Hansard: JS: State of the Nation Address

House: Joint (NA + NCOP)

Date of Meeting: 10 Feb 2022

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Minutes

UNREVISED HANSARD 

THURSDAY, 10 FEBRUARY 2022
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PROCEEDINGS OF HYBRID JOINT SITTING


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Members of the National Assembly and the National Council of Provinces assembled in the Cape Town City Hall at 19:00.
The Speaker of the National Assembly and the Chairperson of the National Council of Provinces took the Chair.
The SPEAKER: Hon members and guests, in the interests of safety for all present in the Chamber, we request that you please keep your masks on and sit in your designated areas. Thank you.

CALLING OF JOINT SITTING

The SPEAKER: Hon members, the President has called this Joint Sitting of the National Assembly and the National Council of Provinces in terms of section 84(2)(d) of the Constitution of the Republic of South Africa, 1996, read with Joint Rule 7(1)(a), in order to deliver his state of the nation address to Parliament. I now call on the honourable President to address the Joint Sitting. [Applause.]

STATE OF THE NATION ADDRESS

The PRESIDENT OF THE REPUBLIC: Speaker of the National Assembly Ms Nosiviwe Mapisa-Nqakula, Chairperson of the National Council of Provinces Mr Amos Masondo, Deputy President of the Republic of South Africa Mr David Dabede Mabuza, former President of the Republic of South Africa Thabo
Mbeki ... [Applause.] ... former Deputy President Phumzile Mlambo-Ngcuka ... [Applause.] ... former Deputy President Ms Baleka Mbete ... [Applause.] ... former Speaker of the National Assembly Mr Max Sisulu ... [Applause.] ... Acting Chief Justice Raymond Zondo ... [Applause.] ... Mayor of the City of Cape Town, whom we thank for making this venue available, Mr Geordin Hill-Lewis ... [Applause.] ... Dean of the Diplomatic Corps Mr Bene M’Poko ... [Applause.] ... members of the judiciary, heads of institutions supporting democracy, Members of Parliament, fellow South Africans, this
] year, for the first time since the dawn of our democracy, this state of the nation address is being delivered with us not
being in the Chamber of the National Assembly.

As we entered this new year, a huge fire engulfed the seat of our democracy. We all watched in outrage and sadness as the flames devoured the buildings in which our democratic Constitution was born, in which laws of transformation and progress have been passed, the House in which the freely chosen representatives of the people of our country have shaped our young nation.

For many, what happened in Parliament speaks to a much broader devastation in our land. For many, the fire was symbolic of the devastation caused by the COVID-19 pandemic, by rising unemployment and deepening poverty in our country. It spoke to the devastation of a pandemic that over the past
two years has taken the lives of tens of thousands of South Africans, put two million people out of work and brought misery to many families in our country. The fire in Parliament reminded us of the destruction, violence and looting that we witnessed in parts of the country in July last year, of the more than 300 lives lost and many more livelihoods ruined.

As we reflect on the past year, we recall the words of our former President Thabo Mbeki who reminded us that: “Trying times need courage and resilience.” [Applause.] He continued to say that “Our strength as a people is not tested during the best of times.” This means that during the worst of times our courage is really truly tested. That we are gathered together in the Cape Town City Hall instead of the National Assembly Chamber reflects the extraordinary circumstances of this time.

It reflects the determination of our presiding officers of Parliament and indeed all members of the two Houses of Parliament who determined that the work of this democratic institution should continue without interruption. I applaud our presiding officers and all of you. [Applause.]
There are moments in the life of a nation when old certainties are unsettled and new possibilities emerge. In these moments, there is both the prospect of great progress and the risk of reversal. Today, we are faced with such a moment. The path we choose now will determine the course for future generations. That is why we are taking steps to strengthen our democracy and reaffirm our commitment to a Constitution that protects us all, the most wonderful Constitution in the world.
[Applause.]
We are working together to revitalise our economy and end the
inequality and injustice that impedes our progress as a
nation. We are standing together against corruption and to
ensure that those who are responsible for state capture are
punished for their crimes. [Applause.]
We are rebuilding the state and restoring trust and pride in
our public institutions. If there is one thing we all agree
on, it is that the present situation that we are in now – of

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deep poverty, unemployment and inequality – is unacceptable
and unsustainable.
There is agreement among a broad and diverse range of South
Africans that fundamental change and reforms are needed to
revive economic growth in our country.
There is a need both to address the immediate crisis and to
create conditions for long-lasting stability and development.
To achieve this, South Africa needs a new consensus: a
consensus that is born out of a common understanding of our
current challenging situation and a recognition of the need to
address the challenges of unemployment, poverty and
inequality.
This should be a new consensus which recognises that the state
must create an environment in which the private sector can
invest and unleash the dynamism of our economy. [Applause.]
But, equally, it is also an environment in which South
Africans can live a better life and unleash the energy of
their capabilities.
This should also be a new consensus which embraces our shared
responsibility to one another as South Africans, and
acknowledges that we are all in this together, and together we
must find solutions that will take our nation forward.

 

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As the social partners – government, labour, business and
community-based entities – we are working to determine the
actions we will take together to build such a consensus. We
have begun discussions on what trade-offs are needed and what
contribution we will each need to make to take this country
forward. We have given ourselves 100 days to finalise what I
call a comprehensive social compact to grow our economy, to
create jobs and to combat hunger. This work will build on the
foundation of the Economic Reconstruction and Recovery Plan,
which we adopted and which remains our common programme to
rebuild the economy.
We remain focused on the priorities we identified in the State
of the Nation Address last year: overcoming the COVID-19
pandemic; a massive rollout of infrastructure; a substantial
increase in local production; an employment stimulus to create
jobs and support livelihoods; and the rapid expansion of our
energy-generation capacity.
To be effective, this social compact needs to include every
South African and every part of our society. In the end, we
must all be imbued with the understanding that no one must be
left behind.
Fellow South Africans, when I last addressed the state of our
nation, we were deep in the throes of the worst pandemic in

 

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more than a century. Since COVID-19 reached our shores, we
have endured successive waves of infection, the emergence of
new variants and the devastating cost of nearly 100 000
recorded COVID-19 deaths.
South Africans have responded to this grave threat not just
with great courage and resilience, but also with compassion
and restraint. Over the past two years, we have taken
unprecedented actions to strengthen our health system, to
build laboratory capacity and to prevent infections.
The nation owes a great debt of gratitude to the dedicated
health care workers and other frontline staff who put their
own health and their own lives at risk to care for the ill and
the vulnerable during this pandemic. [Applause.]
Within two weeks of the first reported infection in our
country, I announced the establishment of the Solidarity Fund,
with the goal of uniting the country in the fight against the
pandemic. In a wave of generosity that we have never seen
before in our country, a wave of generosity that swept
throughout the country, the Fund raised R3,4 billion from more
than 300 000 individuals and 3 000 companies. [Applause.] More
than 400 individuals and 100 companies volunteered their time
and services for free. The Fund has played a pivotal role in
supporting the national health response and alleviating the

