Watch: Plenary

President Cyril Ramaphosa: The Presidency Dept Budget Vote 2023/24

31 May 2023

Speaker of the National Assembly,
Deputy President Paul Mashatile,
Ministers and Deputy Ministers,
Honourable Members,
Fellow South Africans,

This Presidency Budget Vote Is being presented on the understanding that all of us gathered in this House share a responsibility to build a new nation, to serve the people of South Africa and to improve the lives of every South African – leaving no one behind.

Above all, we all have a shared responsibility to uphold the Constitution, which affirms the inherent worth, fundamental human rights and dignity of every South African.

This shared responsibility reaches beyond the precincts of Parliament and the offices of State. We are called upon to exercise this responsibility, to build our country and uphold the Constitution fully cognizant that it extends across all parts of our society, from business to trade unions, from traditional leaders to religious bodies, from community organisations to citizens themselves.

As we face some of the most difficult and severe challenges since the dawn of our democracy, we are all called upon to be part of the solution. To make a difference.

As I introduce the debate on Vote 1, the Presidency’s Budget Vote, I am keenly aware of the duty this Office carries.

At varying points in the history of this democracy we have met with both triumph and disaster.

Even though at times our problems seemed too large, too difficult to overcome, we however emerged from these challenges stronger and more united.

This time of crisis, difficulties and challenges will be no different.

South Africans have great expectations of all of us to make great efforts to resolve the many difficulties they face.

In the State of the Nation Address we outlined the work that government would undertake in the course of this year to both respond to the challenges of the present and to advance the clear mandate it has to build an inclusive economy that creates employment and alleviates poverty.

This Budget Vote gives us an opportunity to outline the progress that has been made since the State of the Nation Address.

Given the extent and depth of the challenges we face, the benefits of the work that is being done will not be felt immediately, but it clearly lays the foundation of the success that lies ahead.

What I can say is that progress is being made on a number of fronts. We are getting there. We will get there.
 
Our journey to where we want to go may seem long, but if we stay the course, difficult as our path is, we will get through our challenges if we keep on working together.

As we undertake the commitments outlined in the State of Nation Address, we have focused on those actions that will make the greatest impact. These are the actions that will both make a difference in the short term and that will lay the basis for sustainable progress into the future.

Over the last few weeks, the Deputy President and I have met with each Minister to identify the specific tasks that they and their departments must focus on over the next year.

The tasks that each of my cabinet colleagues will focus on, taken together, will respond to those issues that concern South Africans the most.

These concerns include the impact of load shedding on households, businesses, hospitals, water provision, food production and all aspects of people’s lives.

These concerns include unemployment, poverty and the rising cost of living. The situation is worsened by inflation and the effects of rising interest rates on household debt.

South Africans are also concerned about gender-based violence, crime and corruption.

If we are to effectively address these concerns, we need first and foremost to grow the economy and create jobs.

A vital part of this work is to mobilise the resources and capabilities of all social partners. Over the last few months, we have been having engagements with representatives of business, labour and other constituencies, where we’ve been dealing with the collective actions that need to be taken to address the various challenges that constrain our economic growth.

This will enable us to focus on key issues which pose an immediate threat to the economy.

We have established three work streams between government and business focusing on energy, logistics, and crime and corruption. This will enable joint action, alongside other social partners, on these critical challenges.

Our overriding priority now is to end load shedding and achieve energy security. In July last year, I announced a detailed plan to address the energy crisis.
I have since established the National Energy Crisis Committee to ensure that this plan is fully implemented, and appointed a dedicated Minister in the Presidency to provide a single point of execution for the energy crisis response.

Over the past nine months, we have made progress in implementing the measures that we outlined in the Energy Action Plan.

First, in line with our economic reforms in network industries, we have allowed the private sector to invest in electricity generation projects of any size.

Following that, more than 100 projects are now at various stages of development, representing over 10 000 MW of new generation capacity and over R200 billion of investment.

The exponential growth of private sector investment in electricity generation is proof that this reform is having a major impact. These investments will significantly close the shortfall in electricity supply.

What has been pleasing in this regard is that this reform process has attracted a variety of investors in the form of women-led businesses, black investors, local traditional investors as well as foreign investors from as far afield as China, the Middle East, United States, Canada, Turkey and Europe.
 
A province such as the Northern Cape has attracted no less than R100 billion in investments in renewable energy and is seeing exponential economic growth in the province with the resultant creation of jobs.

Second, we have accelerated the procurement of new generation capacity.

Three projects from the risk mitigation programme have entered construction, with a further five projects expected to reach financial close during this quarter.

Project agreements have been signed for 25 preferred bidders from Bid Window 5 and 6 amounting to approximately 2800 MW, of which 784 MW is already in construction.

In the coming months, we will initiate the procurement of more than 10,000 MW of additional generation capacity from wind, solar, gas and battery storage, which will further contribute to closing the shortfall in energy supply.

Third, we have enabled municipalities to procure power independently. Since we implemented this reform, a number of municipalities have embarked on processes to procure additional power of up to 1,500 MW.

Fourth, we are driving progress on the unbundling of Eskom into separate entities for generation, transmission and distribution.

Significant progress has been made towards the establishment of the National Transmission Company of South Africa as an independent subsidiary of Eskom.

I have asked the Minister of Public Enterprises to ensure that an independent board is appointed for the new transmission company by the end of June 2023, so that it can be fully operational as soon as possible.

At the same time, we are making progress in decisively addressing Eskom’s debt burden.

The 2023 Budget introduced R254 billion in debt relief to Eskom, subject to strict conditions. This will relieve pressure on the utility’s balance sheet, enabling it to conduct necessary maintenance and supporting the restructuring of the electricity market.

Finally, we are pursuing sweeping legislative reform to end the energy crisis once and for all, with the help of this house.

We have already introduced the Electricity Regulation Amendment Bill, which seeks to establish a competitive electricity market and support the unbundling of Eskom.

This will fundamentally transform the electricity sector as we know it, and will create a level playing field for multiple generators to participate in producing the energy that we need.

We will soon introduce another key piece of legislation, the Energy Security Bill, to streamline the regulatory framework and accelerate the construction of renewable energy projects.

I call on the Members of this House, from all political parties, to pass this critical legislation in record time, while adhering to required Parliamentary processes. We need to do so in months, not years.

At a moment of grave crisis, we must pull together and place the interests of the people of South Africa above all else.

Despite this progress, however, the performance of Eskom’s existing generation fleet continues to deteriorate as a result of its age and a legacy of poor maintenance and underinvestment.

We face a difficult winter ahead, as demand increases and several units at Medupi, Kusile and Koeberg power stations are currently under repair and remain offline.
 
These six units alone represent approximately 4 500 MW of capacity, or between four and five stages of load shedding. The situation will improve as we return these units to service towards the end of this year.

Until then, our best hope of limiting the severity of load shedding is to reduce demand on the grid.

As announced in the State of the Nation Address, tax incentives have been introduced to support the rollout of rooftop solar for households.

Just as we came together to stop the spread of COVID-19, we must all act now to bring down demand over the winter months.

We can all make a difference by switching off lights and appliances when not in use, reducing the temperature setting geysers to 60 degrees, installing a geyser blanket or geyser timer to save energy and reduce your electricity bill, and turn off unnecessary equipment like pool pumps.

By taking these simple actions we can reduce demand by up to 1 000 MW, or one full stage of load shedding.

We must reiterate that the risk of a national blackout remains extremely low. There are many safeguards in place to prevent such an incident from occurring. Load shedding allows Eskom to keep the system in balance at all times.

The work we are doing to urgently resolve the current electricity shortfall does not diminish our commitment to a just energy transition.

We will stick to our commitment to reduce our carbon emissions by 2030 to within a target range which, at its upper level, is compatible with limiting global temperature increase to 1.5ºC.

We need to do this to prevent the worst effects of climate change, including illness, droughts, floods and other disasters. We also need to protect jobs in sectors of our economy that have to decarbonise to remain globally competitive.

Where it may be necessary to delay the decommissioning coal-fired power stations temporarily to address our electricity supply shortfall, any decision will be informed by a detailed technical assessment of the feasibility of continuing to operate older plants and the cost of doing so relative to alternative energy sources.

It will also be informed by the timeframe in which we can expect new generation capacity and the impact on our decarbonisation trajectory.

At the same time, we will further accelerate the pace of investment in new renewable electricity generation as an important part of the plan to overcome loadshedding.

Viewed in totality, the Energy Action Plan is a springboard to a just energy transition, boosting the rollout of renewable energy sources, mobilising significant investment and creating new jobs in sectors from electric vehicles to solar installation.

As we work to end the energy crisis, we are moving ahead with the economic reform agenda to revive economic growth and create jobs.

Operation Vulindlela is working closely with the Department of Public Enterprises, the Department of Transport and Transnet to finalise a roadmap for the freight logistics sector.

This roadmap will shortly be completed and will outline the actions to improve the performance of ports and rail as well as measures to reform Transnet and create an efficient and competitive freight logistics system.
 
To address the challenges in freight rail and port operations, we are forging cooperation at a very practical level with businesses and unions in sectors such as logistics, agriculture, auto, mining and forestry.

Transnet is working to establish a separate Infrastructure Manager within Transnet Freight Rail (TFR), which will enable third party access to the core rail network.

In addition, partnerships with private terminal operators at the Durban and Ngqura Container Terminals will help to improve the performance of our ports and crowd in private sector investment.

At the 5th South Africa Investment Conference last month, I announced that we would be implementing far-reaching reforms to our visa system to attract skills and investment.

