SA News

2 November 2023

KZN police commended for bravery in taking down suspects

Location: News

KZN police commended for bravery in taking down suspects

KwaZulu-Natal Police Commissioner Nhlanhla Mkhwanazi has praised police officers for their determination and bravery after four suspects, who were believed to have been terrorising the community of Inanda, were fatally wounded in a shootout with police this week.

A team comprising various police disciplines, private security, the National Intervention Unit and the Directorate for Priority Crime Investigation (the Hawks) conducted an operation after intelligence led them to a house near Dube Village Mall in Inanda.

As the police officers approached the house, they were met with gunfire. A member of the National Intervention Unit was shot in the leg and was transported to hospital where he remains in a stable condition.

Following a heated gun battle, four suspects were fatally wounded. Police found four pistols in their possession. A manhunt continues for more suspects. The Independent Police Investigative Directorate has been summoned for further investigations.

Mkhwanazi commended the police officers for remaining composed during the gun battle, which lasted for about half an hour.

"We will continue to hunt down these ruthless criminals, who are terrorising innocent civilians in Inanda. It is quite obvious that they are hell bent on taking down police officers and will not submit themselves to face the might of the law," he said. – SAnews.gov.za

Edwin
Thu, 11/02/2023 - 10:42

1032 views

2 November 2023

Rugby World Cup win demonstrates power of transformation

Location: News

Rugby World Cup win demonstrates power of transformation

President Cyril Ramaphosa says the 2023 Rugby World Cup (RWC) win has demonstrated the power of transformation.

“The Springboks are a potent symbol of just how far we have come as a people. That is why you have been so warmly embraced by South Africans of all races as their own,” President Ramaphosa said.

This was the fourth victory by the Springboks for the championship. All four championships have taken place during South Africa’s democratic years.

The President reflected on when former Boks captain Francois Pienaar and President Nelson Mandela lifted the Webb Ellis Cup at Ellis Park Stadium on 24 June 1995.

“Our democracy was just over one year old. South Africa had just been readmitted to World Rugby three years earlier. There was only one black player on the team, the legendary Chester Williams. It was a monumental, historic and deeply symbolic occasion. This win is also monumental,” he said.

The Springboks won the 2023 RWC against New Zealand at the finals in Paris, France, on Saturday, 28 October 2023.

Welcoming the Rugby World Cup champions at the Union Buildings in Pretoria on Thursday, the President was joined by scores of Springbok supporters across different age groups and races, who filled the streets and cheered for the team.

They were in high spirits, proudly wearing their Springbok jerseys as they celebrated and chanted the names of their favourite players.

A large media contingent was also present to capture the Webb Ellis Cup parade, which kicked off in Pretoria. The world champions are embarking on a four-day Trophy Tour to major regional population centres from Thursday, with the next stop being in Johannesburg and Soweto, concluding at FNB Stadium.

“Never in the history of the Rugby World Cup has any team lifted the trophy on four occasions. Until now. In doing so, you have lifted the spirits of an entire nation and filled us with pride.

“You have united the South African people. The words 'Amabokobo', 'Go Bokke' are being shouted from the rooftops by black and white, young and old, urban and rural dwellers, in all our national languages. Over the past eight weeks, this country has been a sea of green and gold.

“People who haven’t even followed rugby before or been interested in the game are now talking with confidence about scrums, rucks, drop kicks and tries,” the President said.

He said the performance of the Springboks in this year’s Rugby World Cup has captured people’s imagination and energised them in a way not seen in a long time.

“It has reminded us that even amidst our many challenges, there is always room for optimism and hope. I have said before that we do not make light of the challenges our country faces. We certainly do not imagine that a sporting victory can or will wish them away.

“Your journey to victory in France on Saturday night was as much about our journey towards nationhood as it was about sporting excellence. It was as much about the power of transformation,” said the President.

He said Amabokoboko are testament to the power of a dream.

“Every young boy and girl in this country today – whether they are black, white, Indian or coloured – now knows they don’t have to be content with dreaming of becoming like you. They know they can be you,” the President said.

The Springbok rugby team tour will continue in Cape Town (Friday, 3 November) and Durban (Saturday, 4 November) before concluding in the Eastern Cape (East London) on Sunday, 5 November.

Springbok captain Siya Kolisi expressed gratitude to South Africans for supporting the team during the tournament.

“We, as a team, chose to dedicate this World Cup to you because you are the reason we are where we are today. Your resilient spirit, how hard you work and the things that you go through to be where you are in life.

“Your support kept us going. We are very diverse and we wanted to show that diversity is our strength in South Africa. We need to use our diversity. It is a powerful force that many countries do not have and that we can use.

“When we work together regardless of our backgrounds, we put South Africa first and work for South Africa. That is what we did. We did it by playing rugby,” Kolisi said.

South African Rugby Union (SARU) President Mark Alexander said the team’s victory is a testament of the unwavering support and boundless passion of the millions of South Africans who supported the team.

“Your Tik Toks, YouTube and Facebook posts celebrating the victories played a role in motivating our team as they fought brilliantly on the field. Our team has achieved a historic fourth Rugby World Cup, an epic accomplishment that could not have been possible without the dedication and commitment of our players, led by the coaching team,” Alexander said. –SAnews.gov.za

nosihle
Thu, 11/02/2023 - 11:56

554 views

2 November 2023

NICD warns of malaria season

Location: News

NICD warns of malaria season

The National Institute for Communicable Diseases (NICD) is urging people travelling to malaria-endemic areas to take the appropriate precautions this summer.