 

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humanitarian crisis that confronted our country and our
people.
I would like to thank everyone who contributed to the
Solidarity Fund, and many of those individuals who contributed
were a number of you as Members of Parliament. So I applaud
you, I thank you and I congratulate you for that. [Applause.]
I also congratulate and thank the countless other initiatives
to support those affected by the pandemic, and they range from
people who gave food parcels to people who went out of their
way to care for those who were affected by and infected with
COVID-19.
As the trajectory of the pandemic has continued to change, we
have had to adapt and evolve. Our approach has been informed
throughout by the best available scientific evidence, and we
have stood out both for the quality of our scientists and for
their involvement in every step of our response.
During the past year, we have focused on accelerating our
vaccine rollout. So far, we have, as a nation, administered
some 30 million doses of COVID-19 vaccines. Consequently,
nearly 42% of all adults and 60% of everyone over 50 is fully
vaccinated. [Applause.] This is a real achievement that many
countries on our continent have not been able to reach.

 

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We are now ready to enter a new phase in our management of the
pandemic. It is our intention and also my clear intention to
end the national state of disaster as soon as we have
finalised ... [Applause.] ... other measures under the
National Health Act and other legislation to manage and
contain the pandemic. [Applause.] This we have to do.
Now, all of you will know that by now nearly all restrictions
on economic and social activity have already been lifted.
Vaccines have proven to be the best defence we have against
illness and death from COVID-19. [Applause.] And, I’ve always
said, even from a personal point of view, that had I not been
vaccinated when I contracted COVID-19 in December, I probably
would not be standing here before you. [Applause.] My defence
was being vaccinated.
If we all get vaccinated and continue to observe basic health
measures and remain forever vigilant, we will be able to get
on with our lives even with the virus in our midst.
The state of the nation is linked inextricably to the state of
our economy. In addition to the divides of race, geography and
education and status, COVID-19 has exacerbated the divide
between those who are employed and unemployed. Last year, our
unemployment rate reached its highest recorded level.
Unemployment has been caused by low growth, which has in turn

 

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resulted from a long-term decline in investment in our
economy, which has lasted for a number of years. In the last
year, we have benefited from a clear and stable macroeconomic
framework, from strong commodity prices, from mining and from
a better-than-expected recovery.
However, we have been held back by an unreliable electricity
supply, inefficient network industries and the high cost of
doing business in our country.
We have been taking extraordinary measures to enable
businesses to grow and create jobs alongside expanded public
employment and social protection, which we have put in place.
We all know that government does not create jobs. Business
creates jobs. [Interjections.] [Applause.]
Around 80% of all the people employed in South Africa are
employed in the private sector. [Interjections.] The key task
of government is to create the conditions that will enable the
private sector ... [Applause.] And this is the case, whether
we like it or not, all over the world. It is when government
creates that environment that will enable businesses, both big
and small, to emerge, to grow, to access new markets, to
create new products, and to hire more employees.

 

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The problems in the South African economy are deep and they
are structural. When electricity supply cannot be guaranteed,
when our railways and ports are inefficient, when innovation
is held back by a scarcity of broadband spectrum, when water
quality deteriorates in our municipalities and where we live,
companies are reluctant to invest and the economy cannot
function properly.
With a view to addressing these challenges we are accelerating
the implementation of far-reaching structural reforms to
modernise and transform these industries, unlock investment,
reduce costs of doing business and increase competitiveness
and to heighten growth in our economy.
The electricity crisis is one of the greatest threats to
economic and social progress. In the last few days, we have
once again been reminded of the fragility of our electricity
system.
Load shedding continues to have a huge impact on the lives of
South Africans, disrupting businesses and placing additional
strains on families and communities. Due to our ageing power
stations, poor maintenance, policy missteps and the ruinous
effects of state capture, our country has a shortfall of
around 4 000 MW of electricity.

 

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During the past year, we have taken firm steps to bring
additional generation capacity online as quickly as possible
to close the shortfall. As a result, several new energy
generation projects will be coming online over the next few
years. This includes: over 500 MW from the remaining projects
in Bid Window 4 of the renewable energy programme, which are
at advanced stage of construction; 2 600 MW from Bid Window 5
of the renewable energy programme, for which the preferred
bidders were announced last year; up to 800 MW from those
risk-mitigation power projects that are ready to proceed;
2 600 MW from Bid Window 6 of the renewal energy programme,
which will soon be opened; 3 000 MW of gas power and 500 MW of
battery storage, for which requests for proposals will be
released later this year; an estimated 4 000 MW from embedded
generation projects that the mining industry is currently
working on; and approximately 1 400 MW currently in the
process of being secured by various municipalities once we
opened the way for them to generate.
In addition to closing the energy supply shortfall, we are
implementing fundamental changes to the structure of the
electricity sector. Eskom has established a separate
transmission subsidiary and is on track to completing its own
unbundling by December 2022.

 

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The utility has continued with its intensive maintenance
programme to reverse many years of neglected maintenance and
underperformance of existing plants.
To regulate all of these reforms, Cabinet yesterday approved
amendments to the Electricity Regulation Act for public
comment. These far-reaching amendments will enable a
competitive market for electricity generation and the
establishment of an independent state-owned transmission
company.
Our economy cannot grow without efficient ports and railways.
Over several years, the functioning of our ports has declined
relative to ports in other parts of the world and particularly
to those on our own continent as well. This constrains
economic growth and holds us back from acceding to higher
levels of economic growth.
The agricultural sector, for example, relies heavily on
efficient, well-run ports to export their produce to overseas
markets. The Minister of Agriculture was telling me that we
have now opened the Chinese market for citrus and for a number
of other products that we produce or grow here. And we
therefore need efficient ports to be able to export all that
produce to high-demanding markets like China and many other
places.

 

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Fresh produce cannot wait for days and even weeks stuck in a
terminal. This hurts businesses and compromises our country’s
reputation as an exporter of fresh produce. Fresh produce also
includes meat products and many others.
Transnet, faced with all these challenges, is addressing these
challenges and is currently focused on improving operational
efficiencies at our ports through procuring additional
equipment and implementing new systems to reduce congestion.
[Applause.] I have been able to go to our ports and I have seen the
work that Transnet is doing in this regard.
Transnet will soon ask for proposals from private partners for
the Durban and Ngqura Container Terminals within the next few
months, which will enable partnerships to be in place at both
terminals by October 2022.
Transnet will start the process of providing third-party
access to its freight rail network from April 2022 by making
slots available on the container corridor between Durban and
City Deep in Gauteng.
Transnet has developed partnerships with private-sector
entities to address cable theft, which has been paralysing our
railways, and to address vandalism on the freight rail network

 

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through advanced technologies and additional security
personnel.
This collaborative effort is already showing results in
reduced disruptions to rail operations. The poor state of
passenger rail in our country has a direct and detrimental
impact on the lives of our people.
We are therefore working hard to rehabilitate the passenger
rail network in 10 priority corridors. The Southern Line in
Cape Town and the Mabopane Line in Pretoria have been reopened
to be followed by the remaining lines in the next year.
One of the greatest constraints on the technological
development of our economy has been the unacceptable delay –
of years – in the migration of broadcasting from analogue to
digital. The switch-off of analogue transmission has been
completed in a number of provinces.
As I announced in the state of the nation address last year,
the other provinces will move to digital signal by the end of
March 2022. I have seen the joy that our people have when they
gain access to digital and have the pleasure of watching
television, which is clear and which has many more stations.
And, this, we are going to continue doing. [Applause.]

