Hansard: NCOP: Unrevised hansard

House: National Council of Provinces

Date of Meeting: 31 May 2022


No summary available.


TUESDAY, 31 MAY 2022
Watch: Plenary

The Council met at 14:00.
The Deputy Chairperson took the Chair and requested members to observe a moment of silence for prayers or meditation.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms S E Lucas): Hon delegates, before we proceed I would like to remind you of the
following that the virtual sitting constitutes a sitting of the National Council of Provinces, the place of the sitting is
deemed to be Cape Town where the seat of the National Council of Provinces is, delegates in the virtual sitting enjoy the
same powers and privileges that apply in a sitting of the National Council of Provinces, for the purpose of the quorum
all delegates who are logged on to the virtual platform shall be considered present, delegates must switch on their videos
if they want to speak, delegates should ensure that the microphones on their gadgets are muted and must always remain muted, the interpretation facilities are active and permanent delegates, members of the executive, special delegates and the SA Local Government Association, Salga, representatives are
requested to ensure that the interpretation facility on their gadgets are properly activated to facilitate access to the
interpretation services, any delegate who wishes to speak must use his or her raise your hand function. Hon delegates, I have been informed that there will be no notices of motions or motions without notice. Before we proceed to the First Order, I would like to take this opportunity to welcome the Minister and the Deputy Ministers of the Department of Trade, Industry and Competition and the Minister and the Deputy Minister of the Department of Human
Settlements, MECs present, Salga representatives, special delegates and permanent delegates.

(Policy debate)
Vote No 39 - Trade, Industry and Competition:

The MINISTER OF TRADE, INDUSTRY AND COMPETITION: Deputy Chairperson, hon members, representatives of provinces and fellow South Africans, first, thank you very much for bearing with me. We just had a bit of load shedding, but I am back online. Last year, the South African economy began to recover
from the first wave of COVID-19, growing at 4,9% for the year. Some associated the economic developments confirmed the gross domestic product, GDP, data. Our manufacturing exports were the highest in at least a decade. The agriculture and auto value chains had their best export performance yet. Africa
opened its first anaesthetic production facility in the same year that pharmaceutical exports reached record levels.
But despite our collective efforts and our progress, the\economy and ordinary South Africans still face many great
challenges, some of which are persistent and enduring like jobs, poverty and inequality, and some are new, like the impact of the COVID-19, the July unrest last year and the floods along the eastern seaboard. Crucially, today’s debate takes place within the context of fundamental changes globally including gathering pressures and disruptions that can lead to our global recession, coupled with continuing health, climate
change and geopolitical crisis, all of which will impact on our economic recovery.

But our point of looking at the economy globally and locally is to try to learn lessons and adjust. There are three
standout lessons from the new shocks of the last year which reinforce what we have learnt from the systemic shocks of
climate change and the COVID-19 pandemic. One lesson is that economies and supply chains are vulnerable and that building
greater industrial resilience need even greater prominence in policy making. The other lesson is that societies need a
capable state that is responsive and agile and equipped to quickly marshal what is needed when risks materialise.
Above all we have to grasp the lesson that the absence of economic justice places the burdens of climate change and
geopolitical disruptions on those in societies that are least able to afford to shoulder these burdens. We remain
overdependent on offshore of sourcing for our own economy and our a few products, mainly commodities to drive our growth and
leaving us as price takers and with economic performance overdependent on what happens in global commodity markets.
South Africa can play a more prominent role in this world of regionalised production hubs. But we can only do so if we step
up our focus on improving the dynamism and capacity of our industrial base and create real opportunities for firms in our

market to grow by intensifying industrialisation, spearheading
transformation to build an inclusive economy and building a
capable state to execute our strategy.
The department set out in the annual plan about 150 specific
actions and indicators. I am just going to focus on few of
these. Transformation is about building an economy that works
where our people are, bringing development to rural provinces
and districts. Our revised approach to spatial industrial
policy, informed by the district development model, will
see the DTIC supporting projects that create jobs,
infrastructure and innovation in districts across the country.
To execute this strategy we will address our weaknesses but we
will also build on our successes. There have been progress in
a number of areas from new production lines in our automobile,
food sector and healthcare sectors, progress with
beneficiation, the sugar and clothing masterplans, new
investment projects and jobs created, small businesses
supported and action against corruption. A new focus on
inclusive growth saw about 100 000 additional workers securing
shares in their firms in the past year through competition
settlements with Shoprite, Burger King and Imperial Logistics,
bringing the recorded worker shareholding in the economy to
over 400 000 to date.

Deputy Chairperson, today, I want to highlight our plans for
the year ahead. The Deputy Minister Majola will in the course
of the debate set out more on our successes. But looking at
the period ahead, to fuel the economic recovery and deepen
industrialisation, the DTIC entities together will offer
R22 billion in customised loan and support packages to
companies over the next 12 months. This will be complemented
by strategic support to deepen the implementation of our
masterplans, including the launch of a new R400 million
furniture growth fund in partnership with manufacturers and
retailers. To support our localisation efforts, we will aim to
achieve a R40 billion increase in the production of targeted
local industrial output, which brings us closer to our five
year target of R200 billion. Our investment facilitation and
promotion activities will aim to unlock at least R120 billion
in investment from the private sector in the next 12 months.
We will now table our draft green hydrogen commercialisation
strategy in Cabinet for consideration and for guidance by the
end of August and our electric vehicles roadmap to be placed
before Cabinet by the end of October. In a rapidly evolving
and disrupted global trade environment, the department’s
officials will work hard to secure at least R600 billion in
manufacturing exports with a package of support to grow and
diversify for South Africa’s exports and to secure our trading
future on the African continent. We hope we can do more but
let’s aim for no less than that.
The Competition Commission is conducting a market inquiry into
online services like e-commerce, tourism, accommodation, food
and other online delivery platforms to be completed during
this year and will launch a new inquiry into fresh produce
markets, which I hope will provide insights and relief to
consumers faced with high and rising food bills.
We will commence the next phase of the African Continental
Free Trade Area negotiations by developing draft protocols on
competition policy, intellectual property, and investment. Our
work in these important areas will enable firms to manage
their expansion into the rest of Africa, and we will also make
available a multibillion rand facility in risk coverage to
strategic exports, through the export credit insurance
corporation. This facility will complement our efforts to
launch more export networks with entrepreneurs to share
knowledge and co-ordinate government support among exporters
approach to special industrial policy – an area that is very
close to the hearts of hon members of the NCOP. We want to do
a cross-cutting framework for special economic zones,

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industrial parks and interventions to enable and support the
township economy and focus on industrial development in at
least 25 districts across South Africa.
But there is an important prerequisite for success. In order
to scale up growth and jobs we will need more effective local
government because a special policy is not a formal document,
but it is a capability of institutions to do their essentials
to get firms to operate. Including at local level is basic
road, maintenance and filling of potholes, provision of water
and sanitation, not adding highest charges on energy prices
and collecting dirt and waste products efficiently.
Similarly, a deeper partnership is required with provinces in
which each sphere places something on the table. The example
of the Office of the Gauteng Premier in the Tshwane special
economic zone, SEZ, and the Eastern Cape government’s support
to drive industrial development in the auto and pharmaceutical
sectors, can be highlighted and it should be done across ore
provinces. Provinces and local government can secure more
success by combining their resources and budgets with what the
DTIC can do so that we have the fire power to drive
industrialisation ... [Recording stopped] … has been regarded
as provincial competency enabling environment for

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industrialisation is energy and logistics and protecting our
electrical grid and rail network from the continued threat of
scrap metal syndicates.
By the end of July, we will have developed and tabled a draft
policy on scrap metal which will introduce a blend of domestic
and export measures to address illegal trade in copper cable
and scrap metal. Energy and logistics is vital to the success
of our industrialisation efforts. Minister Pravin Gordhan and
I have agreed to launch a forum to bring together Eskom,
Transnet and other entities with industrialists in key sectors
to enhance collaboration, advance planning, and problem-
solving. This will enable a better climate for investment and
job creation.
We must make it easier to do business. The Deputy Ministers
and I have requested the DTIC entities by December this year
to have concrete measures to cut red tape, streamline their
processes and make them accessible and less onerous for
entrepreneurs and citizens. This will align with the
commitment that President made on cutting red tape in the
state of the nation address in February this year. We will
shift from red tape to smart regulation that helps those who
want to build and protect the system against those who seek to

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abuse it at the expense of the poor and the vulnerable. This
work will also include a process to consolidate the sprawl of
entities within our ambit creating a leaner and more
responsive and relevant set of institutions.
The point is that we must all learn from the past and adapt
for the future. We must continue to show resilience as we
build and derisk our economy which is essential to our vision
of a truly nonracial and democratic society.
Over the next 12 months, we can expect a number of concrete
actions. In June, Consol will open its new glass container
production plant in Ekurhleni with an investment value of
R1,5 billion. The Japan-South Africa Business Forum will be
launched and the first disbursements will take place from the
IDC’s new Social Employment Fund. The pilot township economy
programme to improve access to finance and derisk small and
medium-sized enterprises, SMMEs, through business support
measures will have been launched with partnership with
Gauteng. Trade Ministers will meet at the World Trade
Organisation to address key trade policy matters.
By July, a new call centre, Sigma International will open its
doors and offer jobs to young people from Mitchells Plain and

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Khayelitsha. A new steel manufacturing facility will have been
under construction and completed in Thaba Nchu in the Free
State. The Saudi Arabia-South Africa Business Council will be
finalised. The Cabinet will consider the nomination of South
Africa to host the next African Growth and Opportunity Act,
Agoa, Forum with the United States. By August, the new
PhotoVoltaic production plant of Seraphim will open in East
London, supported by IDC facilities. At least 55 deals would
have been finalised under the JP Morgan small business
partnership with the DTIC. The first new capacity will come
online for six black-owned poultry farms supported by the IDC
which will produce about two million birds per month creating
150 jobs in the North West, Mpumalanga, Limpopo and the Free
State will come on stream. The Companies Amendment Bill will
be submitted to Cabinet for consideration
By September production of industrial helium is expected to
start in the Free State, one of only eight countries globally
producing this gas. A company called Rayal Industrial will
complete its tile manufacturing facility. A new South African
food exporter network will be launched. We aim to conclude the
Southern African Customs Union’s formal tariff offer to the
African Continental Free Trade Area covering 90% of all tariff
lines. The DTIC-supported film which is called The Woman King,

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will be released worldwide. It was filmed in Cape Town and it
tells an African story of an all-female military unit in the
18th Century West African kingdom of Dahomey. I urge hon
members to watch the movie when it opens.
By October, the Tshwane SEZ aims to complete 11 automotive
component plants in support of Ford’s R16 billon investment,
employing about 2 000 workers in the new zone. The SA Steel
Mills aims to complete its production plant announced in
Gauteng. A draft Patent Bill will be submitted to Cabinet for
consideration. By November, Biovac expects to begin producing
the Pfizer vaccines in South Africa. We will see the expansion
of the SA Pulp and Paper Industries Sappi Saiccor dissolving
pulp mill that will be ready for an official opening. We will
host an award ceremony for local production innovation,
showcasing the successes we are starting to achieve. By
December, the PF Nonwovens new textile production line will
have been opened in Atlantis and we will host a conference of
black exporters to help identify new markets and new
opportunities. By January next year, we expect the completion
of a new clothing manufacturing facility and a dye house in
KwaZulu-Natal with 1 500 new workers. We would have a review
of the sugar master plan and the new anticorruption unit
at the DTIC will be operational.

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By February, Orion Carbon Engineering aims to complete a
pipeline and tank storage facility at the Port of Ngqura to
supply carbon black to the auto industry. The first African-
developed mRNA vaccine will start clinical trials and our
efforts to cut red tape will be boosted by new draft
regulations to deal with trade tariff investigations and
safeguard measures
In conclusion, I wish to thank the Deputy Ministers Majola and
Gina for the sterling work undertaken. I have been travelling
to many parts and we expect the department to do more of
difference. We expect the oversight of the select committee in
the oversight of our work. I thank you.
Mr M I RAYI: Thank you very much, hon Deputy chairperson,
greetings to you, greetings to the Chief Whip, the House
Chairpersons, The Minister of Trade, Industry and Competition,
Minister of Human Settlements, Deputy Minister of Trade,
Industry and Competition, Deputy Minister of Human
Settlements, hon members, the ANC’s vision for the South
African economy is guided by the Freedom Charter, in
particular, the injunction that: “The people shall share in
the country’s wealth”.

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This informs the ANC government’s commitment to managing the
South African economy not only in a manner that is growth-
enhancing, but to ensure that the pace and pattern of growth
is inclusive and transforms our society. Since the 1994
democratic breakthrough, significant progress has been made in
expanding access to employment, empowerment, and other
economic opportunities. Social protection has also expanded,
and the number of people with access to basic services has
Despite these advances, the legacy of colonialism and
apartheid remains deeply entrenched in the economy. Far too
many South Africans are without jobs, far too many, still go
to bed hungry, and far too many are experiencing service
delivery backlogs. Low rates of economic growth over the past
decade have made it harder to reduce inequality. The COVID-19
pandemic has set us back as a country and this requires of us
to double our efforts to ensure that our economy recovers and
grows to be more inclusive.
In line with the President’s priority of attracting and
retaining investment, we welcome that a significant share of
the budget in the form of incentives, has been allocated to
supporting businesses investing in South Africa. The

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Industrial Financing Programme, which hosts the allocation,
accounts for approximately 46,1%, in other words, R5 billion
of the total budget. Through this programme, the DTIC supports
the implementation of the Economic Reconstruction and Recovery
Plan, ERRP, and the Re-imagined Industrial Strategy, RIS, by
providing incentives through the automotive incentive scheme,
black industrialist programme, agro-processing support scheme,
strategic partnership programme, aquaculture development and
enhancement programme, and clothing and textiles
competitiveness programme.
The Economic Reconstruction and Recovery Plan, and Re-imagined
Industrial Strategy place emphasis on master plans as key
drivers to attract investment, build capable local industries
and create jobs. Because COVID-19 has caused so much economic
destruction, it requires us to build back differently. As the
President explained when he introduced the Economic
Reconstruction and Recovery Plan, I quote:
We are determined not merely to return our economy to
where it was before the Coronavirus, but to forge a new
economy in a new global reality.

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The Re-imagined Industrial Strategy emphasises the role of the
state in changing the growth trajectory of the South African
economy through supporting improved industrial performance,
dynamism and competitiveness. Five areas are expected to drive
growth in the economy and these engines of growth are:
industrialisation, investment and infrastructure, innovation,
integration, and inclusion. In terms of the development of
master plans, it is important that each social partner commits
to implement concrete interventions to transform and build the
economy. Business, in particular, has to reinvest in the South
African economy.
These plans aim to achieve this new reality through building
our industries and internal resilience. The completed and
signed masterplans signal the collective commitment of all
social partners in ensuring success in their respective
industries. The process to finalise more master plans is
currently underway. The Automotive Master Plan aims to double
production from 600 000 cars locally produced, to 1,2 million
cars, and double employment in the automotive value chain from
112 000 to 224 000. Following the adoption of the Poultry
Masterplan in 2019, we are happy with the positive
developments towards increasing localisation.

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In this regard, additional 1 million birds - I heard the
Minister saying that this has now increased to 2 million -
were produced per week in 2020, which was a growth of 5% in
volume and we have seen the reduction of total value of
imports down from 17% since the adoption of the master plan.
These are substantial and progressive advances within a short
space of time. There are real examples of successes in the
master plans. Beverly Mhlabane, who lives in Benoni, she’s a
poultry farmer, empowered by the Poultry Master Plan. She has
6 500 hens for her eggs business, which is expanding now into
chicken meat.
With regards to African Continental Free Trade Areas, AfCFTAs,
as we conclude Africa Month, we must focus on building a more
integrated and connected African Continent, focusing on
manufacturing on scales and creating jobs, particularly, for
millions of our Continent’s young people. The African
Continental Free Trade Area is important in this regard, as
Africa imports R7 trillion of goods from elsewhere, which is
more that the entire South African economy. In this regard,
the African Continental Free Trade Area, presents an
opportunity for industry and for new industrial entrepreneurs
to build sustainable businesses.

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There are already a few South Africans who are leading in this
regard, such as, Thami Gxowa, who exports cooler boxes to
Mozambique, Zanele Ntsibande, who is selling hollow core
internal doors to Botswana, Sibu Maphatiane, who exports train
brake shoes to Zimbabwe and Doron Carl Barnes, who sells steel
to the Democratic Republic of Congo, DRC. Concerning
localisation, it is an important pillar for our industrial
strategy and it has been a key component of the ANC’s economic
policy to build and protect local industrial capacity. Some
detractors, such as the right-wing of the DA, have attempted
to accuse the ANC-led government of nationalism and
The state of the economic conditions dictates that our
national interest must precede all the others. Many of the
World’s largest economies including the United States, China,
India, and countries in the European Union are doing the same
to actively protect and promote their domestic firms. The ANC-
led government’s industrialisation and localisation policies
are aimed at developing, upgrading and expanding production to
supply both domestic and foreign markets, promoting employment
growth and supporting wider economic development and

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In response to the ERRP, we welcome the emphasis placed by the
DTIC on an integrated approach across the interventions to
drive industrialisation that supports economic recovery. This
approach incorporates industry master plans that target key
sectors that are drivers of economic growth and job creation.
We are looking forward to the outcomes of the 6th Industry
Master Plans in the automotive sector, poultry, sugar,
furniture, steel and textile, and clothing, that have been
completed and implementation in different phases. We also
support the work that is currently being done to finalise the
Plastic and Chemicals Master Plan.
Entrepreneurs must be informed that in conjunction with the
master plans, the DTIC offers industrial financing support in
the form of grants, loans, and tax allowances to the
manufacturing sector. These support measures include grants
offered to the agro-processing and automotive sectors and
black industrialists. This is targeted at increasing
productive capacity, employment, competitiveness, and
transformation. In addition, concessionary funding is being
offered by the Industrial Development Corporation, IDC, and
the National Empowerment Fund, NEF, to manufacturing
businesses to sustain existing jobs and improve their
productive capacity.

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This support is to provide relief to businesses that have been
devastated by the COVID-19 pandemic and the unrest that
occurred in July 2021, as well as to accelerate the economic
recovery in the country. It is encouraging that government is
further taking steps to raise the profile of the Black
Industrialist Programme as part of the overall transformation
objectives. The Black Industrialist Scheme, BIS, addresses the
low representation of black industrialists with majority
ownership and provides the support they need to transform
their businesses into viable, sustainable enterprises that
address the twin national priorities of local economic
development and economic inclusivity.
The BIS incentive invested more than R4 billion in projects
owned by black industrialists, about 20% of which were
accessed by black female industrialists. To illustrate the
success of this scheme, let me highlight one of the supported
black industrialists by the DTIC over this period: The Toronto
Group Pty Ltd. The group manufactures charcoal for the export
market to Europe and has also activated carbon for water
treatment and purification. All procurement during
construction of this plant has been 100% local, 30% from black

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In terms of the need to advance the quest for inclusive growth
across our economy, we acknowledge the catalytic role the
National Empowerment Fund, has championed as the agency of
government mandated to grow meaningful black economic
participation. As the ANC we are pleased with the strides the
NEF has made in attracting over R8,8 billion in the third
party funding demonstrating the entity’s capacity as a
catalyst for unlocking economic value. Over the past year, the
DTIC allocated over R640 million to the NEF for the support of
businesses that have been at the forefront of fighting the
COVID-19 pandemic, for women empowerment, for economic
distress and for manufacturing enhancement.
In conclusion, hon Deputy Chair, notwithstanding the enormous
challenges we have encountered brought about by COVID-19 and
the existential threat of climate change to our ANC-led
government and all our social partners, have shown resilience
and determination to ensure that all our people are not left
behind. There are many structural constraints inherited from
the apartheid government that have limited government’s
ability to effectively transform the structure of our economy.
The reimagined industrial policy in its form seeks to deal
with these constraints in a structural way.

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The successful implementation of this policy is essential for
the broader transformation of our economy and creating a
better life for all. Thank you very much, hon Deputy Chair.
Mr M MVOKO (Eastern Cape): Thank you very much, hon Deputy
Chairperson. I would request to switch off my video, through
your permission, because of the place where I find myself in.
I was in an event with the Deputy Minister of Health, if you
allowed, you may continue.
Mr M MVOKO (Eastern Cape): Thank you very much, hon Deputy
Chairperson. Greetings to you, Deputy Chairperson and to the
hon members of this House, good afternoon. Hon Deputy
Chairperson, on behalf of the Eastern Cape I wish to submit
that the province welcomes and supports the Budget Vote of the
Department of Trade, Industry and Competition as presented by
Minister Ebrahim Patel. In his speech, the Minister captures
it correctly how our economies structured and how that
continues to jeopardise us when economic shocks takes place.
As a home to most automotive original equipment manufacturers,
OEMs, the vulnerability of supply chains is adversely impacted

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our job retention and creation of efforts in the province. The
effects of these are visible in the performance of the
Provincial Special Economic Zone both the East London
Industrial Development Zone and the Coega Special Economic
Zone where manufacturing jobs have been negatively affected,
especially in the East London Industrial Development Zone it’s
negatively affected due to the shortage of raw materials
globally to enabling operations in Mercedes-Benz South African
in East London.
It is a view of the industry and suppliers that this trend
will continue for 2022. We, however, find solace in the
Minister’s ... [Inaudible.] ... that this department has
learnt some lessons and they are positioning themselves
towards responding to challenges at hand. Indeed, as the
Minister said that the society needs a capable state that is
responsive and agile and to quickly marshal what is needed
when this materialise. We welcome the strategic direction that
Department of Trade, Industry and Competition is embracing
that of diversification and regionalisation of our supply
chains to de-risk our economy. We appreciate the support that
we receive from the department to improve our economic
infrastructure, but we need urgent support from national
government to align with this new thinking.