Summer generally marks the start of the malaria season due to higher temperatures and increased rainfall in the malaria transmission areas, the NICD said in a statement.

“The malaria-endemic regions are beginning to see increases in the number of malaria cases as expected, marking the start of the malaria season.”

The health institution said about 4.9 million people are at risk of contracting malaria, of which parts of Limpopo, Mpumalanga and KwaZulu-Natal are more prone to the fatal disease caused by a parasite.

The health institute urged travellers to consider taking antimalarial prophylaxis, particularly if planning a trip to high-risk areas. Both doxycycline and atovaquone-proguanil can be procured without a prescription from pharmacies and public sector travel clinics.

They have also advised travellers to reduce contact with mosquitoes by limiting outdoor activity after dark, covering up bare skin including feet and ankles, using mosquito repellents containing at least 10% DEET, ensuring mosquito screens on windows are closed, and using bed nets, fans or air conditioning.

“These precautions will substantially reduce the chance of acquiring malaria but the risk is never completely removed.”

Meanwhile, all holidaymakers returning from malaria transmission areas, including very low-risk ones, should immediately report “flu-like illness”.

These include headache, fever, chills, fatigue, and muscle and joint pain that occurs up to three weeks after first potential exposure to the nearest healthcare facility for a malaria test.

“Particular care should be taken with children, as symptoms are very non-specific such as fever, loss of appetite and vomiting.”

Malaria, according to the NICD, can rapidly progress to severe illness, often with severe consequences. Therefore, early diagnosis and treatment are strongly recommended.

“Healthcare workers, particularly those in non-endemic areas who are treating febrile patients, must remember to ask about their recent travel to malaria transmission areas,” it said. – SAnews.gov.za

Gabisile
Thu, 11/02/2023 - 13:45

236 views

2 November 2023

RTMC celebrates producing one million discs via online platform

Location: News

RTMC celebrates producing one million discs via online platform

The Road Traffic Management Corporation (RTMC) is celebrating the significant milestone of successfully producing and delivering one million vehicle driving licensing discs via their online system.

A total of 1 058 000 motor vehicle licences have been renewed online. To mark the occasion, RTMC CEO, Advocate Makhosini Msibi, personally delivered a disc to Lukie Mashishi in Ivory Park, Tembisa, on Thursday.

“You have saved yourself time to go to a licensing centre where you would stand in a queue. We deliver the disc to you in the comfort of your home. We are partnering with people like you to improve our services. Everybody has been saying we are bad as government, but this bears testimony that we are improving,” Msibi said.

He applauded Mashishi for using the NaTIS online system and embracing the fourth industrial revolution in a government online service.

The RTMC platform is the only online motor vehicle licence renewal service in the country that does not charge administration or services fees. The cost of the motor vehicle licence fees and courier services are the only costs that are levied.

Mashishi was excited to receive his disc. He said it was unbelievable that his disc had been delivered in two days.

“I was initially sceptical to do this transaction online, but I said let me give it a try. It really works and I am glad to be one of the million people who have used the online system. I wish the service can grow and serve more people,” he said.

Mashishi said he was assisted by his 13-year-old to do the transaction and was surprised by how easy it was.

“By reaching the one million mark, the NaTIS online has proven to be the fastest growing, reliable, and cost-effective platform to utilise to renew motor vehicle licence discs throughout the country.

“The platform was launched in February 2022 and since then, the service has grown in leaps and bounds as it has been able to bring convenience to hundreds of thousands of motorists throughout the country,” the RTMC said.

Despite encountering teething problems initially, the platform has since proven to be resilient and a time saving, seamless digital service, which delivers on its promises.

The RTMC extends heartfelt appreciation and applauds all South Africans who have embraced and continuously make use of this innovative system.

“With great pride, the RTMC acknowledges the substantial progress made in its pursuit of delivering a world-class service to the citizens of South Africa.

“Prospective applicants are encouraged to take advantage of the convenient service, enabling them to renew their licences from anywhere in the country with the simple click of a button. Motor vehicle discs are delivered to all addresses throughout the country,” the RTMC said.

To access the platform, motorists are encouraged to visit: online.natis.gov.za.

“Vehicle owners can update their contact details on the platform to be able to receive reminder notifications and forms to be used when renewing licences. The process is quick and easy and offers motorists an ability to check the status of their driving licenses cards,” the RTMC said. –SAnews.gov.za

nosihle
Thu, 11/02/2023 - 14:21

18 views

2 November 2023

Government recognises media’s role in advancing democracy

Location: News

Government recognises media’s role in advancing democracy

The South African government has joined calls for the protection of journalists’ rights, particularly during a time when South Africa is preparing for national elections.

According the United Nations Educational, Scientific and Cultural Organization UNESCO violence against journalists intensifies during election cycles.

“Professional journalism and a free and objective press are cornerstones of democracy and serve to hold society accountable. We acknowledge the essential role journalists play in our democracy fighting for truth. We condemn any form of violence or intimidation against journalists domestically and internationally.