 

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As part of this process, government will continue to subsidise
low-income households so that they can access a set-top box
and make the switch to digital TV.
Our communications regulator, Icasa, will commence with the
process of auctioning the high-frequency communications
spectrum in about three weeks from now. [Applause.] This will
unlock new spectrum for mobile telecommunications for the
first time ever in over a decade.
In addition, we will facilitate the rapid deployment of
broadband infrastructure across all municipalities by
establishing a standard model for the granting of municipal
permissions.
These reforms will revolutionise the country’s technological
development, making faster broadband accessible to more people
and, more importantly, reducing the costs of digital
communications.
The world over, the ability to attract skilled immigrants is
the hallmark of a modern, thriving economy. We are therefore
streamlining and modernising the visa-application process to
make it easier to travel to South Africa for tourism, for
business, for study and even for work.

 

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As we committed to last year, the eVisa system has now been
launched in 14 countries, including megacountries such as
China, India, Kenya and Nigeria.
The revised Critical Skills List has been published for the
first time since 2014, following detailed technical work and
extensive consultations with business and labour. The updated
list reflects the skills that are in shortage today to ensure
that our immigration policy matches the demands of our
economy.
A comprehensive review of the work visa system is currently
under way, led by former Director-General of Home Affairs Mr
Mavuso Msimang. This review is exploring the possibility of
new visa categories that could enable economic growth, such as
a start-up visa and a remote working visa. These are all the
reforms that underpin and undergird the growth of our economy.
Water is the country’s most precious natural resource to all
of us as South Africans. It is vital to life, to development
and to economic growth. That is why we have prioritised
institutional reforms in this area to ensure future water
security, investment in water resources and maintenance of
existing assets.

 

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We have embarked on the process of institutional reform in
capacitating the Department of Water and Sanitation and
reviewing water boards in as far as their mandates are
concerned and ensuring that they serve municipalities in terms
of our district development model.
These reforms are being championed by the Minister of Water
and Sanitation, who has visited every water source in the
country and who has examined precisely what needs to be done.
A comprehensive turnaround plan is being implemented to
streamline the process for water use licence applications.
These applications used to take forever – up to three years –
and they are now being streamlined. The target is to clear the
backlog of applications by June 2022 and to process 80% of all
applications within 90 days during the next financial year.
[Applause.]
Legislation has been prepared for the establishment of the
National Water Resources Infrastructure Agency, and will be
published for public comment within the next month.
The water quality monitoring system has been reinstated to
improve enforcement of water standards at municipal level, and
to enable the Department of Water and Sanitation to intervene
where water and sanitation services are failing. Now, this is

 

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how we are going to be able to make interventions, even at the
local level. When water is not provided to our people, we will
be able to intervene and assist those municipalities.
[Applause.]
We will review the policy and regulatory framework for a whole
number of other processes, but more importantly – which will
come as sweet news for our people in the Eastern Cape and
KwaZulu-Natal - for industrial hemp and cannabis to realise
the huge potential for investment and job-creation.
[Applause.] This natural product, which our people have been
farming with and harvesting for a number of purposes, is now
going to be industrialised ... [Applause.] ... and no longer
just be resorted to the smoke process. Many countries around
the world have already advanced to higher levels. Our
immediate neighbour Lesotho has moved ahead in the
industrialisation of cannabis in leaps and bounds, and the
products that are to be eked out of hemp and cannabis are in
great demand around the world. We want to harness this so that
we can release and unleash the energy of our ordinary farmers
in the various parts of our country, especially in the Eastern
Cape as well as in KwaZulu-Natal particularly in the Pondoland
area. [Applause.]
While structural reforms are necessary for us to revive
economic growth, they are not enough on their own. There are

 

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quite a number of other structural reforms that we are in
conversation about with the private sector, and we are ad idem
in as far as how deep and how far we should go.
This year, we are undertaking far-reaching measures to unleash
the potential of small businesses, micro businesses and
informal businesses. These are the businesses that create the
most jobs and provide the most opportunities for poor people
to earn a living.
We have started discussions with social partners as part of
the social compact to process a number of measures. Some of
those will be how we enable small and medium-sized enterprises
to operate without too many strictures in areas such as
labour-market regulations for smaller businesses to enable
them to hire more people, while continuing to protect the
rights of working people.
A new, redesigned loan guarantee scheme is being introduced to
enable small businesses to bounce back from the pandemic and
the civic unrest that we went through. This new bounce-back
scheme incorporates lessons from the previous loan guarantee
scheme which did not work as well as I had anticipated. You
would recall that we launched it under the stimulus programme,
which was quite unprecedented in the history of our country.

 

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This new and redesigned loan scheme, which will serve small
businesses, will involve development finance institutions and
non-bank SME providers in offering finance, expanding the
types of financing available and adjusting eligibility
criteria to encourage greater uptake.
The National Treasury is working with industry stakeholders to
finalise the scheme and the Minister of Finance will provide
details soon.
We are reviewing the Business Act – alongside a broader review
of legislation that affects small and medium-sized enterprises
– to reduce the regulatory burden on informal businesses.
We have found that there are too many regulations in our
economy and our country that are unduly complicated, costly
and difficult to comply with. [Applause.] This prevents
companies from growing and creating jobs.
I will forever remember the image of a woman who was selling
these dark bags which she had sewn up herself. She was on the
side of the road selling them and the metro police accosted
her, arrested her and put her in the back of a police van. Her
crime, they said, was that she did not have a permit to sell a
product which was going to put food on the table for her
children. Now that, for me, is the regulatory strictures that

 

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we have introduced in our economy gone completely wild,
because what we need to be doing is to support that lady to
sell her products and support her family. [Applause.]
We are therefore working to improve the business environment
for companies of all sizes through a dedicated capacity in the
Presidency to reduce red tape.
If we are to make progress in cutting unnecessary bureaucratic
delays for businesses, we need dedicated capacity with the
means to make changes. I have therefore appointed Mr Sipho
Nkosi to head up a team in my office to cut red tape across
our economy and also our government. [Applause.]
Mr Nkosi has extensive experience in business, including as
the CEO of a mining company and is currently the Chairperson
of the Small Business Institute. He knows very well what red
tape does to business and will be working alongside our
officials to cut the red tape to enable our businesses to
thrive and to grow.
The red tape team will identify priority reforms for the year
ahead, including mechanisms to ensure government departments
pay suppliers within the required 30 days. [Applause.]