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The Eastern Cape has achieved great things with the support it
receives from Department of Trade, Industry and Competition.
The province has realised significance success in exports of
agricultural and processed products. We’ve achieved
R368 million against a target of R70 million during the 2021-
22 financial year. Of importance with this achievement is that
we’ve witnessed increase export from the new exporters which
came as a result of the co-operation between the province and
the Department of Trade, Industry and Competition on the
exporter development programme.
Deputy Chairperson, it is important now more than ever before
that the province with the support of Department of Trade,
Industry and Competition ensures policy forecast on the
retention stabilisation and growth of sectors. The focus is on
building local and regional value chains for the productive
sectors which is on the same level as the National Masterplan
such as the auto sector, the agriculture and agro-processing
masterplans and cannabis masterplans. However, the province
would like to see most ... [Inaudible.] ... on the legislation
for the cannabis industry which will open up for the rural
producers along the proposed model of the cannabis zones with
decentralised extraction facilities. Our economic development
agenda for 2022-23 is anchored by township and rural economy

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and revitalisation of state-owned entities. This aligns with
the Minister’s vision to intensify industrialisation as we de-
risk our economy. A number of activities are already taking
place in our province in support of the Minister’s strategy to
expand industrial activity beyond his concentration in the
urban metropolitan areas.
We’ve received support from a Minister’s department for the
development of the new Wild Coast, special economic zone as an
industrial park right now. The security fence construction for
designated industrial platform is in the final stages. We are
expecting completion by September 2022. Furthermore,
Department of Trade, Industry and Competition approved funding
for bulk infrastructure of R49,5 million. The construction
will then ensue for a period of eight months. This will be
providing a base for a development of stock structures to host
our potential investors that are already in the pipeline.
There are four investors thus far with the investment of
R1,4 billion and will create 968 operational jobs. A going
forward, the focus will be on bulk infrastructure development
and conversion of signed investment into leases for

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The revitalisation of our state-owned industrial parks is
another task that we have committed to in our pursuit of
decentralising economy participation. These parks will play a
pivotal role in integrating various regions in the mainstream
of economy. These parks need to be upgraded to have world
class infrastructure and services to retain and attract
current and future industrial investors in the province.
Therefore, through support from Department of Trade, Industry
and Competition and allocations from the province through the
Provincial Economic Stimulus Fund, funding of R273 056 million
was allocated to the phase revitalisation of Vulindlela Komani
Dimbaza project in Wild Coast and Somerset Industrial Park.
There are in different stages of development, and thus far, a
total of 505 construction jobs and 46 operational jobs have
been created and 47 local small, micro and medium enterprises,
SMMEs, that have been supported.
The province also recognises Department of Trade, Industry and
Competition’s commencement with the process of development of
the Green Paper for industrial parks. It is our view that this
will strengthen the ... [Inaudible.] ... programme
significantly beyond just infrastructure development, but
enable aspects of standardisation and investment promotion for

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these parks which will enhance efforts to utilise these parks
as industrial hubs and job creation instruments.
Deputy Chairperson, at the heart of our economic
reconstruction and recovery plan is the goal of building a new
fast growing and more inclusive economy propelled by greater
levels of public and private sector investments. These find
expression through our special economic zones, the East London
Industrial Development Zones, IDZ, and Coega Development Co-
operation and the Eastern Cape Development Co-operation. In
2019, before the emergence of coronavirus disease 2019, Covid-
19, the province ranked second out of the nine provinces in
terms of capital investment value behind Gauteng. In the past
five years, the province generated over R50 billion in
investment, mostly within the two Special Economic Zones,
SEZs, as the global economy recovers in the foreign direct
investment projects begin to improve the province will further
improve in position ... [inaudible.] ... to attract more
In this current financial year, the entities have set
themselves a target of attracting more than R1 billion
investment into the province. This won’t be possible without
the support of Department of Trade, Industry and Competition.

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I wish to appreciate the continued support by Department of
Trade, Industry and Competition and its leadership as the
province advances its efforts for inclusive economic growth
and development, in particular the support you give to our
SEZs and Industrial Parks. Our long-term plan is to
capacitated the Coega Development Corporation, CDC, and ...
[Inaudible.] ... to be more than just being investment
locations, but to be engines of economic growth and employment
in the province. The automotive remains one of the key sectors
of our economy in the Eastern Cape as we build from the
successes that the Minster has mentioned. We are embracing the
global developments ... [Inaudible.] ... in particular the
electric vehicle.
As I conclude, hon Deputy Chair, the Eastern Cape is endowed
with a number of resources that give it a competitive
advantage. These include water biodiversity and in extensive
coastline of over 800 km along the Indian Ocean with enormous
potential for an ocean economy as well as mineral and energy
resources. In support of all efforts and he’s willing to work
with the department in all efforts so that aimed at bringing
about the development to the province of the Eastern Cape. The
recent economic shocks that have taken place have reminded us
that we have not adequately ... [Inaudible.] ... to be dealt

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with a special design of the structure of the economy of the
past. By agreement a targeted focus to achieve economic
development and job creation of ... [Inaudible.] ... shall
continuously bear its fruits from the foundations we laid
today into the future. Thank you very much, Deputy Chair.
Mnr J J LONDT: Agb Ondervoorsitter, ...
... members and hon Minister, one of the most frustrating
things about debates these days is that many of the
participants pick and choose which dates are important to them
in defending what is going on in South Africa today. You have
some that goes all the way back to Dangor time and then those
that think our realities only started in 2020 with the
outbreak of the corona virus.
Where we are today, looking at our current reality, all the
mentioned dates and events do have an impact, but it shouldn't
be used as an excuse not to do the best during the now and the
period ahead to alleviate our predicament. I am actually kind
using the word predicament, because we are in a full blow
crisis. As a country, we are that frog that is in the ever

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increasing water temperature and we are reaching boiling
point. If you do not believe me, you are truly living with
your head in the sand. I am using sand, because I am not
allowed to use ass.
Let us take a small step back, just before the Covid-19
pandemic reached our shores almost 20% of South Africans were
affected by moderate to severe food insecurity. That increased
to about one in four people during mid-2020, according to
Stats SA, and today, there are some estimates by Ipsos that
found that more than 40% of our fellow citizens of all age
groups are affected by hunger.
No one disagrees that Covid-19 has made the situation worse.
The problem is that we were already on a downward trend and it
has only sped up because of the pandemic. If we were on an
upward growth trajectory economically, as we should have been
with our abundance in resources and if we had a competent and
corruption-free government, we would've been able to ride this
out much easier.
Looking at the budget of this department it should be
measured, same as with all other departments in how we tackle
four issues: one, economic growth; two, decreasing

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unemployment; three, truly broadening empowerment; four, a
major, major crisis, fighting hunger or poverty.
It was first the international community and the general
worldwide economic climate that was used as the excuse to
explain the stunted growth we have experienced in South
Africa. Now, it is the Covid-19 pandemic. We cannot however
hide from the fact that we were the biggest economy in Africa
and now we are slipping down the rankings on the continent, as
well as globally. By comparing apples to apples, countries
similar to South Africa have faced relatable challenges, yet,
they have outpaced us in growth over an extended period of
time whilst we are lagging behind.
Our real GDP growth forecast remains a concern at under 2% for
the next two years. This is woefully insufficient to address
the growing socioeconomic needs of South Africa. It is a long
way off the promised economic growth, based on fundamental
economic reforms as promised by the President.
When I say we have reached boiling point as a country, nothing
illustrates this crisis better than our unemployment rate,
which currently sits at an unacceptable 34,5%. This is up from
the first quarter of 2021, which stood at 32,6%. Provincially,

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it is no wonder that an ANC stronghold sits at the top of the
list, with the Eastern Cape sitting at a whopping 44,0%. If we
look at the expanded definition across South Africa, we are
over 45% of the population that is currently unemployed or
discouraged from seeking work, with provinces such the Eastern
Cape, KwaZulu-Natal, Limpopo and Mpumalanga all over 50%,
while the Western Cape sits below the official unemployment
rate. Let me repeat this, it sits below the official
unemployment rate at 29%, and that is our expanded definition.
Our expanded definition is below the official rate for the
rest of the country.
This department and in fact, every Cabinet Minister, should be
held accountable, based on the job opportunities they create.
Every single evening and every single morning that should be
the first question you ask yourself, Minister: What have I
done and what will I do today to decrease unemployment. But
more importantly, it should be linked to the actual reality.
If you fail to turn the ship around in a reasonable time
period, you should not be here. You and this entire ANC
Cabinet is responsible for the decline in our economy and the
increase in unemployed over an extended period of time. It was
not due to certain events; it is due to the failed economic

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policies of this ANC government.it is due to a corrupt
national ANC government that we are sitting in this crisis.
Broad-based black economic empowerment, as implemented by the
ANC, has failed dismally in its objectives. It is only an
elite few that are empowered, over and over again, with an
ever-increasing gap between the connected few and those that
really need it. This is a problem. This broad-based black
economic empowerment, as implemented by the ANC, has also been
one of the biggest drivers of corruption in public procurement
with families and friends of ANC bigwigs often being the
middle man, adding exorbitant price tags to services and
goods, which ensures that we often get less for more and not
the other way round. The DA has put forward workable
alternatives and with our Social Impact Bill, we propose
scrapping the current Broad-Based Black Economic Empowerment
Act and making several key amendments to the Preferential
Procurement Policy Framework Act, PPPFA.
The Social Impact Bill will amend sections of the PPPFA and
introduce criteria, based on sustainable development goals
sustainable development goals. T this sustainable development
goals-based model will better serve social and economic

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development for the most vulnerable communities across the
Lastly, having to fight hunger, living in poverty remains one
of the ultimate violations of one’s dignity. The fact that
millions of South Africans are battling with this on a daily
basis is an indictment on you, hon Minister, and an indictment
your Cabinet and your party. More must be done to fight this
Whether you like to hear it or not, what’s currently happening
halfway across the world in Ukraine will have a negative
impact on us here in South Africa. By keeping quiet, you are
complicit in the consequences. You do not come here, months
down the line and use the war as an excuse for your own
failings. You are failing today. Similarly, you kept quiet
when Zimbabweans were terrorised by your sister party or human
rights abuses occur elsewhere on the continent and now, you
complain that we have so many people seeking refuge here. Your
actions and your inactions have consequences.
This budget before us is pretty much the same as our Cabinet.
By recycling the same old ideas and people you hope to get
different results. That will not happen. The only way to make

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drastic changes and to take drastic steps and how we will see
a change in this trajectory, is to remove this current
government. The ANC will not make these drastic changes and
they will not take drastic steps. So, it is now incumbent upon
the voters to do it on your behalf. I thank you.
Majola): Hon Deputy Chairperson of the NCOP, Deputy Minister
Tshwete, MEC Mvoko, hon members, fellow South Africans, today
marks the last day of Africa Month in which we commemorate the
founding of the Organization of African Unity, OAU, the
precursor to the African Union, AU.
On the 25th of May, Africans across our continent and in the
diaspora celebrated Africa Day. The celebration of Africa
Month, provided us with an opportunity to once again reflect
on who we are. To remember that we are Africans, to remember
the profound thing that “I am because we are, Motho ke motho
ka batho, umuntu ngumuntu ngabantu.”
To paraphrase former President Mbeki, Africa Day reminded us
once again that and I quote:

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We are the grandchildren of the patriotic warrior men and
women that Hintsa, Cetjwayo, Sekhukhune and Mphephu led.
Hon Deputy Chair, 59-years ago, on the 24th of May, one of the
activists committed to African Unity, Sir Abubakar Tafawa
Balewa, on the occasion of the establishment of the
Organization of African Unity made a profound statement that
is worth quoting and I quote:
Our countries can be colonized economically if we are not
careful. Just as we have fought political domination, it
is also important that we fight against economic
domination by other countries.
Our forebears believe that Africa’s future growth lies in
trade and not in the age. Over the years, we have done work in
pursuit of this vision. And we continue to do so. Today, as
Africans, we can say with pride, that because of our
collective efforts, we have reached an extraordinary milestone
in our ongoing integration programme.
Indeed, we are proud to tell our forebears that their long
standing continental objective of integrating Africa is
steaming ahead. The African Continental Free Trade Area,

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AfCFTA, in which the Department of Trade Industry and
Competition, DTIC, has played a significant role is gaining
momentum. To date, 54 AU members have signed the AfCFTA and 43
member states ratified the agreement.
Earlier this year, I accompanied Minister Patel to AfCFTA
Ministers of Trade in Accra, Ghana. The AfCFTA Council of
Ministers under the chairship of South Africa agreed that
negotiations on trade and services be concluded by June 2022
and negotiations on the outstanding rules of origin be
concluded by September 2022. Currently, 45 member states have
submitted their tariff offers and 29 of these offers have been
verified by the AfCFTA Secretariat to be in accordance with
their modalities.
South Africa as part of Southern African Customs Union, SACU,
is in the process of finalizing a revised or that will meet
the modalities and have a 90% offer on the table for
consideration. Last month, I was in Gaborone Botswana,
together with other SACU members, Ministers of Trade, consider
what it is at a practical level that they should do to further
enhance the consolidation of the region, strengthen its value-
chains and ramp up investments.

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In terms of preparing South African exporters for the
operationalization of the AfCFTA, there are some important
issues to be considered first. Although the final concessions
are still to be finalized. The products on which preferences
are likely to be offered are those contained in the list of
products agreed ... [Inaudible.] ... of origin. Once SACU
finalises and submit the 90% offer for provisional
implementation it will be able to benefit from preferential
trade with those customs unions and state parties with which
it does not already have a preferential trade arrangement
Hon Deputy Chairperson, the global economic environment has
changed dramatically since the onset of the Russia-Ukraine
crisis, oil prices have increased substantially and so our
food prices. The net result is that global growth forecasts
for 2022 have been significantly downgraded. The International
Monetary Fund, IMF, initial forecasted growth of 44,4% in
2022, and this has now been reduced to a mere modest growth
rate of 3,6%.
While commodity prices of minerals like coal and iron ore have
also risen to South Africa’s potential benefits, the reality
is that food prices ... [Inaudible.] ... the rising cost of

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fuel and our well-known structural constraints are likely to
see the South African economy growing by less than 2% this
year. This growth rate is simply too low to have a meaningful
impact on poverty and unemployment, especially as rising
inflation erodes and working class weakened.
It is this context that requires the DTIC to redouble its
efforts to grow the industrial sector to support enterprises
and workers, to improve, business to improve resilience and to
find new ways to develop enterprises in our townships. This
will include ramping up the implementation of the new approach
to special economic zones, SEZs, and industrial parks, where
we ensure that surrounding communities are invested in these
activities. For example, during the construction of the
Tshwane Automotive SEZ, packages valued at more than R1,5
billion rand were allocated to small, micro and medium-sized
entities, SMMEs, from surrounding communities. Later, I’ll
return to elaborate on the programme of the SEZs.
The recent heavy rains and floods have caused devastating
impacts to communities and businesses. We are working closely
with the provincial and municipal governments to co-ordinate
efforts and ensure that the resources allocated are used in
care and good governance. The Industrial Development

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Corporation has allocated R500 million to flood impacted
communities and monies are being disbursed to support a quick
response, which include ensuring the function of water and
Hon members, public spend is vital in our young democracy such
as ours, to support our local industries. We must be firm that
we are are capable of manufacturing sophisticated products by
our own local industries. The National Infrastructure Plan
2050, places significant responsibility on public procurement
to align to local manufacturing, thus supporting our gross
domestic product, GDP, growth, job creation and socio-economic
Our work on spearheading transformation seeks to create
opportunities for all South Africans. This involves
deconcentrating our economy supporting the black
industrialists and workers who were previously denied access
to economic opportunities and ownership. Our economic vision
is to live the rate of inclusive economic growth.
At the beginning of this month I accompanied President
Ramaphosa and the Premier of Gauteng to the launch of
Corobrik’s new brick manufacturing plant named Kwastina in

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Carlton in Gauteng. Corobrik is one of the companies that have
taken steps to boost worker empowerment and 45,9% of their
total share equity is under the control of historically
disadvantaged South Africans. It is also noteworthy that
Corobrik started the Workers Trust with 26% of shareholding
deciding with their staff.
The economic transformation and economic growth cannot be
separated, particularly in our country. Over the years through
various programmes, the DTIC has pursued the goal of inclusive
economic growth by integrating transformation into the process
of industrialization. These programmes among others, include
support for township businesses, and export related training
for companies especially black women and ... [Inaudible.] ...
Hon members, despite its challenges, South Africa remains a
destination of choice for investment on the continent. Earlier
this month I was in Gqeberha with MEC Mvoko to launch the
construction of a new plant for Orion Engineered Carbons.
Black carbon is used in the manufacturing of all types of
tires. As a result of the conflict in Ukraine, Orion
Engineered Carbons is now receiving orders to supply the
European market.

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As indicated by Minister Patel earlier, our draft National
Green Hydrogen Commercialisation Strategy will be ready for
tabling in Cabinet by end of August for consideration and ...
[Inaudible.] ... We are confident that the National Green
Hydrogen Commercialisation Strategy and action plan for South
Africa will play a significant role in the transition to a
net-zero emissions energy system. It will establish South
Africa as a future energy market global trader securing
foreign direct investment, earning foreign income and creating
economic growth and development.
We have identified six areas for the initial production of
green hydrogen. These are Boegoebaai in the Northern Cape,
Saldanha Bay, in Western Cape, Nelson Mandela Bay in the
Eastern Cape, eThekwini and Richards Bay in KwaZulu-Natal and
the Vaal in Gauteng.
The recent announcement by ArcelorMittal of launching a
feasibility study to evaluate the reopening of its Saldanha
Bay plant using mixed renewable energy generation is indeed
very welcome. This past week I was at a Saldanha Bay
Industrial Development Zone with MEC Wenger and we are very
much impressed with the progress that has been made.

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Hon members, our localization imperative is not some
theoretical ideology. It is grounded in working directly with
chief executive officers, CEOs, managers and workers in
masterplan processes to identify opportunities to increase
local production of products which our people want to buy.
Through the South African Steel and Metal Fabrication Master
Plan, we aim to revitalize the sector. Implementation is well
on its way with achievements be marked by new investment in
upstream, downstream and fed stream industries.
We are encouraged by the co-operation and commitment shown by
all sectors towards the signing of the different master plans,
after the ... [Inaudible.] ... engagements. The DTIC has
supported 11 projects in the value-chain resulting in
disbursements to the value of R209,000,100 to R3 billion
investments leveraged and 2 439 jobs supported. Some of the
other achievements highlights are as follows. Firstly, Scaw
Metals is investing R2 billion to the new steel mill, Highveld
Steel has reopened its facility. The implementation of price
preference system and export tax for scrap metals, working
with Transnet Freight Rail infrastructure programme, 34 wheels
between cost products South Africa and Naledi Ringrollers to
the value of R2,5 billion have been allocated for local

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In March this year, the Fourth Annual Presidential Investment
Conference was held physically, after previous instalments
were held virtually during lockdowns following the outbreak of
COVID-19. An amount of R356,8 billion in new investment was
unlocked at this year’s investment conference. Several of the
investment pledges are in sectors that will add to steel
demand, such as autos and logistics.
In the Poultry Sector Master Plan, ten contract growers have
been established leveraging investment of R336 million with
182 new jobs created. The contribution to gross domestic
product, GDP, by the poultry industry over the past year has
increased from R48 billion to over R50 billion and is expected
to reach R54 billion by the end of 2022. In the Sugar Master
Plan, Shoprite is partnering with the South African Cane
Growers Association to promote the sale of locally produced
sugar in 1 189 stores.
Hon members, we are doing everything we can to ensure that
ultimately, we can fulfil the goal to expand and establish new
industrial hubs across the country using the District
Development Model with the intension to attract investments
and create jobs.

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Hon Chairperson, we are very much alive to the many
constraints that confront our economy. We have no choice but
to succeed in our quest to drive industrialization,
transformation and building of a capable state. We shall
succeed because we are a resilient people, I thank you.
Mr M S MOLETSANE: Deputy Chairperson, the Economic Freedom
Fighters rejects the Budget Vote for Trade, Industry and
Competition. We reject this budget because this department has
failed with its primary function of job creation, eradicating
poverty and inequality and to grow the economy. This
department has demonstrated slow progress in changing
entrenched patterns of economic participation, in improving
low levels of productive investment and in stimulating our
economy. Nothing tangible has ever come from this department,
which is continuously in a planning phase, with a series of
task teams that continue to research the reports compiled by
The South African economy has underperformed in the past two
decades in terms of growth, investment and job creation. The
economic policy zig-zag and confusion has led to an economy
that is not growing, not creating jobs, with the white
population continuing to own the economy. Instead of finding

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solutions to the challenges faced, this department continues
to adopt neoliberal policies that cannot create jobs and
stimulate economic growth. The department is antistate-led
development even though its President agreed with the Economic
Freedom Fighters that there needs to be state-led development
to stimulate economic growth.
The department has allowed South Africa to be the dumping
ground of low-grade goods. International trade policies still
allow goods that could be manufactured locally, such as
chicken, to be imported. Mr Cyril Ramaphosa held a series of
investment conferences, and called big business pledged
amounts that they indicated they would invest and never did;
instead, there has been a job blood bath. Domestic investment
remains low and there exists no clear understanding from the
department that the private sector cares about making profits
and will do everything to ensure profits are maximised even
through the exploitation of workers.
South Africa remains the most unequal society in the world,
where the rich are getting richer, and the poor are getting
poorer, and there is no plan in place for the department to
address this issue. The department has failed to supply the
portfolio committee with a list of industries that have been

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financed and are operational and the number of jobs created.
The financing entities such as IDC, NEF or CEF are delaying
approving the application of potential black industrialists
because they are not politically correct or the IDC officials
will not be able to benefit from the deal.
The department has to support small-scale sugar cane farmers
by acquiring a milling machine. This could have been a massive
assistance to them as they would stop relying on some old
white farmers milling machines of which its usage favours
white sugar farmers. This indicates that the department lacks
the understanding that through small scale farming, massive
jobs can be created. Entities such as the South African Bureau
of Standards, SABS, are under administration. At the same
time, there is alleged corruption and maladministration at
national state lotteries, and slow acting by the department
leaves much to be desired.
South Africa needs policies and actions which will increase
investment in the struggling economy. Policies which will
promote growth at levels which are higher than current growth
rates. The department needs to contribute to the alleviation
of poverty in our country where more than half of our citizens
live in abject poverty, poverty which remains predominately

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rural and black. We reject this budget as it does not
contribute to job creation, in a population where the youth
remains unemployed. This department does not contribute to an
improved distribution of wealth.
We reject this department which has no aims of development,
improved social equity and empowerment, especially for those
sectors and individuals of our society who were previously
disadvantaged by the practices of the previous apartheid
system. It must be put on record that as long the government
does not own the means of production, such as land and
minerals, nationalise the banks to be able to finance projects
for the general masses of our people, the economy of this
country will remain in the hands of the white people, and it
will not grow!
This department does not increase import tariffs to stimulate
local manufacturing; goods will still be imported! It does not
support small scale farmers, meaning there will be no jobs
created for our people. This department has not finalised
special economic zones with special tax incentives, meaning
the zones will not be attractive to build industries hence no
job creation! The EFF rejects this vote. Thank you, Deputy