Two weeks ago, the Minister of Home Affairs published a detailed implementation plan to take forward the recommendations of the work visa review.

This plan outlines fundamental changes to the visa system. These include introducing a trusted employer scheme to provide a simplified process for qualifying companies and streamlining application requirements.

We are establishing a points-based system that will provide additional pathways for visa applicants based on their income and qualifications to introduce greater predictability, flexibility and transparency into the visa system. We are also creating new visa categories for remote workers and start-ups.

Government has also rolled out the e-visa system to an additional 20 countries for tourist visas. In this financial year, we plan is to introduce the e-visa system for other areas such as business, study, general work and intra-company transfer visas.

Attracting more tourists, growing the tourism economy and creating more jobs in the sector is vital to our economic recovery efforts.

The most recent data from StatsSA and SA Tourism show the sector is firmly on the road to recovery. Last year nearly 5,7 million visitors came to our country, and in the first quarter of 2023 we received over two million visitors, more than double the amount in the same period last year.

As we work to shorten the time it takes to issue tourist visas, we are also unblocking funding for transformation in the sector. We are addressing the delays in issuing tour operator licenses and training tourism monitors to improve tourist safety in various parts of the country.

We are making progress on a number of other priority reforms, including putting in place a modern and fully transparent mining rights system, creating an enabling regulatory framework for hemp and cannabis, and clearing the backlog of title deeds for subsidised housing.

Over time, these reforms will propel economic growth and enable companies to create and sustain new jobs.

Five years have now passed since we embarked on an ambitious investment drive to raise R1.2 trillion in new investment in our economy.

As the 5th South Africa Investment Conference drew to a close on the 13th of April, we were able to announce that we had surpassed that target, having raised over R1.5 trillion in investment commitments.

These commitments are steadily translating into investments in the productive economy, establishing new enterprises, expanding existing ones, providing opportunities to suppliers along the value chain and creating employment.

These are significant achievements in the midst of great economic headwinds, not least of which was the disruption caused by the COVID-19 pandemic and by the effects of the electricity crisis.
 
The mobilisation of investment from both local and international companies has been accompanied by focused support on small businesses and cooperatives.

For example, in the last financial year nearly 75,000 SMMEs and cooperatives received financial support through the Small Enterprise Finance Agency. These funding interventions created over 32,000 new jobs and sustained over 70,000 existing jobs.

Changes have been made to the bounce back loan guarantee scheme, which was introduced in 2022, to incentivise rooftop solar investments to reduce the effects of load shedding on small and medium enterprises.

The Minister of Trade, Industry and Competition recently announced the establishment of an energy resilience fund of R1.3 billion to help enterprises, including SMMEs, to mitigate the impact of load shedding.

The recovery of our economy relies on a massive increase in investment. As we have reported before, we have been working to improve the capacity of government departments, agencies, state owned enterprises and partners to prepare and implement infrastructure projects.

This work is starting to see results.

In its most recent round, the Budget Facility for Infrastructure approved blended finance projects with a total project value of over R57 billion. These are mainly bulk water scheme projects, port development and housing projects

On the basis of a fiscal commitment of R21 billion, the Infrastructure Fund will engage with financial markets to enable investment in these projects by private investors to ensure that these investments are realised.

By gazetting certain infrastructure projects as Strategic Integrated Projects, we are able to ensure that multiple authorisations, permitting and approvals are speeded up.

As a result, the total value of projects completed last year is R21 billion.

These include human settlements projects like Fochville Extension 11, Sondela Phase 2 and Jeppestown Social Housing in Gauteng.

Other completed projects include upgrades to national roads between Ventersburg and Kroonstad, between Mtunzini and Empangeni and the Polokwane bypass, and the development of small harbours.

The value of projects currently in construction is over 300 billion, including energy, water infrastructure and rural roads projects.

The development of a pipeline of green hydrogen projects with a value of over R300 billion is significant.

Among these projects is the Boegoebaai Green Hydrogen in the Northern Cape with a potential to create thousands of work opportunities when it commences.

This will lay the basis for the development of a wholly new industry that will draw on South Africa’s natural resources.

The Presidential Employment Stimulus remains a vital intervention by government to create work and livelihood opportunities particularly at a time when the broader economy is not creating employment at the necessary pace.

This builds on the achievements over many years of public employment programmes like the Expanded Public Works Programme and Community Works Programme.
 
The stimulus created nearly 650,000 work and livelihood opportunities in the past financial year. These opportunities were created in areas as diverse as basic education, small scale farming, and arts and culture.

Of the people involved in the programme, 83 per cent are youth.

This brings the total number of participants in the Presidential Employment Stimulus since its launch in 2020 to over 1.2 million people.

Implementing government’s programme of action rests on having a capable, ethical developmental state. To this end our focus is on strengthening the capacity of the civil service to deliver on its mandate of serving the people of South Africa.

We applaud the many public servants who continue to serve the people of South Africa with diligence and commitment.

To root out malfeasance in the public service, we plan to complete lifestyle audits of all members of the Senior Management Service by early 2024.

As part of our response to the recommendations of the State Capture Commission, we have prioritised the establishment of a single register for disciplinary cases and processes across all spheres of government.

Cabinet recently approved for public comment a bill that would expand the powers of the Public Service Commission, including giving the Commission authority over local government. This will go a long way to improving the professionalism and accountability of all spheres of the administration.

Madame Speaker, Honourable Members,

From the advent of democracy, we have recognised that the challenge of poverty and hunger requires a broad range of interventions and programmes that work together to address the various causes and manifestations of poverty.

This informs the programmes we have pursued in human settlements, land reform, expansion of free basic services, provision of social grants and improving access to education and health care.

In addition to these programmes, one of the most important recent interventions has been the Special SRD Grant, which provided support to unemployed South Africans to counter the effects of the COVID- 19 pandemic.

Building on that experience – and looking beyond that grant – several government departments led by the Presidency are working to ensure that poor households have access to a comprehensive set of interventions that create pathways out of poverty.

This plan would harness the resources and capabilities of all government departments in an integrated and coordinated manner to enable productive livelihoods, maximise the impact of social security and social services, ensure household food security, and enable sustainable human settlements and land reform.

As announced in the State of the Nation Address, a proposal is being developed on basic income support for the most vulnerable beyond the SRD Grant. Work on the design options and funding mechanisms is expected to be completed by the end of July this year.

During the course of this financial year, the Minister of Social Development will lead the development of an integrated database to enhance delivery of social protection and enable poverty alleviation programmes to be integrated.

The achievement of affordable universal health care is vital for improving human health, reducing inequality and enabling South Africans to live more productive lives.
 
A major milestone towards this goal has been achieved with the adoption of the National Health Insurance Bill by the Portfolio Committee on Health, which will soon be debated in the National Assembly.

We commend the Members and staff of the Portfolio Committee who have worked so hard to process the legislation, all those organisations and individuals who made submissions and all those people who participated in public hearings.

As the NHI Bill is finalised through the legislative process and as it is implemented, we are determined to ensure that it both fulfils its goal of universal access to quality health care and builds on the significant capabilities of the public and private health sectors.

Progress is being made in preparation for the implementation of the NHI, including interventions to improve the quality of public and private health care and the roll-out of the electronic patient registration system across public health facilities.

The implementation of the NHI will be a momentous step towards achieving universal health coverage and creating a society built on justice, fairness, and social solidarity.

Let us embrace this opportunity to create a healthier, more equitable future for all South Africans.

We are determined that the implementation of the NHI effectively tackles inequality in health care in a sustainable manner.

It is a matter of grave concern that, according to the latest Progress in International Reading Literacy Study, as many as 81 per cent of Grade 4 pupils cannot read for meaning.

Unless we grasp this challenge with the necessary urgency and application, this reality will undermine the prospects of millions of South African children and stunt our nation’s development.

The Minister of Basic Education will therefore prioritise interventions to ensure that all ten-year-old learners can read for meaning. By the end of this financial year, an integrated sector reading plan must be developed and implemented across all provinces. This includes the provision of a package of lesson plans and reading materials.

I will be spending more time in enhancing the President’s Reading Circle programme started by the Department, as I encourage all leaders and all South Africans to be part of the reading drive.

We are on course to eradicate unsafe toilets in public schools. Five years ago, around 3,400 schools did not have adequate sanitation facilities. Today, there are 750 schools that still need to be provided with safe and appropriate sanitation. These schools are scheduled for completion in this financial year.

As part of the successful Presidential Employment Stimulus, around a quarter of a million young people will be appointed and placed as school assistants by June 2023.

Ministers across all departments have been tasked to prioritise and massify the training of young people in the skills required to both implement government’s programme and make use of the new opportunities opening up in the economy.

For example, the Department of Transport will provide young people with skills-based training as train drivers, technicians, transport engineers, among others.

The Department of Communication and Digital Technologies will establish partnerships to train young people in cellphone repairs, digital installation, maintenance and aftercare.

Ministers have also been tasked to provide training to young people to enable them to make use of the surge in rooftop solar installation.

Fellow South Africans,
 
The right of access to decent and quality basic services is enshrined in our Constitution.

When citizens are exposed to conditions that imperil their right to safe drinking water, it is the worst affront to human dignity.

Two weeks ago, there was an outbreak of cholera in Hammanskraal in Gauteng and in the Free State. Our thoughts and prayers are with the families of those who lost their lives, and we wish those who remain hospitalised a speedy recovery.

Whilst an investigation is still underway into the source of the outbreak, we do know that cholera thrives in conditions where there is inadequate access to clean water and sanitation facilities.