 

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The team will also work with other departments and agencies to
unblock specific obstacles to investment and business growth.
It will support current initiatives to simplify processes
relating to property registration, cross-border trade,
construction permits and all that.
Infrastructure is central to our economic reconstruction and
recovery. Through innovative funding and improved technical
capabilities, we have prioritised infrastructure projects to
support economic growth and better livelihoods, especially in
energy, roads and water management.
The Infrastructure Fund is at the centre of this effort, with
a R100 billion allocation from the fiscus over 10 years. The
Infrastructure Fund is now working with state entities to
prepare a pipeline of projects with an investment value of
approximately R96 billion in student accommodation, social
housing, telecommunications, water and sanitation and
transport.
Several catalytic projects to the value of R21 billion are
expected to start construction this year. Of this,
R2,6 billion is contributed by government and the balance is
financed by the private sector and developmental finance
institutions.

 

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Government will make an initial investment of R1,8 billion in
bulk infrastructure, which will unlock seven private-sector
projects to the value of R133 billion.
For millions of South Africans in rural areas, roads and
bridges provide access to markets, employment opportunities,
families and social services. Yet, many children still have to
brave overflowing rivers to reach schools and motorists have
to battle impassable roads to reach the next town. One person
was telling me that they now have to travel, to drive, on the
side of the road because many roads are so bad. We are
therefore upscaling the Welisizwe Rural Bridges Programme to
deliver 95 bridges a year from the current 14. [Applause.] Our
SA National Defence Force is the implementing agent of the
Welisizwe programme ... [Applause.] ... and has demonstrated
the expertise of SANDF engineers in bridge construction.
Earlier this week I was in Thakgalane village in Limpopo to
launch a new road that is going to make a huge difference in
the lives of neighbouring communities. This road was
constructed using block paving and other materials, which is a
method that enables us to build durable roads faster and more
cost-effectively. I would like to see a situation in which
many of the roads that we have in our country, particularly in
our township areas, in our rural areas and in outlying areas,

 

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being paved because paving is so much cheaper that using
asphalt.
The rural roads programme will use labour-intensive methods to
construct or upgrade nearly 700 kilometres of rural road over
the next few years. This social enterprise programme includes
access roads in Limpopo and the Eastern Cape, to move from
gravel to surface upgrades in the Free State and the North
West, and capacity and connectivity improvements in the
Western Cape.
Government has initiated the process of delivering the
uMzimvubu Water Project. The project is made of a number of
dams: the Ntabelanga Dam and Lalini Dam, irrigation
infrastructure and hydo-electric plant, Ntabelanga water
treatment works and bulk distribution infrastructure to
reticulate to neighbouring communities.
The closing date for the first of the two-stage procurement
process is scheduled to close later this year, with the
preferred bidder likely to be announced later this year as
well.
Government is introducing an innovative social infrastructure
delivery mechanism to address issues that afflict the delivery
of school infrastructure. The mechanism will address the

 

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speed, financing and funding, quality of delivery, mass
employment and maintenance. We still need to build some 2 500
schools in our country, and using current budgetary methods or
processes, it will probably take us 75 years to close that
gap. However, with the new innovative mechanism for delivery
and financing, we should be able to do that much sooner.
The new delivery mechanism will introduce a Special Purpose
Vehicle, working with prominent DFIs and the private sector to
deliver school education infrastructure with government,
obviously, continuing to finance the building of schools. This
approach is being piloted in schools in the Northern Cape and
in the Eastern Cape and will soon move also to other provinces
– Limpopo and many other provinces. [Applause.]
Over the past year, government has built on its successful
Hydrogen SA strategy to make major strides in positioning
South Africa as a global leader in this new market. This is so
because the endowments that we have as a country and as a
nation for hydrogen capability are quite high. This includes
the development of a Hydrogen Society Roadmap for the next 10
years as well as a Green Hydrogen Strategy for the Northern
Cape, supporting the development of a green hydrogen pipeline
worth around R270 billion. [Applause.]

 

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The damage caused by the theft of scrap metal and cable on our
infrastructure like electricity, trains and other vital
services is enormous. We will take decisive steps this year
both through improved law enforcement and by considering
further measures to address the sale or export of such scrap
metal. [Applause.]
An important pillar of our Economic Reconstruction and
Recovery Plan is to revitalise our manufacturing base and
create globally competitive export industries. In the past
year, we launched new master plans in the steel industry, in
the furniture industry and in global business services.
Through these plans – which build on the other master plans
that are already in operation and that are already yielding
quite a lot of investment and job-creation – business,
government and labour are working together to increase
production and create more jobs in the sector.
In the clothing industry, a number of retailers have announced
ambitious localisation sourcing plans. One of these retailers,
Foschini, partly owned by workers, kindly made the suit that I
am wearing today ... [Applause.] ... at its new formal wear
factory, Prestige, in Epping in the Western Cape.

 

10 FEBRUARY 2022 Page: 28 of 60
Five years ago, more than 80% of all Foschini Group
merchandise came from East Asia. Today, nearly half of their
merchandise is locally made, which shows a great deal of
progress. [Applause.]
The genuine leather shoes I am wearing today were made by –
members ... [Interjections.] ... listen – were made by members
of the National Union of Leather and Allied Workers from
Bolton Footwear in Cape Town and Dick Whittington Shoes in
Pietermaritzburg in KwaZulu-Natal. [Applause.]
Now, the reason one says this is: Let us all promote
localisation. [Applause.] Let us buy locally made clothes and
products because this creates jobs for our people here in
South Africa. Local is lekker, and let us do that!
If you look at countries such as China, what has continued to
catapult them to a higher level is that they as Chinese
consume what is locally made. We can also move up that scale
and see more growth in our economy as we buy more local
products and everything else.
Nearly four years ago, we set ourselves a target of mobilising
R1,2 trillion in new investment over five years. By the time
of the third South Africa Investment Conference in

 

10 FEBRUARY 2022 Page: 29 of 60
November 2020, we had reached R776 billion in investment
commitments.
Next month, on 24 March, we will be holding the fourth South
Africa Investment Conference in Johannesburg. We will showcase
the many investment opportunities available as South Africa
continues its recovery from the COVID-19 pandemic, and we will
report back on the progress of previous commitments.
Following the resolutions of the African Union Summit over the
past weekend, trading can now begin under the African
Continental Free Trade Area agreement. The market on the
African continent is now wide open. [Applause.] South African
companies are poised to play a key role in taking up the
opportunities that this presents for preferential access to
other African markets. And, wherever we have gone on the
African continent, either on state visits and through holding
business forums, we have found not just a great deal of demand
for South African companies to come and invest, but also for
South African products. So the market is wide open for South
African companies to trade with other countries on our
continent.
The Free Trade agreement is about Africa taking charge of its
destiny and growing its economies much faster and
exponentially.