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Mr K M MMOIEMANG: Deputy Chair, let me also take this
opportunity to recognise all the protocols that were advanced,
my colleague, the Chairperson of the Select Committee, and
indeed extend a word of greetings to you. Allow me also in
celebrating the Africa month, start by borrowing from the
words of one of the greatest and true sons of our beloved
continent, Kwame Nkrumah when he said:
It is clear that we must find an African solution to our
problems, and that this can only be found in African
unity. Divided we are weak; united, Africa could become
one of the greatest forces for good in the world.
On behalf of the ANC, we support this budget because the work
of the Department of Trade, Industry and Competition is
aligned to the aspiration of the African Union’s Agenda 2063;
which aims to achieve: “A prosperous Africa based on inclusive
growth and sustainable development”. In line with this
aspiration, the African continent is committed to eradicating
poverty in one generation and building shared prosperity
through social and economic transformation.
One of the Department of Trade, Industry and Competition’s
mandates is to facilitate structural transformation through

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broad-based economic participation and spatial industrial
development. Through this programme, it implements this mainly
through Spatial Industrial Development and Economic
Transformation and Industrial Financing. Therefore, we must
welcome the budget of R183,4 million has been allocated which
will include incentives towards the development of Special
Economic Zones and to facilitate inclusion and greater black
and women participation in the economy.
The spatial configuration of South Africa’s economy is
characterized by the concentration of economic activity in a
few parts of the country. The main metros in Gauteng, Cape
Town and eThekwini together with the main mining towns account
for a substantial part of economic output. This results in a
constant movement of people from other parts of the country
and rural areas, to these economic hubs. As a result, the ANC
government’s policy objectives include measures to provide a
wider pool of economic development and inclusive growth to
address these cultural constraints.
The Special Economic Zones and Industrial Parks are intended
to form the backbone of reindustrialization in the country. We
have seen how the department has been working according to the
Special Economic Zones Act and designated a number of Special

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Economic Zones which are intended to attract new investments
and to create employment through provincial interactions. The
model is the new Spatial Industrial Development Model
introduced by the department through the District Development
Model. The focus will be on governance arrangements, strong
commitment from all spheres of government, the development of
strong and credible investment promotion and facilitation
plans, community involvement and facilitation, hybrid
ownership and lastly, feasible financial models.
Transformation is about building an economy that works where
our people live and bringing development to rural provinces
and districts. The revised approach to Spatial Industrial
Policy, informed by the District Development Model, will see
the department supporting projects that create jobs,
infrastructure, and innovation in districts across the
country. We look forward to the proposals for new Special
Economic Zones, SEZs that have been evaluated; namely
Bojanala, Vaal, Namakwa, and Fetakgomo-Tubatse SEZ.
Deputy Chair, it’s ironic that some of our members can even
afford to forget the presentation that we received this
morning about how SEZs are performing. Not only were we
informed that the department has approved SEZs an amount of

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R10,4 billion. Out of this R10,4 billion, R9 billion has been
claimed and R21,4 million is an investment amount. And out of
this programme, 18,690 jobs will be created.
It is important to appreciate the fact that there is work in
progress. Precisely by the virtue of the fact that SEZs are an
important element of reigniting manufacturing-led
industrialization in an accelerated manner. They seek to
create a sustainable environment for foreign and domestic
direct investment and build sector-based industries, which
will help the South African economy to develop its strategic
industrial capabilities, as the Minister has correctly pointed
out. They serve as a key policy programme underpinning
spatially integrated industrial development, particularly in
the context of unlocking or optimizing South Africa’s
comparative and competitive advantages.
As part of government’s efforts to roll out the Economic
Reconstruction and Recovery Plan in order to stimulate growth
in the South African economy, we believe that we need more
investments, more jobs and growth. It is also Special Economic
Zones that can play that role as a flywheel to catalyse these
efforts for our country. In the 10 Special Economic Zones with
an investment that I have alluded to and with the jobs that

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have been created, we need to appreciate the interventions the
initiative is making.
The House must acknowledge the most viable Special Economic
Zones at present, based on actual occupancy and commitments,
that include Coega Industrial Development Zone, Tshwane Auto
Special Economic Zone, Dube Trade Port and East London
Industrial Development Zone. We welcome the two new
investments in the East London SEZ, Ebor Automotive Systems
and Auria Automotive Systems, as well as the expansion of TI
Automotive Systems. These investments translated into more
than R3 billion worth of private sector investment with a job
creation potential of 2 078 new direct jobs in the zone.
The Tshwane Automotive Special Economic Zone is a key launch
pad towards developing Tshwane as the first Automotive City in
the African continent. This project has surpassed government’s
localisation policy imperatives and has empower% local
businesses in the construction phase. Another area of
intervention that is prompting us as the ANC to support this
budget is the intervention through industrial parks. Our
people will benefit from the job creation that comes with
department’s revitalization of the industrial parks in the
light of the aging infrastructure so that they could attract

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investment, particularly the rural areas and villages. We have
noted that digital hubs are also being added to industrial
The objective of reviving industrial parks must include the
promotion of decentralization of industrialization to the less
economically active areas such as townships and villages. In
addition, the revitalization program must improve industrial
infrastructure which has aged and vandalized. The South
African Township economy is estimated to be worth about
R100 billion. It is therefore essential that industrial parks
be the catalysts for the township and rural economy.
Business people must be excited that work is underway with
provincial governments, to attract investors to settle in
these parks and create jobs. To date, R770 million has been
approved through the Department of Trade, Industry and
Competition’s Critical Infrastructure Programme fund for the
revitalization of industrial parks in seven provinces. This is
also the briefing that we received in the morning, but others
decided to ignore it.
Part of the revitalization programme is also about the
building of digital hubs within the parks to create central

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points for technology, promote innovation and facilitate the
creative businesses around these rural and township areas.
Within this approach, district municipalities will play a
pivotal role in driving economic growth, and this will serve
as a new mandate for districts. The task of job creation in
the economy must be seen as a collective responsibility of all
spheres of government working hand and glove with the private
sector, organised labour and communities.
District Municipal Local Economic Development plans integrated
with national government economic cluster departments and
provincial governments involved in the economic development,
will now be entrenched in this approach. At the centre of
catalysing industrial hubs, Parks, and Special Economic Zones,
is the drive to fast-track the level of Localisation as a
fundamental policy of industrialization and a resilient
national economy, that is self-sufficient and strong. The
excessive exposure of our economy to imports has exposed us
during the pandemic when global supply chains were disrupted,
but others said we must not pay attention to this.
Colonialism and apartheid have left a fractured society where
industrial development was limited to mainly metros which has
concentrated economic activity in these areas leaving many

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areas underdeveloped. There is therefore a need to expand our
industrial development for our country to achieve more
inclusive opportunities and growth. The underdeveloped
provinces and districts have to work in a co-ordinated manner
to ensure that the revitalisation of industrial parks attracts
the necessary investor to create jobs and the opportunities
needed to take our people out of poverty.
In conclusion, I would like to pay homage to one of Africa’s
outstanding sons, the late President of Tanzania who was
widely known as Mwalimu, Julius Kambarage Nyerere. As
Africans, we should remember his words when he said:
Unity will not make us rich, but it can make it difficult
for Africa and the African peoples to be disregarded and
humiliated. My generation led Africa to political
freedom. The current generation of leaders and peoples of
Africa must pick up the flickering torch of African
freedom, refuel it with their enthusiasm and
determination, and carry it forward.
It is therefore incumbent on us to work to ensure that we
extricate the masses of our people from the shackles of
poverty, unemployment, and hunger and fight for a better life

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for all. At the centre of achieving is our unity and co-
operation we need to progressively work together with all
sectors of society for a humane society that places the basic
needs of people above self-interest. I thank you, Deputy
Ms H S BOSHOFF: Hon Deputy Chairperson, today we are debating
the budget of Trade, Industry and Competition. This department
has many entities, of which one is the Spatial Industrial
Development and Economic Transformation. Hon Deputy Chair, one
of the key instruments to industrialise the country and create
jobs are Special Economic Zones, SEZs, which have the
potential of creating decent jobs, developing regions, and the
transferring of skills to small, micro and medium enterprises.
The SEZ Policy was enacted into law on the premise that the
Act and policy will transform regional industrial development
in South Africa.
Unfortunately, hon Minister, the people of Mpumalanga have
again been left in the lurch as the Nkomazi Special Economic
Zone, NSEZ, which was initiated in 2012, is still but a pipe
dream 10 years later. This SEZ was to be the axis of economic
integration between the South African provinces of Mpumalanga,
Gauteng and Limpopo, and the Independent states of Swaziland

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and Mozambique. The SEZ was set to offer investors a
multisector base of operations along the Maputo Development
Corridor, which runs through the Southern Africa’s most
productive regions.
It was also envisaged that direct and indirect job
opportunities would be in the region of 100 000. Yes,
Minister: A 100 000 job opportunities! Can you imagine what
this would have meant for the people of this area? I doubt
that government has any idea, as they are so far out of touch
with what is going on - on the ground! It would appear as if
they only care about is, “WHAT IS IN IT FOR ME?”
In 2019, the then Minister of Trade and Industry, Minister Rob
Davies, indicated that Mpumalanga’s impoverished Nkomazi
region is getting ready for a R7 billion investment when he
approved a licence for the establishment of the Nkomazi SEZ,
on 673 hectares of land.
However, in September 2020, five potential investors in
Mpumalanga’s SEZ withdrew R700 million worth of pledges due to
government’s delays in implementing processes, plans and
setting up a unit to drive this project. The Mpumalanga
Economic Growth Development Agency, Mega, who was supposed to

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be the driving force behind the Nkomazi SEZ, failed to
timeously finalise land development processes, re-establish
the project management unit and develop the bulk
infrastructure master plan. This, this after the Mega
indicated in 2019 that the department will approve its
business strategy within 12 months. The Mega also indicated
that 81 765 jobs are expected to be created in agriculture;
8 275 in construction; and 9 505 in related industries.
On 30 September 2021, the hopes of the residents in the
Nkomazi district were again raised when the Deputy Minister of
Trade, Industry and Competition, Fikile Majola, and the
Premier of Mpumalanga, Refilwe Mtshweni-Tsipane, visited the
so called Nkomazi Special Economic Zone. The purpose of the
visit was to assess progress in the implementation of the
Nkomazi SEZ since its inception. No report has been
forthcoming of what they assessed, because there is absolutely
nothing to assess.
Hon Minister Patel: How many more visits are to be undertaken;
how many more feasibility studies are to be undertaken; and
how much more in monetary funding will be spent before the
residents of Nkomazi and Mpumalanga can enjoy the fruits that
this project holds. These people cannot wait another 10 years

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for this SEZ to be built. We all know that SA’s economy has
been stagnant for 10 years, and that South Africa is
struggling to come to grips after the devastation of Covid-19
The Russian-Ukraine war has forced us into a world of high
energy prices, which has seen a tremendous hike in food
prices, placing an extra burden on all South Africans, but
even more so, on those in Nkomazi who are waiting patiently
for the SEZ to be built as this is their last hope for
What we now need to see is real commitment and no more lip
service. No more master plans, like DTIC’s Global Business
Services Masterplan which hopes to bring together government,
industry, social partners and labour to set a common vision
and action agenda for developing and growing the sector.
Hon Minister, your intervention on this matter is of great
importance to the people of Nkomazi, in Mpumalanga, especially
in light of economic decline to ensure they do not find it
necessary to resort to a life of poverty because you and your
department has dragged its feet. I thank you.

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Mr G BOSMAN (Western Cape): Good afternoon, House Deputy
Chairperson, Ministers and hon members. Deputy Chairperson,
the national government has no idea what it is doing with this
department. Overregulation on some issues, like international
trade, coupled with complete inaction on others, like the
failure to address continued attacks on our economic
infrastructure, means that this department is just another ANC
If we talk about overregulation, this is a department that
literally has the word competition in its name, and yet is
strangling free competition in the market. It is the consumer
who ultimately has to pay the price for the inefficiency
created by this ANC-led government. The national government
would do well to learn from the example of the DA.
In the Western Cape we doing as much as we can to deregulate
the economy. I say as much as we can because there is still a
500kg ball and chain, that looks like Minister Patel, that is
tied to our feet and holding us back. Nevertheless, the
Western Cape Department of Economic Development and Tourism
has a team dedicated to Red Tape Reduction. This team is
specifically focused on helping new or existing businesses to
overcome the challenges that too much regulation presents.

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The ANC has unsuccessfully been trying to control the economy
through years of unnecessary interventions. But, just about
every economist in the world will tell you: Overregulation
leads to inefficiency; and inefficiency leads to a lack of
economic growth, which is where South Africa has been stuck
for far too long.
Deputy Chairperson, we all know it is not the job of
government to try and regulate every facet of the economy, but
to create the underlying conditions where business can
flourish. I am talking about economic infrastructure: The
roads that are used to transport our goods; the ports that are
points of connection for trade with the rest of the world; and
the railways that are supposed to offer cheap and reliable
transport to work for our citizens and our goods.
Ensuring these things are in place and in the best possible
condition is the job of government. But, you just need to look
at the state of the roads in the Free State, the state of the
Port of Cape Town before the Western Cape Government
intervened, and the state of our notoriously unreliable rail
system to see our economy is set up for failure – a failure
set up - by the ANC!

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In the Western Cape we are committed to finding innovative
ways around the problems caused by ANC mismanagement of our
infrastructure. With specialised entities, like Wesgro, aimed
specifically at attracting investment and growing the economy
in the Western Cape, the Western Cape Government is addressing
some of the biggest issues in our country - jobs.
Wesgro has facilitated almost R6 billions of committed
investment that has seen over 4 000 jobs created in the last
financial year. Additionally, 49 trade agreements were signed
at the value of over R950 million, and this would further
create over 200 jobs in the process. It should not be lost on
anyone that this success is taking place in an immensely
difficult economic climate, largely created by misguided and
uninformed ANC policy.
Deputy Chairperson, the Western Cape is doing everything we
can to make it easier to do business in our province, with the
ultimate goal being job creation for our citizens. The
Saldanha Bay Industrial Development Zone, SBIDZ, is another
example of this. The infrastructure put in place has made
Saldanha a place where people want to do business.

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This industrial development zone is the first to be designated
as a port, and now has the opportunity to leverage the value
of a free port environment, which leads to more trade and
economic activity – that’s leading to more jobs. The main
focus of the SBIDZ will continue to be the creation of an
attractive environment for investors, as that is the best path
to economic growth.
But, in order for provinces to ... using the Ministers words,
“... Have the fire power to drive industrialization,” we need
national government to play ball and either support provinces
or get out of the way.
Deputy Chairperson, the Western Cape Department of Economic
Development and Tourism is also committed to supporting our
entrepreneurs through the SMME Booster Fund. This fund aims to
provide support to our smaller businesses so that they can
grow and contribute even more value to our society. That is
growing a formal and informal touch of economy.
Since this fund was established in 2019, more than R59 million
has been allocated to supporting 730 SMMEs across our
province. This fund is accessible to township-based
businesses, young entrepreneurs and people with disabilities,

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as well as women, with the aim of helping them get started and
keep going in the face of tough economic circumstances. These
businesses are the lifeblood of our economy, and the lack of
support for them from national government is shameful.
Furthermore, in the Western Cape people are being put in a
position to empower themselves. The Western Cape Department of
Economic Development and Tourism has a dedicated Skills
Development and Innovation Programme that is aimed at
facilitating the delivery of skills that are needed by our
Western Cape economy.
This programme actually looks at what skills are needed for
our economy to grow, and it sets about trying to increase the
number of people in the province with those skills. This
entails collaboration with different levels of government, as
well as the private sector.
The more than R96 million has been allocated to this programme
for the next financial year, again, shows that the Western
Cape is serious about putting our people to work. It is only
through actively driving systemic change that this department
is helping to fix South Africa and to fix our broken South
African economy.

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Almost 70 000 people now work in call centres across the City
of Cape Town, servicing domestic and international clients. In
two-and-a-half years, the business processing outsourcing
industry has created more than 15 000 jobs, creating and
contributing more than R14 billion to our metro’s economy
since its establishment.
These successes are largely due part to the funding provided
by the Western Cape Department of Economic Development and
Tourism, the City of Cape Town and Cape Business Processing
Outsourcing, CapeBPO.
While the Western Cape is clearly trying to uplift our
communities through economic growth, the ANC still does not
understand that growth is an absolute requirement for the
alleviation of poverty. If they understood that, Minister
Patel’s department would not be pressing on with their
ridiculous local content requirements for industry. For real
economic growth to take hold, we need to use our resources as
effectively as possible.
By forcing companies to buy products at higher than optimal
prices, you are not actually helping the local economy, you
are creating inefficiency and higher than competitive prices

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for government. This just leads to higher costs and at the end
of the day less services can be delivered with the already
limited budget.
The lack of economic growth in this country is not just a
matter of numbers on paper: It is a lack of food; it is a lack
of heat in the winter; and it is a lack of jobs. There is a
very real human cost to the never-ending failures of the ANC.
If the national government ever wants to get serious about
improving the lives of our citizens, they should take a page
out of the DA’s handbook, and become a facilitator rather than
trying and failing to control every aspect of the economy. I
thank you.
Mr N M HADEBE: Hon Deputy Chairperson and hon Minister, in the
President’s state of the nation address, emphasis was placed
on the urgent need to attract investments and importantly, to
simplify processes and unblock specific obstacles to
investment and business growth. At the time of the address,
these words were greatly welcomed by the South African public
and the business sector. There is a hunger for change and
prosperity. However, these words ring hollow if we do not in
fact see clear government commitments to remove red tape and

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provide a helping hand to businesses in these dire economic
It is against this commitment made in the state of the nation
address that we need to measure the Department of Trade,
Industry and Competition’s performance and key priorities. On
consideration of the department’s latest annual performance
plan, APP, and budget, it is concerning that although the
department sets out to reduce red tape across all of its
programmes, no specific measures and practices requiring
actions were identified in the APP.
We need to honestly ask ourselves if the department has any
intention of reducing red tape or whether the lofty promises
made by the President and the department are all just for
show. The department should have at least identified obstacles
that complicate and stifle investment opportunities in their
current programmes. The failure to do so not only raises
questions regarding the department’s sincerity to reduce red
tape but also hinders us as Parliament from fully
interrogating the performance of the department. This is a
great failure and one that should not simply be accepted.

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With an alarming unemployment rate of 35,3% and more
concerning a youth unemployment rate of 65,5%, faith in the
government’s ability to rebuild South Africa, and attract and
retain investment is low. The budgetary cuts to the Department
of Trade and Industry’s financing programme, which serves a
vital function to stimulate economic activities by
R1,79 billion, stand in contradiction to the government’s
commitment to attract and retain investments.
Furthermore, much more needs to be done to ensure the
participation of small and medium enterprises in our economy
and this commitment needs to be reflected in the department’s
APP. According to the World Bank, small and medium enterprises
represent about 90% of businesses and more than 50% of
employment worldwide, and are major role-players in developing
countries such as South Africa. We need to do everything in
our power to assist these enterprises and reduce the red tape
that hinders these enterprises from thriving.
The department, as the custodian of the government’s economic
policy development, has a mammoth task ahead and the IFP will
closely interrogate its performance in the coming financial
year. Nevertheless, the IFP accepts the Budget Vote. I thank

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Mnr S F DU TOIT: Agb Voorsitter ...
... the Vote’s purpose is to lead economic development, policy
formulation and planning, facilitate access to sustainable
economic activity and employment for all South Africans
through an understanding of the economy, knowledge of economic
opportunities and potential and anticipation of future
economic trends; to catalyse economic transformation and
development and provide a predictable, competitive, equitable
and socially responsible environment for investment,
enterprise and trade for economic citizens; and to contribute
to achieving government’s vision of an adaptive and
restructured economy, characterised by accelerated economic
growth, employment creation and greater equity.
The mandate of the Department of Trade and Industry is derived
from a broad legislative framework, which includes, among
others the Broad-Based Black Economic Empowerment, BBBEE, Act
of 2003. What is wrong with this picture, Chair?

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Wat fout is, is die oor-regulering wat tans in Suid-Afrika
plaasvind. Regulering en reëls is nodig en goed, maar die
regering probeer tans hul onvermoë met regulasies verbloem en
daardeur ’n politieke oplossing vir ’n ideologiese oorsaak
soek. Natuurlik wil ons almal hê dat werkloosheid in Suid-
Afrika glad nie meer moet bestaan nie, maar die groter oorsaak
daarvoor is die regering.
South Africa is urgently in need of job creation and
employment, and it is an undisputed fact. However, what is
government doing about it? Government avails R10,9 billion to
be used by the Department of Trade, Industry and Competition
to drive the mandate of BBBEE, an initiative that is proven to
aggravate the ill of corruption, cadre deployment and failing
Die regering spandeer werklik R10,9 miljard op regulasie-
satoriese wetgewing wat verdere verval en armoede
bewerkstellig en verseker.

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Government wants to have it all. On the one side they want to
be the largest job creator. They do not want to privatise
state-owned entities, SOE’s, fearing that their undeniable
failure will be acknowledged, although it can’t be disputed.
In the same breath, they encourage the private sector to go
into joint ventures and broaden their black economic
empowerment, BEE, status by handing 51% effective ownership of
their hard-earned businesses to black partners.
Die regering reguleer wie jy in diens mag neem, hoeveel jy
hulle mag betaal en met wie jy besigheid mag doen. Dan tel dit
nog in jou guns as jy met swart besighede handel dryf. Dit is
What happened to employment for all, free trade, equal
opportunities? Special economic zones, SEZs, won’t work whilst
politicians have the ability to focus on personal gain, rather
than real economic growth in these initiatives.
Die feit is dat die private sektor nie die regering kan
vertrou nie. Die vertrouensbreuk is so groot dat daar selfs na

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afloop van die onlangse ramp in Natal geld eerder direk aan
instansies soos Gift of the Givers oorbetaal word, as wat dit
aan die regering oorbetaal word vir die verligting van nood.
Chair, government must not play with words. Be the nonracial,
nonsexist government that you claim to be.
Minder inmenging van die regering in handel en nywerheid sal
natuurlike vooruitgang en stimulering van die ekonomie
verseker. Dankie Voorsitter.
Mr T J BRAUTESETH: Hon Chairperson, hon Minister, hon members
and fellow South Africans, as hon Londt observed, South Africa
is at a crisis point. Our economy is flatlining but costs are
not flatlining. Our employment rate sits at unprecedented
levels. As the Russian aggression in the Ukraine drags on,
fertilizer, fuel and food costs will continue to spiral out of
control. In this climate, it would be expected of a government
to take extraordinary steps to protect its citizens. Instead,
we hear of grandiose plans for the long term ... no short-term

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As was the case during COVID, this department made it
difficult for the market to trade, not easier. A case in point
is the tariffs. The Minister has the power to remove the
barriers of hunger and immediately suspend tariffs on items
such as chicken, the costs of which are rising exponentially,
to the glee of massive poultry conglomerates that enjoy
Other countries such as Mexico have suspended tariffs and
brought immediate relief to their residents, but this Minister
seems to have a problem with chicken. From banning roast
chickens in the lockdown madness to making it super expensive
now. I’m not sure if he was attacked by a rooster when he was
young. Either way, these same chickens are surely now coming
home to roost.
Then we have MEC Mvoko who is part of a provincial government
that turned a fertile province pregnant with potential into a
desperate wasteland. The poverty stricken in his province
would have imbibed water to keep hunger pangs at bay but even
this has evaporated as day zero approaches in the current
water crisis in the Eastern Cape.

