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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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Social Development visits funded community based organisations

Location: News

Social Development visits funded community based organisations

The Department of Social Development is conducting nationwide oversight visits to various community-based organisations that are funded to render social development services across South Africa. 

In a statement on Sunday, the department said the visits form part of the department’s ongoing measures to build and strengthen the capacity of non-governmental organisations that render much-needed services to communities. 

This includes psychosocial support to vulnerable children and families, HIV prevention, teenage and unplanned pregnancies targeting children and young people. 

The department highlighted that South Africa remains the epicentre of the HIV epidemic and there is a great need to prevent and reduce new infections, with a strong focus on young people. 

“As one of the key departments in HIV and AIDS response, Social Development has developed a compendium of social and behaviour change programmes which seek to contribute to the reduction of new HIV infections as well as mitigate the impact of HIV/AIDS on individuals, families and communities.

“The compendium of programmes consists of the following programmes: You Only Live Once (YOLO), ChommY, Boys Championing Change, Men Championing Change, Family’s Matter and the Rock Leadership programme, which specifically targets traditional leaders,” the department said. 

The community-based organisations that were visited last week include Brother Services Community Development in Bushbuckridge, Mpumalanga. The organisation received funding to prevent new HIV infections, child protection and teenage pregnancy in Lillydale and surrounding communities under the Bushbuckridge Local Municipality. 

“With a staff complement of 23 receiving a monthly stipend and reaching over 5000 beneficiaries through its various programmes, the organisation plans to expand its services by working closely with local schools,” the department said. 

A 2022 report by the Department of Health focusing on adolescent and youth district data showed that every year, young girls become pregnant, with Eastern Cape, KwaZulu-Natal, Gauteng, and Mpumalanga respectively identified as teenage pregnancy hot spots. 

The department noted that early pregnancies among teenagers presents a myriad of long-term socio-economic challenges such as health risks for teenage mothers and their babies, perpetuating the cycle of intergenerational poverty due to early school dropout, the spread of HIV infections, emotional, psychological, and post-natal depression, among others. 

“Social and behaviour change (SBC) programmes are essential components of HIV prevention represent one of the priority interventions highlighted in the National Strategic Plan for HIV, TB and STIs (2023-2028). Social and behaviour change efforts aim to reinforce protective sexual behaviour by addressing knowledge, attitudes, skills and social norms,” the department said. 

In Limpopo, the Deputy Minister of Social Development Ganief Hendricks visited Nhlayiso Community Health Drop-in Centre, which renders care and support services persons living with HIV and AIDS as well as psychosocial social support services to orphans and vulnerable children in Greater Tzaneen under the Mopani District. 

The organisation also works with local schools and health facilities to prevent teenage pregnancy, gender-based violence, substance use, addiction, and other substance-related harms. 

“One of the key successes of the organisation is that it provides job opportunities for unemployed social service professionals such as social work graduates, social auxiliary workers and child and youth care workers,” the department said. 

In line with its developmental mandate, the department will continue with its oversight visits to funded community-based organisations to monitor the effectiveness of the compendium of social and behaviour change programmes especially those that are targeted at children and young people. – SAnews.gov.za

 

DikelediM
Mon, 03/17/2025 - 10:07
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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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Deputy President leads working visit to Japan

Location: News

Deputy President leads working visit to Japan

Deputy President Paul Mashatile will on Sunday undertake a working visit to Tokyo, in Japan.

The Presidency said the visit, from 16 – 19 March 2025, is aimed at “reaffirming the strong cooperation between” the countries in areas of mutual interest.

“The two countries enjoy well established diplomatic relations, and the year 2025 marks 115 years of such relations. The working visit by the Deputy President underscores South Africa’s strong commitment and the importance that South Africa attaches to the relationship with Japan.

“During the working visit, the Deputy President and his delegation will meet with the Japanese Government and private sector stakeholders to advance South Africa’s key economic growth drivers, such as manufactured-led growth and increasing South Africa’s exports,” the Presidency said in a statement on Saturday.