The people of Hammanskraal have had to put up with water supply challenges for over a decade and unfortunately their plight is not an isolated one.

Two years ago, this administration reinstated the Blue Drop and Green Drop water quality monitoring system to monitor the country’s water quality.

This will enable stronger intervention in municipalities that fail to meet the minimum norms and standards for water service delivery.

Last year’s Green Drop report points to serious challenges in municipalities when it comes to managing water resources.

That municipalities are underspending or not even utilising critical grants to upgrade and maintain social infrastructure like water treatment facilities is unacceptable.

The Department of Water and Sanitation will continue its ongoing engagements with municipal managers, technical staff, mayors and councillors in districts to address this issue and provide support where it is required.

The challenges in water provision highlight the broader challenge of dysfunctionality in many municipalities.

We need to strengthen local government by separating the administration from undue political influence. For example, the appointment process of officials such as the municipal manager and chief financial officer could involve competence verification by national departments like Cooperative Governance and National Treasury. This would help to ensure people with the right skills and experience are appointed.

Insecurity and acts of criminality and lawlessness deter investment, scare away tourists and dent our image as a country. Those who bear the brunt are our communities who are living under siege from criminals.

Our focus is on improving the capacity of the South African Police Service to prevent and investigate crime, and to keep our communities and businesses safe.

In the State of the Nation Address last year, we announced that we would embark on the recruitment and training of additional police personnel. In December last year, these new recruits graduated from various police academies.

Ten thousand trainees will be recruited annually for the next two financial years, bringing the total number in the current three-year period to 30,000. Of these, close to 3,000 will be allocated to the SAPS detective services.

With support from the private sector, we are overhauling the 10111 call centres to ensure that people are able to access help when they need it.
 
Additional financial resources have been allocated to supply Community Policing Forums with much- needed equipment.

There are a number of SAPS operations underway to deal with the proliferation of illegal firearms, to tackle illegal mining and to clamp down on theft and vandalism of economic infrastructure.

Much of these intelligence driven operations are being coordinated through the Directorate of Priority Crime Investigation.

We will not allow criminal syndicates to operate in this country and are targeting those at the top to disrupt their networks.

The newly established Border Management Agency is in the process of recruiting additional border guards and work is underway to establish One Stop Border Posts at the country’s six busiest ports of entry.

Reform of our intelligence services is gaining momentum with the recent approval by Cabinet of the General Intelligence Laws Amendment Bill. This is a major step in implementing the recommendations of the High Level Panel on the State Security Agency, the Expert Panel on the July 2021 Unrest and the State Capture Commission.

The Bill provides a framework for the restructuring of the country’s intelligence services, strengthens measures to regulate the private security industry, and addresses some of the shortcomings identified by the Financial Action Task Force.

Despite progress in the implementation of the National Strategic Plan on Gender-Based Violence and Femicide, we remain a long way off from achieving a society where this scourge is eradicated.

South Africans refuse to remain silent in the face of violence against women and children. Working together with government and civil society, people from all walks of life are contributing to the pillars of the National Strategic Plan.

One of these pillars is legislative reform. In April this year the Domestic Violence Amendment Act came into operation. It forms part of the trio of laws assented to last year to strengthen the fight against gender-based violence and femicide, including through the introduction of harsher sentences for perpetrators.

Another advance is the substantial reduction of the DNA backlog. In support of DNA driven investigations, the forensic science laboratories in Gqeberha and KwaZulu-Natal will be revamped and refurbished.

To strengthen the response of the criminal justice system, additional resources have been allocated to the SAPS Family Violence, Child Protection and Sexual Offences Units. The number of Thuthuzela Care Centres has increased from 55 to 63 since 2020, with the most recent centre being opened in Jozini on the 1st of May.

To advance the economic empowerment of women, over 6,000 women entrepreneurs have been trained to participate in public procurement.

Over the last financial year, the Industrial Development Corporation has provided around R2.1 billion net funding approved to women-empowered and women-owned
companies.

Work is underway to ensure that the long-awaited GBVF Council is established and operational by March 2024.

We are pursuing our struggle against gender-based violence at a continental level through our involvement in processes to develop an African Union Convention on Violence against Women and Girls.
 
In October last year I submitted to Parliament a detailed plan for the implementation of the recommendations of the State Capture Commission. The Presidency is leading efforts across government to ensure that this work proceeds with urgency and that it contributes to ending corruption in all its forms.

The National Prosecuting Authority’s Investigating Directorate is taking the lead by processing cases that have been recommended for investigation and prosecution.

To date, the Investigating Directorate is involved in investigating ten major categories of complex corruption in government and state-owned enterprises. These address 122 recommendations of the State Capture Commission.

An Integrated Task Force comprising the NPA and the Hawks is prioritising state capture cases and will continue to coordinate the response of law-enforcement agencies.

The Asset Forfeiture Unit is working on those recommendations made with respect to the recovery of the proceeds of crime. By the end of February this year, freezing orders of more than R13 billion have been granted to the NPA.

The Special Investigating Unit and its Special Tribunal continue to register significant gains in clawing back the proceeds of corruption in favour of the State. For the period 2022-2023 the SIU has made recoveries of R278 million, obtained preservation orders to the amount of R4.5 billion and succeeded with obtaining forfeiture orders to the value of R213 million.

A mechanism has been established within the Department of Planning, Monitoring and Evaluation to monitor and track the implementation of various SIU recommendations.

We see this as a critical tool that must be strengthened if we are to ensure that SIU referrals are disregarded. This is an issue I have raised sharply with Ministers in my engagements with them around their performance targets.

The National Anti-Corruption Advisory Council that was set up to advise government on a society-wide fight against corruption has been very active.

The Council has organised itself into workstreams that include legislative reforms and transparency, monitoring and evaluation, public procurement and whistle-blower protection, amongst others.

Strengthening the country’s anti-corruption institutional architecture is one of the key recommendations of the State Capture Commission.

The Department of Justice and Constitutional Development is finalising a review of our anti-corruption architecture for consultation with stakeholders, which we intend to conclude before the end of 2023.

The Department has committed to ensuring that reviews of the Protected Disclosures Act and Witness Protection Act are completed and these amendments tabled in Parliament this year.

Legislation is being developed to make the Investigating Directorate permanent and for it to be provided with full investigative powers.

Another milestone in the fight against corruption will be the tabling in Parliament of the Public Procurement Bill that is aimed at putting stronger safeguards in place to prevent corruption in public procurement.

Madam Speaker, Honourable Members,

We have often said that our progress as a nation cannot be separated from the progress of the African continent as a whole.
 
We will continue to work with our counterparts elsewhere on the continent to ensure the African Union has the necessary capacity to advance unity, development and peace on the continent.

To drive the growth, diversification and development of African economies, we are working to ensure that the African Continental Free Trade Area is effectively implemented.

Yet, one of the greatest obstacles to the achievement of the potential of the AfCFTA is the ongoing conflict and instability in several parts of the continent.

We are deeply concerned about the fighting in Sudan and the resultant loss of life. We support all efforts to urgently resolve this conflict before more lives are lost and more damage is done.

We remain committed to ensure the implementation of the peace agreement in Ethiopia and will contribute to regional and continental efforts towards peace and stability in northern Mozambique, Eswatini, the eastern DRC and South Sudan.

We are seeking to use our missions abroad more effectively to drive trade and investment. The Department of International Relations is working with other departments to ensure that our missions will seek out foreign direct investment opportunities, promote tourism and identify markets for South Africa’s products and services.

Later this year, South Africa will be hosting the BRICS Summit. This is an important platform through which to advance our developmental objectives as a country and a continent.

We have forged strong political, social and economic ties with our fellow BRICS countries, which this Summit will consolidate and build on.

We share common perspectives on the importance of multilateralism, a rules-based world order and inclusive development.

As part of our strategic intent to further advance the African development agenda within the BRICS group, we are inviting several other African leaders to the summit.

One of the priorities during our chairship is to build a partnership between BRICS and Africa to unlock mutually beneficial opportunities for increased trade, investment and infrastructure development.

South Africa continues to benefit from its participation in BRICS beyond the trade and investment ties to the other member countries. For example, the New Development Bank, which was established by BRICS countries in 2015, has to date approved eleven projects in South Africa, valued at around R100 billion in areas like road improvement, ports, water provision and energy.

Our foreign policy stance is informed by the understanding that multilateralism and respect for international law are key to global political and economic stability. We continue to work for the deepening and strengthening of progressive multilateralism and reform of multilateral institutions.

There have been concerted efforts to draw South Africa into the broader geopolitical contest around the Russia-Ukraine conflict. Yet, we have consistently maintained our non-aligned stance, our respect for the UN Charter and for the peaceful resolution of conflict through dialogue.

Our understanding of non-alignment – which is distinct from the concept of neutrality – is rooted in the Bandung principles, which continue to guide the Non-Aligned Movement.

These include abstaining from the use of arrangements of collective defence to serve any particular interests of the big powers, and respect for justice and international obligations.

From the beginning of the conflict between Russia and Ukraine, our position has been that this conflict needs to be resolved through negotiation. South Africa is pleased to participate in a mission by six African countries to seek a peaceful resolution to the conflict.
 
South Africa seeks to maintain good relations with all countries across the globe. As we work to strengthen ties of trade and investment, we also seek to build support for a more inclusive, representative and equitable world order.

We will continue to maintain an independent foreign policy and will use our presence in international forums to promote dialogue and the peaceful resolution of conflict.

Where concerns are raised about our commitment to our non-aligned position, we have addressed them directly and openly.