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Deputy Majola, like his Minister, is a psychofanatic follower
of the localisation issue. This policy believes on an
isolationist stance that believes that South Africans can make
all your consumables in the country and simply export the
rest. This policy ignores the fundamentals. Localised goods,
for which there is no specialisation, will soon start to
decline in terms of quality and increase in price demand due
to diminished competition and a lack of international market
access. Other countries will put retaliatory measures in place
and workers who rely on the export of goods will lose their
The fact is that state procurement must be leveraged to
benefit communities through sustainable development goals.
This is supported by Cosatu. I can tell this House that the
policy of BBBEE does not do this. This policy facilitates the
enrichment of the elite. It facilitates patronage and
corruption, but perhaps that was always the plan.
If this Cabinet wants to be serious, it must scrap BBBEE and
allow ordinary South Africans, particularly low-income black
South Africans, to finally have the opportunity to benefit
from government procurement. The Coega development zone has
already dropped the BBBEE requirement and this will drive

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investment and economic growth, and create jobs. This is the
way forward. We must include all South Africans in creating
There can be no praise of a government when children under the
age of five have died of hunger this year or when 34,5% of our
country is employed. This government must stop blaming
everybody else and take the bold decisions now. These
decisions include suspending tariffs on imported food,
slashing taxes on fuel, and condemning the Russian invasion of
the Ukraine and the Russian blockade of key Ukrainian exports
that South Africa so desperately needs.
Just give us a break, Minister. Just give us a break. I thank
Mr M DANGOR: Thank you very much, hon Deputy Chairperson.
South Africa remains one of the most unequal countries in the
world by class, race and gender. Centuries of colonialism and
decades of apartheid bequeathed to generations of South
Africans inequality that manifests itself in shockingly stark
differences in household incomes; unequal asset ownership,
including both concentrated business ownership and household
resources; inequitable access to quality education, which

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still largely reflected family wealth and race; and uneven
quality of municipal infrastructure.
We must admit that the historic labour-sending regions,
particularly provinces that had former homelands, continued to
lag far behind the rest of the country. The core question
becomes, why these inequalities have persisted long after
apartheid laws were formally eliminated by the ANC government
which has implemented policies aimed at overcoming the deep
inequalities that have effectively blocked both social
development and economic growth in South Africa?
Today, I will focus on how trade and export policies must be
used in our national strategy to accelerate economic growth
and ensuring that these benefits of growth are shared broadly
by all South Africans and our neighbours in the Southern
African Development Community, SADC, region and what needs to
be done to reduce inequality in our country. It is an
established fact that trade is not necessarily developmental.
Bilateral or regional trade agreements are essentially
preferential in nature as they are intended to benefit
signatory countries. However, such agreements are sometimes
abused by competitive third-countries that penetrate the
entire regional preferential market. Such scenarios undermine

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the industries of other countries that are party to the trade
To avoid such scenarios, free trade agreements use rules of
origin to determine the national origin of the product and to
establish the thresholds for local content or value-added
before the product is re-exported. The 21st century regional
trade agreements, such as the Association of Southeast Asian
Nations, are about more than simply opening markets between
preferred trading partners. They are also intended to
encourage and incentivise investment, particularly in higher
value-added manufacturing and services and by doing so,
simultaneously stimulate development of regional value chains.
Thus, governments in our region and continent must begin to
increase intraregional trade flows and stimulate investment in
higher value-added production and regional production value
chains. They must include a range of other complementary trade
measures that focus on harmonising and simplifying customs
regulations to reduce trade costs and improve trade
facilitation. In addition, they must also attempt to create a
more conducive environment for investment by including rules
of investment, intellectual property rights and competition.
The concept of “developmental regionalism” argues for an

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approach to regional integration that is based on a heterodox
economic view of the world and a vision that incorporates
values of solidarity as an essential ingredient to achieve
this in Africa.
This analytical framework calls for regional integration in
Africa led by the African Continental Free Trade Agreement to
be built on co-operation among African countries in a regional
integration framework on four parallel and interconnected
pillars. (a) co-operation on building mutually beneficial and
fair trade integration; (b) co-operation on industrial
development and upgrading in regional value chains or
transformative industrialisation; (c) co-operation on
investment in cross-border infrastructure and trade
facilitation; and (d) co-operation on the building of
democracy, good governance and peace and security.
Trade within Brazil, Russia, India, China and South Africa,
BRICS. South Africa must explore opportunities in the Brazil,
Russia, India, China and South Africa block of which we are
part. The percentage share of trade among Brazil, Russia,
India, China and South Africa countries was just under 11%
when compared to its global trade in 2017. Engagement in
Brazil, Russia, India, China and South Africa summits provided

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a platform for discussions and exchange of views on issues of
mutual interest that have helped develop closer co-operation
and strengthening of trade and investment ties between Brazil,
Russia, India, China and South Africa nations. As a result,
trade and investment over these years has strengthened.
The New Development Bank was established with the purpose of
mobilising resources for infrastructure and sustainable
development projects in Brazil, Russia, India, China and South
Africa and other developing countries. The COVID-19 pandemic
has, unfortunately, undermined the work that was done on the
framework for forging collaboration between trade and
investment promotion agencies for facilitating greater trade
amongst Brazil, Russia, India, China and South Africa member
The post-COVID recovery strategy, therefore, has to revive the
commitments, in the light of the recent agreements by Brazil,
Russia, India, China and South African countries that it is
important to enhance cooperation with other emerging markets
and developing countries, further improve the representation
of Brazil, Russia, India, China and South Africa, and make
Brazil, Russia, India, China and South Africa’s voice in major

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international arenas and uphold the common interests and
development and values in the markets.
Our continent needs an adequate policy tool for building
regional value chains and promoting transformative
industrialisation. For example, the growth of the cotton
textiles and apparel sector into a dynamic competitive
regional value chain, stimulated by the implementation of the
African Continental Free Trade Agreement, ACFTA, will need to
be complemented by a range of supply side measures to build
the productive capacity of African countries.
I would place the following five ideas for consideration:
Firstly, government industrial policy must support the
building of local firms that are crucial for cumulative
capability building and developing a local supply chain and an
extensive diversified textile base; secondly, industrial parks
as well as attractive investment conditions should be created
through fiscal, financial and infrastructural incentives.
African countries must undertake targeted joint campaigns with
global buyers to attract their first-tier suppliers; thirdly,
regional initiatives to upgrade infrastructure and create
common regulatory frameworks across the region are

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fundamental. We need the railway line from Cape to Cairo, we
need the roadworks from Cape to Cairo, we need the roadworks
from Mozambique to Angola.
There is a need for Africa to take control and revitalise its
consumer market by addressing the issue of second-hand garments
that flood domestic markets and undermine local manufacturing.
Africa accounts for nearly a third of global imports of second-
hand clothing, which was estimated at US$5 billion in 2019.
About 80% of Africa’s population wear second-hand clothes,
mainly imported from the US, Europe, India and Pakistan.
Credible research argues that African countries can leapfrog
development to take advantage of the opportunities presented
by the next techno-economic paradigm change within global
capitalism. It argues that this paradigm shift is towards
renewable energy and the circular economy. Some of the largest
retailers in the world, such as Hennes & Mauritz, H&M, have
corporate strategies that promise to source 100% recycled or
other sustainably sourced materials by 2030.
The way forward. As we edge closer to the 30th anniversary of
our democratic breakthrough that we achieved through our
people’s sacrifices, sweat, tears and blood led by their

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liberation movement, we must work together to spread the
benefits of trade across our country. In doing this, we must
support the established and new firms in regions that lag
behind in development. Deputy Chairperson, land reform is
important and we should not forget that.
Land reform should be fundamentally repurposed to promote
rural livelihoods, ideally by increasing production for local
consumption or for national value chains. To succeed, it has
to start with a viable business model and then identify what
land should be acquired, rather than purchasing land and
trying to find uses for it. District land committees must be
established to provide a basis for this approach. To reduce
inequality in South Africa, we should establish more equitable
workplaces and pay scales as these are central to achieving
the Constitutional imperative of economic justice.
Large companies should be required to publish information
annually on their employment of South Africans; remuneration
by level; and local procurement and supplier-based development
efforts. Ideally these requirements should extend to large
private companies and foreign-owned firms. Deputy Chairperson,
with the limited time am left with, I just want to thank hon
Moeiemang for reminding us of Mohali Muz contribution. Mohali

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Muz, Nassier, Nero, Sukarno and Nkrumah had established the
nonaligned movement.
The nonaligned movement was based on particular principles. We
were not in the fold of the Soviet Union, we were not in the
fold of the West. We were nonaligned we were seeking peaceful
solutions to the challenges of the world. We also harmonised
and looked at the position of those countries that had nuclear
weapons and those countries who had used nuclear weapons in
other places to get this armament going. It was then based on
that position that President Mandela before he came in and
asked for the disarmament of South Africa of its nuclear
weapons and advocate for disarmament throughout the world.
This is part of nonalignment not neutrality.
I don’t think we should confuse neutrality with nonalignment,
they are not the same thing. Hon Moeiemang, possibly we should
take hon Londt for coffee either in Johannesburg or Kimberley
because coffee is too expensive in Cape Town. I don’t know why
things are more expensive in Cape Town than in the rest of the
country. That needs an investigation as well. To hon Bosman, I
just want to remind him that Western Cape Tourism, Trade and
InvestmentPromotion Agency, Wesgro, was started in the time of
Premier Ibrahim Rasool. I thank you very much.

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Majola): Thank you very much, hon Deputy Chairperson, hon
members, as promised earlier, I am now returning to our
Special Economic Zones, SEZs, programme.
We will revive our spatial strategy to build and support a new
model of Special Economic Zones and Industrial Parks. The
programme was announced through a promulgation of the SEZ
legislation on 9 February 2014. This new legislation came out
of the review of the Industrial Development Zone, IDZ,
programme, which was introduced in 2000.
By March 2019, five new Special Economic Zones had been
designated but are not operational, increasing the total
number to nine. We acknowledge that the has been challenges
with the programme, which were caused, amongst other things,
by slow investment attraction.
In August 2019, Cabinet directed that the Department of Trade,
Industry and Competition, DTIC, should play a more active role
in the planning, development, and management of Special
Economic Zones to revive the programme. The focus of this new
approach, amongst other things, is on strong involvement of
the DTIC’ securing investment and breaking ground, and enhance

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collaborative planning and core investment by all spheres of
government. The involvement of all spheres of government is
the only way in which we can position Special Economic Zones
as drivers of economic development and growth.
In 2020, the Tshwane Automotive Special Economic Zone became
the test case for the implementation of the new Cabinet
approach to the Special Economic Zones programme. The DTIC
working with other spheres of government and the private
sector led the planning and development of the Tshwane special
economic zone using in the new approach, resulting in the
following key achievements: The private investment worth
R4,3 billion from 12 investors mobilized in support of Ford’s
R16 billion investment, creating about 2 000 jobs in the new
zone. Funding for bulk infrastructure and top structures for
the 12 new factories, in addition to the success achieved in
the Tshwane Special Economic Zones.
Under the implementation of the new Special Economic Zones
approach, we are making progress in the planning and co-
ordination of existing others and proposed Special Economic
Zones across the country. Examples of areas for immediate
intervention include Vaal Sedibeng, potentially the next
growth centre of the Gauteng province. The focus will be on

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optimizing the opportunity to use its significant
manufacturing base and land availability.
In Nkomazi in Mpumalanga, the SEZs has the potential to
optimize industrialization in the region and stimulate
exports. It will serve as an anchor to exponentially transform
the region, and it could also be the best linkage for the
African Continental Free Trade Area.
The mining hub of Bojanala in North West and Sekhukhune in
Limpopo. The mineral resources in this centres are a major
enabler of large scale industrial development and
Wild Coast will serve the large population centre such as
Mthatha and the broader Wild Coast region in the Eastern Cape.
It will optimize the industrial potential of the region and
have a multiplying effect in logistics and tourism industry.
In the West Coast, we will leverage the position of Saldanha
Bay Industrial Development Zone within the maritime ecosystem
in the Western Cape to attract and grow investment. Deputy
Minister Gina is also leading our work in the Special Economic
Zone such as Atlantis in the Western Cape, Maluti-a-Phofung in

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the Free State, Richards Bay in KwaZulu-Natal, and the
proposed Namaqwa in the Northern Cape.
This year, I have taken sight visits to Koega IDZ, East London
IDZ as well as the proposed SEZs of Fetakgomo, Tubatse and the
Vaal SEZ. We are satisfied with the progress we are making.
This month, I will be taking the DTIC team to join the
provincial and municipal governments on site visits to Musina-
Makhado and Nkomazi SEZ to access their progress. I invite hon
members to join us on these visits.
In the period ahead, we are committed to act with
determination to drive industrialization ... [Inaudible.] ...
and rising incomes, transformation to build an inclusive
economy and a capable state to ensure improved impact of our
Thank you, hon Rayi for your comprehensive input. The DTIC
pledges to report regularly on the issues you raised in your
speech to the committee. I would like to thank MEC Mvoko for
his co-operation and the support we have received from the
Eastern Cape government.

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Another ... [Inaudible.] ... we from the ANC are historical
materialists. We look and see the world for what it is. We
know our long history of suffering and humiliation. We fully
understand present and are confident about our future. We will
not play the blame game. We take responsibility for the work
we should do, and we will do it to the best of our ability.
Unlike the DA, the ANC-led government has the responsibility
to serve all our people and not certain national groups,
that’s what sets us apart from the DA, hon Londt. Let me tell
you that on the ground, we are working well with the DA where
it governs. We urge you to please stop throwing mud at
everything that you see.
Hon Moletsane, there is nothing I can say about what you said
in this House. I can only appeal to you to work with us in the
interest of all our people, especially the most marginalized
and vulnerable in our society.
Thank you very much, hon Mmoeimang for your clear articulation
of our new approach to the Special Economic Zones and
Industrial Parks.

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Hon Boshoff, we agree with you that it took us too long to get
Nkomazi SEZ up and running. Hon member, recognize the
strategic importance of the Nkomazi SEZ. We will locate a new
large investor and a logistics company in the SEZ to help
access the Maputo port in the next few months.
Hon Hadebe, we are very serious about cutting that tape. This
is what we are doing practically with the governments of
Gauteng and Eastern Cape. We plan to take forward this work
with all provincial governments, the metros, districts, and
local municipalities.
Hon Brauteseth, we do want to work with you as the DTIC so
that we can improve the robustness of your oversight role as
Parliament. I am happy to have a conversation with you on our
localization policy so that you can see the balance that we
want to strike. We are not naïve about the size and the
location of the South African economy in the global capitalist
Thank you, hon ambassador Dangor for your decisive
understanding of the world in which we operate and in which we
seek to build a prosperous South Africa.

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Hon members, as I conclude, I would like to thank Minister
Patel for his leadership and support, as well as my colleague,
Deputy Minister Gina for the successful collaborative efforts.
I would also like to extend appreciation to the staff of the
DTIC led by the acting director-general for their
contributions to the efforts of the department.
Lastly, I would like to thank you, hon Deputy Chairperson of
the National Council of Provinces, for giving us the
opportunity. I thank you.
very much, hon Deputy Minister, maybe we also don’t say it
enough, but as the NCOP, we need to appreciate you for always
being prepared to come and brief us more on issues like the
Africa Free Trade Agreement and others. Thank you very much.
That concludes the debate. Let me thank the Minister and the
Deputy Minister once again for availing themselves for the
Debate concluded.

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(Policy debate)
The MINISTER OF HUMAN SETTLEMENTS: House Chairperson, Deputy
Minister of Human Settlements, Pam Tshwete, together with
members of the select committee, all officials who have
joined, hon members of the NCOP, representatives of provinces,
ladies and gentlemen, the spatial development of the various
Human Settlements shapes the level and quality of people’s
social and economic participation. It is therefore critical
that as a department, we remain mindful that how develop human
settlements will have an impact on social and economic
outcomes of our country. It is within this context that we
have decided to continuously improve the human settlements
delivery system so that in the end, our work is central to
creating a better life for all. The improvement I speak of is
both on our policy frameworks and the technical capacity to
implement our policies.
The Department of Human Settlements continually reviews policy
and programmatic aspects to fine tune them to more effectively
respond to an evolving nature of the housing demand. Demand
has become more segmented as our society matures and economic
circumstances have shifted at household level.

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In this respect, we have made some policy changes that are
aimed at ensuring we expand the speed and quantity of
delivery. These include the following. In the current
financial year, the revised bands for the ...
Mr M DANGOR: May I rise on a point of order, Chairperson. Can
we just request the Minister if possible to switch on her
video because it is being recorded and broadcasted live. Thank
The HOUSE CHAIRPERSON (Ms W Ngwenya): Hon Minister, maybe
Bab’uDangor doesn’t see your picture ...
... ufuna ukukubona kahle.
I am just keeping quiet because I saw your picture on the
screen, but can you please open it a little bit bigger. Okay,
ma’am. You can continue.
Chairperson. I am not sure, maybe the technical team can
assist. My video is on and it appears on the screen. They can

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help the hon Dangor in terms of ... I am not so sure what
could have happened. Thank you very much, House Chairperson.
As I continue, the policy changes include the current changes
in terms of our financial year that started in April. We
changed the system in terms of the Finance-Linked Individual
Subsidy Programme which is now called Help-Me-Buy-A-Home. With
effect from 1 April, we have changed the subsidy quantum that
has been revised as we know that since 2018 ...
[Interjections.] There is a disruption. It existed in 2018 by
20,9%. Again we have revised the household income bands where
we have actually increased it from where it used to be at
R1 500 to R15 000 per household to R1 850 to R22 000 gross
monthly income to qualify for social housing. This has come
into effect from 1 April.
On grants, provincial plans and budgets for the financial year
2022-23, the department’s budget allocation amounts to
R33 billion, of which R18,7 billion is allocated to provincial
grants, R11,7 billion for municipal grants and R1,6 billion
will be transferred to Human Settlements entities. We will
make every effort to ensure that we deploy these resources as
effectively as we can so that our output far exceeds our
input. We are expected to do more with less.

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The Human Settlements Development Grant, HSDG, Framework for
the 2022-23 financial year now provides for provinces and
municipalities under HSDG to access up a maximum of 30% of the
HSDG to fund bulk and link infrastructure. This is in
exception of the metros. This will unlock some of the blocked
projects, increase opportunities for public and private
partnerships and increase the provision of serviced stands for
more people who can afford to build for themselves to do so.
Most importantly, this will help us to improve expenditure.
In the financial year 2022-23, working together with National
Treasury, we will start implementing front-loading in two
provinces - Northern Cape and Eastern Cape. The final details
are being worked on by the teams in ensuring that the
framework can be agreed to.
In terms of priority areas – you will remember that in 2020,
the department gazetted 136 priority housing development areas
in various municipalities in all our provinces. In fact, they
are called the Priority Human Settlements and Housing
Development Areas, PHSHDAs. We have commenced with the
preparation of development plans in all of the PHSHDA’s by
providing funding and support to provinces and municipalities.
The National Housing ...

