcomes the progress in the reconfiguration of water boards and calls for the process to lead to tangible results of operational efficiency and better access to water for communities. The committee today received an update on the progress undertaken to reconfigure water boards.
“We remain of the view that the reconfiguration should not be a tick-box exercise to present a façade of action but must be an effective intervention that improves and enhances institutional efficiencies, rationalise the number of institutions, ensure economies of scale and remove challenges of various boards serving one province. The committee will continue to monitor progress on the reconfiguration and has urged the department to continue stakeholder engagement to ensure collaboration,” said Mr Robert Mashego, the Chairperson of the committee.
As the process unfolds, the committee has welcomed assurances that the department is in constant engagement with key stakeholders including labour, municipalities, and provinces The committee is of the view that improved and constant engagement will remove the confusion experienced when some areas were serviced by more than one water board.
Furthermore, the reconfiguration should serve as a platform for improved relationships and financial viability of water boards. Financial viability of water boards remains a critical concern for the committee as it is directly linked to their ability to raise investment capital for bulk water infrastructure development to ensure access to water for all.
“The reality is that the country's water infrastructure is old and requires massive investment to alleviate huge water losses. To overcome this challenge, water service authorities must pay for services rendered to ensure financial viability of these institutions. This reconfiguration process presents an opportunity for further engagement on how water services authorities pay for services rendered,” Mr Mashego emphasised.
With regard to governance, the committee welcomes the assurance that all boards excluding Amatola Water, is in place. The committee hopes the legal impediment with regard to Amatola Water will be resolved with urgency to ensure that a permanent board is appointed. Furthermore, the committee has called for the speedy appointment of a permanent Chief Executive at Amatola, Vall Central and Umgeni-Uthukela Water to ensure steady implementation of targets.
Meanwhile, the committee welcome the assurance that all Water Boards have made considerable effort to comply with the departmental corporate plan and shareholder compact format. The committee also welcomed the assurance that the department is developing an improved oversight model to strengthen oversight on governance and financial performance which will lead to better service delivery. The committee is hopeful that the oversight model will lead to achievement of key performance indicators and that access to quality water will be achieved.
Distributed by APO Group on behalf of Republic of South Africa: The Parliament.
01 NOVEMBER, JOHANNESBURG: South Africa’s tourism industry has not just rebounded from the pandemic, it has found itself in a position to pursue aggressive growth. In the first quarter of 2023, the country welcomed over 2 million visitors. Furthermore, over the next decade, this sector is projected to generate an impressive 800,000 jobs and inject …