 

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We will continue to pursue Africa’s health sovereignty,
working with other African countries and international
partners to support the strengthening of the continent’s
capacity to respond not only to COVID-19 pandemic but to other
pandemics that may well come.
We will increase our efforts to develop Africa’s ability to
manufacture vaccines.
We have made significant progress here in South Africa with
regard to the manufacturing of vaccines. We now have two South
African companies, Aspen and Biovac, in which the government
has a stake, with contracts to produce COVID-19 vaccines. Two
additional vaccine projects have also been announced.
In addition, we have full local production capability for
ventilators, hand sanitisers, medical-grade face masks and
gloves, as well as therapeutic drugs and anaesthetics. This
production capability which is worth many billions of rand of
production annually, has been put in place in less than two
years.
When COVID-19 arrived on our shores, we did not really have
the full capability of manufacturing all these medical
supplies that are diagnostic and therapeutic which we now

 

10 FEBRUARY 2022 Page: 31 of 60
have. This goes to demonstrate the resilience of South African
businesses to rise up to the occasion.
And when we met at the continental level on an African medical
supplies platform, many of our companies were able to start
trading on that platform exporting medical supplies to various
countries on our continent and also internationally,
particularly to regions other than that of our continent, like
the Caribbean.
South African products have been exported to various
countries, securing them vital supplies and expanding jobs for
many young South Africans.
While will we help existing industries to grow, we are also
nurturing new opportunities for growth and jobs. Government
and the private sector have worked closely together to grow
the global business services sector from a small group of
companies to one of the world’s leading players. And I should
say here, South Africa has become an attractive market for
global business services. Our young people are being employed
in large numbers.
The global business services sector is on track to create
500 000 new jobs over the next few years. These are young
people who are being attracted to these opportunities.

 

10 FEBRUARY 2022 Page: 32 of 60
The hemp and cannabis sector – I’ll go back to this – which is
a new sector we are promoting, has the potential to create
more than 130 000 new jobs. [Applause.]
We are therefore streamlining the regulatory processes so that
the hemp and cannabis sector can thrive like it does in other
countries. And as I said earlier, it is going to benefit a
number of our people, particularly in those areas where this
is grown in a big way as a great commodity.
As we proceed, we are finding that these new sectors – the
sectors that should be promoted – are sectors that we should
focus our attention on because they create more jobs on an
ongoing basis. The sectors that we are focusing on are sectors
that a number of other countries have already shown a great
deal of growth in. With all this, we are finding that we can
inject growth into our economy and we can see exponential
growth as more and more of these new sectors come forward.
Other sectors are the social sectors including early childhood
development, nursing, social work and community services,
which have shown significant potential not only to create
jobs, but also to provide vital services to communities, and
provide training for young people.

 

10 FEBRUARY 2022 Page: 33 of 60
Some of the country’s mature industries also have a lot to
offer in revamping the industrial and manufacturing potential
of our country.
The agricultural sector has significant potential for job
creation in crops such as citrus, table and dried grapes,
subtropical fruit, avocadoes, berries and nuts.
Masterplans in the sugar and poultry industries are
contributing significantly to increased investment, improved
production and transformation.
To attract investors into the mining minerals needed in the
new global economy, we will soon be finalising our mining
exploration strategy.
We will continue to support the development of the upstream
gas industry, as it holds huge potential for job creation and
broader economic development. [Applause.]
We will ensure that this is done in strict accordance with the
environmental and other laws of our country, and that where
there are differences, we work together to resolve them in the
interest of our country and our people, particularly with
regard to creating jobs.

 

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We live in one of the regions of the world that is most
affected by climate change. We frequently experience droughts,
floods and other extreme weather events associated with global
warming.
Recently, floods have affected a number of provinces in our
country including KwaZulu-Natal, Gauteng and the Eastern Cape.
These have already caused enormous damage to infrastructure
and also to livelihoods.
In the last year, we have made important strides in the fight
against climate change and at the same time, securing our
economic competitiveness.
For the first time, our climate targets are compatible with
limiting warming to 1,5°C. This is the goal that all countries
agreed to as part of the Paris Climate Agreement, and is
essential to prevent the worst effects of climate change.
Since I established the Presidential Climate Change Commission
working with the Deputy Chair to the Commission, Valli Moosa,
a little more than a year ago, it has done much work to
support a just transition to a sustainable, inclusive,
resilient and low-carbon economy.

 

10 FEBRUARY 2022 Page: 35 of 60
At the international climate conference in Glasgow last
November, South Africa was able to arrive at a historic
R131 billion deal with a number of partners.
This first-of-its-kind partnership will involve repurposing
and repowering some of the coal plants that are reaching the
end of their lives, and creating new livelihoods for workers
and communities most affected and impacted by this change.
To ensure that South Africa is able to derive the full benefit
of this and other partnerships, I have appointed Mr Daniel
Mminele, a former Deputy Governor of the Reserve Bank, as Head
of the Presidential Climate Finance Task Team to lead the
mobilisation of funds for our just transition. [Applause.]
Properly managed, the energy transition will benefit all.
Renewable energy production will make electricity cheaper and
more dependable, and will allow our industries to remain
globally competitive as well.
In this regard, a number of our very sizeable companies are
already leading the way and it is important that, as
government, we walk in toe with the innovations, the
technological advances that they have already embraced.
Investments in electric vehicles and hydrogen will equip South
Africa to meet the global clean energy future.

 

10 FEBRUARY 2022 Page: 36 of 60
We will be able to expand our mining industry in strategic
minerals that are crucial for clean energy, like platinum,
vanadium, cobalt, copper, manganese and lithium.
We also have a unique opportunity in green hydrogen, given our
world-class solar and wind resources and local technology and
expertise.
All of these measures – from structural reforms to support our
small and medium enterprises and investments in infrastructure
and the emergence of new sectors – will drive a turnaround in
economic growth driven by the private sector growth over the
coming years.
We know, however, that even with the best business environment
and much faster rates of economic growth, it will take time
for the private sector to create enough jobs for the millions
of South Africans who need those jobs.
Our intention is to make sure that, as a nation, we leave no
one behind. That is why we are expanding public and social
employment.
The first two phases of the Presidential Employment Stimulus
programme, which we launched in October 2020, have supported
over 850 000 opportunities. More than 80% of the participants

 

10 FEBRUARY 2022 Page: 37 of 60
in these opportunities were young people, and over 60% of the
participants were women. [Applause.] That is an important
development. We were able to do this within a short space of
time. Once we were hit by COVID, we gathered our wits around
and decided that we needed to give protection to our people
and to expand employment opportunities.
This programme has also supported young women like Tracy Nkosi
from Springs, who was employed as an education assistant at
Welgedag Primary School, and who says this opportunity has
motivated her to further her studies in the educational
sphere. She was brought in when we brought in assistants in
our schools at the height of COVID. We brought hundreds of
thousands of them and Tracy is one of those. Upon arriving at
the school to do what she thought would be menial work, she
immediately found that she could do more important work. And
now, she wants to advance her studies and become an educator.
It has also supported Mama Nosipho Cekwana from Impendle in
KwaZulu-Natal who used her farming input voucher which was
part of this programme, to buy maize, manure and supplements
for her livestock.
The total number of direct beneficiaries will soon rise to
over one million South Africans, with regard to the plan that
we now have. This includes over half a million young people