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The HOUSE CHAIRPERSON (Ms W Ngwenya): Minister, can I disturb
you. I am receiving calls in terms of your video. Can you
please show yourself on the video, and not your profile?
Unless you have a network challenge. Please ntombo [girl]!
The MINISTER OF HUMAN SETTLEMENTS: House Chairperson, I think
it could be my network bandwidth. Where I am, we are currently
at a retreat in terms of work. I have opened my video and
asked my team to check what is happening. I don’t if it is
visible now, House Chair.
The HOUSE CHAIRPERSON (Ms W Ngwenya): Yes, I can see you, but
... I can see you even on TV. Hon Mohai, our Chief Whip, your
hand is up - I don’t know ...
The CHIEF WHIP OF THE NCOP (Mr S J Mohai): Hon House Chair, in
fact I wanted to apologise on behalf of the Minister because
we have had a discussion with the Ministry about the
circumstances they are faced with. So, we appreciate the fact
that the Minister availed herself by participating in the
budget with the Deputy Minister. They indicated earlier that
they may be in an awkward situation. I just wanted to indicate
that. We have normally never experienced any challenge with
the Minister Kubayi in all her appearances in the National

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Council of Provinces. [Interjections.] I really want to put
that apology. Thank you.
The HOUSE CHAIRPERSON (Ms W Ngwenya): Thank you very much,
Chief Whip. Qhuba ntombo [Go ahead, girl]!
The MINISTER OF HUMAN SETTLEMENTS: Thank you very much, House
Chairperson Ngwenya and Chief Whip ... [Inaudible.] ...
apologies and thank you for understanding. As I proceed, the
National Housing Finance Corporation, NHFC, has displayed a
good track record of leveraging private sector investment in
the sector on both the supply side and end user side of the
market. It partnered with Old Mutual to establish an off-
balance sheet fund called Housing Investment Partners. Its
contribution of R300 million has to date leveraged
R1,1 billion targeted to peak at R1,7 billion for end-user
In the previous financial year, the NHFC has been working with
Social Housing Regulatory Authority, Shra, and multilateral
agencies to create an off-balance sheet financing instrument
that that will continue to leverage private sector
participation on the strength of the social housing grant in
the Medium-Term Strategic Framework, MTSF, and beyond. The

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initiative is envisaged to mobilise R1,5 billion to finance
35% of developments, through official development assistance,
ODA, equity investment and debt portion and yielding
approximate 8 000 to 10 000 new social housing units in the
next 8 years.
I am just indicating that a percentage of our budget has
already been directed towards priority areas and existing
projects that are within the priority development areas. The
National Housing Finance Corporation is in the process of
conceptualising an off-balance sheet multi-investor fund to
serve as a platform to mobilise private sector investors into
equity investments and debt financing of the Integrated
Residential Development Programme, IRDP, projects and meet
requirements of the future pipeline. The establishment of the
Human Settlements Development Bank will ensure that we achieve
the objective of copartnership and shared sacrifice of
resources to achieve the objective of integrated housing and
human settlements development.
On inner city renewal, the current Human Settlement Grant and
Urban Settlement Development Grant allows for investment in
the urban and township renewal projects. This will include the
provision of early childhood development centres as part of

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the socioeconomic amenities programme. This amount will also
include ensuring that the cities are kept clean. The national
department will be announcing the full details of norms and
standards that should be built throughout integrated
residential developments, informal settlements and Priority
Housing Development Areas.
Through the Shra and HDA, provinces and municipalities will
support all efforts in providing the educational material on
the various programmes and rental landscape needed at the
support centres. However, the main work is done through the
municipal support programme whereby there will be active
engagements and further assistance provided to municipalities
in zoning for recovery zone, RZ, and ECDs and putting in place
the measures to include social housing and early childhood
centres in the priority locations.
On township renewal, urban renewal projects remain a priority
of the department and have since been implemented by provinces
and metropolitan municipalities. A percentage of the Urban
Settlements Development Grant, USDG, has been allocated
towards renewing the townships and creating a township
economy. Moving away from dormitory settlements that is

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visible in most townships that have hostels, and no social and
economic facilities has been a huge challenge.
The department has been able to upgrade some of the hostels
that appear as dormitory units to community residential units.
However, the cost of providing such units have been abnormally
high due to demolition, refurbishment that required an
overhaul, extensive maintenance, old infrastructure including
units that are constructed using other inferior material used
by the apartheid government including asbestos material, and
absence of uniform norms and standards to regulate the size
and finishes which must be used. The completed units ended up
competing with the norms and standards applicable in the
social housing programme.
An assessment of all these hostels has been completed in order
to merge the hostel new build and social housing and change
the income of the social housing programme to cover those
beneficiaries that earn from R1 500 to R15 000. This has been
made to ensure that there is reach in terms of the lower
income bands.
In order to address the current rental issues, the department
will be consolidating all rental interventions and craft a

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comprehensive rental policy. Currently there is fragmentation
in terms of the existing rental programmes. This is evidenced
by the varying norms and standards for community residential
units, social housing and other forms of rentals which
includes backyard, local government and institutional rental.
The gap has widened over the years without an appropriate
policy intervention, plus the decline in rental collection in
the social housing programme and few to no rental in the
community residential units have exacerbated the problem.
The ratio of rental default is at an alarming rate in terms of
where people are not able to put the money in terms of rental
and it affects our maintenance or the Social Housing
Institutions, SHIs, maintenance programme. The reason for
default in rental includes loss of income, influence by
certain factions of the society linked to various factors such
insufficient infrastructure, crime, illegal occupation of
buildings, dissatisfaction with government and quality of
services. ... [Inaudible.] ... is doing quite a lot of work
and we will be working together with that in terms of ensuring
that we build better social housing and sustainable social
housing work.

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The department has been at pains in responding to issues that
are raised by the Chapter 9 institutions, specifically the SA
Human Rights Commission and the Commission for Gender Equality
regarding the issue of special housing needs and gender-based
violence. Women have been affected by this scourge without a
solution. We will refocus our policies to ensure that there is
provision for the vulnerable groups of the society and some
form of special housing need and/or a second level housing.
Section 2 of the Housing Act provides the general principles
for the housing needs of persons and households with special
housing needs and who are unable to live independently in a
normal residential dwellings or require assistance in terms of
a safe, supportive, and protected living environment. Of
importance is the fact that the policy and guidelines for
housing assistance to households faced with special housing
needs, and this includes people who are affected based on
gender-based violence, HIV/Aids, orphans, vulnerable children
and persons with intellectual and psychosocial disabilities
has been formulated and require approval after consultation
with SA Local Government Association, Salga, and the MECs.
I need to deal specifically with issues around illegal
occupations and evictions. The department has started a

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process of amending the Prevention of Illegal Eviction and
Unlawful Occupation of Land Act. There has been a continuous
increase in the total number of disputes that are lodged with
the Rental Housing Tribunals which assist to minimise the
unnecessary evictions. In order to monitor the number of cases
and track the patterns, it is important for us to ensure that
we have systems in place and monitor what we are doing. Again,
we want to urge members to ensure that we do not encourage
people to go and illegally occupy land.
In terms of ensuring that we can monitor our work,
intergovernmental relations, IGR, is focussing on less on
events and more on performance of the sector, building
relations, prioritising responses in support of destitute
cases and quick decision-making, cutting across all three
spheres of government. All matters raised through these
interactions are documented and progressed reported to
Ministers and members of executive councils meeting, Minmec.
We have so far, in order that we fast-track our service
delivery, appointed leadership and tram in the war room, that
is led by Mr Dan Gorbachev Mashitisho, who is the former
Director-General of the Department of Co-operative Governance
and Traditional Affairs. This tram that is involved in

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ensuring that they monitor our work and intervene is composed
of various individuals.
Just to indicate, the individuals include Mr Abongile Dyariwe,
who is the project and construction management specialist in
the Built Environment with a Master’s degree, Ms Patience
Ntombifikile Ndlovu, a specialist in Urban planning with a
Masters in Urban and Regional Planning, Mr Mmaphaka Ephraim
Tau, Governance, Strategic Leadership and Development Expert.
You will remember him as the Head of the National Disaster
Management Centre, and Mr Kwena Maphoto, infrastructure
development specialist who is professional technologist in
civil engineering. This team will help us to co-ordinate
efforts monitored to fast-track the implementation of our
Unfortunately, Chair, I have lost track of where I am – I hope
I am not taking much time because of the stoppage. There are
already examples of these types of developments that we are
working on – it’s quite a number of them. Just to indicate
that one of the things that we are trying to do is to ensure
that we change the face of our country’s settlements.

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An example of this one is around Cosmo City which is now the
immediate inner edge of the Smart City Initiatives of the
President’s Sona 2020. Fleurhof is the bridge of the
historical middle and working class divide in the Roodepoort
Node and Main Reef Road Corridor which has enabled a growing
market in Meadowlands in Soweto. Cornubia is part of northern
nodes driver linked to eThekwini King Shaka Airport. Savanna
City emerges from the inventiveness of these projects, and in
turn offer the terms for a new housing and human settlements
delivery architecture.
In the Free State, the Vista Park project is projected to
provide and integrate the spatial landscape of Mangaung. Each
of these projects have spurred municipalities, provinces,
developers and the Human Settlement agencies into a series of
carefully structured projects triggering secondary
investments, allowing for mixed income developments and
integrating the City.
Our government derives its approach to human settlements from
the injunction contained in the Freedom Charter that says:
“There Shall Be Houses, Security and Comfort!” This is the
budget policy for Budget Vote No 33 that we are requesting hon
members to support but also continue to monitor us as we do

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our work. Thank you very much for understanding the
circumstances that we tabled in this policy statement. Thank
Mr T S C DODOVU: Thank you, hon Chairperson of the House, hon
Ngwenya, Minister of Human Settlements, hon Mamoloko Kubayi
and your deputy hon Pam Tshwete, Chief Whip of the NCOP,
permanent and special delegates.
Today as we debate Human Settlements vote 33, many people in
our country remain trapped in arears which are overcrowded and
characterized as informal settlements. These areas mostly
generate pollution and health hazards caused by accumulated
solid waste causing serious threats to the environment and to
people’s health.
As we debate the Human Settlement vote this afternoon, we less
forget why these people are still exposed to undesirable
conditions not fit for human habitation. Hon Chair, in 1897,
Rudyard Kipling wrote a Christian poem and titled it
Recessional where he used the phrase less we forget many times
in order to add particular emphasis regarding the dangers of
failing to remember.

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I shall do so during this debate in order not to forget our
historic past and make us fully understand why many people
still live under such hostile conditions.
Hon Chairperson, less we forget that today the 31st of May is
a very terrible day in the history of our country. This is a
day that before the new dawn of our democracy dispensation in
1994 was declared a public holiday called Republic day by the
apartheid government in order to celebrate the perpetuation of
colonialism, racism and apartheid in our country.
It was on this day in 1902 that the so called Peace Treaty of
Vereeniging between the representative of the British
government and the republic and Boer government was concluded
and the three-year Anglo Boer War of 1899 and make the
Transvaal and the Orange Free State Republics which fell under
the British administration and excluded the African people who
were in the majority.
Hon Chair, less we forget that it was on this day in 1910 that
the so called union of South Africa came into existence with
the unification of the Cape, the Natal, the Transvaal and the
Orange River colonies also excluding the African people in the
running of affairs of their country.

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It is that momentous occasion that propelled the formation of
the ANC in 1912. Less we forget hon Chair that it was on this
day in 1938 that the South African apartheid flag was first
flown and a new national anthem Die Stem was sung planned to
coincide with the 100 centenary anniversary of the gretech of
Hon Chair, yes indeed, less we forget that it was on this day
in 1961 that the union of South Africa became the Republic of
South Africa on May 31st thus South Africa severing its long
standing cries to the old British empire. It was also during
this period that South Africa produced the rand as its
monetary currency to replace the British Pound Sterling.
Hon Chairperson, I’m raising all these issues in context that
our struggle against colonialism and apartheid was not only
about political rights but included socio-economic rights that
also included proper human habitation and housing.
Our urban areas continue to resemble what refers to as the
Manicheism of colonial world. Our cities remain divided into
two, as Fallon described them that one part of the city is
made of stones and steel, brightly lit town, streets are
covered with asveld and the garbage can swallow all the

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livings while the town on the other side is populated mostly
by black poor people who live on top of each other, the native
town is a hungry town starved of bread, meat, shoes coal or
We therefore cannot continue with the current spatial
apartheid planning with two worlds within a city, one for the
rich and the other for the poor people who are mostly black
and women. The world for the rich is well serviced while the
world for the poor does not have proper functioning
Hon Chairperson, our government has finally adopted the
National Spatial Development Framework which would ensure that
we transcend the Manicheism of the colonial world which must
also ensure that our National Spatial Development Framework is
implemented in its entirety to avoid the perpetuation of
spatial injustices.
The DA Federal leader Ms Helen Zille has the audacity to
glorify the informal settlements within the Western Cape
province whilst they are refusing to provide land for social
housing especially areas like Sea Point.

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Hon Chairperson, through this budget, our national government
is committed to expand access to adequate housing for
inclusive societies and we expect all provinces to follow suit
by making available land for low income earners within the
well located areas.
Hon Chairperson, we welcome the department’s initiative in
expanding the access to housing finance for low income
earners. In her Budget Speech, Minister Kubayi presented the
reviewed Finance Linked Individual Subsidy Programme now
called help me buy a home.
The help me buy a home housing programme for low income
earners in which it provides a housing subsidy for first time
home buyers to assist them with the purchasing of a home. Hon
Chair, since the inception of the Finance Linked Individual
Subsidy Programme, the department had not achieved the targets
that they had set for itself due to the strict measures that
the private banks require for individuals to be approved for
housing mortgage.
The department has acknowledged that banks have tended to lend
to those people or individuals who earn above R15 000 and more

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with the exclusion of individuals whose wages are less than
R15 000.
In a budget vote speech this afternoon, hon Minister Kubayi
made a presentation that a revised home bank from household
will change in order to accommodate the low income earners
which is welcomed in this particular instance especially for
those who must qualify for social housing that came into
effect on the 1st of April 2022.
Hon Chairperson, as the ANC we fully welcome this initiative
from the department and we think it will come a long way in
addressing the housing shortages in our country.
Hon Chair, the help me buy a home programme has an expanded
scope to ensure that government subsidy is linked with the
various housing schemes provided by the pension fund community
schemes amongst others. Our people have long wanted to build
their dream homes and we need to support them in their
endeavours. We need to think beyond what needs to happen in
terms of ensuring that we address the housing backlog as
obtained by the people.

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Hon Chairperson, furthermore, the implementation of this
programme help me buy a home has the potential to provide
expanded access to housing close to a million government
employees which in our view we appeal them to access it as an
opportunity to address the housing backlog in our country.
We further welcome the announcement made by the Minister that
the National Home Finance Corporation, NHFC, has already
signed a memorandum of understanding with the government
employees housing scheme to ensure that these workers have
access to finance for their dream houses.
Hon Chairperson, we further wish to welcome the establishment
of the housing development investment fund. This entity will
ensure that our government invests in projects that facilitate
access to affordable housing and finance thereof, especially
for the low and middle income South African households of whom
do not qualify for subsidy houses and do not qualify for home
loans. This is greatly welcomed.
Hon Chairperson, for the past 27 years, our government has
been providing housing through its breaking the new grounds
housing programme. To date, we have built more than 5 million
houses for people that are classified as indigent, households

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whose combined monthly income is not more than R3 500 per
Hon Chairperson, even though we built so many houses, the
target keeps on moving and that is why our government has
decided to implement the integrated residential development
programme to ensure that we acquire well located land and
release the land for human settlements development.
In terms of the projections of the department, this year
alone, the housing development agency is going to acquire 750
hectares of land for human settlements. The IRDP, Integrated
Residential Development Programme, does not only provide for
the allocation of basic services for the people to build their
own homes but also ensures that our government provides for
social amenities such as education facilities, clinics as well
as recreation facilities.
Hon Chairperson, as the ANC, we further welcome the initiative
of the Minister to engage with the people living in informal
settlements and the broader society to discourage the illegal
occupation of land earmarked for human settlement development
and this point has been eloquently emphasized by the Minister
this afternoon.

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The ANC is going to ensure that we introduce the Bill for
expropriation of land without compensation to ensure that our
government expropriates land for the public good and this is
very important. We wish to encourage the government to use the
current legislation in the meantime to expropriate land for
redistribution to people to build their own homes.
Hon Chair, furthermore, we call upon government to strengthen
legislation to prohibit the illegal occupation of land. We
have witnessed people occupying illegal houses build by our
democratic government for example on the N2 Gateway housing
project in Cape Town or in the few housing projects in
The current legislation is not assisting our government
instead creates more problems in that for those illegally
occupying houses. The government is expected to provide an
alternative shelter and they do this deliberately because of
this loophole that is in the legislation. By this the
legislation needs to be attended to as a matter of urgency to
discourage the people from doing these illegal actions.
We further support the call by the Minister that local
municipality strengthen their bylaws in instances where they

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exist and instances where they do not exist so that necessary
bylaws must be in place and be enforced within the areas of
Hon Chairperson, there are people and political parties who
continue to call for our people to grab land that is earmarked
for development of human settlements and this derails housing
delivery. This is the point that the Minister has dealt with
accordingly this afternoon.
As the ANC, we understand the need for our people to have
access to land and housing but we’ll never agree and promote
anarchy because there is a government legislation that
regulates access to land and housing for the people.
Hon Chairperson, it is this ANC programme that has recognised
that informal settlements have become an important form of
shelter that must be eradicated in the country, especially in
the informal settlements.
Our government has committed to upgrade at least 200 informal
settlements in the phase 3 of the informal settlement
upgrading programme.

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This means that government will provide basic services.
Hon Chair, as I conclude, I say the ANC in the NCOP supports
the budget vote of the Department of Human Settlements and all
its entities as presented by the Minister this afternoon, I
thank you.
Ms N KONTSIWE (Eastern Cape): Good afternoon to you, hon Chair
Ngwenya, the surname is Kontsiwe, the MEC of Human Settlements
in the Eastern Cape, the hon Minister hon Kubayi, Deputy
Minister hon Pam Tshwete, members of the portfolio committee
and the chairperson of the portfolio committee, China Dodovu,
the director-general, the deputy director-general, ladies and
gentlemen, as the Eastern Cape government or province, we wish
to welcome the Budget Vote for the Department of Human
Settlements as presented by hon Minister Mmamoloko Kubayi. The
need for the provision of adequate housing in a province such
as the Eastern Cape is a daily lived reality. Each day our
mobile phones are bombarded with destitute cases that need
urgent intervention and attention. The vast population of the
citizens of this province – particularly those in rural areas
where there are no thriving industries - are in the coalface
of poverty.

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The ANC-led government is their only hope. This government is
the only hope for the people of the OR Tambo District, Chris
Hani District, Alfred Nzo District and others who are still
dealing with the aftermath of yesteryears disasters which have
left many displaced. And we dare not fail them, hon Minister
and hon Chair. Failing them would mean that we have since
strayed from the golden promise made by our forebears as
contained in the Freedom Charter, “There Shall be Houses,
Security and Comfort.”
We are alive to the reality that the issuing of houses by the
department is part of restoring the dignity of the people. One
political analyst, Dr Luvuyo Dondolo, once said that this
noble work we have been entrusted with forms part of
humanising the previously dehumanised. It is in that spirit
that we continue to prioritise the destitute, the elderly, the
child-headed homes and persons living with disabilities,
including the military veterans in the province. The fiscal
constraints we are currently faced with at the moment warrant
that we prioritise them. The province’s human settlement
development grant allocation for this financial year is
R1,5 billion with 7 666 units to be built, 6 205 service sites
to be installed and 1 120 units to be rectified across the
province. Over and above this allocation, the human

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settlements development grant framework now provides for
provinces to access up to a maximum of 30% of the human
settlements development grant to fund bulk infrastructure
challenges across the province. This executive decision will
indeed unlock some of the blocked projects thus increasing
housing opportunities and the provisioning of serviced sites
in the entire province of the Eastern Cape.
We are of the strong view that the arrival of COVID-19 on our
shores has left a devastating mark on the economy. The
construction sector is not immune to that reality. We are
alive to the reality that the sector contributes over 3% to
the country’s GDP, as such, the province welcomes and supports
the Minister’s National Housing Finance Corporation initiative
in the Nelson Mandela Bay which will ensure payment of the
small, medium, micro-enterprises, SMMEs, within 14 days
instead of the prescribed 30 days set by the Treasury.
The province has a total number of 157 informal settlements in
the province with 115 informal settlements already assessed
and is currently being upgraded as we speak with a budget
allocation of R458 million under the upgrading of informal
settlements programme grant in this financial year. A total
number of 8 000 households will receive basic services during

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this financial year; 45 additional new informal settlements
will be assessed, categorised with plans, and will be
considered for upgrading in the outer year after the
assessment. The province also welcomes the front-loading on
the human settlements development grant allocation which will
allow us to attend to blocked projects and significantly
increase the scale of housing delivery in a short space of
time as suggested by the Hon Minister.
Currently, the province has a total number of 95 blocked
projects, with 27 blocked due to bulk infrastructure issues,
55 - including the eight projects affected by disaster - in
the process of unblocking in the 2022-23 financial year and
are part of the Business Plan to yield 532 sites and 637
units, and 13 blocked due to illegal invasions.
The province fully supports the policy shift in the land
redistribution on the release of all urban land for social
housing development. This indeed will assist in our ultimate
aspiration of inclusive societies in the urban areas,
especially in the declared restructuring zones in the
province. As the province of the Eastern Cape, we support the
recent Ministerial directives on the unblocking of blocked
projects, thus eliminating asbestos roofs which are a critical

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health hazard; eliminating mud houses in the rural areas, thus
prioritising the elderly and child-headed households;
digitalisation of beneficiary lists to avert the manipulation
of beneficiary lists, and increase the pace of provision of
title deeds to the rightful beneficiaries by prioritising pre-
1994 stock. Hon Minister, we welcome all the interventions you
have come up with in your Budget Vote. We also appreciate the
support the national Department of Human Settlements is
providing politically and administratively. With that, we wish
to say confidently that we appreciate your work. We will
continue to support you. I thank you so much. Thank you, hon
Chair, and hon members
Mr G MICHALAKIS: House Chairperson, Hernando De Soto, the
well-known liberal economist in his book “The Mystery of
Capital,” argues that the reason why the First World is so
much better developed is not because of some cultural
difference or sinister advantage. The reason why the West
thrives is because private property is central and it is more
than just a roof over a person’s head.
In 1989, with the fall of the Berlin Wall and the end of the
Soviet Union, the world embraced the free market economy as
the best system we have to bring about economic growth, to

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raise people out of poverty and to establish wider freedom.
Whether you like it or not, if we want our economy to grow, we
must accept the fact that we are part of a global economy
based on this system. This is why the ANC always moves closer
to the center in practice, from what the windy rhetoric
suggests. Of course, the strongest argument from the ANC and
the EFF would be that capitalism is an evil because it widens
the gap between the rich and the poor, and allows the rich to
exploit the poor.
But House Chairperson, this is exactly what De Soto who was
born, grew up and worked in third world Peru argued against.
He illustrated that the reason for the widening gap between
the haves and have nots, and an equal playing field is not the
fault of a capitalist system. It is in fact, the poor that the
poor are excluded from the system. De Soto argues that the way
to bring the poor within what he called the bell jar of wealth
creation, you do not use the government to redistribute
because 10-years down the line you will sit exactly where you
were. All the redistributed wealth lost because of the
exclusion of the poor, making them unable to create capital.
And more importantly, the potential growth also lost since the
wealth creators spent the time just to get back to where they
were. The answer De Soto argues lies in private property.