The Deputy President will be accompanied by Deputy Minister of International Relations and Cooperation, Tandi Moraka; Minister of Sport, Arts and Culture, Gayton McKenzie, Minister of Higher Education, Dr Nobuhle Nkabane; Minister of Agriculture, John Steenhuisen, Trade Industry and Competition Minister, Parks Tau; and Science, Technology and Innovation Deputy Minister,  Nomalungelo Gina. – SAnews.gov.za

NeoB
Sun, 03/16/2025 - 13:13
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Simelane commits to support Free State in delivering housing units

Location: News

Simelane commits to support Free State in delivering housing units

Human Settlements Minister, Thembi Simelane, has pledged to support the Free State Province in its efforts to meet the 2024-2029 target to deliver housing units to qualifying beneficiaries.

Simelane made the commitment during an oversight visit to the Mangaung Metropolitan Municipality on Friday, as part of a nationwide assessment of municipal and provincial performance in human settlements programmes.

The visit aimed to address ongoing service delivery blockages within the province.

The visit also formed part of a country-wide municipal and provincial assessment of human settlements programme performance.

Addressing the provincial Human Settlements and Mangaung Municipality, Simelane discouraged working in silos between the provincial department and municipalities.

She emphasised that overcoming the housing backlog and ensuring the delivery of sustainable human settlements, can only be achieved through coordinated efforts.

While acknowledging the progress made to ensure the qualifying beneficiaries receive their houses, with some contractors already on the ground, the Minister expressed concern over several incomplete projects across the province.

“We are gearing ourselves for the current 2024-2029 Medium Term Development Plan (MTDP) to deliver on our mandate. With our limited budget, we are aligning our plans to ensure that we effectively use our allocated budget,” Simelane said.

The Minister reiterated the critical role that contractors play in delivering housing units and warned against those who have been given opportunities to “do the right thing and deliver houses.”

She also issued a stern warning to both contractors and officials who fail to meet their responsibilities, saying that there would be consequences against those who let down the people.

“A delayed project means one senior citizen is denied his or her constitutional right to adequate shelter,” Simelane said.

Simelane further undertook to visit the Metros every quarter, to ensure that housing and service delivery targets are being met.

She also underscored the importance of ensuring that every cent allocated to the department is spent towards improving the lives of deserving households.

Human Settlements MEC, Teboho Mokoena, challenged the Minister to consider visiting the province more frequently, suggesting every two months, and reiterated the province's commitment to improving service delivery.

Mokoena also emphasised budget constraints, which remains a challenge, noting that this will have an impact in the department’s programme.

“Progress is being made on several projects that were blocked including G-Hostel and Dark and Silver City. The qualifying beneficiaries are expected to incrementally move into the completed units during the 2025/2026 financial year,” Mokoena said.

The MEC highlighted the province’s struggle with completing housing projects due to a range of issues, including multiple contractor changes in due to non-performance, vandalism at abandoned sites after contract terminations, community disruptions and non-compliance issues, financial constraints, non-payment of completed work certificates, and bureaucratic delays in the approvals of variation orders and claims.

However, Mokoena assured that interventions are being implemented, including the appointment of new, reliable contractors, and regular monitoring and reporting, to ensure projects stay on track.

“Despite these challenges, the province has done exceptionally well in the provision of serviced sites. By January 2025, the province reported the successful delivery of 5 025 service sites against the 1755 2024/2025 target. Most of the sites delivered are in Fezile Dabi District Municipality,” Mokoena said.

Simelane is expected to return to the Free State to officially hand over completed units at Dark and Silver City Community Residential Units, as well as military veterans’ housing units at the Vista Park Catalytic Project, in Mangaung.

The Vista Park project is a massive development aimed at providing much needed housing opportunities.

The department said extension 2 of the project is expected to yield over 5 344 residential housing opportunities, while extension 3 will produce around 6 036 residential opportunities.

The project is also expected to deliver the Breaking New Ground (BNG) units, including social housing, First Home Finance, and student accommodation. – SAnews.gov.za

 

GabiK
Sun, 03/16/2025 - 14:41
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Simelane commits to support Free Sate in delivering housing units

Location: News

Simelane commits to support Free Sate in delivering housing units

Human Settlements Minister, Thembi Simelane, has pledged to support the Free State Province in its efforts to meet the 2024-2029 target to deliver housing units to qualifying beneficiaries.

Simelane made the commitment during an oversight visit to the Mangaung Metropolitan Municipality on Friday, as part of a nationwide assessment of municipal and provincial performance in human settlements programmes.

The visit aimed to address ongoing service delivery blockages within the province.

The visit also formed part of a country-wide municipal and provincial assessment of human settlements programme performance.