 

10 FEBRUARY 2022 Page: 38 of 60
appointed as education assistants, making it the largest youth
employment programme ever undertaken in our history.
The employment stimulus will also enable the Department of
Home Affairs to recruit 10 000 unemployed young people for the
digitisation of paper records in the department, enhancing
their skills ... [Applause.] ... and contributing to the
modernisation of citizen services. These are young people who
are currently unemployed that we will bring in. We would like
to bring in more but our fiscal position does not enable us to
do so.
The Social Employment Fund will create a further 50 000 work
opportunities using the capability of organisations beyond
government in areas such as urban agriculture, early childhood
development, public art and tackling gender-based violence.
In addition to expanding public employment, we are providing
support to young people to prepare them for work and link them
to opportunities in industries.
To encourage hiring by smaller businesses, we will be
increasing the value and expanding the criteria for
participation in the Employment Tax Incentive. This tax
initiative has proven to be one of the most successful

 

10 FEBRUARY 2022 Page: 39 of 60
programmes that were put in place to bring in young people
into the world of work.
Invariably, the majority of them always find permanent
employment once they are brought in through this programme. We
want to expand this so that more young people are brought into
the world of work.
For several years, this has been an effective way to encourage
companies to hire new work seekers. The changes to the
incentive will make it easier for small businesses in
particular to hire young people.
The Minister of Finance will announce the details of these
changes in the budget.
We call on companies to support this effort, take up the
incentive and give young people a place in the world of work.
The SAYouth.mobi platform for young work seekers to access
opportunities and support has now risen to 2,3 million young
South Africans who have registered. Of these, over 600 000
have been placed into employment opportunities.
A revitalised National Youth Service will recruit its first
cohort of 50 000 young people next year, creating
opportunities for young people to contribute to their

 

10 FEBRUARY 2022 Page: 40 of 60
communities, develop their skills and grow their
employability.
The Department of Higher Education and Training will place
10 000 unemployed TVET graduates in workplaces from
April 2022. [Applause.] That is a big number but we obviously
want more.
In preparing this state of the nation address, I was assisted
by two young South Africans who are working as interns in the
Presidency – Ms Naledi Malatji and Ms Kearabetswe Mabatle.
They told me about the pain felt by young people who find
themselves with a qualification, but are unemployed because of
lack of experience. This forces many into jobs that have
little or nothing to do with what they have studied.
All of the measures I have outlined are essential to provide
young people with the work experience that they need to take
their first step into the labour market.
We call on the private sector to support these measures and,
wherever possible, to drop the requirement of experience so
that we can give many young people a possible chance for their
first job. [Applause.]

 

10 FEBRUARY 2022 Page: 41 of 60
As we work to grow the economy and create jobs, we will expand
support to poor families to ensure that no person in this
country has to endure the pain and indignity of hunger.
Our social protection system is among the greatest
achievements of the democratic government, reaching more than
18 million people every month. Without this support, millions
more would live in dire poverty.
Since the onset of COVID-19, the Social Relief of Distress
Grant has provided support to more than 10 million unemployed
people who were most vulnerable to the impact of the pandemic.
Some people used that money to start businesses.
Mr Thando Makhubu from Soweto received the R350 grant for
seven months last year, and saved it to open an ice-cream
store that now employs four people. [Applause.]
Mr Lindokuhle Msomi, an unemployed TV producer from KwaMashu
Hostel, saved the R350 grant he received for nine months to
start a fast food stall and to support his family. [Applause.]
As much as it has had a substantial impact, we must recognise
that we face extreme fiscal constraints.
A fiscal crisis would hurt the poor most of all through the
deterioration of the basic services on which they rely.

 

10 FEBRUARY 2022 Page: 42 of 60
Mindful of the proven benefits of the grant, we will extend
the R350 SRD Grant for one further year, to the end of
March 2023. [Applause.] We have been in deep consultations
with a number of community-based organisations who have
articulated very clearly to us the dire needs in our
communities but have also appreciated the challenged fiscal
position that we are facing. This is something that I am sure
they will be able to appreciate. But, we have also said we
will continue conversations with them, going forward.
During this time, we will engage in broad consultations and
detailed technical work to identify the best options to
replace this grant.
Any further support must pass the test of our own
affordability, and must not come at the expense of basic
services or at the risk of unsustainable spending.
It remains our ambition to establish a minimum level of
support for those in greatest need.
Expanding access to land is vital for our efforts to reduce
hunger and provide people with meaningful livelihoods.

 

10 FEBRUARY 2022 Page: 43 of 60
We are moving ahead with land reform in terms of our
Constitution and anticipate the approval of the Expropriation
Bill during this year.
The establishment of the Agriculture and Land Reform
Development Agency will be finalised this year.
The Department of Public Works and Infrastructure will
finalise the transfer of 14 000 hectares of state land to the
Housing Development Agency.
We have enough arable land to support millions of thriving
small-scale farmers in poultry, livestock, fruit and
vegetables.
Through the Presidential Employment Stimulus and the
Solidarity Fund, over 100 000 small-scale farmers have already
received input vouchers to expand their production.
This scheme has proven to be effective and impactful. It has
established a very good delivery mechanism that ensures that
we are able to reach so many of small-scale farmers.
The agriculture sector has also recognised the importance of
supporting these small-scale farmers and integrating them into
their value chains.

 

10 FEBRUARY 2022 Page: 44 of 60
Through the sugar master plan, the sugar industry has provided
R225 million to over 12 000 small-scale farmers who are in the
sugar cane industry as part of a R1 billion commitment to
support black farmers.
We will be expanding the provision of input vouchers and
calling on all sectors to join this effort. I would like to
see a situation where various sectors of agriculture – whether
it’s in the fruit sector, the beef sector, the sheep sector
and many other sectors – collectively helping in these sectors
like the sugar cane industry has done. But for our part, we
will collectively reach up to 250 000 small-scale farmers this
year, expanding beyond the 100 000 that we reached last year.
[Applause.]
None of our efforts to revive our economy will succeed if we
do not tackle the scourge of corruption once and for all.
Since the beginning of the year, I have been provided with the
first two parts of the report of the Commission of Inquiry
into State Capture headed by Acting Chief Justice Raymond
Zondo.
While the definitive conclusion has yet to be delivered at the
end of this month, the first two parts of the report make it
plain that there was indeed state capture. This means that
public institutions and state-owned enterprises were

 

10 FEBRUARY 2022 Page: 45 of 60
infiltrated by a criminal network intent on looting public
money for private gain. [Interjections.]
The reports have detailed the devastating effects of these
criminal activities on SAA, Transnet, Denel, SA Revenue
Service and Government Communications.
State capture had a direct and very concrete negative impact
on the lives of all South Africans, but especially the poorest
and most vulnerable members of our society. State capture has
weakened the ability of the state to deliver services and to
meet the expectations and constitutional rights of our people.
We must now do everything in our power to ensure that it never
happens again.
My responsibility is to ensure that the Commission report is
properly and carefully considered and then acted upon.
[Applause.] By no later than June, I will present a plan of
action in response to the Commission’s recommendations. I will
present it to you sitting right here. [Applause.]
We will, as the Commission’s first report recommends,
strengthen the system to protect whistle-blowers, who are a
vital safeguard in the fight against corruption and who take
huge personal risk in reporting wrong-doing.