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The reason why the West unlike former colonies and former
communist countries were able to build the vast wealth that
they have is because they designed private property systems
that were the concrete concept of property at the same time
becomes the abstract concept of capital. Capital is not the
same as money or property. It is the potential that property
has to create wealth, because you cannot be successful in a
capitalist system if you do not have the potential to leverage
your property to create capital.
In the mid-1800s, the United States of America was a land of
squatters. People did not own the land. There was no easy
system for them to obtain title to the properties or to
transfer their property to their children or someone they
wanted to sell it to. The ownership was acknowledged only
among themselves. They therefore were not able to use it as
surety or together though ... [Inaudible.] ... that will
result in their own wealth increasing. If they built an extra
room, it did not increase the capital value of the property.
It was what De Soto calls “dead capital.”
There also was no Constitution or government at that point
that could guarantee property rights without casting doubt
over it. Listen carefully, because the moment property rights

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become uncertain, property loses its ability to become
capital. We have in this country billions of rands worth of
debt capital over which the poor already have ownership but
they cannot use it. The moment a country such as the United
States of America grasp this concept, they started building an
economy that could create prosperity the likes the world has
never seen before.
This brings me to our own economy. It does not help we put
roofs over people’s heads, but their tenure is not secure and
the property is dead capital. The DA has developed a 60-page
housing policy document that sets out how housing can be
reimagined to be a resource for increased health and safety,
livelihoods, subsistence, learning, recreation, family and
identity culture and community. It also sets out how this
property can be transformed into an economic tool that can
extend a helping hand to the poor and bring them under the
bell jar to trade and develop on a platform larger than just
within their secured local economies.
Creating real capital potential from something that is under
the ANC just merely property and in most cases, not even their
own property. House Chairperson, in Masilonyana in my
constituency, the municipality has over the past two decades

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given stands to people. There are no services. Grandmothers
and their grandchildren who should be in school walk ground
distances to fetch water because they were given stands by the
ANC where there are no tabs for kilometres. Women get raped on
the way to the back of toilet outside their house at night
because they were given unserviced stands where there is no
electricity or streetlights, no flushing toilets.
Have you ever wondered why the Free State has the highest
number of bucket toilets of all provinces? Almost half the
back of toilets in the country. I want to go further and
invite you to ask those residents, when did they receive those
stamps? 2009, 11,14,16,19,21 every time just before an
election. They are now forgotten again until the ANC needs to
ask him for their votes.
What we need in this country is a government that has the
vision to move beyond the pre 1989 era. Stalin is dead, Mao as
well. And if we want to be competitive, we need to create
capital at least until the world can find a system that can
grow an economy better than what we currently have. And to do
this, we need to rethink the way those excluded from the
property market, the poor are included. We need to make it
easier for them to get the property given to them registered

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in their names and we need to make it cheaper and easier to
transfer it.
There are countless cases of children fighting over property
that parents left them without title or property sold to
multiple people without transfers. No states reported to the
master’s office no records at the deeds office. Because it’s
simply too complex and too expensive for them to go through
the processes. House Chairperson, that property will never
become capital that will lift the poor out of their
circumstances. Secondly, Minister, you need to ask the
provinces how many of them actually have a policy on the
minimum standards when allocating stands to people.
My colleague, the member of the executive committee, MEC, from
the Western Cape, I’m sure will in his speech touch on what he
has done in this regard. Meanwhile, I’m still waiting for the
MEC from the Free State to provide me with such a policy since
our last provincial week. In the meantime, the ANC
municipalities in the Free State are arguably the largest
contributors to human rights violators in this country, and
this department does nothing to intervene. You, Minister, are
not intervening and if you are it’s not working.

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House Chairperson, the problem is not the economy or the rich.
They are creating jobs. The solution is not two roomed houses
that a person can never really use as their own. If we want to
address poverty, we need to embrace private property and we
must be able to make those who suffer most part of the
solution. It’s going to take vision and guts. Two things I
fear, the ANC government has been lacking for far too long. I
thank you.
House Chairperson, Minister Mamoloko Kubayi, Ministers and
Deputy Ministers, all MECs present, SA Local Government
Association, Salga representatives, Director-General of
Department of Human settlements Mbulelo Tshangana, all deputy
director-generals that are here, greetings to everyone has
joined this National Council of Provinces session online. The
Portfolio Committee on Human Settlements has not been happy
with the pace at which the title deeds are processed and
We had been called upon by Members of the National Assembly
and NCOP to attend to issuing of title deeds. Once a
beneficiary holds the title deed in his or her hand, then we
would have delivered in restoring people’s dignity, and

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provide them with ownership guarantee and security of tenure.
This year, we started the delivery of title deeds as the
department in the Free State Province during the presidential
visit. We committed at the build-up to the presidential imbizo
in Mangaung that will assist with the eradication of the
backlog of title deeds and we have indeed ... [Inaudible]
...on our promise
On Friday 27 May, we were in Mangaung where a total of 187
title deeds were handed over. On Saturday 28 May, a total of
164 title deeds were handed over in Welkom. The province has
promised to work tirelessly in verifying over 14 000 title
deeds so that eventually, they can be in the right hands as
soon as possible.
As soon as Minister Mamoloko Kubayi joined the Department of
Human Settlements in August 2021 after being deployed by
President Ramaphosa. She did not waste time but quickly
embarked on provincial visits to gain first-hand experience on
the ground. Our visits were very eye opening for the Minister,
and practical solution and implementation plans were quickly
put in place.

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Hon members, the climate change that we have been hearing
about for so long has finally become a reality for our
country. Over the past few years, we have suffered severe
floods, devastation in our country, especially in Kwazulu-
Natal, Eastern Cape and North West. The infrastructural
depletion and displacements caused by the floods have been so
dire that it will take us a while to rebuild and assist the
households. Our people have suffered both in terms of material
loss and emotional stress.
As the Department of Human Settlements, we are one of the key
departments that have a major role to play as many homes have
been damaged.
Siye sakhawuleza kwangoko asaphozisa maseko emva kweemvula,
satyelela amaphondo athe achaphazeleka, ukuze sizibonele
ngokerthu singurhulumente.
Hon members, in terms of interventions, the department
requested the provinces to prioritise their budget, to enable
them to move forward with assisting the affected communities.
There was even a requisite for provinces to indicate this in

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their business plan. In their business plan, we made it a
point that the reprioritisation ... [Inaudible] ... critical
will have an impact on the overall annual performance plans
and the Medium-Term Strategic Framework, MTSF.
The main area of intervention is the provision of temporary
residential units, TRUs within the subsidy quantum for the
permanently damage structures. We can report that the
construction of the TRUs has commenced with great speed. In
KwaZulu-Natal, a joint operation committee has been
established and our entity the Housing Development Agency has
been appointed as a sub secretariat responsible for co-
ordinating the activities. Another entity, National Home
Builders Registration Council, NHBRC is assisting with
emergency housing responses in its area of focus, by assisting
with fast-tracking the enrolment and making an assessment of
the extent of damage to houses.
In the Eastern Cape, the Housing Development Agency, HDA has
been appointed to manage the construction of TRUs in affected
districts. We must emphasize on disaster intervention, we have
been on the ground at the Department of Human Settlements led
by our Minister Mamoloko Kubayi, to assess and conduct
oversight in affected provinces. Sadly, floods are not only

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disasters that the country has experienced. We are also from
time to time inundated to respond to fire disasters. For an
example on 9 of April I visited the community of Joe Slovo
Informal Settlement in the Western Cape, this community was
hit by a fire disaster which completely destroyed 300 shacks.
All three spheres of government responded with speed and the
assessment was done and completed within two days in KwaLanga.
Last week on Tuesday on 24 May, I joined Deputy Minister in
the Presidency, hon Kekana on an oversight and monitoring
visit of Deelplan Floods Disaster and intervention in Tswaing
Local Municipality in the North West Province. In total, four
Deputy Ministers were part of this visit, and different
departments led by disaster management have joined forces to
assist and provide shelter for the affected households.
Hon members, let us explain the process of disaster
management. We expect that both the province and the
municipality should conduct an immediate assessment to the
damage caused. The next step is that the municipality should
indicate whether the damage qualifies to be declared at the
local sphere. The same goes for the province. Lastly, when the
damage like what we have seen in KwaZulu-Natal requires

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national attention, departments like Human Settlements are
expected to come in and play their respective roles.
The irony of the situation is that once municipalities and
provinces fail to follow these important steps, national
departments like ours are unable to intervene effectively.
House Chair, roadshows on destitute cases are ongoing, and a
lot of progress has been made in certain provinces. In this
area of our work, the District Development Model is definitely
operational, and both district and local mayors are embracing
this new mode of working together on service delivery. It is
becoming evident that, this is the only model going into the
future for service delivery.
Last year hon members, we made a plea to the MEC that they
accelerate the implementation agenda of women and youth
development. We have engaged women and will continue the
dialogue further and want to commit that going forward, we are
not going to empower only women contractors, but we will
embrace all women in the entire human settlements value chain.
This will include women, quantity surveyors, property
developers, private landlords and property practitioners. We
need to make sure that the 40% set aside budget is officially
gazetted and is recognized through the Division of Revenue Act

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to make sure it is ring-fenced specifically for designated
In the next few weeks. We will be visiting GaSeleka Village in
Lephalale Local Municipality, Limpopo to hand over 50 houses
that were completed by contactors, ...
... siyaqhuba.
We would like to encourage all the MECs to facilitate
partnership with established contractors and women in
As I conclude Chair, I want to refer to the New Urban Agenda
which is gaining momentum, and will soon become a reality for
our children and grandchildren. As the continent, we came
together and articulated to the United Nations in one voice,
our collective stands, plan and agenda. I was privileged to be
part of this discussion, both here on the continent via a
virtual meeting of Ministers on 14 April 2022 and later on 28
April 2022, physically at the United States General Assembly

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to discuss the implementation of the New Urban Agenda. I thank
you Chairperson Winnie Ngwenya.
Mr S ZANDAMELA: House Chairperson, the EFF rejects the budget
for Human Settlements.
The department has, since inception, faced numerous challenges
in providing adequate human settlements to our people. It has
been characterized by weak management, irregularities in
allocation of houses nationwide, improper supply chain
management and mismanagement, which is a large part of the
human settlements.
In the past, various polices have been put in place to address
housing problems which would improve the living conditions of
South Africans. However, none of these have worked due to the
department’s improper planning and unethical practices that
affect human settlements management.
It is the combination of these factors that contribute towards
providing the poor with substandard houses. The beneficiaries
of human settlement with barely two years in the houses which
the government has provided for them, have houses which are
already riddled with cracks and leaks.

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The painful reality is that it is the poorest of the poor who
bear the brunt of incompetence and lack of ethics in this
The department has failed to provide housing units built in
environments that create physical, social and economic
wellbeing and raise quality of life for residents. Houses
built by this department do not significantly improve the
living conditions of the residents. Instead all across South
Africa, this department and its government, has failed to meet
the expectations of beneficiaries to provide qualitative
infrastructure that meets humane needs.
There is also exist a serious demand and plea from communities
to make land available with serviced stands, where people who
can afford, will build themselves proper adequate houses, not
these one room RDP houses that are being built by Human
Such pleas fall on deaf ears and when our people find their
own solutions to the housing problems, they are evicted from
occupied land and their homes are destroyed in the process. We
know this to be true, as we witnessed it first hand in our
residents of Airport City in East London, whose houses were

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demolished by the government of the province on the basis that
they were built on land that belonged to the government.
As the EFF we demand that the government must stop harassing
people living in informal settlements. The evictions and
destruction of people’s homes must stop. The state’s sponsored
hatred on poor people staying in informal settlements must be
stopped forthwith. It is not a crime to be poor, being poor
must not be the death sentence in this country.
We also take this opportunity to reiterate our support for the
thousands of people who were left homeless by the recent
floods that took place in KwaZulu-Natal and Eastern Cape.
We also condemn the slow to non-existent pace of rebuilding
people’s homes in those two provinces; a demonstration of this
government’s complete disregard for the wellbeing of our
people even during times of natural disasters.
It is, therefore, the reason why the EFF rejects this budget
vote. We do so because it is a gross underestimation of the
amount of money needed to ensure that the country stands a
reasonable chance of fighting against homelessness.

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Even though there is a R1 billion increase in the budget
compared to the 2021-22 budget, this increase is a drop in the
ocean when seen in the context of the challenges faced by the
homeless in the country.
The delivery of homes to the poor is not the only problem
faced by this department. You have also made it extremely
difficult for emerging black contractors to enter the space
and get contracts from government to build houses.
The construction space is dominated by established white-owned
companies, with companies such as Power Construction
monopolizing almost all construction projects in the country.
It is for this reason that we call for the establishment of a
State Construction company, so as to dramatically reduce the
costs of building houses for our people and stop the unfair
enrichment of white-owned companies at our people’s expense.
We also want legislative reforms in the financing of housing
in this country. The vast majority of black people with access
to jobs are unable to service their home loans because of the
rising interest rates. It makes no sense that people who buy
houses are made to pay more than double the selling price for

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periods of almost up to 30 years, half of which is purely to
paying interests back.
House Chairperson, the EFF rejects this budget vote. Thank
you, house Chair.
The CHIEF WHIP OF THE NCOP: House Chairperson, I did indicate
to Adv Phindela the challenges the Member of Executive
Council, MEC, was experiencing, unless if they are sorted out
now. I did advice the table team ...
The HOUSE CHAIRPERSON (Ms W Ngwenya): I didn’t get any message
from ...
The CHIEF WHIP OF THE NCOP: Okay. The MEC was struggling to
reconnect, he was dropped by the system. Unless if the MEC is
on the platform already. But I’ll appreciate it if the House
Chair can consider the MEC after the ... oh, the MEC is in
there. The MEC is in now, spot on. Thank you, House Chair,
he’s sorted ...
The HOUSE CHAIRPERSON (Ms W Ngwenya): The MEC is here,
siyaqhuba [we’re continuing]. MEC!

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The HOUSE CHAIRPERSON (Ms W Ngwenya): Before the MEC, the hand
of the Chief Whip was up. Can I hear you Chief Whip?
The CHIEF WHIP OF THE NCOP (Mr S J Mohai): I did indicate to
Adv Phindela about the challenges the MEC was experiencing
unless if they are sorted out now. I did advice the Table
The HOUSE CHAIRPERSON (Ms W Ngwenya): I didn’t get any message
from ...
The CHIEF WHIP OF THE NCOP (Mr S J Mohai): The MEC was
struggling to reconnect. The MEC was dropped by the system
unless if the MEC is on the platform already. But I will
appreciate if the House Chair can consider the MEC after the
... Order, the MEC is in there. The MEC is in now, hold on.
Thank you, House Chair. He is sorted now.
The HOUSE CHAIRPERSON (Ms W Ngwenya): The MEC is here. We
proceed. MEC?
Mr M A DUKWANA (Free State): House Chairperson, Minister
Mmamoloko Kubayi, hon Chief Whip Seiso Mohai, members of the
National Council of Provinces, the SA Local Government

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Association, Salga, delegates, provincial delegates,
distinguished guests, ladies and gentleman, today we gather on
this virtual platform to present and consider Budget Votes
necessary for our government to fulfil its mandate of
bettering the lives of South Africans. More than ever, this
process offers government an opportunity to gauge its service
delivery performance and evaluate key areas of weakness.
It presents us with a rare opportunity to harness our shared
resolve to facilitate a better tomorrow for all South Africans
wherein every citizen meaningfully participates as an equal in
the social, economic and political development of our country.
It gives me enormous pleasure to present this statement on
behalf of the Free State Provincial Government in support of
the Budget Votes already presented by the hon Minister.
During the next few days, you will be faced with the task of
deciding whether these Budget Votes are sufficiently thought
out and adequate to change the lives of ordinary South
Africans. It is my sincere hope that we shall do justice to
this process and pass budgets that put a dent on all
challenges that beset the people of our country.

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In the words of W E B Du Bois in The Souls of Black Folk, he
says: “Now is the accepted time, not tomorrow, not some more
convenient season. It is today that our best work can be done
and not some future day or future year.”
The social, economic and political potential of this country
is too immense and far exceeds the imagination of any temporal
being. But to effectively tap this potential, our people
require government to create an enabling environment that aim
to affirm their humanity and fully embrace their dignity. The
role of human settlements has been recognised by our
government as crucial amongst other instruments to restore the
dignity of our people and affirm their natural position on the
table of equals.
Our primary focus is to ensure we utilise the housing
infrastructure as a means that lift the quality of life that
increases economic opportunity and harness social means for
people who lasted for centuries. Integrated human settlements
aim to achieve two things: Firstly, to ensure full housing for
our people. And secondly, to maximise their chances of
integration in mainstream economic activity.

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We must shun a period when our people were characterised as
sources of discomfort when they began to ventilate their
frustrations at lack of adequate and dignified social housing.
Poor social housing which has integrated has been a major
challenge for many years in this country and can only be
addressed by this democratic government.
Indecent housing South Africa is caused by a number of factors
not excluding the colonial and apartheid reality from which we
are still trying to heal. Black South Africans, often without
higher education qualifications, tend to be dominant sections
that need government intervention in this regard.
House Chairperson, the Free State government has built
thousands of houses across the province since the dawn of our
democracy. We have ensured that our people live in quality
homes and that the collective future of their children is
safeguarded. We have made certain that our communities have
bulk sewer and water infrastructure in order to make manifest
government’s commitment to decent human settlements.
It truth, we could have done and achieved more for our people
had we not experienced a decade of state capture. As a
consequence of corruption – and blatant acts of criminality,

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the Free State Department of Human Settlements could not
realise all its service delivery targets of delivering
integrated human settlements.
The breakout of Covid-19 global pandemic also decidedly
inflicted a colossal knock on our service delivery targets.
These have undoubtedly affected the standing of our government
in the estimate of communities, it has compromised society’s
trust in the ability of our government to deliver quality
houses and sustainable neighbourhoods.
In ensuring that our work continues unhindered by all these
factors, we have started a process of building a calibre of
civil servants that understands the tasks at hand, is
committed to clean governance and is willing to combat all
negative tendencies of the past and work towards the greater
good of our people. This we have made clear; it is a non-
We have started a process by which to co-ordinate efforts
within and outside the department to successfully deliver
quality houses that lend dignity to our people. We have
started to establish partnerships with communities and their

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organisations to canvass strategies which will have maximum
benefits for our people.
The core objective of this partnership is to resolve
challenges of corruption, poor workmanship, poor public
participation and involvement in projects by our people.
House Chairperson, for the current financial year, we have set
ourselves a target of building 2 237 units, 2 100 new units,
60 Finance Linked Individual Subsidy units and 59 Community
Residential Units.
The National Human Settlements Development Grant of
R813 million and the Upgrading of Informal Settlements
Partnership Grant of R241 million will be used by the
department as follows: Rapid Land Release programme - our
government has made strides in providing serviced stands to
beneficiaries in this current Medium-Term Strategic Framework,
MTSF, period. In terms of our records, we have recorded a
total of 14 960 such units as against our target of 15 826.
In the 2022-23 financial year, we will develop and release a
total of 9 700 sites both in the informal settlements and

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green-field areas. The department shall communicate further
details once plans have been finalised.
The Upgrading of Informal Settlements Programme: This
programme focuses on upgrading informal settlements through
available subsidies and funding mechanisms. Since 2019, we
have recorded a total number of 161 informal settlements
across all municipalities in the province.
As it stands, a total of 35 projects are being implemented
throughout the province – which includes 43 informal
As we speak hon Chairperson, we are in the advanced stages of
formalising informal settlements in the following areas:
Marikana and Palamenteng in the Mantsopa Local Municipality;
Baipehing and Slovo Park in the Masilonyana Local
The approvals of the Municipal Planning Tribunal have already
been received for these areas as a result of which the pegging
of sites has commenced. What this means in practical terms is
that communities in these areas will begin to receive a
variety of government services in earnest.

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And then the housing units - we have constructed a total of
5 450 houses in the current MTSF period as against a target of
9 000. As a general rule, households that are targeted are
those that fall within the category of vulnerability i.e. the
elderly, people living with disabilities, child headed
households and people in distress situations.
In the 2022-23 financial year, we have set ourselves a target
of completing 2 191 housing units across the province at a
cost of R311 million.
In relation to Social Housing Programme, the project pipeline
will be finalised in the 2022-23 financial year. Six
Restructuring Zones have been approved by the Social Housing
Regulatory Authority in Mangaung Metropolitan Municipality,
Matjhabeng and Maluti-a-Phofung Local Municipalities.
In order to meet our MTSF target of 2 160 units, discussions
are unfolding to get Hamilton 412 units and Linquinda almost
more or less 1 000 units’ projects running for the current
financial year. This is expected to give us about 1 414 units,
resulting in about 65% of the said target being completed.

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Title Deeds for Security of Tenure and Land Ownership: New or
current title deeds will be managed from a budget of
R1 816 000 for the acquisition of 1 630 title deeds. The
backlog of 2 575 title deeds has been allocated R22 million,
these include dispute resolutions and litigation costs.
Matjhabeng Local Municipality has been included amongst the 22
Municipalities supported country-wide, to arrest the perpetual
decline of human settlements.
For this current financial year 2022-23, we have allocated
R52 million towards the refurbishment of the Kutlwanong Waste
Water Treatment Works. The completion of this project will
inevitably unlock development opportunities, create
sustainable jobs as well as resuscitate the economy of
Kutlwanong whilst providing the much-needed homes with decent
human settlements and infrastructure.
Since 2019, our government – together with Housing Development
Agency – has embarked on a massive drive to identify and
acquire 12 privately owned parcels of land measuring 3 434
hectares in Mangaung, Matjhabeng, Metsimaholo, Moqhaka,
Dihlabeng and Masilonyana Municipalities.

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The HOUSE CHAIRPERSON (Ms W Ngwenya): As you conclude, hon
Mr M A DUKWANA (Free State): As we conclude, we are in the
process of organising and hosting the Free State Innovative
Housing Technology Summit which will focus on attracting and
empowering local buildings materials manufactures and home
builders. Our government is doing whatever it can to provide
social housing to our people. This is why we are embarking on
interventions announce attempting to turn things around for
the benefit of all our people. We recognise that certain
things may be done wrongly in the past but we recommit
ourselves to do better. Thank you. [Time expired.]
Ms N E NKOSI: Hon House Chair, the ANC is confident that the
Budget Vote as presented by the Minister will contribute to
the building and strengthening of the housing implementing
agencies so that they are able to fast-track housing delivery
for our people. The ANC is committed to realising the promise
we made when we adopted the Freedom Charter in 1955; that when
we were in government we would ensure that there would be
houses, comfort and security. When our forebears crafted South
Africa’s Constitution, they made sure that access to adequate

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housing becomes a right that the democratic government should
realise for each and every South African.
The national government is responsible for the development of
housing policy and for budget allocation to the various
implementing agencies such as provincial and local government
and its state-owned entities, SOEs. We applaud the work that
the Minister has undertaken in rebuilding and strengthening
the SOEs. All the entities under the Department of Human
Settlements have fully fledged boards constituted of
individuals who have the necessary experience, expertise,
skills and qualifications. We are confident that when the
financial year comes to an end, the various boards will
achieve an unqualified audit opinion and would have delivered
on their mandates as outlined in their annual performance
plans, APPs.
The ANC has noted that there are challenges in the other two
spheres of government and that is why we are calling on the
national government to ensure that they play a leading role in
housing development. It is at the local government level where
the need for housing development is identified. It is where
suitable land is identified, even though in most cases the
land belongs either to the municipality or the provincial

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Department of Public Works. The provincial government on the
other hand is responsible for promoting, co-ordinating and
implementing the housing programme.
The ANC welcomes the initiatives by the Minister to unblock
the blocked housing projects. Our support for the ...
[Inaudible.] ... is informed by the acknowledgement that there
are challenges at the provincial and municipal levels in the
provision of housing, and ... further agree with the
administrative capacity support panel proposed by the
department. We think it will go a long way in addressing some
of the identified challenges.
We welcome the move by the Department of Human Settlements to
digitize the housing beneficiary lists to ensure transparency
and for accountability purposes. For a long time, our people
have been complaining about the manipulation of the housing
lists and the patronage networks involved in the allocation of
Reconstruction and Development Programme, RDP, houses, with
preferences given to those that are in close proximity to
municipal and department officials. Many of our people have
lost trust and ... [Inaudible.]
An HON MEMBER: And ANC cadres! And ANC cadres!