Addressing the provincial Human Settlements and Mangaung Municipality, Simelane discouraged working in silos between the provincial department and municipalities.

She emphasised that overcoming the housing backlog and ensuring the delivery of sustainable human settlements, can only be achieved through coordinated efforts.

While acknowledging the progress made to ensure the qualifying beneficiaries receive their houses, with some contractors already on the ground, the Minister expressed concern over several incomplete projects across the province.

“We are gearing ourselves for the current 2024-2029 Medium Term Development Plan (MTDP) to deliver on our mandate. With our limited budget, we are aligning our plans to ensure that we effectively use our allocated budget,” Simelane said.

The Minister reiterated the critical role that contractors play in delivering housing units and warned against those who have been given opportunities to “do the right thing and deliver houses.”

She also issued a stern warning to both contractors and officials who fail to meet their responsibilities, saying that there would be consequences against those who let down the people.

“A delayed project means one senior citizen is denied his or her constitutional right to adequate shelter,” Simelane said.

Simelane further undertook to visit the Metros every quarter, to ensure that housing and service delivery targets are being met.

She also underscored the importance of ensuring that every cent allocated to the department is spent towards improving the lives of deserving households.

Human Settlements MEC, Teboho Mokoena, challenged the Minister to consider visiting the province more frequently, suggesting every two months, and reiterated the province's commitment to improving service delivery.

Mokoena also emphasised budget constraints, which remains a challenge, noting that this will have an impact in the department’s programme.

“Progress is being made on several projects that were blocked including G-Hostel and Dark and Silver City. The qualifying beneficiaries are expected to incrementally move into the completed units during the 2025/2026 financial year,” Mokoena said.

The MEC highlighted the province’s struggle with completing housing projects due to a range of issues, including multiple contractor changes in due to non-performance, vandalism at abandoned sites after contract terminations, community disruptions and non-compliance issues, financial constraints, non-payment of completed work certificates, and bureaucratic delays in the approvals of variation orders and claims.

However, Mokoena assured that interventions are being implemented, including the appointment of new, reliable contractors, and regular monitoring and reporting, to ensure projects stay on track.

“Despite these challenges, the province has done exceptionally well in the provision of serviced sites. By January 2025, the province reported the successful delivery of 5 025 service sites against the 1755 2024/2025 target. Most of the sites delivered are in Fezile Dabi District Municipality,” Mokoena said.

Simelane is expected to return to the Free State to officially hand over completed units at Dark and Silver City Community Residential Units, as well as military veterans’ housing units at the Vista Park Catalytic Project, in Mangaung.

The Vista Park project is a massive development aimed at providing much needed housing opportunities.

The department said extension 2 of the project is expected to yield over 5 344 residential housing opportunities, while extension 3 will produce around 6 036 residential opportunities.

The project is also expected to deliver the Breaking New Ground (BNG) units, including social housing, First Home Finance, and student accommodation. – SAnews.gov.za

 

GabiK
Sun, 03/16/2025 - 14:41
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Read moreSimelane commits to support Free Sate in delivering housing units

Ambassador Ebrahim Rasool’s Speech That Made Him ‘No Longer Welcome’ in the US

Location: News

The South African ambassador to the United States, Ebrahim Rasool, is no longer welcome in the US, several news publications reported on Saturday. The Guardian states: “South Africa’s ambassador to the United States is no longer welcome in our great country,” [US Secretary of State Marco] Rubio posted on X on Friday. Rubio accused ambassador …

Read moreAmbassador Ebrahim Rasool’s Speech That Made Him ‘No Longer Welcome’ in the US

EU affirms strategic partnership with SA

Location: News

EU affirms strategic partnership with SA

Amidst the changing global landscape, European Council President António Costa has emphasised the importance of the strategic partnership between South Africa and European Union (EU).

Addressing the opening of the 8th South Africa-European Union (SA-EU) Summit, Costa said the EU and South Africa are not just partners but are strategic allies, bound by shared values of democracy, human rights, rule of law and multilateralism.

“The world has changed profoundly in these past seven years. Pandemics, conflicts here in Africa, in the Middle East, and in Europe. Multilateral commitments are being tested, and the rules-based international order faces growing challenges. 

“Protectionism, economic coercion, and other threats undermine stability, while new technologies disrupt the political system and global power dynamics. In this world of uncertainty, our partnership matters more than ever.