 

10 FEBRUARY 2022 Page: 46 of 60
We are doing a detailed review of all applicable legislation
and a comparative study of other jurisdictions to strengthen
whistle-blower protection.
The relevant law enforcement agencies are taking the necessary
steps to address the immediate concern about the safety of
whistle-blowers.
Many individuals and companies that the Commission has found
were responsible for state capture must now be held
accountable.
I have every confidence that the National Prosecuting
Authority will carry out the further investigations that the
Commission has recommended, and that it will bring the members
of the criminal network that infiltrated government and
captured the state swiftly to justice.
The Investigating Directorate in the NPA is now poised to
deliver on its crucial mandate, and a dedicated team has been
established to pursue these cases.
We will be appointing a new head of the Investigating
Directorate following the departure of its head from that
position.

 

10 FEBRUARY 2022 Page: 47 of 60
An amendment to the State Capture Commission regulations in
June 2020 empowered the sharing of information between the
Commission and law enforcement agencies.
This amendment also permitted the employment of the State
Capture Commission personnel by law enforcement agencies.
These empowering provisions have geared the Investigating
Directorate to more effectively pursue the investigations
emanating from the Commission.
We have gratefully acknowledged the offer of support from the
private sector to assist in providing those skills which we
lack in government to enable investigation and prosecution of
crime.
To ensure that the prosecuting authority remains true to its
constitutional obligation and mandate, and to ensure
transparency, we are developing a framework for private sector
cooperation that will be managed through the National
Treasury.
There are also discussions underway with the judiciary for the
creation of special court rolls for state capture and
corruption cases. [Applause.]

 

10 FEBRUARY 2022 Page: 48 of 60
While we have taken decisive steps to end the era of state
capture, we know that the fight against corruption is far from
over. Even as the country was suffering from the devastation
of the COVID-19 pandemic, companies and individuals were
conspiring with public officials to defraud government of
billions of rand in COVID-related contracts.
As soon as evidence emerged of this corruption, we acted. We
withdrew certain emergency procurement regulations, set up a
fusion centre that brought together law enforcement agencies.
We published the details of all COVID-related contracts online
and instituted the most extensive investigation that the
Special Investigating Unit has ever undertaken since its
formation. [Applause.]
In December, the SIU submitted its final report on its
investigation into COVID-related contracts. As a result, 45
matters with a combined value of R2,1 billion have been
enrolled with the Special Tribunal. The SIU has referred 224
government officials for disciplinary action and has referred
386 cases for possible prosecution by the NPA.
As the Presidency, we have set up mechanisms to monitor the
implementation of the recommendations of the SIU and ensure
that government departments and entities do act against those
who have violated regulations and broken the law.

 

10 FEBRUARY 2022 Page: 49 of 60
The fight against corruption will take on a new intensity,
thanks to the outcomes of the State Capture Commission, the
strengthening of law enforcement agencies and the
implementation of new anticorruption practices in the public
service.
State-owned enterprises, SOEs, play a vital role in our
economy. From water and roads, to energy and ports, to defence
and aviation, these strategic assets of our nation are
necessary to keep our country running.
It is essential that we reverse their decline, and reposition
them to contribute positively. We have therefore embarked on
several immediate measures to restore these companies to
health, at the same time as we undertake far-reaching reforms
that will make our SOEs more efficient, competitive,
accountable and sustainable.
The Presidential SOE Council, which I appointed in 2020, has
recommended that government adopt a centralised shareholding
model for its key commercial state-owned companies. This would
separate the state’s ownership functions from its policy-
making and regulatory functions, minimise the scope for
political interference, introduce greater professionalism and
manage state assets in a way that protects shareholder value.

 

10 FEBRUARY 2022 Page: 50 of 60
As part of this, preparatory work has begun for the
establishment of a state-owned holding company to house
strategic SOEs and to exercise coordinated shareholder
oversight.
To ensure that state-owned enterprises are effectively
fulfilling their responsibilities, the Presidential SOE
Council is preparing recommendations on which state-owned
entities should be retained, which ones should be
consolidated, and which ones should be disposed of, which do
not serve the purpose of the public.
Any recommendations would be subjected to extensive
consultation with all stakeholders.
We are taking steps to safeguard our democracy, protect our
economic infrastructure and build safer communities for all.
Earlier this week, we released the report of the expert panel
that I appointed to look into the civil unrest in July last
year.
The report paints a deeply disturbing picture of the
capabilities of our security services and the structures that
exist to coordinate their work.

 

10 FEBRUARY 2022 Page: 51 of 60
The report concludes that government’s initial handling of the
July 2021 events was inept, police operational planning was
poor, there was poor co-ordination between the state security
and intelligence services, and police are not always embedded
in the communities that they serve.
The expert panel said that if the violence has exposed
anything, it was the poverty and inequality that is the root
cause of the desperation of our people.
The expert panel found that Cabinet must take overall
responsibility for the events of July 2021. This is a
responsibility that we acknowledge and we also accept.
We will, as recommended by the panel, develop and drive a
national response plan to address the weaknesses that the
panel has identified.
We will begin immediately by filling critical vacancies and
addressing positions affected by suspensions in the State
Security Agency and Crime Intelligence.
We will soon be announcing leadership changes in a number of
security agencies to strengthen our security structures.
[Applause.]

 

10 FEBRUARY 2022 Page: 52 of 60
The staffing of the Public Order Policing Unit of the SA
Police Service will be brought to an appropriate level, with
appropriate training in place as well.
The ongoing damage to and theft of economic infrastructure has
damaged confidence and severely constrained economic growth,
investment and job creation.
At the same time, we need to confront the criminal gangs that
invade construction sites and other business places to extort
money from companies. [Applause.] This will require a focused
and coordinated response.
Government are therefore going to move ahead. We have
established specialised multi-disciplinary units to address
economic sabotage, extortion at construction sites and
vandalism of infrastructure. Interjections.]
We will make resources available to recruit and train an
additional 12 000 new police personnel to ensure that the SA
Police Service increases its capacity.
Another area ... [Interjections.] ... of immediate attention
will be the re-establishment of community policing forums to
improve relations and co-ordination between local police and
residents of the areas they serve.