In this regard, I will be sending the Minister of International Relations and Cooperation, the Minister of Trade, Industry and Competition, the Minister of Finance and the Minister in the Presidency as my envoys to the United States and European countries to explain our peace mission and to deal with various diplomatic matters.

Our engagements with a number of those countries on these matters have already drawn a lot of understanding and support.

With a view of dealing with various matters that have to do with our international relations I have recently appointed an independent panel, headed by Judge PMD Mojapelo, to enquire into the circumstances of the docking of a Russian vessel in Simonstown in December 2022.

The panel is expected to complete its investigation within six weeks and to submit its report to me within two weeks of concluding its work.

Madam Speaker, Honourable Members,

There is no denying the severe challenges that our country faces, nor the determination of all South Africans to overcome the difficulties of the moment.

The road ahead will be demanding.

It is therefore vital that we work together – that we harness our collective resources, energy and wisdom – to overcome the difficulties of the moment.

We have achieved outstanding feats of human development since the advent of democracy, but there is much more that needs to be done.

Let us work together to overcome the challenges of the present and build the better future that we seek and that all our people deserve.

I thank you.

 

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Deputy President Paul Mashatile: The Presidency Dept Budget Vote 2023/24

31 May 2023

Remarks by Deputy President Paul Mashatile on the occasion of The Presidency Budget Vote, National Assembly, Parliament

Honourable Speaker,
Your Excellency, President of the Republic of South Africa, Honourable Cyril Ramaphosa,
Honourable Ministers and Deputy Ministers, Honourable Members of the National Assembly,

I am honoured to address this house on The Presidency 2023/24 Budget Vote.

I would like to reflect on the social and political context in which we are delivering this Budget Vote Speech.

Honourable House Chair,

This year marks the formation of the Union of South Africa, formed 113 years ago exactly on this day. It also marks the 110th anniversary of the 1913 Native Land Act, which displaced our people and excluded them from the economy.

We are on the cusp of 30 years of Freedom and Democracy and nearly three decades since the adoption of the Constitution of the Republic of South Africa.

During this period, we have demonstrated our commitment to the principles of the Constitution by, among others, ensuring that we hold free and fair elections, adhering to the rule of law, building credible and innovative democratic institutions and a concerted effort to change the lives of our people for the better.

As we reflect on these milestones, we should acknowledge the challenges that lie ahead, the better to rededicate ourselves to the ideals of the South Africa envisaged in the Constitution.

Similarly, we acknowledge the role of heroes and heroines who contributed to our struggle for freedom and millions of ordinary men and women who continue to work tirelessly to realise the South Africa of our dreams.

In particular, we recall the role of three important generations – starting with the 1976 student uprising generation which went on to play a critical role in rendering the apartheid system ungovernable.

This generation inspired the formation of the Congress of South African Students (COSAS) whose 44th anniversary we are celebrating today. COSAS would go on to play an integral role in the United Democratic Front which was founded 40 years ago in Mitchells Plain here in Cape Town.

The endurance of these generations in the face of injustice laid the foundations for democratic South Africa.

Honourable Speaker, despite the entrenched colonial and apartheid system, we have made significant gains as a nation. In this regard, I would like to report on the following areas of government responsibility: Governance, State Capacity and Institutional Development and Justice, Crime-Prevention and Security. Further, the Deputy President is the Leader of Government Business in Parliament.

We will also outline a roadmap of elevated priorities for the remainder of the term of the sixth administration. Specifically in the next six to twelve months, we are going to implement rapid response interventions on service delivery and trouble-shooting in service delivery hotspots.

As the President indicated in his address, we are here to outline what we have done in realising our mandate as given by the people in 2019 to grow South Africa together in line with our long-standing commitment to building a better life for all.

Working with all spheres of government, we are continuing to strengthen the rollout of the District Development Model through effective coordination of the different spheres of government, which will improve the functioning of municipalities and address community concerns.

We have been engaged with critical stakeholders to improve coordination and mobilisation in support of service delivery measures in Municipalities and Districts. This includes consultations with Traditional and Khoi-San Leaders on the implementation of Government programmes aimed at accelerating service delivery. We are also strengthening partnerships with
businesses, labour and government to source the critical skills required by the economy and the state through the Human Resource Development Council.

Madam Speaker, the work done over the Medium Term Expenditure Framework (MTEF) period will contribute towards the 30-Year Review Report of democratic governance, which will be released in 2024.

Our country has registered progress in the areas of electricity delivery, health care, infrastructure development, cushioning the indigent, the provision of free basic water, housing and improvement in literacy:

More than 85 percent of South Africans have their homes electrified;
Over 5.7 million people on treatment for HIV;
2 trillion rands invested in national infrastructure projects over ten years;
Over 18 million South Africans benefit from social grants;
90 percent of South Africans have access to clean drinking water;
Over 14 million people have benefited from the 3.2. million free houses built since 1994;
95 percent of South Africans can read and write.

We are aware of and working tirelessly to solve problems in electricity generation, water provision, and infrastructure, amongst others.
We will equally be engaging various sectors of society on their lived experiences and provide reflections on the Government’s performance over the last 30 years. Government accepts criticism because as a nation we are a diverse people and believe in the principle that everyone must be heard so that we can forge ahead with the nation-building project of a better South Africa as envisaged in our Constitution.

Honourable Speaker,

The State of Local Government Report of 2023 has presented a challenging picture with regard to service delivery across the country. Overall, municipalities suffer from:

• poor capacity of existing infrastructure to meet the current needs and future needs of the community;
• neglect of maintenance and/or poor operational management of existing infrastructure at the municipal level;
• lack of internal capacity in the form of technical and managerial skills to maintain the existing infrastructure or build new infrastructure;
• weak work processes and governance processes for planning, delivering, operating and maintaining infrastructure; and
• insufficient funding as well as poor financial management practices which render municipalities unsustainable.

We have not only acknowledged the challenges in local government. Central to the responsibilities of the Deputy President is to enforce One-Plan integration across Government, through the District Development Model. It is the whole of government approach, it is the maximisation of resources. Through the District Development Model and the Service Delivery Rapid Response approach, we have been working to ensure that we have One Plan that is measurable, implementable, and citizen-focused.

Over the last two months, I have visited Gauteng, Free State, Kwa-Zulu Natal and the Eastern Cape to help to resolve service delivery problems. In all the six districts and metros where we undertook oversight visits, we received reports on how together, we are addressing service delivery challenges and progress made in the adoption of the One-Plans.

We are pleased that good work is being done; however, there is a need to strengthen partnerships to improve service delivery.

We are committed to building a stable democracy that works for the people. That is why in response to the unstable coalition government especially in municipalities we have proposed to convene a dialogue on the coalition governments. The intention is to reach a consensus on the principles of coalitions and to ensure that we continue to build a strong and stable democracy in our country.

As we said before, engaging in the development of a coherent framework for coalition government is part of the nation-building project.

Honourable Speaker, our work through the South African National AIDS Council (SANAC) is bearing fruit. Together as Government, civil society, private sector, labour and development partners, we are on track in
mitigating the impact of the dual epidemics of HIV/AIDS and Tuberculosis (TB).

The implementation of the National Strategic Plan for HIV, Tuberculosis and Sexually Transmitted Infections 2017 - 2022 has had a positive impact on combatting HIV and AIDS in the last five years. In the latter part of 2022, 94 percent of the estimated number of people living with HIV knew their status,
76 percent of the people who knew their status were on anti-retroviral treatment, and 90 percent of those on treatment had suppressed viral loads.

A special focus has been given to accelerating prevention to reduce new HIV, TB and Sexually Transmitted Infections (STIs), providing treatment to reduce illness and mortality, as well as reaching all key and vulnerable populations with interventions, and leaving no one behind.

It is for this reason that SANAC has been holding a series of engagements with civil society, interfaith leaders, traditional leaders, traditional healthcare practitioners, and the private sector on the particular subject of addressing structural barriers and social determinants of the spread of HIV and AIDS.

The new iteration of the National Strategic Plan for HIV, TB and STIs for the period 2023 to 2028, will build on the successes of the previous NSP by way of maintaining the multi-sectoral, people-centred approach to eliminate HIV, TB and STIs as public health threats by 2030.

Honourable House Chair

Land Reform remains a key programmatic response to effecting restorative justice, and transforming the colonial and apartheid spatial planning.

We will continue to fast-track the land reform agenda, as it relates to access and the beneficial use of land. The Land Reform programme is also aimed at empowering beneficiaries including rural communities.

The success of our work depends on investing in a capable, ethical and developmental state that has the capacity to redirect capital and resources towards development and that has no tolerance for corruption.

In realising our commitment, we have embarked on a process to review career management of Directors-General and Head of Departments with a
view to place emphasis on outcomes. Secondly, we are moving with speed to institutionalise the professionalization of the public service, including having ethical leadership and meritocracy as the cornerstones of this administration.

Honourable Speaker,

As Leader of Government Business in Parliament, I will continue to monitor and strengthen Executive Accountability to Parliament. Central to this responsibility is ensuring that Members of the Executive attend to their Parliamentary responsibilities, by appearing before Portfolio Committees, and responding to questions for both oral and written replies within stipulated periods.

Linked to our role in monitoring executive accountability is the development of a realistic legislative Programme with priority Bills.

In April this year, we submitted the 2023 Legislative Programme as approved by Cabinet for introduction to Parliament. Cabinet Ministers have also been requested to identify priority Bills in line with Government priorities to be introduced to Parliament before the end of this administration.

Through our continuous engagements with Presiding Officers of Parliament, we will continue to fast-track and monitor the processing of priority legislation that will improve the planning capacity of line departments to effectively deliver services to the people.