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Ms N E NKOSI: And ANC cadres. Thank you, hon House Chair.
[Interjections.] Many of our people have lost trust and
credibility in the process of the identification and
allocation of housing. There are people who have been on the
waiting lists since 1996 and who have been overlooked in
preference of those who have just registered on the waiting
lists. In other words, there are people who are fortunate to
jump the queue.
There are also complaints that the waiting lists get
politicised by whichever political party is in charge in a
particular ward. The beneficiaries of the housing programme
will come from the supporters of that political party. There
are also allegations of fraud and corruption involved in the
waiting lists.
We are confident that the digitization of the housing
beneficiary lists will not only result in transparent and
accountable waiting lists but it will also ensure that those
people allocated to be ... [Inaudible.] ... houses are
eligible and meet the requirements as set out in the
departmental policy.

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We have highlighted above that there are problems regarding
the implementing agents under the Department of Human
Settlements. Correctly, we have called for the strengthening
of capacity of these implementing agents in order to finally
... I’m sorry ... in order that they are able to deliver on
the mandate.
Just recently, the department tabled its 2021-22 quarter four
performance report and it highlighted that some of the
implementing agents had failed to spend on their allocated
Informal Settlements Upgrading Partnership Grant, with three
of the metropolitan municipalities, such as Nelson Mandela,
Buffalo City and Mangaung achieving less than 30% in terms of
The Department of Human Settlements has adopted the Monitoring
Evaluation Impact Assessment, MEIA, and Implementation
Framework for the 2019-24 period. The ANC in the National
Council of Provinces calls on the department to utilise this
policy and the implementation of the Implementation Framework.
We are confident that the full implementation of such a policy
and Implementation Framework will result in a positive
trajectory for the department.

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The hon Minister admitted in her budget speech that the human
settlements sector had faced many challenges and ... only
through the prioritisation of monitoring, evaluation and
support intervention ... we are confident that housing
delivery will achieve the set targets.
In addition to that, there have been complaints about the poor
workmanship in various housing projects. In the recent past,
our government has been forced to reallocate funds to rectify
dilapidated houses. The pill of poor workmanship will be a
thing of the past once we fully employ the MEIA and the
Implementation Framework.
The recent events of the disastrous floods in KwaZulu-Natal
and in certain parts of the Eastern Cape have demonstrated the
negative impact of climate change on our society. The changing
weather patterns calls for a change in where we build our
homes and the kind of materials we use in the building of our
dream homes. The materials should be resilient and adaptive to
the changing weather patterns brought on by climate change.
Informal settlements pose a hazard in that many of these
settlements are built in locations that are not suitable for
human settlements, such as river banks or flood plains. The

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risk associated with building in flood plains is that during
heavy rains the houses will be flooded if they are not washed
As the ANC, we are happy with our democratic government’s
mitigating programmes against climate change affecting
informal settlements and have decided to upgrade at least
1 500 informal settlements to phase three. Part of the
upgrading is the provision of basic services such as
electricity, proper drainage, water and sanitation. Before
these services are provided, each municipality is expected to
ensure that the land on which these informal settlements are
built is habitable. In instances where they are not, the
government must engage with those residents with the intention
of relocating them to habitable areas.
Having considered the department and entities’ APPs, we are
happy to report on this platform that these APPs are aligned
with the District Development Model, DDM, approach. We call on
the department to ensure that compliance with the DDM is not
only on paper but that it is something that is practised by
the department and its entities when interacting with other
spheres of government.

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In closing, the need for compliance with the DDM approach
arises from the fact that for many years our national
departments and the other spheres of government have been
operating in silos. Therefore, we are confident that the
application of the DDM approach will yield positive results in
the delivery of housing programmes in the country. The ANC
supports Budget Vote No 33 as presented by Minister Kubayi and
we are confident that we are turning the corner in the
delivery of the much-needed houses. I thank you, Chairperson.
Mr M A P DE BRUYN: Hon Chair, it is estimated that there are
more than 2 700 informal settlements in South Africa today.
The Minister stated in her speech that:
The demand for sustainable human settlements in our country
has been on the increase and the pace of delivery has been
slower than the rate of increase.
To address this, the Minister stated that a national Human
Settlements war room with a team of highly specialised
individuals will be established. At what cost would this be
Minister? How many people could have benefited from the
millions that this war room is going to cost us? Minister, you
stated that the war room is expected to co-ordinate efforts,

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monitor and fast-track diverse projects across provinces, co-
ordinate the support of various entities and consolidate
reports to the war room. So this is basically the war room to
rectify and do the job that you were supposed to do.
Countless disasters in not only informal settlements like
fire, floods etc. could have been prevented if government
ensured that people received serviced stands in suitable areas
with access to water and basic services. I agree, in many
cases disasters like floods are an act of God that cannot be
prevented, but establishing or allowing informal settlements
in low lying areas that are prone to floods without storm
water infrastructure and then wondering why it was flooded and
lives were lost is not due to natural disaster or an act of
God. It is the incompetence of the ANC-led government and this
department that is to blame.
To respond to the hon Dodovu, the ANC is quick to blame
everything on the past, but handing out stands to millions of
people without basic services like storm water drains, water
and sanitation is inhuman to say the least and expecting your
people to live in these conditions like animals makes you
guiltier than any version of the past. The increase of these
informal settlements is proof that the ANC-led government and

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this department is continuing to continuing to fail its
The Minister and the department will state that thousands of
people have received housing and access to services and that
might be the case, but compared to the millions that could
have benefited over the past 3 decades this is but a few drops
in the bucket. And this is mostly due to corruption and
incompetence as the Minister has admitted. What happened to
the R10 billion that was budgeted last year for the upgrade of
informal settlements? If we look at the state of our informal
settlements across South Africa one cannot help but wonder.
This department should be hanging its head in shame.
On title deeds the Minister once again stated that, “we have
not moved at the pace expected of us”.
Ek is bevrees, as die Minister en die departement se pas nog
stadiger moet wees, gaan hulle heel moontlik begin agteruit
loop, maar kom ons los dit maar daar.

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Over the last year there were countless instances where stands
and houses were resold for political gain by corrupt
councillors and officials, especially in the Free State. This
could have been prevented if the owners had title deeds. once
again the poor that are the ones suffering as a result of
corruption. The hon Minister quoted Nelson Mandela where he
said in his speech in 1995:
That the foundation has been laid, the building is in
progress. With a new government of leaders and people
rolling up their sleeves in partnership for change we can
and shall build the country of our dreams.
Hon Minister, I think Nelson Mandela would turn around in his
grave if he had to see how the ANC-led government and this
department has and are failing the people of South Africa
today. Until this department does not show real progress and
competence no one in their right mind can support this budget.
I thank you.
The HOUSE CHAIRPERSON (Ms W Ngwenya): Thank you very much hon
member. I will ask the duty Whips to help me if the hon is
back. For now ...

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... ngiyaqhuba.
Mr S K MASHILO (Mpumalanga): Hon House Chair, Minister, my
colleagues of this important portfolio committee, all our work
force and administrators. Hon House Chair, as a province we
would like to take this opportunity, first and foremost, to
appreciate this opportunity and indeed welcome this Budget
Vote 33 as presented by Minister Mmamoloko Kubayi, especially
this budget seeks accelerated approach towards settling our
We are at the point where we can no longer conduct Human
Settlements business as usual. The research continually
conducted by our oversight committees indicate that not all
people in our country and our provinces need low cost houses,
that is RDPs.
USIHLALO WENDLU (Nk W Ngwenya): Mhlonishwa u-Mashilo,
ngiyabathanda abazukulu kodwa uma ngenza umsebenzi wami
ngicela nibase laphayana epaki bayodlala.

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Mr S K MASHILO (Mpumalanga): Thank you ...
... siyabulela Sihlalo weNdlu.
It is for this reason that as Mpumalanga, we are prioritizing
the servicing of stands/sites by providing needed
infrastructure, as we build integrated human settlements. We
believe very strongly as a province that our people require
more sites than the RDP houses as you may refer to them at.
Our people, all the time confirm that they can build ...
Mr M NHANHA: Hon House Chairperson, on a point of order: We
all got kids in our homes and it is understandably that we
work from home. We have a duty and a responsibility to
maintain the decorum of the House because this is considered a
sitting. I do not think that it is acceptable that while there
sitting of Parliament is in progress, we hear kids on the
background. Colleagues from provinces and colleagues from the
NCOP, if you know you would be speaking in a sitting of
Parliament, you ought to give it the respect it deserves. It
is unacceptable that people are not in appropriate places at
an appropriate time. I think we need to look into it and give

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guidance Mme Ngwenya. I mean, you have got kids, I have got
kids as well but having kids making noise in the background is
not acceptable. Thank you.
The HOUSE CHAIRPERSON (Ms W Ngwenya): Thank you very hon
Nhanha and hon members, I think we all know what we must do.
You are at work even if you are working at home and you need
to prepare yourself. Hon Nhanha you are correct, even the
framing needs to be considered. We always ask members to come
early so that Shirley can help you to frame yourself
appropriately. So, hon member, please let us not do that.
Ungaqhuba baba. Nginethemba ukuthi umzukulu usumsusile lapho
phambi kwakho.
Mr S K MASHILO (Mpumalanga): No, that is fine Chair. It is for
this reason that the province has prioritise the servicing of
stands by providing needed infrastructure, as we build
integrated human settlements.
We will continue to build low cost houses, but only for those
that qualify as indigents, as per the various municipalities

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council approved indigent register. This approach will assist
the department in providing tittle deeds to home owners as
houses are handed over.
We are always mindful of intergovernmental relations and that
is the reason that we work with our municipalities and private
sector, in the spirit of the District Development Model that
has already been adopted or introduced. This is to ensure that
all those who are legible for houses, get them on time. These
include child-headed families, the elderly, and families with
members living with disabilities. Since the Minister announced
the increase in the subsidy quantum, Mpumalanga proposes that
the size of low cost houses be improved, nationwide. At the
moment we are aware that we are building from 40m2 but as the
province we have moved to 45m2 and believe that possibly we
can move to our square metres.
People need descent houses the ANC-led government has promised
and we believe we can do that as we are doing elsewhere.
Indeed, Chairperson, some policy changes announced by the
Minister, that are aimed at ensuring that we expand the speed
and quantity of delivery, are welcome and appreciated. The
revision of the bands for the Finance Linked Individual
Subsidy Programme, Flisp, now called Help-Me-Buy-A-Home which

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comes into effect this financial year, is highly welcome. We
believe that this is a good policy Minister that our people
have been looking for.
The revision of the income bands from households earning an
income between R1 500 to R15 000 to R1 850 to R22 000 gross
monthly income to qualify for social housing that came into
effect at the beginning of the 2022/2023 financial year
indicates that we are serious about people owning their own
houses en masse.
Hon House Chairperson and members, the disasters we have
experience in the province indicate that climate is here with
us and is probably here to stay. That brings me to a point
that the quality of building material that is sold by hardware
require more attention. I visited the region in Nkomazi where
I realised that the material used there is not of a good
quality. Despite that there must be SABS but they require more
attention because the climate change indicates that the
situation has now changed. We need to regulate on the quality
of sand, cement, door and window frames, corrugated iron that
is used in these projects so that we can make sure that our
people, out of the little that they have does not go in vain.

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As we are the market, the Department of Human Settlements
believes very strong that the creation of the jobs is the
responsibility of us all. We believe very strong that if we
can have more co-operatives that will manufacture and supply
quality building material, as government requests that the
departments be markets, we can make sure that our people, in
particular the youth and women are able to get work and build
better communities.
In conclusion, the department will embark on a mission to
strengthen the relationship with private sector companies
including our traditional leaders. Our province is traditional
in nature and rural in particular and we believe working with
our traditional leaders our people can as well get where they
want to go. That is the better life that we have promised. In
order to carry out the fundamental change, we need a certain
amount of courage. The courage not to turn our backs on the
old formulae that gave way to brighten the future. It always
takes the courage of yesterday for us to act with the extreme
clarity today. As the Mpumalanga Human Settlements we want to
be part of the brighter future to our communities as paved by
the ANC-led government. We have made these promises and we
welcome the Minister. What is referred to as infrastructure in

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particular that we can put the paved roads in the majority of
the areas where we are developing.
Currently, the province has managed to acquire land at Leandra
and other parts of the provinces where we will be building and
putting more infrastructure and our people can do that. That
will assist us to make sure that we reverse lot of problems
around the houses that our people have been complaining. This
will also reduce the number of toyi toyi. It is cold today and
the majority of our people are equally looking for shelter. As
the Mpumalanga Human Settlements Department ...
... siyaqhuba ...
... we are certain that our people will have the houses as we
have made the promises.
Ndiyabulela Sihlalo weNdlu.
Mr D R RYDER: Hon House Chair, surprise, surprise, the ANC had
great plans but they failed in the implementation. Well,

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that’s nothing new, but when it comes to Human Settlements,
the failure is impacting on the lives of all South Africans.
The poor are left without housing, the lucky ones have poorly
built houses that are falling down around them bit by bit, the
middle-class have their property values eroded by land
invasions all around them, and the wealthy pack their bags for
a better life elsewhere.
The Department of Human Settlements is stuck in a failed
delivery model, MEC Mashilo just told us this, the Minister
has previously agreed with this, and so did the previous
Minister. The current model is unsustainable, unaffordable and
undesirable. Housing projects have stalled across the country.
Hostel renewal projects, like the one in Rietondale, have
stalled as well. Lists have been illegally changed,
beneficiaries changed without reason, projects get hijacked by
illegal occupiers — just look at the Shalimar Ridge for
example — renewal projects abandoned, Everton is one and look
for some others, and the biggest sin of all, underspending by
provinces when there is such a great need out there for decent
Megaprojects are the modern day’s equivalent of apartheid’s
forced removals. You can’t just take a bunch of people and jam

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them into houses somewhere; they need schools ... [Inaudible.]
... access to government services and importantly access to
jobs and economic opportunities. That is not what megaprojects
are delivering. They too have failed; look at Savanna City
where the houses are built, people have moved in, but the
school is planned for 2026. The private school opened in 2019
and is thriving. The De Deur police station is struggling to
cope, having had the population that it serves more than
doubled with no additional resources or even a hint of a new
station planed in the future. Western Boulevard, Afri-Village
and Dan Tloome are more examples on the West Rand.
The analysis that are done do not even address the issues of
bulk service, roads, water, electricity and sewage capacity
that all of these new developments need. We can’t even deal
with our current loads. The result is a growing anger amongst
the population and land being invaded because people are tired
of waiting; people have been on lists for 28 years. The rule
of law breaks down a little bit more every day and so the
country falls a little more and more and starts to fail, law
abiding tax payers look for better options, and some of those
who were law abiding give up and join the ranks of the
disenchanted. A better life for all is what we were promised.
A better life for the politically connected is what we got.

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So, let’s do what Mr Dangor said and look at the estimates of
national expenditure. Performance indicators for the
department, given at the start of the chapter, indicate that
the department is looking to deliver 120 000 of what they call
“housing opportunities”. That’s 60 000 fully built RDP houses
and 60 000 serviced stands. With an estimated backlog of
almost 2,5 million houses, that’s a little over 20 years
before the people on the list today get their homes. And in a
lot less than 20 years’ time their 2,38 children ...
[Inaudible.] ... their own.
A little more depressing is the copy and paste projection into
the medium term expenditure. With 60 000 RDPs the following
financial year and 60 000 the year after, we see no new ideas
coming from this government —just dogged pursuit of a failed
idea. So, let’s look at the programmes, Mr Dangor. Programme 2
provides our people with the cracked two-rooms that fall down
around them one week after handover. The annual average
increase in allocation over the next three years is 3,6%.
That’s in spite of the 6,7% increase in building costs last
year — yes it is measured by Statistics SA and almost 4,9% in
2019. In spite of all of the evidence to show that building
costs are escalating well above 5% per annum, and that’s
before the current round of inflationary pressure, the

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department plans to continue building the same amount of
houses for less money going forward.
As for the other programmes, the informal settlement upgrades
under Programme 3 are set to increase by an average of 4,9%
over the next three years. Above the class average in this
generally dismal performance, but so far below what is
actually needed on the ground.
Rental housing is Programme 4 and that grows at 3,6%. But Mr
Dodovu had much to say about the Help Me Build a Home
Programme which is Programme 5. It gets only 1,8% of the total
budget given to Human Settlements and grows by paltry 1,7 %
over the next three years. That is really not showing a decent
political will to actually change things.
In conclusion, really, Minister, this is a sign of a
department that is defeated and has run out of ideas. Why not
just give up? Handover power to the Democratic Alliance.
Alternatively, you can look up the DA’s housing policy
released by our Shadow Minister Emma Louise Powell on 7 April
2022, and find ... [Inaudible.] ... which can constructively
take South Africa forward. The policy is on the DA’s website,
and since Mr Dangor enjoys research so much, I’ll post the

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link in the chat as well. There you go. It’s an instructive
document that brings hope to South Africans across the
economic spectrum as it provides real, affordable and
implementable alternatives. Roll on 2024. Let South Africans
vote themselves out of this mess. Thank you, House Chair.
Mr N M HADEBE: Hon House Chairperson, hon Minister, the
mandate of the Department of Human Settlements to give effect
to section 26 of the Constitution which provides that everyone
has the right to have access to adequate housing must be
measured against the reality of South Africa’s alarming
housing backlog. According to the non-governmental
organisation, NGO, the Development Action Group, the national
housing backlog sits at an estimated 2,6 million houses. That
is 12 million people in desperate need of decent
accommodation. We need to stress this: Twelve million people
are currently in desperate need of decent accommodation.
In light of this stark reality, the prudent use of the
Department of Human Settlements budget cannot be overstated.
From the outset, the IFP has welcomed the department’s overall
budget allocation which is increased by R1,34 billion from
R31,67 billion in 2021-22 financial year to R33,2 billion in
2022-23 financial year. We, however, question whether the

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department’s Medium-Term Strategy Framework, MTSF, targets, in
light of the extensive housing backlog coupled with the impact
of the recent floods and the pandemic, are ambitious enough.
The department’s revised five year MTSF targets include the
delivery of 300 000 BNG houses, Breaking New Ground houses,
18 000 rental housing units in priority development areas and
5 000 community residential units. Should we not aim higher,
hon members?
Furthermore, on consideration of the department’s annual
performance plan, APP, the IFP welcomes the digitisation of
the housing beneficiary list. However, we echo the sentiments
that this list must be transparent to the people. These
processes cannot be used to mask incompetence and
inefficiency, and the slow pace of the digitisation of this
list unacceptable. Many poor South Africans have suffered
great abuse in these application processes and there has been
manipulation of this list by unscrupulous individuals. The IFP
also supports the view that the beneficiary list should
prioritise child-headed households, the elderly and people
with disabilities.

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Finally, the issue of blocked projects is a key concern for
the IFP considering the dire need for housing. We believe that
it is critical that a detailed breakdown be provided on these
projects with specific timelines, and the IFP will monitor the
department’s feedback in this regard.
Hon House Chairperson, the IFP will continue to fight on
behalf of the poor and the most vulnerable in our society
whose constitutional right to access housing and the right to
dignity are being jeopardised by corruption and fraud. Having
said all of the above, hon House Chairperson, I however wish
to state that the IFP supports the Budget Vote. Thank you.
Mr T A SIMMERS (Western Cape): House Chairperson, Chairperson
for the Portfolio Committee on Human Settlements and members
of the portfolio committee, the National Minister of Human
Settlements, Deputy Minister of Human Settlements, Members of
Executive Council, MECs, for Human Settlements who have
participated in today’s debate, SA Local Government
Association, SALGA, representatives, but also the hon members
of the NCOP.
It is befitting to note Minister Kubayi’s opening reference on
10 May 2022 to the Freedom Charter. Perhaps one could look at

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the passage which further reaffirms her quote, and I will
paraphrase, “All people shall be decently housed, and bring up
their families in comfort and security”; with emphasis on ‘in
comfort and security’.
In the Western Cape we have adequately shown our commitment to
creating human settlements that promote social inclusion
through the development of integrated, resilient, safe and
sustainable human settlements in an open opportunity society
for all. However, in recent years we have seen an increase in
what the President termed the ‘construction mafia’ during his
2022 state of the nation address and the unfathomable economic
damage with which they continue to plague our country.
As a province we have not been spared of this and it
negatively impacts on our commitment. It is with that in mind,
that we hope the new WarRoom will adopt a concerted strategy
that will not only provide decisive targeted tactics to rid us
of these societal delinquents, but also provide sustainable
preventative measures that will ensure that not a single
community project finds itself with an array of incomplete
housing structures due to these acts of subversion sabotage.

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While we welcome this committee to be finalized, we will keep
a close eye on developments in the hope that it doesn’t become
yet another ‘bubble government body’ that creates expectations
with zero delivery to account for.
In terms of the dashboard, in the Western Cape we already have
a projects executive dashboard that tracks all our current
implementation projects on a weekly basis across our province.
We, therefore, could assist the Minister by sharing knowledge
and know-how on how to use this mechanism within her
development of her system.
In terms of the revised bands for Help-Me-Buy-A-Home, this is
something which we welcome and our frequent lobbying in recent
years is somewhat vindicated by the public’s response with
nearly 700 applications received within the first six weeks of
the amendment taking effect.
I was pleased to hear the hon Deputy Minister Tshwete
mentioning that free housing is unsustainable; we agree. That
is why we made a concerted effort in the Western Cape to
prioritise and accelerate affordable housing during the
difficult year of 2020. We did this because 70% of our working
population falls within the R3 501 to R22 000 bracket.

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Championing the Help-Me-Buy-A-Home Programme, formerly known
as Finance Linked Individual Subsidy Programme, FLISP, is not
sufficient. We need to find other innovative mechanisms to
support the affordable housing market. And I would like to
unpack some of these innovative solutions with the National
Minister in the coming weeks.
We also note the increase of 30% of the Human Settlements
Development Grant, HSDG, aimed at increasing the opportunities
for public/private partnerships. One cannot help but to
highlight the success of the state-of-the-art Conradie Park
development in Cape Town; yet another Western Cape government
success story of our ability to unlock these partnerships and
create societies for the future given adequate funding.
However, we need a better and more coordinated funding regime
for conditional grants such as HSDG and the Upgrading of
Informal Settlements Partnership Grant, UISPG.
Presently, projects are implemented over multiple financial
years, but we only receive a guaranteed Medium-Term
Expenditure Framework, MTEF, allocation per financial year. It
is disturbing to note that there are several provinces that
are simply not spending their funding year on year.