“Let us use this summit to deepen our cooperation, reinforce our commitments, and chart a course for an even stronger partnership. A partnership that not only benefits our nations but contributes to global stability and prosperity – for our citizens, for our nations, and for our shared future,” Costa said on Thursday.

President Cyril Ramaphosa co-chaired the summit with Costa, and the President of the European Commission, Dr. Ursula von der Leyen, at Tuynhuys, in Cape Town.

Costa said the European Union does not see the future through the lens of division between blocks, between the North and South. 

“Instead, we see an interconnected world, where our fates are linked, and where joint action is not an option but a necessity. Our partnership delivers real benefits to our citizens, our economies, and the world.

“We are united in our commitment to peace, security, and sustainable development. We stand together to help uphold the United Nations Charter, advance the sustainable development goals, and drive towards global action on climate change, poverty reduction, and economic reform. 

“We appreciate South Africa’s leadership, both regionally and globally. You can count on the European Union’s full support as you take on the G20 Presidency and as we prepare together for the next European Union-African Union summit, later this year,” Costa said.  

With this year being the 25th anniversary of EU-African Union cooperation, Costa said this is a milestone that underscores the strength of engagement, and the vast potential ahead. 

“Despite many complex challenges, this is not a time for despair. It is a time for opportunity. An opportunity to build, to strengthen, and to expand our bilateral and multilateral cooperation. To shape a world that is fairer, more sustainable, and more secure,” he said.

In his address, President Ramaphosa said South Africa intends to hold further constructive discussions on a new investment package by the EU, to South Africa.

READ | President Ramaphosa engages EU on new investment package

“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. -SAnews.gov.za

 

nosihle
Thu, 03/13/2025 - 16:50
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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

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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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NSFAS finalises allowance payments for 2025 academic year

Location: News

NSFAS finalises allowance payments for 2025 academic year

The National Student Financial Aid Scheme (NSFAS) has announced that the allowance payments for the 2025 academic year have been finalised and are ready for implementation.

This comes after thorough discussions, and consultation with the Department of Higher Education and Training (DHET) and the Post School Education and Training (PSET) sector.

The scheme outlined the approved allowance caps allocated for universities' catered and non-catered residences within metropolitan areas. This includes universities catered and non-catered residences for disability students within the metropolitan areas, as well as as university disability transport and distance learning.

The university students in catered residences within metropolitan areas will receive R65 993 for accommodation and R5 678 for new books, while students in non-catered residence within metro areas will receive R56 633 for accommodation and R5 678 for new books.

The students from both catered and non-catered residences within the metro will also receive R3 167 for personal care, including a living allowance of R17 160.

Students with disabilities were allocated additional support, including R52 000 for human support and R54 080 for assistive devices.

“Should institutions see a need to deviate from the allowance caps, they must first obtain written approval from NSFAS before submitting any allowances above the provided caps.

 NSFAS released the second upfront payment to universities during the week of 3 March 2025, allowing institutions to disburse March allowances to students by Friday, 7 March 2025,” NSFAS said.

Payment to TVET colleges

NSFAS has also released payment for Technical and Vocational Education and Training (TVET) students, which covers an accommodation allowance of R69 633 for catered students with disabilities in metro areas, and R42 640 for non-catered students in non-metro areas.

Students in catered residences within metropolitan areas will receive R65 993, while students in non-catered residences within metro areas will receive R56 633.

The scheme said the payment released on 7 March 2025, to cover two months’ worth of allowances, is based on valid registrations received.

It noted that at the commencement of the business day on 4 March 2025, 18 TVET colleges had uploaded registrations.

“As a result, NSFAS made the initial payments to these 18 TVET colleges’ students. NSFAS will closely monitor the uploading of registration data by colleges and ensure that another second payment run is prepared for the payment on Friday, 14 March 2025.

“The registration upload cut off for the second payment was Monday, 10 March 2025. This payment will ensure that all students whose valid registration data, which was uploaded since the initial cut-off date receive allowances within the month of March 2025,” NSFAS explained.

Submission of appeal documents

Meanwhile, NSFAS has called on students who had lodged funding appeals for the 2025 academic year, to urgently submit the required documents.

“A student must submit an appeal within 30 days of receiving their application results. Submission of these documents will enable NSFAS to finalise funding decisions timeously,” the scheme said.