Honourable Speaker,

One of the key priorities we are ceased with is to promote social cohesion and nation-building. In this regard, as the Government we continue to conduct a series of engagements with various partners, including Traditional and Khoi-San Leaders, Traditional Health Practitioners, Military Veterans, Faith-based organisations, labour as well as the private sector.

We have been engaging with the National House of Traditional and Khoi- San Leaders to tackle challenges such as the safety of Traditional and Khoi- San Leaders in our country. We have also agreed to work with all Traditional and Khoi-San Leaders, focusing on the following, among others:

• Uniformity and standardisation in terms of treatment and provisions to Traditional and Khoi-San Leaders across all provinces;
• Speedy finalisation of the Handbook for Traditional and Khoi-San Leaders to regulate the provision of the tools of the trade for Traditional and Khoi-San Leaders, including vehicles, computers, ICT connectivity, and furniture for Traditional Councils;
• Improvement in the remuneration of Traditional and Khoi-San Leaders, including pension and medical aid benefits;
• Construction of Chambers for the Provincial Houses that do not have these;
• The State to release land back to the custody of Traditional and Khoi-San Leaders and their communities;
• Review of Spatial Planning and Land Use Management Act;

We will continue to engage and report to this House on the work of the Inter- Ministerial Task Team to further strengthen our partnership, and address matters of concern to the institution of Traditional Leadership.

Honourable Chair,

At this stage, we must acknowledge the role played by all social partners and individuals at different levels, in responding to various societal challenges that confront us as a country, including disaster relief and community upliftment efforts.

We have no country other than the Republic of South Africa. In our diversity, which in itself is our strength, we must continue to work towards a common goal of a non-racist, non-sexist and prosperous nation.

Our continent requires peace, growth and prosperity. It is for this reason that we will accelerate peace efforts in South Sudan, the Great Lakes, Central Africa, the Horn of Africa and the rest of the continent.

Furthermore, the socio-economic opportunities of our continent will be realised through the implementation of the African Continental Free-Trade Area Agreement (AfCTA).
Equally, we will continue to advocate for a world and a global community based on the principle that all people are created equal and deserve equal opportunities and instruments to realise their full human potential.

Here at home, we are addressing all the factors that impede implementation, including local and departmental government capacity, red tape, governance, poor contract management, long turn-around times, and corruption.

We are equally monitoring underspending, fiscal dumping, and the quality of expenditure. We have begun to implement decisions around insourcing, especially on maintenance, standardisation, the decision on manufacturing of paving bricks for roads and other options.

We are going to strengthen Good Governance by building up capacities for implementation, ensuring ethical processes and addressing the challenges of construction mafias, criminality, and corruption, which lead to non- delivery.

We are not looking back. We are steaming ahead to build a better life for all!

I thank you!

 

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Minister Kgosientsho Ramokgopa: The Presidency (Electricity) Dept Budget Vote 2023/24

31 May 2023

President of the Republic, His Excellency, Cyril Ramaphosa
Speaker of the National Assembly, Ms Nosiviwe Mapisa-Nqakula,
Chairperson of the National Council of Provinces, Mr Amos Masondo,
Deputy President Paul Mashatile,
Members of Parliament,
Fellow South Africans.

Consultation and Stakeholder engagement:

Among the wide spectrum of stakeholders behind our efforts to reduce the intensity and regularity of load shedding, including the Unions, Industrial and Energy Intensive Users, Automotive Original Equipment Manufacturers, Industry bodies, The Retail Industry Association, Organised Property Owners and Developers, Original Equipment Manufacturers in the power generation sector, The Provincial Government of the Western, Gauteng and Eastern Cape,

The Municipalities of Nelson Mandela Bay, Buffalo City, Cape Town and Johannesburg Metro’s as well as SALGA

Diplomatic community through their missions here, including the embassies of Germany, China, Vietnam, Mozambique and the USA. We have just returned from a one-day working visit to our neighbour, Mozambique.

The Multi-lateral Development Banks(MDB), international aid agencies and development finance institutions

Without exception, these stakeholders have pledged their support for our strategic interventions to reduce the intensity and frequency of load shedding.

The winter outlook indicates an increased risk of supply shortfall against expected demand, with our worst-case scenario indicating that load- shedding could intensify to higher stages if our interventions are unsuccessful.

I should hasten to stress that an increase in load-shedding levels does not mean a greater risk of a national blackout; instead, load-shedding is a tool to prevent such an occurrence by managing the demand for electricity at a given time.

A National blackout or grid collapse remains highly improbable as multiple safeguards are in place to ensure that it does not occur.

Surviving Winter (0-120 days)
Potential MW Gain: 7000MW

ACTION	MW	LS Stage
1. CONTINUOUS IMPROVEMENT TO EAF FROM THE CURRENT 54% (MAY 2023) BY 9 PERCENT POINTS TO 65% BY EARLY 2024 (1% pt equivalent to 500MW
Installed Units Resident engineer programme Coal Quality improvements Strategic parts planning Direct procurement from OEM Fixing cooling towers.	(3% pt inc) 1400MW
2. Exploiting Peaking Plants
Ramping the OCGTs to achieve a load factor of 21%+	2000MW
3. Additional Generation Capacity
Contracting has been finalised for close to 400 MW of additional capacity through the Standard Offer Programme, which will be online in the coming days. This extra capacity comes from Kelvin Power Station and large-scale industrial producers.	400MW	40% of stage 1
80 MW is immediately available from Nacala Powership (Mozambique) - activation of PPA under emergency procurement through ESKOM	80MW
City Power also has diesel generators that can produce up to 100MW. These units are being assessed to determine the cost-benefit analysis of a return-to-service refurbishment.	100MW
The City also have a 48MW turbine which is being assessed to determine the technical feasibility and cost- benefit analysis of a return-to-service refurbishment.	48MW
4. DEMAND SIDE MANAGEMENT
According to recent Stats South Africa data, the country has at least 5.4 million electrical geysers connected to the grid. Studies show that the average daily energy consumption of these is about 6kWh. Assuming that 50% of this is consumed during the morning and evening peak hours, geysers’ average peak power demand is above 3.2 GW, a significant portion (approximately 10 percent of the average daily power demand).	3200MW	3 stages
CoJ is expanding its Demand Side Management / Load control Infrastructure
The City of Cape Town has implemented a load management programme targeting
The Nelson Mandela Bay Metro has rolled out geyser control units to and is working with the Ministry of Electricity to secure additional funding to expand the programme
Ministry to issue RFI before end of July 2023 for technology and funding partners to roll out DSM interventions
Madam Speaker, allow me to express, on behalf of the People and Government of South Africa, our profound gratitude to the Socialist Republic of Vietnam and in particular, their Ambassador to South Africa, HE Hoang Van Loi, whose tour of duty in our Country ends today for their support and cooperation in sharing their experiences of their successful demand side management and energy efficient programme.
5. Micro Gridding/Islanding of Hospitals, Critical Infrastructure and Industrial Nodes
The Department of Health has identified 213 hospitals for exclusion from load-shedding, of which 76 hospitals have been excluded to date, with work underway to exclude a further 46. The remaining hospitals have sufficient backup power supply from diesel generators, nevertheless Diesel cost remains a major expenditure driver, especially during higher load-shedding stages.
Apart from the diesel costs, the electricity costs are significant. An embedded generation option for health facilities (hospitals) will reduce operating costs whilst providing security and quality of supply.
The Ministry of Electricity has developed costing scenarios for installing an embedded generation (solar installation) to address the impact of load shedding and mitigate the impact of high diesel costs on medical facilities (large and small hospitals) Small Hospital (400kW power load) based on a 4- hour outage period for battery storage, solar panel and inverters option; R13 million per hospital capital expenditure is required. Large Hospital (1MW power load) based on a 4- hour outage period for battery storage, solar panel and inverters option; R59 million per hospital capital expenditure is required. Based on the Department of Health figures, to cover 137 Hospitals (varying between small and large), R10.1 Billion capital expenditure will be required to provide a combined Solar, Battery and inverter solution. In contrast, for the same 137 small hospitals, diesel generators will cost R89.1 Million in capital costs, whilst large hospitals will cost R411 Million (capital costs). However, the operating cost (primarily diesel purchase) will cost R3.3 Billion and R655 Million annually for large and small hospitals, respectively.
A rapid deployment of embedded generation or “micro- grid” solutions, including roof-top solar for hospitals, other critical installations, and economic hubs, will be possible through an aggregated power purchase agreement. Ministry to issue RFI before end of July 2023 and outline a fast track procurement process to secure IPPs for micro gridding.
Dear Madam speaker, please also allow me to express my appreciation to the Government of the Republic of China, through their Ambassador to South Africa, HE Chen Xiaodong for the generous technical and equipment support they continue to Offer.
6. WHEELING AND FEED-IN-TARIFF
The Ministry of Electricity will, supported by the Operation Vulindlela Programme Office and NECOM, develop and publish a National Wheeling Framework, as well as Feed-in-Tariffs and Net-Zero Billing Tariff frameworks to standardise the application processing, technical enablement and billing.
These Frameworks will be published before the end of July 2023 for stakeholder consultation, followed by the formal process of seeking the concurrence of the National Electricity Regulator of South Africa (NERSA), and it is anticipated that a national framework and tariff guidelines will be in place by the end of the 2023 calendar year
Ministry to create urgent technical/financial capacity for Municipalities to process wheeling agreements to support the energy crisis and lower demand. This capacity should inter-alia develop standardised contract templates, tools (or proposals) to standardise wheeling charges and tools (or proposals) to bill and administer wheeling accurately. Before end July 2023	10x 50MW 500MW (virtual)