“South Africa remains committed to supporting a free and independent press. The protection of journalists is of utmost importance, as it is a form of protection of our own rights”, said Acting Director-General of the Government Communication and Information System (GCIS) Nomonde Mnukwa on Thursday.

Following the assassination of two French journalists in Mali in 2013, the United Nations General Assembly adopted Resolution A/RES/68/163, which proclaimed November 2 as the International Day to End Impunity for Crimes Against Journalists.

The resolution mobilises United Nations member states to intensify efforts to prevent violence against journalists and create a conducive environment for them to perform their work.

“This day provides an opportunity for all who believe in the advancement of democratic values and the preservation of citizen’s constitutional rights to speak out against any form of violence or harassment of journalists,” Mnukwa said.

Last month, South Africa commemorated Black Wednesday, which aims to raise awareness about the rights of journalists and remembers those who lost their lives fighting for the dignity of the profession.

In August, GCIS hosted a panel discussion with more than 100 journalism and communication students at the Tshwane University of Technology on the topic of Cyberbullying of female journalists, to create awareness on the harassment, discrimination and violence they face in the line of duty.

Furthermore, GCIS is planning to host a webinar on “Violence Against Journalists and the Integrity of Elections,” in the coming week.

“This is to ensure that, leading up to the election period next year, everyone is cognisant that journalists keep society informed, and foster democratic discourse and integrity of electoral processes. Details of the Webinar will be shared shortly.

“Government also commends the work done by the Independent Electoral Commission (IEC) as well as the South African National Editors Forum (SANEF) and various partners on the workshops they have been hosting across the country to prepare media for reporting on the upcoming 2024 national general elections,” GCIS said. – SAnews.gov.za

nosihle
Thu, 11/02/2023 - 12:39

135 views

2 November 2023

Tourism announces opening of application process for TEF

Location: News

Tourism announces opening of application process for TEF

The Department of Tourism, together with the Small Enterprise Finance Agency (Sefa) - an agency within the Department of Small Business Development, has announced the opening of the application process for the Tourism Equity Fund (TEF) on Monday, 06 November 2023.

“Following Cabinet’s approval in September 2023 for the revised TEF to be implemented, we are delighted to announce that the Request for Proposals for funding from the TEF is now open to businesses,” the Department of Tourism said in a statement.

The R1.2 billion TEF aims to increase growth and transformation, and stimulate more inclusive participation in the tourism sector in line with the targets of the Tourism B-BBEE Sector Codes.

The TEF is intended to address the funding challenges faced by Qualifying Small Enterprises and Emerging Micro Enterprises in the tourism sector.

The TEF will be implemented by:

Assessing and scoring applications against jobs to be sustained and/or jobs to be created, location and geographic spread, and targeted groups (youth, women, and people with disabilities).
Department of Tourism and Sefa in partnership with banking and/or financial institutions in the Republic of South Africa, which includes, amongst others, banks and developmental finance institutions that will offer affordable and tailor-made financial solutions, in an attempt to close funding gaps in the market, through the provision of a blended finance solution.
Disbursing a total of 80% of the TEF funds to existing Small Medium and Micro Enterprises in the market to enable these businesses to grow. The remaining allocation of 20% of the funds will be disbursed to new businesses.

“Sefa will implement, execute and manage the Fund through a Fund Management Agreement signed with the Department of Tourism. The Department will support and monitor the implementation of the TEF on a monthly basis,” the department said.

The TEF places significant emphasis on providing support to tourism enterprises that meet the qualifying criteria, including a minimum of 30% Black ownership either before or after the financial support.

The TEF is exclusively dedicated to investing in various sub-sectors within the tourism industry as prescribed in the Tourism B-BBEE Sector Codes.

The department said it is committed to enhancing transformation in the tourism sector and the TEF aims to contribute towards achieving transformation goals in this important sector of the economy.

“The funding structure comprises grant funding, and debt financing, to meet the distinct needs of tourism enterprises that are either seeking equity acquisition, investment in new developments, or expansion of their existing businesses,” Tourism Minister Patricia de Lille said.

The TEF is backed by public-private partnerships which support the participation of private, commercial, and non-commercial banks, and various developmental funding institutions.

“The collaboration between public and private entities serves as a notable example of successful cooperation in advancing a more inclusive and prosperous tourism sector.

“The Department of Tourism remains committed to advancing the transformation agenda through creating equitable opportunities to realise an inclusive and revived tourism economy,” de Lille said.

With consideration of Regulation Gazette No 11067, Volume 697, No 49018 published on 25 July 2023, withdrawing Regulation Gazette No 11241, Volume 668 of 19 February 2021. No 44172, all applicants (including previous applicants) are encouraged to submit new applications that will align with the new qualifying criteria of TEF.

For more information on the Tourism Equity Fund and the application process visit: https://www.tourism.gov.za/CurrentProjects/Tourism_Equity_Fund/Pages/Tourism_Equity_Fund.aspx - SAnews.gov.za

Edwin
Thu, 11/02/2023 - 11:55

45 views

2 November 2023

Measures in space to ensure safe and secure AGOA

Location: News

Measures in place to ensure safe and secure AGOA

The National Joint Operational and Intelligence Structure (NatJOINTS) has put measures in place to ensure the 20th African Growth and Opportunity Act (AGOA) Forum takes place in a safe and secure environment.