Following confirmation of the 2025 allowance caps, NSFAS said its portal is ready to receive valid registration data and encouraged the institutions to submit their registration data to avoid delayed payment of allowances. – SAnews.gov.za
 

 

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Government determined to tackle economic challenges

Location: News

Government determined to tackle economic challenges

Deputy President Paul Mashatile has stressed the urgent need to tackle the nation’s pressing challenges in light of sluggish economic growth and has called for a collective effort to improve the quality of life for all citizens.

“As we embark on this journey, we must have a full appreciation that the first 15 years of democracy were characterised by high economic growth. However, the last decade and a half has been characterised by stagnant growth,” he said on Thursday. 

According to the Deputy President, the stagnant growth of the past decade and a half has led to calls for immediate action to initiate structural reforms that would bolster gross domestic product (GDP) growth and create job opportunities.

“I must state from the onset that the responsibility of guiding South Africa to greater prosperity is not solely on the shoulders of the government. It is a shared responsibility among the business community, NGOs [non-governmental organisations], civil society and all those who aspire to see our country prosper.”

The Deputy President was speaking at the 7th BizNews Conference (BNC#7) at the Hermanus Municipal Auditorium in the Western Cape. 

The BizNews Conference is an annual event focused on investment, business, and political issues.

The country’s second-in-command opened the dialogue with a reflection on South Africa’s democratic journey.

Mashatile underscored the issues plaguing the nation, including poverty, inequality, unemployment and corruption, which he believes threaten the fabric of South Africa’s democracy.  

“They keep us, and if I may say so myself, awake at night because if we do not swiftly overcome these systemic economic issues, we shall experience perpetual unrest.” 

Commitment to cooperation

He said the recent Budget Speech by the Minister of Finance highlights a step toward addressing these dilemmas. 

According to the Deputy President, yesterday’s Budget was the product of a consensus reached within the Government of National Unity (GNU) following last month’s postponement. 

“As I have indicated on several occasions, having a GNU Cabinet does not imply that we will agree on everything. There will be times when we do not view things the same way, but this does not spell the end of the GNU.” 

However, Mashatile stressed GNU’s commitment to prioritising the needs of its citizens.

He also took the time to reinforce the credibility of the GNU amid scepticism about its longevity and effectiveness. 

“Several coalition governments around the world have collapsed as a consequence of misunderstandings about the country’s Budget; this is but a reflection of democracy at work.”

The Deputy President assured attendees that the focus was on inclusive growth, job creation and addressing the high cost of living, while striving to build a capable and ethical State.

“We must do this to find solutions to the challenges that confront our nation,” he said. – SAnews.gov.za

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SA focuses on improving diplomatic relations with United States

Location: News

SA focuses on improving diplomatic relations with United States

Deputy President Paul Mashatile says South Africa is working on stabilising relations with the United States of America (USA), given the long-standing ties between the two nations.

Addressing the 7th BizNews Conference (BNC#7) at the Hermanus Municipal Auditorium in the Western Cape, on Thursday, the Deputy President said this partnership is also significant to South Africa's economic development goals.

The BizNews Conference is an annual event focused on investment, business and political issues.

The Deputy President emphasised the need for collaborative efforts, in light of recent cuts to key health funding programmes, such as the President’s Emergency Plan for AIDS Relief (PEPFAR).

PEPFAR was established by former President George W Bush in 2003 and continued under various administrations.

“The withdrawal of PEPFAR funding highlights the urgent need for South Africa to further strengthen its own interventions to reach the most vulnerable and access health services and support," Mashatile said.

He said the opportunity showed the importance of bolstering the country's own healthcare interventions and ensuring the delivery of health services without heavy reliance on external assistance.

"In this regard, we have been investing heavily in healthcare reform and responding to the dual epidemics of HIV/AIDS and TB. The Department of Health has put measures in place to ensure that patients receiving TB and HIV treatment are not affected and do not default," said the Deputy President.

Mashatile encouraged stakeholders to unite and support government in promoting South Africa's interests in the United States, including through mechanisms such as the African Growth and Opportunity Act (AGOA).

"The loss of AGOA benefits would have the most devastating effect on South African farmers and agriculture workers. AGOA is presently providing support to South Africa's agriculture and manufacturing sectors, which is expected to generate around $21 billion in trade with the United States.

“Therefore, our position is that South Africa should maintain strong bilateral relations with the United States. Most importantly, as a country, we are committed to improving mutually beneficial trade, political, and diplomatic relations with the United States,” he said. 