 

10 FEBRUARY 2022 Page: 53 of 60
It is clear from the observations of the expert panel that we
need to take a more inclusive approach to assessing the
threats to our country’s security and determining the
necessary responses.
I am calling on all South Africans through their various
formations to participate as we go ahead to develop this whole
process of the National Security Strategy.
I will be approaching Parliament’s Presiding Officers to request that Parliament play a key role in facilitating inclusive processes of consultation.
The security services have been tasked by the National Security Council to urgently develop implementation plans that address the range of recommendations that have been put forward.
These measures will go a long way to address the serious concerns about the breakdown of law and order in society.
This year, we are intensifying the fight against gender-based violence and femicide through the implementation of the
National Strategic Plan on GBVF ... [Applause.] ... and also taking other measures to promote the empowerment of women.


Earlier this month, I signed into law the three new pieces of legislation – which you’ve passed – which has strengthened the
criminal justice system ... [Applause.] ... and also promote accountability across the state and supporting survivors.
The implementation of this legislation will definitely go a long way towards ensuring that cases are successfully
prosecuted, that survivors of gender-based violence are protected, and that there are more effective deterrents in place.
We have made significant progress in reducing the backlog in DNA processing, reducing it from 210 000 exhibits in April 2021 to some 58 000 at present. [Applause.]
However, the fight against gender-based violence will never be won unless, as a society, we mobilise all formations and all citizens behind a sustained programme of social action.
As the COVID-19 pandemic has starkly demonstrated, a nation’s health is directly linked with its economic progress and social development.
We will continue with the work underway to ensure universal health coverage for everyone in South Africa, regardless of their ability to pay for medical services or not.

 

10 FEBRUARY 2022 Page: 55 of 60
While public hearings on the National Health Insurance, NHI
Bill are continuing in Parliament, much progress is being made
in preparing for the introduction of the NHI. More than
59 million people are registered on the Health Patient
Registration System. By September 2021, more than 56 000
additional health workers had been recruited and more than
46 000 community health workers integrated into the public
health system.
For the last two years, the education of our children and
young people has been severely disrupted. As we return to
normal educational activity, we will work harder to ensure
that all learners and students get the quality education they
need and deserve.
Government must work for the people. That is why our foremost
priority is to build a capable, ethical and developmental
state.
We will soon be finalising a framework for the
professionalisation of the public service. This will include
tighter measures for recruitment of public servants,
continuous professional development through the National
School of Government and partnerships between state bodies,
professional associations and universities.

 

10 FEBRUARY 2022 Page: 56 of 60
We will continue with various processes to ensure that we
strengthen the public service. In this regard, we will ensure
that the public servants who will be holding their important
strategic conference later, are able to address the challenges
that our people face.
This year, we will continue with the implementation of the
District Development Model, DDM.
This model brings all three spheres of government together
with other social partners in every district to grow inclusive
local economies and improve the lives of our citizens.
In particular, the DDM, as we call it, facilitates integrated
planning and budgeting across spheres of government and
improves integration of national projects at district and
local level.
While there are many parts of the state that require much
work, there are institutions that continue to serve the people
of this country effectively and efficiently. One such
institution is the SA Revenue Service, Sars, which will be
turning 25 this year.

 

10 FEBRUARY 2022 Page: 57 of 60
While Sars was badly damaged by state capture, it has made
remarkable progress in restoring its integrity, credibility
and performance.
Since its formation, Sars has collected some R16 trillion for
the country’s social and economic development. This revenue
has enabled government to improve the lives of millions of
South Africans through the provision of health care,
education, social grants and other basic services.
A capable state is not only about the quality of public
servants but it’s also about the efficiency of its
institutions. It is also, fundamentally, about how citizens
are empowered to participate.
We must work together to ensure that platforms like school
governing bodies and community policing forums are more active
and more inclusive.
A vibrant civil society operating at all levels but more
especially at local level and local government, which we
intend to strengthen, is crucial for a capable state and for
development.
We will therefore be working with our social partners to
convene the long-awaited social sector summit.

 

10 FEBRUARY 2022 Page: 58 of 60
This summit will seek to improve the interface between the
state and civil society and address the challenges that NGOs
and community-based organisations face.
Our country has suffered damaging blows in recent times. A
confluence of forces, many of them from outside of our
control, has brought us to where we are now. We face steep and
daunting challenges. Indeed, we are engaged in a battle for
the soul of this country but there can be no doubt that we
will succeed. We will emerge victorious in all these
challenges that we face. [Applause.] We will never be
defeated. You know why? Because the spirit of resilience is
deeply embedded in our DNA as South Africans. [Applause.]
So, I ask every South African to rally together – whether we
agree with each other in certain issues or not, but there is a
lot that bind us together. I ask all of us to rally together
to fight against corruption, and to also be involved
collectively in our fight to create jobs, and in our fight to
achieve a more just and equal society.
We have faced many crises in our past, and we have always
overcome them. [Applause.] We have been confronted with
difficult choices, and we have made those choices. In trying
times, we have shown courage and resilience. Time and time

 

10 FEBRUARY 2022 Page: 59 of 60
again, we have pulled ourselves back from the brink of
disaster and inspired hope, renewal and progress. And we must
do so again now as we face these many challenges.
I call upon all of us to forge this new consensus and this
consensus should not only be privy to government, labour and
communities, but it should also be a consensus in which all of
us join in so that we can confront a new reality, a consensus
that unites us behind our shared determination to reform our
economy and rebuild our institutions.
If there ever was a time that we should work together, this is
the time for us to work together. [Applause.] So, let us go
ahead and work together instead of some of us tearing this
country apart, instead of some of us tearing our democracy
apart.
This is the time for us to work together. Let us rebuild our
country.
But more importantly for me, this is the time – with all the
economic measures we have announced as well as the other
social protection measures that we put forward – this is the
time to leave no one behind.
We must all move together as one, as South Africans.

 

10 FEBRUARY 2022 Page: 60 of 60
I thank you. [Applause.]
The CHAIRPERSON OF THE NATIONAL COUNCIL OF PROVINCES: Thank
you very much, hon members. I now take this opportunity to
thank the hon President for his address. Please note that
after I have adjourned the Joint Sitting, members who are in
the Chamber should remain in their places until the procession
has left the Chamber.
The procession led by the Acting Sergeant-At-Arms and the
Usher of the Black Rod will leave the Chamber in the following
order: The Speaker of the National Assembly, the Chairperson
of the National Council of Provinces, the President and then
the Acting Secretary to Parliament.
In addition, the Deputy Chairperson of the National Council of
Provinces, the Deputy President and the Acting Secretary to
Parliament will follow as was indicated earlier. That, hon
members, concludes the business for the day, and the Joint
Sitting is now adjourned.
The Chairperson of the National Council of Provinces adjourned
the Joint Sitting at 20:50.


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