NatJOINTS includes various government departments led by the South African Police Service (SAPS), South African National Defence Force (SANDF) and the State Security Agency (SSA).

Police spokesperson, Brigadier Athlenda Mathe, said a safety and security operational plan is already being enforced, with all critical role players already on the ground to execute their various responsibilities, as per their mandate.

Mathe said police visibility has been heightened in and around the Johannesburg Expo Centre, with the aim of preventing and combating any form of opportunistic crime, before, during and post the event.

She emphasised that only those in possession of accreditation to attend will be allowed near the venue and restricted areas.

“Those found with fraudulent accreditation will face the full might of the law. Lost cards must be immediately reported to the South African Police Service. It is a serious offence to exchange cards amongst colleagues.

“Residents of Johannesburg and those who are operating businesses within the vicinity of the Johannesburg Expo Centre are advised about road closures for the duration of the event,” Mathe explained.

The affected intersections in the Nasrec precinct as reported by Johannesburg Metropolitan Police Department (JMPD) include:
•   Nasrec Road and Recreation Road;
•   Nasrec Road and Randshow Road;
•   Randshow Road and Commerce Street;
•   Nasrec Road and Landbou Road;
•   Golden Highway Road and Randshow Road;
•   Ring 1 and Ring 2;
•   Golden Highway and Stadium Road and
•   Nasrec Road and Stadium Road.

NATJOINTS assured all dignitaries, attendees and spectators that multidisciplinary and integrated teams are already on the ground and are ready to deliver a safe and secure event. – SAnews.gov.za

GabiK
Thu, 11/02/2023 - 09:49

153 views

2 November 2023

AGOA Trade and Economic Cooperation Forum

Location: News

AGOA Trade and Economic Cooperation Forum

By Michael Currin

Growing business, trade and investment ties between sub-Saharan African nations that are part of the Africa Growth and Opportunity Act and the United States (US) holds enormous benefits for the two regions.

Last year the combined two-way trade between AGOA beneficiaries and the United States exceeded $46 billion and there is strong potential for further growth as trade and investment is deepened.

These trade and investment opportunities will be explored at the 2023 AGOA Trade and Economic Cooperation Forum, which is being hosted by South Africa at the Johannesburg Expo Centre from 2-4 November 2023.

The forum, attended by a senior delegation from the United States and 35 Sub-Saharan Africa Trade Ministers, will seek to strengthen trade and investment. Moreover, with African Regional Economic Communities, civil society, organised and business representatives in attendance, it also encourages regional integration.

There is ample room for growth between the US and Africa, particularly in the critical mineral value chain which is at the centre of the global clean energy transition. The continent is a major producer of cobalt, copper, bauxite, chromium, high purity iron ore, platinum group metals and lithium which is needed for the global energy transition.

Those who partner with the continent will have access to these critical resources to spur on and benefit from the clean energy revolution. The International Energy Agency’s World Energy Outlook 2022 foresees demand for these critical minerals more than doubling by 2030 and quadrupling by 2050.

The forum also reaffirms Africa as a capable economic partner and a lucrative destination for growth and investment. Sub-Saharan African economies are on the rise following the impact of COVD-19 with the International Monetary Fund's Regional Economic Outlook forecasting their growth by 4.2 per cent in 2024 from 3,6 per cent in 2023.

Alongside the forum will be the Made in Africa exhibition that will display the products of more than 500 companies from across Sub-Saharan Africa. It will exhibit the region’s agricultural, automotive, chemicals, metals and minerals, mining and machinery, clothing and textiles, leather and footwear and the boatbuilding sector products.

Significantly, this forum is the last engagement hosted in Sub-Saharan African before the expiry of the current iteration of the African Growth and Opportunity Act in June 2025. AGOA has been at the core of United States economic policy and commercial engagement with Africa.

It was signed into law on 18 May 2000 to provide duty-free exports of goods from 40 sub-Saharan African countries to the United States, giving them a competitive advantage in the lucrative US market.

There are over 5240 tariff items that qualify for the AGOA ranging from apparel and footwear, wine, certain motor vehicle components, a variety of agricultural products, chemicals as well as steel.

The 2023 AGOA Trade and Economic Cooperation Forum is an opportunity to lobby for the renewal of AGOA beyond 2025 as a mutually beneficial platform for global exchange and growth for the industries involved, and as a gateway to the vibrant African market. An extension of AGOA will promote inward investment in Africa and deepen the impact of industrialisation on the continent.

Furthermore, it will also support our efforts to increase trade through the African Continental Free Trade Area (AfCFTA) that covers 54 countries and 1.4 billion people. It is anticipated that Africa’s trade will be greatly boosted by AfCFTA and the US stands to gain access to a single market, which is projected to grow to 1.7 billion people and $6.7 trillion in consumer and business spending by 2030.

The trade relationship between the US and South Africa has greatly benefitted from the AGOA agreement.

South Africa remains a key source of raw materials for the American economy and has become one of the region’s top 3 exporters to the US. The most success has been in our automobile sector which is the country’s biggest single beneficiary of the programme. Our local citrus industry has also benefited with the Western Cape exporting approximately R1.6 billion worth of citrus to the US under AGOA in 2022.