Diversifying export markets and growing the economy

The country’s second-in-command stated that South Africa should push for diversified export markets, citing ongoing engagement with global powers such as China, Russia, India, and various European countries. 

President Cyril Ramaphosa is currently co-chairing the EU-South Africa Summit, which aims to deepen relations with the European Union (EU) across several domains, including trade, security, and sustainable development.

In addition, Mashatile highlighted the importance of intra-African trade and financial cooperation through the African Continental Free Trade Area (AfCFTA). 

According to the Deputy President, the AfCFTA is a crucial step toward reducing dependency on volatile global markets.

Mashatile believes that South Africa’s wealth of natural resources, including significant agricultural potential, is positioned as an attraction for investment. 

He said government is committed to removing blockages to economic growth, lifting economic expansion to above 3% in the medium-term, and creating a cycle of investment, growth and jobs.

He outlined government’s plans to focus on improving productivity and innovating skills development through the National Digital and Future Skills Strategy as part of a broader vision for a knowledge-based economy.

Furthermore, he said the newly approved Reconceptualised Human Resource Development Strategy outlines priority goals aimed at enhancing early education outcomes, increasing youth employability, and ensuring that higher education aligns with market demands. 

FATF grey list

The Deputy President said South Africa is making steady progress in efforts to be removed from the Financial Action Task Force (FATF) grey list.

"Through new legislation, we have strengthened our ability to prevent money laundering and fraud, and secure South Africa’s removal from the grey list of the Financial Action Task Force."

He said the country has addressed 20 of the 22 action items relating to combating money laundering and terrorist financing. 

“These improvements are essential not only to remove ourselves from the grey list but also to strengthen the battle against crime and corruption, which is crucial for the betterment of all South Africans. 

“We will continue to resolve both remaining action items by June, towards our removal from the grey list by October 2025,” he said.

Moreover, the Deputy President committed that South Africa will use its Group of 20 (G20) Presidency to place Africa’s development at the top of the agenda. – 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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Tanzania Declares End of Marburg Virus Disease Outbreak

Location: News

World Health Organization - United Republic of Tanzania
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Tanzania today declared the end of Marburg virus disease outbreak after recording no new cases over 42 days since the death of the last confirmed case on 28 January 2025.

The outbreak, in which two confirmed and eight probable cases were recorded (all deceased), was the second the country has experienced. Both this outbreak, which was declared on 20 January 2025, and the one in 2023 occurred in the north-eastern Kagera region.

In response to the latest outbreak, Tanzania's health authorities set up coordination and response systems, with support from World Health Organization (WHO) and partners, at the national and regional levels and reinforced control measures to swiftly detect cases, enhance clinical care, infection prevention as well as strengthen collaboration with communities to raise awareness and help curb further spread of the virus.

Growing expertise in public health emergency response in the African region has been crucial in mounting effective outbreak control measures. Drawing on experience from the response to the 2023 Marburg virus disease outbreak, WHO worked closely with Tanzanian health authorities to rapidly scale up key measures such as disease surveillance and trained more than 1000 frontline health workers in contact tracing, clinical care and public health risk communication. The Organization also delivered over five tonnes of essential medical supplies and equipment.  

“The dedication of frontline health workers and the efforts of the national authorities and our partners have paid off,” said Dr Charles Sagoe-Moses, WHO Representative in Tanzania. “While the outbreak has been declared over, we remain vigilant to respond swiftly if any cases are detected and are supporting ongoing efforts to provide psychosocial care to families affected by the outbreak.”

Building on the momentum during the acute phase of the outbreak response, measures have been put in place to reinforce the capacity of local health facilities to respond to potential future outbreaks. WHO and partners are procuring additional laboratory supplies and other equipment for disease detection and surveillance and other critical services.  

Marburg virus disease is highly virulent and causes haemorrhagic fever. It belongs to the same family as the virus that causes Ebola virus disease. Illness caused by Marburg virus begins abruptly. Patients present with high fever, severe headache and severe malaise. They may develop severe haemorrhagic symptoms within seven days.

In the African region, previous outbreaks and sporadic cases have been reported in Angola, the Democratic Republic of the Congo, Ghana, Kenya, Equatorial Guinea, Rwanda, South Africa and Uganda.

Distributed by APO Group on behalf of World Health Organization - United Republic of Tanzania.

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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 
 

nosihle
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