Stabilisation (August 2023 – January 2024)

Potential Net Gain 19 920 MW

ACTION	MW	LS Stage
1. ADDITIONAL GENERATION CAPACITY
Kusile Unit 5 (800MW) will be returned by October 2023 (800MW) Units 3,2,1 will be brought online from 28 November, 11 December and 24 December, respectively (800 MW each | 2400 MW)	3200MW	3 stages
An interim solution is being implemented to return Medupi Unit 4 (800 MW) to service by April 2024, earlier than initially anticipated, using a second-hand stator  from  a  decommissioned  plant  in  the Netherlands	800MM	1 stage
Ministry  to   commence  Emergency  Procurement (Powerships based on 5 yr contracted PPA)	2000MW	2 stage
SMALL-SCALE    EMBEDDED    GENERATION    & ROOF TOP SOLAR
For every 1000 households that install a medium- sized solar system), 5MW of power is taken off the grid. To reduce one stage of load-shedding, or 1000MW, 200 000 households need to implement a similar system.	1000MW	1 STAGE
The   South  African   Property  Owners  Association (SAPOA) estimates that its members (Commercial Property Owners) have 100 million square meters of rooftop space to install solar panels. Based on a 50% usage, they estimate 9500 MW of energy on grid consumption can be “saved”, effectively creating a virtual power station, twice the size of Kusile. The Ministry will make technical capacity available to assist the affected municipalities to fast-track the wheeling applications and interim feed-in tariff/net zero billing.	9500MW	Up to 9 STAGES
The Temance gas-to-power facility is currently under construction (Mozambique) and will offer 420 MW by November 2024	420MW
2000MW gas-to-power is potentially available by 2026 (Central Tenica Bellualane, Mozambique)	2000MW
Further opportunities for an additional 1000MW is available   within   a   five-year   development   period (Mozambique)	1000MW

Energy Sovereignty (February 2024 and beyond)

ACTION	MW	LS Stage
NEW GENERATION CAPACITY
Further RFPs for 5000 MW of wind and solar PV, 1200 MW of battery storage and 3000 MW of gas are being developed. Ministerial determination in this regard will be released by August 2023.	9200MW	Energy surplus
Commence work on Transmission Grid strengthening and expansion (Eskom Transmission Expansion Plan)	R210Bn	(10-Yr Plan)
Distribution    infrastructure    reform,    investment    and improvements in quality of supply

PROTECTING JOBS AND LIVELIHOODS

Besides the technical interventions, the Government continues to support the most vulnerable against the impact and support businesses and industry, protecting jobs and our economic prospects. We are also conscious of our obligation to use the interventions proposed to drive localisation and job creation.

The Land Bank has established an R2.5 billion fund for farmers to invest in alternative energy solutions to support energy security. This will provide a mix of grant and loan funding, with the grant component ranging from 30-70 percent.

National Treasury is finalising adjustments to the Loan Guarantee Scheme to establish an Energy Bounce Back Scheme.

The Ministry of Electricity is working with the Government Employees Pension Fund to develop a facility to support low-income workers in the Public Sector to afford the upfront capital costs of solar solutions and other load management systems.

The key emerging constraint is that most electrical skills are trained on Alternative Current (AC) with limited Direct Current (DC) technicians available; the latter is needed to install panels and batteries.

The Ministry is working with the Unemployment Insurance Fund (UIF) and Sector Education and Training Authorities to develop a competency framework and related training programme to support the anticipated large-scale training.

To support the upscaling of rooftop solar and to match the anticipated demand over five years, South Africa would need to train over 20 000 electricians/installers at an estimated cost of R1.2 billion.

INVESTIGATING, APPREHENDING AND PROSECUTING OF FRAUD AND CORRUPTION AT ESKOM

Madam Speaker, with good reason, there has been keen interest in how fraud and corruption are being addressed.

Members will no doubt be aware, An Energy Safety and Security Priority Committee was established to address ESKOM-related crime on an inter- departmental, multi-disciplinary basis to address the objectives of Work Stream Six of the National Energy Crisis Committee (NECOM).

A total of 1952 Eskom-related cases were reported to the SA Police Service between 1 April 2022 and 29 May 2023, with 1405 cases still under investigation, and 126 arrests have been made.

A further 302 Eskom related cases were reported to the SA Police Service between 1 April 2023 and 29 May 2023 with 285 of the cases still under investigation and 31 arrests effected. 

A total of 214 arrests emanating from combatting operations were made through the collaborative efforts of law enforcement, together with key inter- departmental role players. The total value of items seized was R 89 933 212.

Whilst much remains, these interventions are beginning to turn the situation around, and there are indications that operational measures implemented have clearly disrupted the activities of criminal syndicates.

Madam Speaker, as I conclude, in the midst of the current energy challenges we face, it is easy to become numb to the massive gains that the Democratic government has made in ensuring universal access to energy is achieved, consistent with our commitment to the Sustainable Development Goals (SDGs).

Currently, at least 200 000 households are electrified, 20 000 to non-grid, medium voltage lines and new bulk substations per annum were constructed to extend the services to deep rural areas, including the 27 Priority Districts.

The percentage of South African households connected to the mains electricity supply increased from 76,7% in 2002 to 89,3% in 2021. (General Household Survey, 2021)

Households with access to mains electricity were most common in Limpopo (96,9%), Western Cape (95,1%), and Northern Cape (92,5%), and least common in Gauteng (82,7%) and North West (83,4%).

Madam Speaker, Mr President, it is often said that we don't even know how strong we are until we are forced to bring that hidden strength forward, our strength as a people is not tested during the best of times. In these times of necessity, people do amazing things and expose the human capacity for survival and renewal. Our nation, in so many ways, stands at a challenging crossroads, yet our People, despite the immense hardship, continue to demonstrate resilience that is the mark of Madiba’s rainbow nation. We dare not take their patience and courage for granted.

We dare not fail our People – let us indeed make every megawatt count! I thank you.

 

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Minister Khumbudzo Ntshavheni: The Presidency Dept Budget Vote 2023/24

31 May 2023

Speech by the Hon Khumbudzo Ntshavheni, MP, and Minister in The Presidency on the occasion of The Presidency Budget Vote 2023/2024 National Assembly

Madame Speaker
Your Excellency, President Cyril Ramaphosa,
Deputy President of the Republic, The Honourable Paul Mashatile, Ministers and Deputy Ministers,
Honourable Chief Whip
Honourable Members of the House, Ladies and Gentlemen, Distinguished Guests,

Madame Speaker,

On 25 May last week, our nation and our Continent observed Africa Day as an annual celebration of the best attributes of our continent, and as an inspiration for us to move Africa further forward towards the realisation of Agenda 2063.

25 May also signifies another important anniversary in our country, as this was the date in 2019 on which President Cyril Ramaphosa was inaugurated as the fifth President of a democratic South Africa.
 
In his Inauguration address at Loftus Versfeld Stadium, the President issued an energising call to action to our nation.

He said, and I quote: “Let us forge a compact for growth and economic opportunity, for productive lands and viable communities, for knowledge, for innovation, and for services that are affordable, accessible and sustainable.”

The President extended this compact to include an efficient, capable and ethical state that is free from corruption, for companies that generate social value and propel human development, and for elected officials and public servants who faithfully serve no other cause than that of the public.

Madame Speaker and Honourable Members,

On Africa Day 2019, none of us imagined the deadly, microscopic threat to life and livelihoods that would sweep across the world and our own country within months of our President’s inauguration.

The COVID-19 pandemic challenged us day by day and life by life to pull together as a nation and as a continent, and to forge partnerships that would allow us to secure our physical existence and support a battered economy.

Madame Speaker,

Today, we find ourselves still in recovery mode as we try to undo the lingering impact of a pandemic, during which our President played an outstanding role in the African and global arena as a champion for vaccine
 
equity; for vaccine production on home soil, and for various forms of relief of social and economic distress.

This reflection is necessary today as I – and this House - consider the crucial role of The Presidency in the final year of the Sixth Administration. This is an opportunity for us to reflect on the achievements, challenges, and the significant impact The Presidency has had on shaping our nation. The Presidency serves as the heartbeat of our government, providing strategic leadership, guidance and coordination across all spheres of government and society as a whole.

It plays a pivotal role in driving the implementation of government policies, ensuring efficient service delivery and fostering collaboration among various departments and stakeholders. Where required, The Presidency intervenes to assist in resolving persisting challenges.

In the past four years, The Presidency has been at the forefront of the transformative agenda of the Sixth Administration. It has spearheaded initiatives aimed at fostering social cohesion, promoting economic growth, and addressing the historical imbalances that have plagued our society.

BUDGET ALLOCATION AND OPERATIONAL EFFICIENCIES

Honourable Members,

Today, The Presidency is tabling a budget of R 625,1 million for the 2023/2024 financial year. We are not oblivious to the reality that we are tabling this budget at a time when our country is facing many challenges, some of which are the result of shifts and dynamics in geo-politics.
 
Throughout the Sixth Administration, The Presidency has been instrumental in supporting the vision and attainment of targets set by the President to address the challenges, internal and external, facing our nation.

Through its work, The Presidency sets the direction and tone for government policies and programmes, and it must direct the pace of service delivery in line with the aspirations and needs of the people.

Therefore, The Presidency must invest in building the capacity of the state, so that government can serve the citizens better, and provide adequate social support to vulnerable individuals and communities.

This Presidency must also mobilise all sectors of society to create conducive conditions for the private sector to grow the economy and create jobs.