Other leading exports to the US included iron and steel, edible fruits, organic chemicals and precious stones. It helped create a total of 62 395 direct and indirect jobs, while overall AGOA generated an estimated 350 000 direct and 1.3-million indirect jobs in Sub-Saharan Africa.

South Africa looks forward to welcoming stakeholders from the US and across the continent to the forum. The stronger ties will ensure reciprocal trade and investment that will benefit both the US and Africa.

* Michael Currin is the Deputy Director-General Intergovernmental Coordination and Stakeholder Management at the Government Communication and Information System

Janine
Thu, 11/02/2023 - 08:54

287 views

2 November 2023

Government addressing deficiencies that led to grey listing

Location: News

Government addressing deficiencies that led to grey listing

Government is working hard to address deficiencies in the fight against organised crime and illegal financial flows, says Minister of Finance Enoch Godongwana.

“Since February, when South Africa was grey listed by the Financial Action Task Force (FATF), a large number of government departments and agencies – including the police and the Hawks, National Prosecuting Authority (NPA), Special Investigating Unit (SIU), State Security Agency (SSA), the Reserve Bank, Financial Sector Conduct Authority (FSCA) and South African Revenue Service (SARS) – have been working hard to address these deficiencies,” the Minister said.

Delivering the Medium Term Budget Policy Statement on Wednesday in Parliament, he said last week the FATF noted at its plenary meeting that such work is showing positive results.

South Africa has addressed 15 of the 20 technical deficiencies in its legal framework and has made good progress on 17 of the 22 effectiveness action items, including two that are now deemed to be largely addressed.

“However, there is also a significant amount of work that must still be done, particularly with regard to the investigation and prosecution of complex money laundering cases and terror financing, the identification of informal mechanisms for remitting money around the world, and the recovery of the proceeds from crime and corruption,” the Minister said.

Government expects to address all the deficiencies identified by the FATF by early 2025.

“We are also devising ways to make better and more targeted use of the Criminal Asset Recovery Account (CARA) to address crime. Among these efforts, and emanating from the Presidential project on illicit mining strategy, a recommendation has been made for Cabinet to consider using money from the fund to combat illegal mining.

“The South African Police Service, The Defence Force, the Financial Intelligence Centre, the Department of Home Affairs and the Border Management Authority have all received allocations from this fund,” the Minister said.

Improving efficiencies

He said over the Medium Term Expenditure Framework (MTEF) period, the focus is on improving efficiency and reprioritising funds towards key programmes.

The SAPS will contain costs and streamline operations as headcounts decline due to natural attrition.

“It will foster partnerships with communities and implement reforms to optimise resource allocation, training and technology. Government will continue to fill critical posts in the Border Management Agency and verify assets transferred from departments to the agency.

“To reduce employee compensation pressure, the Department of Defence will implement human resource reforms and review commuted overtime and allowance policies. Furthermore, funds will be reallocated in the Department of Defence to provide for day-to-day maintenance and emergency repairs,” the Minister said.

The Department of Justice and Constitutional Development will reallocate funds over the MTEF period to capacitate the Office of the Legal Services Ombud.

“Funding will also be shifted from the Department of Agriculture, Land Reform and Rural Development to Legal Aid South Africa to improve its capacity to provide legal representation in land rights matters.

“To strengthen its independence, the Judicial Inspectorate for Correctional Services will become a government component in 2024/25. Concomitant resources, currently in the baseline of the Department of Correctional Services, will be transferred with the inspectorate,” the Minister said.

Government will continue to fill critical posts in the Border Management Agency and verify assets transferred from departments to the agency. –SAnews.gov.za

nosihle
Wed, 11/01/2023 - 14:04

623 views

2 November 2023

Revenue collection projected to decline

Location: News

Revenue collection projected to decline

Revenue collection is expected to fall by some R56 billion below the 2023 Budget predictions, according to the National Treasury Medium Term Budget Policy Statement (MTBPS).

The MTBPS notes that slowing commodity exports, slower growth, downward revisions of the tax base growth, slowing corporate tax collections and lower net VAT collections have all impacted tax revenue.

The 2023 Budget had projected collections would reach some R1.78 trillion but that has now been revised down to R1.73 trillion.

“In recent years, revenue collection has benefited from a pattern of high prices for South Africa’s commodity exports. In the current year, commodity prices have fallen faster than expected and value‐added tax (VAT) refund claims have risen, resulting in revenue collections projected to be R56.8 billion below 2023 Budget estimates.

“The moderate revenue outlook is limited by the domestic economic outlook and negative shifts in the global economy,” the department said.

This as Minister of Finance Enoch Godongwana tabled the Medium Term Budget Policy Statement in Parliament on Wednesday.

Key factors which have affected revenue collection in the first half of 2023/24 include:

Significantly reduced mining sector profitability. Mining provisional corporate tax collections fell by R24.6 billion or 55.4 percent relative to the same period in 2022/23. Lower commodity prices, weaker global growth, increased incidence of power cuts and logistical constraints have weighed heavily on the sector.
VAT refund payments are R21.5 billion higher relative to the same period last year due to stronger-than-expected exports; increased investments in embedded generation; and higher costs of doing business, including the use of more expensive road rather than rail transport. Stronger import VAT collections partially offset robust VAT refund payments.
A sustained recovery in earnings and higher bonus payments have benefited personal income tax collections, with employees’ tax from the finance sector driving the strong year-to-date growth.

“The tax-to-GDP ratio is expected to decline to 24.7 percent in 2023/24 from 25.1 percent in 2022/23. A recovery in this ratio depends on more sustainable economic growth.

“Main budget revenue estimates for 2023/24 have been lowered by R44.4 billion compared with the 2023 Budget, mainly driven by lower estimates for tax revenue, while National Revenue Fund receipts have been revised up by R11.3 billion mainly due to higher expected revaluation profits from foreign-currency transactions,” Treasury said.

Future revenue

The department said due to the increased fiscal consolidation that is required, “the Minister of Finance will propose tax measures to raise additional revenue of R15 billion in 2024/25 in the 2024 Budget”.

“Tax revenues are expected to increase to R2.1 trillion, or 25.1 percent of GDP, by 2026/27. Revenue collection, however, is projected to fall short of 2023 Budget estimates by R121.4 billion between 2024/25 and 2025/26, with tax buoyancies generally lower over the medium term.

“Relative to the 2023 Budget, main budget revenue estimates for the next two years have been lowered by R152 billion, mainly driven by downward revisions to tax revenue projections. Non-tax revenue estimates for the next two years have also been reduced by R24.4 billion due to lower mineral and petroleum royalties and departmental receipts. Payments to the Southern African Customs Union (SACU) are revised up,” the department said.

Treasury insisted that improved economic growth and further gains in tax administration are critical for improving tax revenues.

“The sharp contraction in commodity prices now under way suggests that the windfall tax receipts that South Africa enjoyed in recent years have come to an end. Under-collections in corporate income tax receipts relative to 2023 Budget estimates flow through to the outer years. Stronger VAT refund payments over the medium term partly reflect higher renewable energy investments and responses to structural constraints in logistics and fuel refinery capacity.

“The outlook for most major tax bases has also been revised lower relative to the 2023 Budget. Personal income tax collections are marginally better than expected due to near-term gains; however, medium-term prospects for employment growth remain muted.

“Although South Africa’s tax-to-GDP ratio remains relatively resilient, stronger economic growth and further gains in tax administration are needed to improve tax revenues over the medium to long term,” the department said. – SAnews.gov.za

NeoB
Wed, 11/01/2023 - 14:05

624 views

1 November 2023

Rising government debt servicing hinders social spending

Location: News

Rising government debt servicing hinders social spending

The servicing of government’s rising debt is “crowding out” social spending in the country, says Finance Minister Enoch Godongwana.

The Minister on Wednesday delivered the Medium Term Budget Policy Statement in Parliament, where he explained the challenge posed to spending on social services.

“It is important… to point out that our debt levels and rising debt service costs are not problems in and of themselves.

“Our challenge is that rising debt service costs are crowding out important social spending, and our economy has not grown fast enough to support increasing expenditure or our current debt levels. Therefore, this policy statement sets out our strategy for avoiding a fiscal crisis and preventing the build-up of systemic risks to the economy,” he said.

This strategy will include reduced spending and reprioritisation “while also taking concrete steps to support growth”.

“None of these decisions are taken lightly. They are taken with the short- and long-term viability of public finances in mind, and in the interests of balanced and inclusive growth,” Godongwana said.

He explained that over the past 15 years, government’s spending has exceeded revenue, with government expected to borrow an average of some “R553 billion per year over the medium term”.

“As a result, gross debt rises from R4.8 trillion in 2023/24 to R5.2 trillion in the next financial year. By 2025/26, it will exceed the R6 trillion mark. We now expect gross government debt to stabilise at 77% of GDP by 2025/26. This is higher than the level we forecast in February.

“Over the next three years, debt service costs, as a share of revenue, will increase from 20.7% in 2023/24 to 22.1% in 2026/27. The cost, or interest of this debt, for next year alone, amounts to around R385.9 billion. Over the MTEF [Medium Term Expenditure Framework], interest costs amount to R1.3 trillion,” he said.

Tightening purse strings

The Minister said in this current financial year, spending has been brought down by some R21 billion, with further reductions of R64 billion and R69 billion contemplated for the 2024/25 and 2025/26 financial years.

“The implications of these adjustments will be partially offset by departments implementing the cost containment guidelines issued by National Treasury.

“It will also be offset by implementing control measures on payroll systems, in line with the directive issued by the Department of Public Service and Administration, as well as implementing the recommendations from the spending reviews conducted in the past two fiscal years.

“Government has made a strategic decision to allocate funds to sectors that are personnel heavy, such as Health, Education and Police Services,” Godongwana said. – SAnews.gov.za

NeoB
Wed, 11/01/2023 - 14:06

520 views

1 November 2023

COVID-19 social grant extended until 2025

Location: News

COVID-19 social grant extended until 2025

Government has extended the COVID-19 Social Relief of Distress Grant (SRD Grant) until March 2025 while it considers social security policy reforms and a funding model.

The grant was introduced to support low-income individuals affected by the lockdowns during the COVID-19 pandemic.