Internally, The Presidency has been refocused and repositioned to become more agile, fit-for-purpose, efficient and responsive in fulfilling its role and providing support to the President and the Deputy President.

As part of supporting the President, The Presidency will track progress in the implementation of State of the Nation Address commitments. In this regard, The Presidency will also implement a Programme of Action for digital transformation in the public sector as the adoption of technology will enhance government’s ability to deliver services and track performance.
 
ACCELERATED STRUCTURAL REFORMS

One of the characteristics of this Presidency is that we do what we say we will do. Just yesterday, our Project Management Office and National Treasury gave the latest public update on Operation Vulindlela.

We reported progress in the implementation of 35 priority structural reforms – reforms that are shaped by continuous input from stakeholders in different sectors.

We reported an increase in the number of completed reforms from three to 11, with a further 14 reforms on track for completion by the set target dates.

This progress includes:

• Advancing the establishment of the National Transmission Company of South Africa (NTCSA) as an independent subsidiary of Eskom,
• Tax incentives for businesses and households to invest in rooftop solar,
• Work to establish a separate Infrastructure Manager within Transnet Freight Rail (TFR), which will enable third party access to the core rail network, and
• Partnerships with private terminal operators at the Durban Pier 2 Container Terminal and Ngqura Container Terminal Freight logistics reforms.

 
BUILDING PRACTICAL PARTNERSHIPS AS PART OF A WHOLE-OF- SOCIETY APPROACH

When as government we say “Let’s Grow South Africa Together”, we say so because we understand that to overcome our nation’s challenges, we need all hands and brains on deck.

This belief is reflected in The Presidency’s ongoing engagement with different actors in our society, as well as with international partners.
For example, since January this year, the President has held separate engagements with the Logistics and Freight sector, the Steel Manufacturing sector and CEOs of businesses.

The steel industry alone is worth R900 billion, covering almost 10 000 businesses and 170 000 employees. In these engagements, business has sought partnerships with government to deal with challenges confronting this nation.

These engagements have been platforms for critique and for collaboration, based on the overwhelming belief and confidence business leaders in our country have in this President, in this Administration and in the future, we are building together as South Africans.

These engagements have not expressed or created a sense of a sector that has lost confidence in President Ramaphosa, but we do understand outliers will always be with us.

As in data science, outliers do not represent the real population characteristics.
 
As part of growing South Africa Together, this Presidency engages as readily in boardrooms as we do on the streets of our communities.

With this in mind, Honourable Members, you will continue to see the President and the Deputy President interact with communities all over the country as they mobilise society, promote nation building and social cohesion.

Our future depends on our ability as South Africans of all backgrounds to heal the divisions of our past and to repair the damage inflicted on families, communities and our economy by the divisions of our past.

In the coming year, this Administration will work with all sectors of society to ensure that every South African has equal opportunities to succeed.

A united nation, where diversity is celebrated and everyone is treated with dignity and respect, is a strong nation.

As a government that listens to citizens and learns from social partners and communities, we see great value in our face-to-face, no-holds-barred dialogue with citizens under the District Development Model Presidential Izimbizo.

These gatherings, the sixth of which took place in this province of the Western Cape two weeks ago, enable engagement between civil society organisations, community leaders and individual citizens, and the President and leadership from all spheres of government.

This citizen-centred governance has fostered trust, promoted accountability and empowered the people to actively participate in shaping our nation's future.
 
FIGHT AGAINST CORRUPTION

One of the areas in which the private sector is seeking partnership with government is the fight against corruption and we are in discussion on the modalities of such a partnership.

Such a partnership will add to our implementation of the State Capture Commission Action Plan, the National Anti-Corruption Advisory Council Work Plan, and the processing of SIU reports.

INFRASTRUCTURE INVESTMENT

The Presidency will continue to support the initiatives to mobilise both domestic and international investments into South Africa.

We must applaud previous investment mobilisation efforts that achieved the R1.2 trillion target as set by the President.

This investment drive is positively changing the lives and livelihoods of tens of thousands of people who enter employment or advance in their jobs when new fixed investments are realised in our country.

Their income puts food on the table and their consumption of goods and services stimulates and sustains economic activity in many sectors – which in turn add to the revenue collected by the South African Revenue Service.

As we conclude the term of the 6th Administration, The Presidency will support the 2nd Round of investment mobilisation initiatives towards the R2 trillion target by 2028. From the 1st Round of investment mobilisation, the country has seen 161 out of 231 projects completed or under construction
 
Government is also embarking on a massive infrastructure investment programme in water and sanitation, roads, human settlements and others. My colleague, the Minister of Transport, recently laid out to this House her department’s planned funding of R42,6 billion for the construction, upgrading and maintenance of national and provincial road networks.

In the current financial year, the Department of Water and Sanitation has a budget allocation of R40 billion that will include fast-tracking projects that will, as the Minister said, ultimately ensure the realisation of constitutional rights to water and a safe environment.

TACKLING ECONOMIC SABOTAGE, VANDALISM OF INFRASTRUCTURE, EXTORTION AT CONSTRUCTION SITES

One of the biggest challenges we share as South Africans is that of fighting crime in all its forms, from interpersonal violence and asset crimes to economic sabotage, vandalism and extortion at construction sites, among others.

The crime statistics released by the Minister of Police yesterday tell us crime remains a stubborn stain on our society even as we make efforts from policing to socio-economic interventions, to make our country safer.

As the Presidency coordinates the work of government through Cabinet and other inter-ministerial platforms, we are heartened to see some downward shifts in certain crime categories.
 
We welcome the Minister of Police’s assessment that upscaled visible policing and disruptive operations from Thursdays to Mondays in all provinces are bearing fruit.

Operation Shanela is paying off and should give communities the confidence to work more closely with police, to create and strengthen community structures, and to continue to build families and communities that shun crime and bring criminals to account through lawful means.

NATIONAL SECURITY STRATEGY

Through the National Security Council, The Presidency oversees the implementation of the National Security Strategy.

PROMOTING GOOD GOVERNANCE AND ACCOUNTABILITY

The Presidency is determined to uphold the principles of transparency, accountability and the rule of law. We have implemented measures to combat corruption, strengthen the capacity of law enforcement agencies, and promote ethical behaviour within the public sector.

In promoting ethical behaviour in the public service, the Department of Public Service and Administration has introduced lifestyle audits for officials including Senior Management Service members and people who report to them, as corruption does not respect rank.

CONCLUSION

Madame Speaker, Honourable Members

This Budget Vote for the final year of the Sixth Administration gives South Africans the comfort that this a government in a sprint finish to the end of this electoral term.
 
We have the experience, the vision and the energy to see through our mandate to the end, and that is to mobilise all of society around our vision of a united, prosperous, and equitable nation.

We also have the vision and energy – and we will have the electricity - to see ourselves in this House again next year to present the first Budget Vote of the Presidency of the Seventh Administration.

As we embark on this final year of the Sixth Administration, let us remember the progress we have made, the challenges we have overcome, and the dreams we have yet to fulfil.

This is the final year in which we should remind ourselves of what this democracy means in terms of human sacrifices, compromises and trade- offs that were made to get us to the Constitution that remains the envy of the world.

As we take a moment to reflect on the journey travelled thus far, let us put our ideological differences aside and remain steadfast in our commitment to building a South Africa that leaves no one behind, a South Africa that upholds the values of democracy, and remains a beacon of hope for all.

There is no better definition of the national task at hand than that set out by President Cyril Ramaphosa at his Inauguration on 25 May 2019 when he said, and I quote:
“It is our shared will – and our shared responsibility – to build a society that knows neither privilege nor disadvantage.
“It is a society where those who have much are willing to share with those who have little.
 
“It is a society where every person, regardless of race or sex or circumstance, may experience the fundamental necessities of a decent, dignified life.

“Today, let us declare … that such a South Africa is possible.” God Bless Africa!

I thank you. 

 

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Minister Thembi Nkadimeng: Debate on The Presidency Dept Budget Vote 2023/24

31 May 2023

Enhancing State Capacity And Capabilities To Accelerate Basic Service Provision, Infrastructure Development And Maintenance

Honourable Speaker
Honourable Chairperson and Members Parliament
Honourable Members
Fellow Cabinet Members
Fellow South Africans
Ladies and Gentlemen

Good evening

Honourable Chairperson,

Let me appreciate the opportunity to participate in today’s debate on the Presidency budget vote.

Allow me to recognise the significance of this day as it marks the end of our celebration of Africa month and the ushering in of our commemorations of Youth month. As the continent of Africa, we have a Youth dividend that we have yet to leverage fully particularly to enhance state capacity and capability in order to drive a progressive socio-economic agenda that “leaves no one behind”.

At the heart of our approach as championed by the President is to find systematic solutions to address challenges facing our communities through citizen-centred instruments such as the District Development Model (DDM).

Our input today as CoGTA is premised on building a capable, ethical and developmental state anchored on the implementation capability of local government that is underpinned by cooperative governance – a functional and integrated government.  Building of municipalities that are resilient, sustainable with durable infrastructure cannot continue without the recognition of the current crises that’s unfolding in Hammanskraal.  I would like to express our sincere condolences to the families who have lost loved ones and the entire community of Hammanskraal for the hardships they are going through.

As part of our systematic response to episodes like those in Hammanskraal, we are putting in place the Water Resilience Action Plan which will form the foundation of our Bulk Water Supply and Waste Water Treatment plant infrastructure rehabilitation and energy efficiency interventions within the water reticulation and sewer systems.  