Delivering the Medium Term Budget Policy Statement (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

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1 November 2023

Fiscal consolidation needed to ensure marvelous financial health

Location: News

Fiscal consolidation needed to ensure good financial health

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

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

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

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

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

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

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

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

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

NeoB
Wed, 11/01/2023 - 14:09

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1 November 2023

Government forges ahead with restructuring the State

Location: News

Government forges ahead with restructuring the State

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

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

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

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

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

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

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

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

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

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

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

Public sector wage bill

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

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

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

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

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

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

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

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

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

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1 November 2023

Municipalities apply for Eskom debt relief

Location: News

Municipalities apply for Eskom debt relief

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

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

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

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

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

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

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

Eskom Debt Relief Amendment Bill

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

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

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

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

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

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

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

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1 November 2023

Reforms can enhance GDP

Location: News

Reforms can enhance GDP

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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1 November 2023

Funds allocated for future disasters

Location: News

Funds allocated for future disasters

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

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

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

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

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

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

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

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

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

Water management

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

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

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

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

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

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1 November 2023

SOE financial health remains “poor”

Location: News

SOE financial health remains "poor"

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

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

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

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

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

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

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

Denel

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

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

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

Land Bank

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

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

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

Transnet

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

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

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

South African National Roads Agency Limited (SANRAL)

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

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

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

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

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1 November 2023

Multi-stakeholder workshop looks into migration impact on rural areas, local government

Location: News

Multi-stakeholder workshop looks into migration impact on rural areas, local government

Government has set out to review areas of cooperation among various stakeholders following the successful International Migration Workshop with traditional leaders and mayors from metro and district municipalities earlier this month.

Home Affairs Minister, Dr Aaron Motsoaledi and Cooperative Governance and Traditional Affairs Minister Thembi Nkadimeng, co-hosted the workshop in October in Ekurhuleni, Gauteng.

The purpose of the workshop was to provide a platform for stakeholders to share practical experiences on how migration impacts the communities they lead at local level, and to identify possible areas of cooperation.

Motsoaledi and Nkadimeng were joined by other ministries who, in view of their legislative mandates, are directly affected by the issue of international migration.

They included Human Settlements Minister Mmamoloko Kubayi; Small Business Development Minister Stella Ndabeni-Abrahams and the Department of Trade, Industry and Competition, led by Acting Director-General, Malebo Mabitje -Thompson.

Other key stakeholders were the Public Service Commission Chairperson Prof Somadoda Fikeni, Border Management Authority Commissioner Dr Mike Masiapato and a delegation from the South African Local Government Association (SALGA), led by President Cllr Bheki Stofile, Mayors and Speakers from Districts, Metropolitan and Local Municipalities.

There were also leaders from the National House of Traditional and Khoi and San leaders led by its chairperson, Kgosi Thabo Seatlholo, all provincial houses of traditional leaders led by their chairpersons, the Congress of Traditional Leaders of South Africa (“CONTRALESA”) led by its President, Kgoshi Lameck Mokoena, the National Khoi and San Council led by Deputy Chairperson, Mr Anthony Peterson and the Royal Leaders of South Africa (“ROLESA”) led by Secretary-General, Kgoshigadi Moremadi Mothapo.

The workshop agreed on key areas of cooperation to achieve effective management of migration, and these include:

Review of international agreements (Conventions and Protocols) with a view to accede to them with reservations where necessary, taking national interest into consideration.
Policy and legislative reforms, including the following legislation: Citizenship Act (Act 88 of 1995), Identification Act (Act 68 of 1997), Refugee Act (Act 130 of 1998) and Immigration Act (Act 13 of 2002).
Introduction of Omnibus by-laws to promote standardised and effective enforcement by all municipalities. This will address the challenges relating to trading and enforcement of business by-laws by municipalities and traditional authorities.

“In support of this intervention, there will be immediate joint inspections of businesses by labour, health, trade, industry and competition and immigration inspectorate teams to enforce compliance with applicable laws.

“Government will assist in strengthening the planning units in municipalities so that they are able to interpret the data and prepare development plans that are aligned to the current trends. [The auditing] of spaza shops in villages and townships and mechanisms to register them by both traditional leaders and municipalities [should also take place],” the Department of Home Affairs said.

The meeting also looked at reviewing of the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act (Act 19 of 1998) to facilitate the effective implementation in instances of illegal occupation of land.

The meeting also agreed on the following:

Strengthening Local Economic Development (LED) through, among others, supporting citizens who wish to trade in the informal sector; ensuring that business licensing legislation is amended, and promoting the assignment of LED Officers, who would also interface with traditional authorities.
Supporting the Department of Human Settlements process of reviewing the 1994 White Paper to respond to current needs and challenges related to informal settlements and illegal occupation of buildings in inner cities.
Coordination and collaboration of border law enforcement between government, traditional and Khoi-San leaders and the Border Management Authority (BMA).
Supporting traditional authorities to keep a record of foreign nationals in their communities
Reviewing resource allocation for municipalities to address the unique resources pressures of municipalities and also capacitation of municipalities on data analysis.
The establishment of a working group that will meet regularly to track progress on the work done by various entities and government departments to ensure a ‘whole of government and civil society’ approach towards managing international migration and its effects.

“We are pleased that SALGA has already issued a statement on the workshop. This is in the spirit of cooperation and partnership which the workshop called for. We look forward to more role players coming on board to lend their hand in this important matter of national importance,” the department said. – SAnews.gov.za

Edwin
Wed, 11/01/2023 - 09:32

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1 November 2023

Disability grant applicants can lodge an appeal – SASSA

Location: News

Disability grant applicants can lodge an appeal - SASSA

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

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

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

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

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

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

The applicant must meet the following requirements:

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

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

DikelediM
Wed, 11/01/2023 - 10:12

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1 November 2023

President Ramaphosa appoints Advocate Gcaleka as Public Protector

Location: News

President Ramaphosa appoints Advocate Gcaleka as Public Protector

President Cyril Ramaphosa has appointed Advocate Nompilo Kholeka Gcaleka as Public Protector of the Republic of South Africa for a non-renewable term of seven years with effect from 1 November 2023.

The President appointed Gcaleka in terms of section 193(4) of the Constitution of the Republic of South Africa and on the recommendation of the National Assembly.

“The President wishes Advocate Gcaleka well in her position and trust that she will serve the people of South Africa with honor and dedication,” the Presidency said in a statement. – SAnews.gov.za

DikelediM
Wed, 11/01/2023 - 10:20

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1 November 2023

President Ramaphosa to welcome rugby world champs

Location: News

President Ramaphosa to welcome rugby world champs

President Cyril Ramaphosa will on Thursday morning welcome the Rugby World Cup Champions, the Springboks, to the Union Buildings in Pretoria.

The Springboks won the 2023 Rugby World Cup against New Zealand in Paris, France on Saturday.

The welcome ceremony at the Union Buildings for the national team signifies the start of the Rugby World Champions’ National Trophy Tour.

The team touched down at the OR Tambo International Airport on Tuesday to a rousing welcome from the public.

The Webb Ellis Cup parade will kick off on Thursday in Pretoria, Johannesburg and Soweto, concluding at FNB Stadium; and proceed to Cape Town on 03 November 2023; Durban on 04 November 2023 before the tour ends in the Eastern Cape (East London) on 05 November 2023.

Members of the public in Pretoria are welcome to witness this event from Government Avenue, Arcadia.

President to update Parliament

Meanwhile, President Ramaphosa will on Thursday afternoon engage with Members of Parliament (MPs) on diverse national issues when he responds to Questions for Oral Reply in the National Assembly.

Among issues MPs have raised with the President are:

• the mandate of the South African Reserve Bank (SARB) and its accountability to Parliament;
• commissions of inquiry established by the President;
• combating violence against women and children;
• insights gained from the Census 2022 for macro-economic policy;
• fiscal discipline within Government.

The President will also discuss the state of readiness of the South African National Defence Force (SANDF) and its capacity to fulfill its constitutional mandate.

Parliamentary Questions for Oral and Written Reply are one of the mechanisms through which Parliament holds the Executive to account.

The questions session will start at 14:00. – SAnews.gov.za

DikelediM
Wed, 11/01/2023 - 09:40

51 views

1 November 2023

Call for a realistic 2023 MTBPS

Location: News

Call for a realistic 2023 MTBPS

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

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

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

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

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

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

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

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

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

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

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

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

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

Credibility

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

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

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

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

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

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

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

135 views

31 October 2023

Operation Shanela nets 597 suspects in the North West

Location: News

Operation Shanela nets 597 suspects in the North West

The South African Police Service (SAPS) conducted various high-density operations in the North West province last week, which resulted in 597 suspects being arrested for various crimes.

The suspects were arrested during an Operation Shanela initiative which was held from Monday, 23 October 2023, to Sunday, 29 October 2023.

According to a statement by the police, among others, four arrests were made for drug-related offences, 11 for dealing in liquor, 21 for driving under the influence of liquor, three for possession of firearms and ammunition and 66 were undocumented persons who were handed over to the Department of Home Affairs for further processing.

The following arrests were made for serious and violent crimes: six for murder, four for attempted murder, five for armed robbery, 149 for assault with the intent to do grievous bodily harm, three for business robbery, 41 for burglary, 30 for malicious damage to property, 13 for rape and 104 for common assault.

During the operations, two firearms with ammunition, eight cellular phones as well as a variety of drugs and precious metals were confiscated.

Some of the suspects have already appeared before court while others are expected to make their respective court appearances this week in various courts in the province.

During the operations, 93 premises were searched, 12 road blocks were held and 11 unlicensed liquor premises were closed down.

In one of the incidents, a 45-year-old police officer was attacked with a sjambok in Extension 4, in Lebaleng location, Makwassie, by an alleged tuck shop owner while a law enforcement team was conducting consumer inspections.

The suspect attacked the police officer from behind, while he was removing expired products from the tuck shop. The officer was taken to a local clinic for medical treatment.

Investigations are underway and an arrest is imminent, said police.

The Provincial police Commissioner in the North West, Lieutenant General Sello Kwena, said an attack on a police officer is an attack against the state and it will not be tolerated.

He warned that consumption of expired goods could cause people to fall ill and even die, therefore the police will continue to work hard together with other government departments to ensure the safety of the community. – SAnews.gov.za

Edwin
Tue, 10/31/2023 - 09:50

601 views