Capacity Building

Working with social partners, MISA is rolling out a training programme for water and wastewater process controllers, which is aimed at capacitating municipal officials in low and middle capacity municipalities. A similar programme is being implemented to train and qualify municipal general workers as artisans to complement the work of process controllers in ensuring optimal operation and maintenance of water and wastewater infrastructure.

The approach towards building local government capacity should involve creation of a technical skills pipeline by investing in the development of a new cohort of technical experts. As CoGTA, we have placed a number of Apprentices, Experiential Learners, and Young Graduates in municipalities to give them work exposure and introduce them to local government municipal infrastructure management.

MISA will continue to deploy built environment professionals to provide technical support to municipalities for infrastructure development. These technical professionals support municipalities throughout the project life cycle from planning, implementation, operation and maintenance. To-date MISA has deployed 103 built environment professionals (86 of which are professionally registered with Statutory bodies as engineers and town planners) to provide technical support to municipalities. The MISA professionals support municipalities to implement all infrastructure projects funded all stakeholders including sector departments like the Department of Water and Sanitation (DWS) and Department of Minerals and Energy (DMRE).

Stabilizing Coalitions

Honourable members, we are in a process of stabilizing local government aided by multiple instruments that have given effect to a valuable collaboration between the Departments Cooperative Governance (DCoG) and National Treasury (NT) as well as the South African Local Government Association (SALGA). Evident, from the 2021 Local Government Elections (LGE) is the fact that our democracy is giving practical expression to the values of multiparty governance, however this implies that our legislative and policy environment needs to continuously adapt to the dictates of the new realities. Interestingly, these developments start as being marriage of convenience with the sole intention of destabilizing the ANC and remove it from power at all costs, going to an extent of coalition partners being willing to even kiss a frog with eyes wide open. Legislative review will include:

• Institutionalizing the IGR Framework
• Ensuring the adopted IDP’s remain as a guiding implementation tool even when changes occur within municipalities.
• Introduction of the 1% Threshold Representation in Council
   

Fiscal & Infrastructure Development

The department will implement fiscal reforms that have previously been introduced through the Division of Revenue Act by leveraging the conditional grants allocations (e.g., MIG) to scale up the financing of infrastructure development.  Issues related to procurement have been identified to be major contributory factor to poor spending of grants allocations. The rolling out of Infrastructure procurement reforms (Local Government Infrastructure Delivery Management System) and the use of framework contracts to the priority 22 dysfunctional municipalities to improve MIG expenditure will be prioritised.

To meet the infrastructure demand by the country, the department will continue to ensure efficient management of key grants.

The Municipal Infrastructure Grant (MIG) provides capital finance to 217 municipalities to implement infrastructure-related projects to ensure basic service delivery to poor households in the areas of water, sanitation, roads and community facilities. Underperforming municipalities will be supported to utilise the 5% set aside for the enhancement of project management capabilities, which will assist with scoping, expenditure tracking and quality management. We also take this opportunity to commend the 116 municipalities who have spent above 90% of their cumulative allocations, over the past four years. CoGTA will intervene in municipalities where there is under-expenditure by applying provisions of the Division of Revenue Act that allows the department to retain a portion of the MIG allocation and create an indirect grant (Schedule 6B).

Division of Revenue Act that allows the department to retain a portion of the MIG allocation and create an indirect grant (Schedule 6B). This essentially means we will no longer wait for perennial underspending in municipalities which results in monies being taken back to the National Treasury. Will instead proactively develop a plan to be implemented by MISA working with partners in the service delivery value chain.

Linked to this we are now establishing a new strategy in the department in the form of RMO, the Results Management Office with the aim to bring project and program implementation capabilities to accelerate service delivery using the District Development Model Approach.

The Integrated Urban Development Grant (IUDG) is, firstly, to provide funding for public investment in infrastructure for the poor and, secondly, to promote increased access to municipal own sources of capital finance in order to increase funding for public investment in economic infrastructure. Municipalities receiving the IUDG must meet the set qualification criteria and currently there are 8 municipalities on the programme, namely, Polokwane, Sol Plaatje, Steve Tshwete, Mogale City, Ray Nkonyeni, Umhlathuze, Stellenbosch and Drakenstein, with George addition from the 2023/24 financial year.

District Development Model

Chairperson,

Our collective oversight and accountability across all spheres of government can bear the desired impact when the oversight is cross-sectional and is able to view the performance of all spheres collectively. It is for this reason that the institutionalisation of the DDM as an operating model for energesing the cooperative governance system can never be underestimated.  

The department heeded the call of the Presidential Employment Stimulus, two key programmes are being rolled out in this regard. The first one is the institutionalisation of Labour-Intensive Construction (LIC) methods by municipalities in the implementation of municipal infrastructure projects to create as many job opportunities as possible. The department has identified 23 municipalities (including Greater Kokstad Municipality in Harry Gwala District Municipality in KZN, uMzimvubu Municipality in Alfred Nzo District Municipality in the EC, in DR JS Moroka Municipality in Nkangala District Municipality in Mpumalanga Province, Vhembe District Municipality and in Mogalakwena Municipality in Limpopo) as a pilot for this program and intends to roll out to the rest of municipalities in the outer years. The programme aims to assist municipalities to job opportunities on infrastructure projects and will be funded by different sources that include the Municipal Infrastructure Grant (MIG) and the Water Services Infrastructure Grant (WSIG). As at the end of January 2022, the number of job opportunities reported were 5669.

The second programme of the PES in partnership with the Department of Environment, Forestry & Fisheries is the Innovative Waste Management Program that is targeting the youth and women in at least 45 municipalities across the country, as a pilot phase. The primary goal of this program is to promote, ensure effective and efficient delivery of waste management services whilst also improving livelihoods in communities through implementation of innovative solid waste management mechanisms. This program aims to create work-opportunities across the Solid Waste Management value chain components (Waste Generation, Collection, Sorting/Segregation and Disposal) as well as promote Enterprise development in communities to benefit 154 SMMEs. At the end, we will benefit as society by having cleaner and greener cities. Let’s support this initiative and ensure that local government is everybody’s business.

Quite a number of streams are involved, this includes producers of packaging material, electrical and electronic products taking financial responsibility for waste arising from their products and investing in waste collection and waste recycling economy. Over 1005 registrations have been done, 29 registered organisations and 976 producers have initiated schemes for collection and diversion of their waste products. Waste Buyback Centre was constructed at Sakhisizwe Local Municipality and in Laingsburg Local Municipality the Buy Back Centre was refurbished. Buy Back Centres ensure that more packaging waste is diverted from landfill to create jobs. A total of 25 municipalities were assisted to purchase specialized vehicles for waste management through the Municipal Infrastructure Grant (MIG).

Developing Disaster Management Capacity and improving agility of disaster responses and reconstruction:

Honourable Chair,

The realities of climate change and the need for a climate smart as well as resilient infrastructure led to adoption of a Programme of Action for implementation which amongst other things involves on improving the agility of disaster responses and reconstruction, through the following strategies:

• Contingency planning: developing comprehensive plans outlining roles and procedures for efficient disaster response.
• Grant Funding: Securing sustainable funding for disaster risk and response management activities and programs.
• Response: Ensuring well-coordinated, timely disaster response with resource mobilization and information sharing.
• Recovery: Restoring disaster-affected communities through short-term and long-term rebuilding and vulnerability reduction efforts.
• Advancing rural development and Presidency strategic support for traditional leadership and the Khoi-San
   

The National House of Traditional and Khoi-San Leaders (NHTKL), compiled an Invest Rural Master Plan as a development niche for the institution of traditional leadership. The aim of the plan is to promote investments in areas under the jurisdiction of traditional leaders. To ensure integration and alignment with other government initiatives, the Department of Agriculture Land Reform and Rural Development (DALRRD) has incorporated the plan into the Integrated Rural Development Strategy for further implementation. 

Seeing that the Invest Rural Master Plan relates to various sectors of development, the department will continue establishing strategic partnerships to ensure that various government departments incorporate programmes and projects responding to the plan. These projects should be mainstreamed into the DDM One Plans and for traditional leaders to ensure maximum benefits of their respective communities.

Another aspect that will be considered in enhancing rural development, relates to mining activities taking place in traditional communities. Working closely with the Department of Mineral Resources and Energy (DMRE) and municipalities, the department will ensure that the Social and Labour Plans (SLPs) submitted by mining companies contribute towards the socio-economic development in traditional communities, for maximum benefit in terms of enterprise development, skills development, procurement, socio-economic development, ownership to mention a few.

Socio-economic development is critical as it seeks to change lives of people in traditional communities. The Department of Traditional Affairs (DTA) has partnered with the National School of Government (NSG) in capacitating traditional leaders on the Art of facilitating Socio economic development in traditional communities. These are some of the initiatives that the we will continue rolling out in advancing rural development for people living in areas under the jurisdiction of traditional leadership. This initiative has been piloted in the Eastern Cape, KwaZulu Natal and members of the National House of Traditional and Khoi-San Leaders have benefitted from this training. The department will ensure that this is rolled out in all other provinces.

Furthermore, working closely with MISA and municipalities, the department of traditional affairs will implement rural infrastructural projects to benefit traditional areas, thus improving service delivery. This will include but not limited to construction renovations and rehabilitation of road infrastructure, community halls and traditional council offices, etc. The department will continue facilitating such initiatives to for the benefit of traditional communities going forward.

Notwithstanding the challenges we have in municipalities, there are significant strides that have been made to ensure service delivery to our people. Going forward we need municipalities that function in the interest of their communities, “leaving no one behind”.

Local government is everybody’s business.

I thank you.