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In the Western Cape we are advocating for the conditional
grants to be rationed based on a scientific and evidence base
approach such as population growth rate, migration patterns,
spending and provincial delivery abilities, governance, and a
scientifically and properly rationed equitable share from the
national fiscus.
As the most economically viable province in the country, we
have seen increased migration to our province, which we
welcome, and this is bound to increase even more in the coming
years; according to credible statistical data.
The Western Cape, therefore, needs to get a bigger share of
the human settlements budget. This is the harsh reality. We
have proven that we can deliver. We have proven that we can be
trusted with funding and even additional funding. We do not
squander money entrusted to us. We deliver for all our
qualifying citizens!
We further welcome the increases in the subsidy quantum,
though this will now mean fewer housing opportunities in
reality, but this will be countered in our province to
innovative solutions such as the incremental housing pilot
that we are championing in the Western Cape. This provincial

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pilot has different variations from plots and plans to start-
up formal structures that can be incrementally enlarged post
occupancy for a beneficiary’s own construction account. We
will be able to better accelerate the delivery of housing
opportunities through this approach. The one hurdle, though,
at this stage for us, is the approval from the national
department for this new typology, so that it can be classified
and counted as a housing opportunity just like the BNG and
service sites already are.
In terms of the social housing quantum, even though we still
need clarity on the norms and standards from National
Minister, we do note with further concern that the norms and
standards have not been finalized since 2020. The Western Cape
government undertook research on new mechanisms for increasing
densities in social housing projects during the 2021-22
financial year. One of the findings was the potential role
that revised norms and standards for social housing could have
in increasing the viability of higher density social housing
typologies. In turn, this would support the realization of the
many benefits of densification in well-located areas and
extend the benefits of living in well-located rental housing
to a greater number of beneficiaries.

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In terms of the increase of the usage of HSDG to fund bulk
infrastructure for strategic projects, which increased from
10% to 30%. While this increase is welcomed, it means
absolutely nothing without an overall increase in the budget,
and rather removes much-needed housing opportunities in the
pipeline. The latter also speaks to the current reality of
Municipal Infrastructure Grant, MIG, misalignment of
municipalities. This is the biggest deterrent in approving
several potential viable projects in non-metro municipalities.
The MIG allocation is simply too small to make a meaningful
We also welcome the revision of allowances to utilise the
other available grants as bridge-finance mechanisms to
adequately respond to disasters such as floods and fires.
With this said, what remains a mystery is when the official
outstanding ministerial guidelines for some of these
noteworthy and long-awaited reforms will be made available to
all provinces.
But the bigger problem is the illegal sale and leasing of
BNGs; is becoming a growing problem with massive social and
community implications for our sector in the future. Urgent

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policy amendments to the National Housing Act is required to
give powers to provinces to take back illegally sold and
leased units so that we can ensure that, in addition, we need
illegal sales to be strongly condemned and criminalised if we
are to prevent this practice.
The delinking of FLISP, while it is a much-welcomed decision,
is a concern that National Government has failed, to date, to
set out clear guidelines. As the provincial government, we
will, therefore, left to formulate and develop our own phased
guidelines in the rolling out of the Help-Me-Buy-A-Home
Programme in our province. Yet again, the Western Cape has
confirmed by its own provisions and management to be an
innovative government in action.
In closing, Minister Kubayi made mention to 2 700 informal
settlements in South Africa, while stating that the
discouragement of land invasion is a priority. We believe she
also had an opportune moment to call on her colleagues in the
security cluster at national and engage them in pursuing legal
charges against political parties and affiliate members who
sit in official positions and yet encourage and mislead the
public to invade or occupy unoccupied land.

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As we’ve seen with recent floods across the nation, our
citizens suffered misfortune as a result of being misled to
occupy unsafe areas which led to unnecessary loss of life.
During the 2021-22 financial year our department spent in
excess of R162 million across our province, with 88% which
pent in the metro alone, in attempts to protect against and/or
prevent land invasions. It is for this reason we urge the
Minister to address illegal occupations and land invasions and
allow for stricter measures that will hold liable, anyone,
regardless of political affiliation, who is found encouraging
illegal invasions and housing project construction sites, to
face the full might of the law.
The time for grand plans has passed. The time for getting
things done has dawned and as the Western Cape government we
are already showing how it can be done, and we are doing this
while ensuring security of tenure to all our qualifying
beneficiaries. I thank you.
Mr J J LONDT: Hon House Chairperson, hon Minister and hon
members, firstly, I want to commend the ANC for uniting us as
South Africans this evening. Across the length and the breadth
of this beautiful country, people are literally lining up in

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unity, they are united in the utter disgust of this ANC
government who is taxing us to death; this time on the fuel
levies. You have the means to cut the fuel tax, but because
you are so out of touch, you do not realize that it affects
every single person in this country. And tonight, you are
We should be going back to in-person plenaries and I do want
to invite any member of NCOP to reach to me, I will be happy
to take you on a short oversight visit to take a look at South
Africa’s most innovative social housing project, the game-
changing new Conradie Park in Cape Town, which comprises of
more than 3 500 homes. This project is a living example of the
DA’s housing policy. We recognize that disadvantaged South
Africans need more than just a home, as Minister Simmers said,
but an inclusive neighbourhoods connected to vital services
such as schools and recreational spaces, enabling communities
to thrive. I want to thank Minister Simmers for the excellent
work that he and his department is doing. And showcasing what
can be done if a government cares for its most vulnerable.
Cllr Phukuntsi, who was on the speakers list, is indeed a
living and breathing example that can also be used in the
classrooms across South Africa. An example of ANC in action

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against the person who has been accused of stealing. An
example of an ANC that do not care as the informal dwellers in
Bultfontein can testify. That is a shame.
Hon China Dodovu, you state, just by changing legislation,
people will be deterred to act illegally. I don’t know where
you’ve been in the last few years, but the only way to deter
criminal activity is that there should be consequences. Why
else do you think the DA and South Africans in general want
actions to be taken following the Zondo Commission reports
into state capture. Your ANC comrades got rich from stealing.
You are like an evil political Robin Hood, you steal from the
poor and give to the ANC rich. But, you don’t want
consequences, hon Dodovu, is it because it might get too close
to home?
Hon Minister Kubayi, as Minister Simmers mentioned, if you
don’t want to start too close to home, you can maybe start in
your Cabinet, where there is some of your Cabinet colleagues
that encourage or their parties the invasion just down the
road here towards Grabouw. That is a good place to start.
Hon Kontsiwe, after listening to you I can understand why
housing in the Eastern Cape is in a crisis. Apart from the

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delivery of your speech, it is well-known that you cannot even
build proper toilets and eradicate pit toilets in your
province. What more when it comes to deliver proper housing?
I do want to say, hon Deputy Minister Tshwete, it is political
suicide in the ANC to say that you got a better person than
your former Minister, Sisulu. Even if it’s true, and I suspect
that most people will believe you, rather not say that again.
I want to finish off by quoting, I think the quote of the day,
and it’s really such an appropriate description of the current
National Government. Hon Ryder said “A better life for all is
what we were promised, a better life of few is what we got”.
Hopefully the voters will get rid of this out of touch elite
ANC few and make sure we have a caring government. [Sound
The HOUSE CHAIRPERSON (Ms W Ngwenya): Hon Londt, are you done?
Mr J J LONDT: I was done after ... I thank you but if you want
me to go on and you enjoyed that I’m more than happy to add
few more sentences, Chair.

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The HOUSE CHAIRPERSON (Ms W Ngwenya): [Laughter.] No, no, no,
hon member. Thanks very much.
Mr E M MTHETHWA: Hon House Chairperson, MaNgwenya, hon
Minister, Deputy Minister, our colleagues in the platform, I
know you’ve greeted since morning, everybody has been greeting
you, I greet you all. Hon House Chair, today we are concluding
the worker’s month, in our calendar, the month of May is
workers’ month. I think it is befitting to hour South African
workers as they contributed immensely to our liberation as
they were at the forefront of our struggle for a non-racial,
non-sexist, and for a democratic prosperous society.
We all know hon House Chair, the contribution of the mining
industry and the mineworkers in particular in the development
of the South African economy since the discovery of gold and
diamonds in the early 1800s. The relationship between the
mining industry and the mineworkers is one that is
characterised hon House Chair, by super-profits for the mining
conglomerates and super-exploitation, discrimination, and
oppression of the mineworkers.
Hon House Chairperson, MaNgwenya, Chairperson, this super-
exploitation, discrimination, and oppression of black

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mineworkers was made possible by the migrant labour system
enforced by the colonial and apartheid governments.
Lochner in her research makes the observation that, hon House
Mining has had much to do with the pattern of housing in
South Africa today. Under apartheid, the mines housed
black mineworkers, were classed as migrants, in high-
density compounds, while giving white mineworkers company
I wonder if my previous colleague that have just spoken now,
remembers that?
Challenges came with the demise of apartheid and the rise
of neoliberalism and globalisation. Mining companies, hon
House Chair, privatised of mineworkers’ housing,
devolving the long-term risks to households. Among the
results have been deterioration of houses, lack of a
coherent rental-housing strategy, ownership that could
lock households into declining mining settlements, an
influx of contract workers for whom the mining companies
are no longer responsible for providing housing, a lack

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of capacity to manage mining towns and unwanted houses if
a mine closes. Today, policy responses to the problems of
mine housing have not been appropriate.
Hon House Chair, under colonialism and apartheid governments
the spatial planning in our country was designed to exclude
the black working class from urban areas. The apartheid
government hon House Chair, enacted law that ensured that it
was able to control and regulate the entry and exit of black
labour within the urban areas through the use of pass law,
work permit.
Many of the mineworkers were not permanent hon House Chair,
residents of the urban areas, their work permit only allowed
them to reside in urban areas for the duration of their
contracts with their mining companies, when that contract
expires they were forced to return back homes, after nine
months or 12 months.
Hon House Chair, MaNgwenya, the promise of the Freedom Charter
was that people under a democratic government will live in
close proximity to their places of work. I knew that my
previous colleague was complaining about that, that’s why
today we’ve got a problem of Electricity Commission, Eskom,

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and everything else because, the minorities were doing all
these things for all, for all by themselves. Now that’s why
our system has a got a problem. For more than 100 years,
mineworkers have been subjected to inhuman living conditions
under the mine companies managed single sex hostels and
Section 26 of our Constitution guarantees every South African
a right to access to adequate housing and our democratic
government must take all reasonable steps in ensuring the
realisation of that right.
Hon House Chair, our government has taken reasonable steps in
ensuring that we realise the right, to adequate housing for
mineworkers by fostering partnerships with the mining
companies for inclusive housing. We are hopeful that the
partnership with the mining communities in the provision of
adequate housing for mineworkers will take cognizance of the
three interrelated outcomes of the medium-term strategic
framework 2019-2024 in relation to the development of
integrated human settlements.
The medium-term strategic framework directs the Department of
Human Settlement to ensure hon House Chair, that all new human

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settlements are centred around spatial transformation through
multi-programme integration in priority development areas;
adequate housing and improved quality living environments and
the security of tenure.
Hon House Chair, the ANC in the NCOP welcomes the announcement
made by the Minister Kubayi, in their budget vote speech that
during this financial year the department is developing six
partnership agreements with mining companies for the provision
of affordable housing for mineworkers. Further, the Minister
has also announced an amount of about R548 million for the
implementation of bulk infrastructure projects in mining
communities. To me House Chair, this is what the Minister was
talking about, was really emphasizing the dignity of a human
being, rather than the compounds that were there.
Hon House Chair, these partnerships with the mining companies
will complement the work that the department is already doing
in its programme of the revitalisation of distressed mining
communities. The revitalisation of distressed mining
communities was meant to address socioeconomic challenges
faced by those mining communities. The departmental
intervention was through the provision of affordable rental
housing, and the upgrading of informal settlements that are

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located inhabitable lands, while those that were situated in
inhabitable lands were relocated.
hon House Chair, we are confident that the Department of the
Human Settlements will ensure that the partnership agreements
with mining companies will comply with the human settlement
medium-term strategic framework outcome two, which clarifies
that the department in the provision of adequate housing
should ensure that it improves the quality living environments
of those communities.
Hon House Chair, through the implementation of the
revitalisation of the distressed mining communities, the
Department of Human Settlements has proposed the relocation of
124 informal settlements which were found to have been built
on lands that are a health hazard for the communities.
Furthermore, House Chair the relocation of our people from a
health risks environment not only addresses their health
concerns but also ensures the security of tenure and the
provision of basic services such as electricity, water, and
also sanitation.

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Hon House Chair, the Department of Human Settlements has
announced that it will continue with its programme under the
Priority Housing Development Areas, PHDAs. The National
Development Plan, 2030 has directed our government that a
human settlement development must ensure that it addresses
spatial justice, proximity to educational, health, and
recreational facilities, and access to public transport as an
important pillar of a new human settlements.
The ANC in the NCOP has noted that many of the mining
communities have been included in the Priority Housing
Development Areas programme of the Department of Human
Settlements. The Housing Development Agency has been tasked by
the department to ensure that within the Priority Housing
Development Areas, it will acquire at least 1500 hectares of
land for rezoning, and township establishment which will
ensure that land is made available for other department’s
utilisation like the provision of health facilities, buildings
of schools and recreational facilities by the local
municipality. As also the Deputy Minister has alluded Mam’
uTshwete. We are confident that in the long run, the
programmes of the department will ensure integrated human

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Hon House Chair, in coming to conclusion, Section 24 of our
Constitution guarantees that everyone has the right:
To an environment that is not harmful to their health or
The state must take all reasonable legislative measures to
ensure that individuals and communities are protected against
air and environmental pollution.
Hon House Chair, we understand that the protection of
communities against pollution caused by mining activities is
the not competency of the Department of Human Settlements, but
that of the Department of Mineral Resources and Energy.
The Pretoria High Court on 18 March 2022 found that our
government was in breach of our constitutional obligation to
prevent air pollution that affected the Middelburg communities
under the Highveld Priority Area. The judgment highlighted two
important things, hon House Chair, that the air quality is a
constitutional right, that the mining companies must comply
with the air quality standards that have been set by our

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We, therefore, hon House Chair call upon the Department of
Human Settlements to engage with the sister department,
Department of Mineral Resources and Energy and the mining
communities that there is compliance with the air quality
We, the ANC Hon House Chair, want to put our support to the
Department of Human Settlements, these Budget Votes as
presented by the Minister.
And I understand hon House Chair, why the DA is complaining
today, as I have said and alluded to it that, they now find
strange, rather that all what they have planned for themselves
is given to everybody in the country. And, I want to repeat
House Chair that the issue of electricity, is not about the
failure of this government. We must all understand that the
infrastructure that is there, is the infrastructure that was
there, for the DA that are even now trying to protect,
protecting their minority thinking. We are not going to allow
that. The government is here now to support everybody, without
fear nor favour. I Thank you, hon House Chair.
Chairperson, let us appreciate and thank all the hon members

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who provided us with practical suggestions on how we can take
the work of human settlements to another level. We are equally
mindful of the fact that some members in line with the
position of their political parties; it was just an
opportunity to play on the gallery. We will ignore those and
focus on the progressive suggestions on the table.
Let me start with you, hon J J Londt. I am not going to play
to your dirty tricks. You are used to divide and rule. This
time, we are not going to dance to your music. The last time
it was one member of the DA that said to the Minister that
they are better than the other Minister and she was told by
the Minister that we are all members of the ANC. We respect
each other. At the time that I was working with Minister
Lindiwe Sisulu, I was praising her. I will still praise
Minister Kubayi, whether you like it or not.
I want you to go and visit Khayelitsha. Where you would find
that, I was there, I want you to go and visit Philippi,
Kanana, it is chaotic there. Do not waste your time on looking
at the members of the ANC, because you do not have time. You
must fix issues in the Western Cape.

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Let me come back to better people. I agree with the hon
Dodovu. Our task is cut out to deal with inhabitant conditions
our people live under. All our efforts and plans emanate from
the unfortunate situations. Our housing policy was designed to
assist all the indigent people of our country. This is what we
will deliver on until the last destitute individual is served.
Targets that were not achieved are clearly documented. We will
do our best to resolve all challenges.
Let me also thank you MEC Kontsiwe for the support. I must say
we are encouraged to have people like you in the space of
human settlement who are determined to unblock all the blocked
Hon Michalakis – I do not even know how to pronounce your
surname – I do not think you even belong to South Africa. You
did not disappoint as a DA member.
Mr W A S AUCAMP: On a point of order, House Chairperson!
worried about is to safe-guard the status quo. I wonder if you
are a South African.

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Mr W A S AUCAMP: Hon House Chairperson: On a point of order,
The HOUSE CHAIRPERSON (Ms W Ngwenya): Hon Deputy Minister,
just hold on, there is a point of order. Let us hear the point
of order.
Mr W A S AUCAMP: Hon House Chairperson, my point of order is:
The Deputy Minister just called a member of this House by his
name and she said she does not even believe that the hon
member belongs to this country. I really think that it is
uncalled for and she must withdraw and immediately apologise
for that. It is unparliamentary. He is an elected member and a
citizen of this country. It is really uncalled for. Thank you.
to hear that and I apologise.
Mr Z MKIVA: The hon member does not have a clan name!
The HOUSE CHAIRPERSON (Ms W Ngwenya): Order hon members!

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and visit black townships.
Mr W A S AUCAMP: Hon House Chairperson, on a point of order!
point of order now?
like - you were talking about people sharing and women raised
there in Khayelitsha, Philippi and Kanana.
Mr W A S AUCAMP: Hon House Chairperson, on a point of order,
provinces. Look at what is happening in the Western Cape.
Mr W A S AUCAMP: Hon House Chairperson, on a point of order,
EFF can only see fault ...

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The HOUSE CHAIRPERSON (Ms W Ngwenya): Hon Deputy Minister!
pronounce your surname - Michalakis!
Mr M NHANHA: Hon House Chairperson!
The HOUSE CHAIRPERSON (Ms W Ngwenya): Hon members, there is no
point of order.
Qhuba sana, sivale.
Mr W A S AUCAMP: Hon House Chairperson, my point of order is:
The Deputy Minister has called a member of this House a person
that does not belong in this country.
as the EFF, you do not see any houses?

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The HOUSE CHAIRPERSON (Ms W Ngwenya): Hon Deputy Minister, let
me rule on this point of order.
have order.
The HOUSE CHAIRPERSON (Ms W Ngwenya): Hon members, I did not
hear anything. However, I will ask Hansard to assist me.
However, for now hon members, let us conclude.
Mr J J LONDT: House Chairperson, you are lying!
person speak.
Mr M NHANHA: Hon House Chairperson!
Mr Z MKIVA: You are insulting the House Chairperson, you see
now. You are also demonstrating a foreign behavior. You cannot
talk like that to the House Chairperson!
The HOUSE CHAIRPERSON (Ms W Ngwenya): Hon members, hon
members! I have taken a ruling on this matter.

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Mr M NHANHA: Mama Ngwenya, you are not going to bulldoze us!
The HOUSE CHAIRPERSON (Ms W Ngwenya): Hon Nhanha, I have made
a ruling on this matter. And I am not going to go back!
Mr M NHANHA: What was the ruling?
Mr W A S AUCAMP: You heard everybody else, but not the
Minister. You should start to listen for a change!
The HOUSE CHAIRPERSON (Ms W Ngwenya): The hon Nhanha! I do not
want to listen to anything now. I have taken a ruling!
Ms H S BOSHOFF: Can the Minister withdraw!
Mr M NHANHA: You are not going to bulldoze us. We are hon
members of this House! You must respect us.
The HOUSE CHAIRPERSON (Ms W Ngwenya): I do not want to listen
to anything now I have taken a ruling.
Mr M NHANHA: What is your ruling?

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The HOUSE CHAIRPERSON (Ms W Ngwenya): I have taken a ruling on
this matter.
Mr M NHANHA: What is your ruling?
USIHLALO WENDLU (Nkz W Ngwenya): Ngiyazi kepha mina ngithathe
Mr M NHANHA: What is your ruling?
USIHLALO WENDLU (Nks W Ngwenya): Ubungamamelanga, ndiyaqhuba
ke mna.
Mnu M NHANHA: Ndimamele!
USIHLALO WENDLU (Nks W Ngwenya): Nhanha ohloniphekileyo,
masingaphikisani ndisiwisile isigwebo ...
Mnu M NHANHA: Siza kuphikisana ngoba ...

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USIHLALO WENDLU (Nk W Ngwenya): Beningeke ningizwe ngoba
ngiyakhuluma nawe uyakhuluma ... [Ubuwelewele.]
Mr M NHANHA: We are elected members of this House, that you
are the House Chairperson, does not give you ...
Hon Ngwenya, hon Ngwenya!
Ms H S BOSHOFF: House Chairperson, on a point of order.
Chairperson, on a point of order, please.
Ms H S BOSHOFF: Hon House Chairperson, you cannot call the hon
Nhanha like that, that is not parliamentary. He has as much
stature as you have.
Mr M NHANHA: Hon Ngwenya. Mama Ngwenya!

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The HOUSE CHAIRPERSON (Ms W Ngwenya): On that I did not hear
myself because the hon members are all men and are fighting
with us as women!
Mr M NHANHA: It is because you are emotional!
Ms H S BOSHOFF: No, no, no you cannot say that because we are
The HOUSE CHAIRPERSON (Ms W Ngwenya): Hon members, all of you,
did hear my ruling so there is no need for you to make noise!
Mr W A S AUCAMP: Hon House Chairperson, this does not have
nothing to do with men fighting women! You are out of line!
Mr M NHANHA: It has nothing to do with gender, Mama Ngwenya!
You have to respect every member of this House!
Mr E M MTHETHWA: On a point of order!
Ms D G MAHLANGU: Hon House Chairperson, my hand is up!
Mr M NHANHA: What is your ruling?

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The HOUSE CHAIRPERSON (Ms W Ngwenya): Hon Mthethwa! Hon
Mthethwa you can come in!
Mnu Z MKIVA: Yemtaka Nhanha! Kha nisiyeke ngale nanana!
Mnu M NHANHA Hayi yima Gcwanini maan, ndilungisa into apha.
Masingagezelwa kaloku. Mam’uNgwenya ...
Nkz D G MAHLANGU: Asilungiseni le ndaba chocolate!
Mr M NHANHA: What is your ruling? You cannot be saying you
have made a ruling, what is the ruling?
The HOUSE CHAIRPERSON (Ms W Ngwenya): I said ...
Mr M NHANHA: You have to hear us out!
The HOUSE CHAIRPERSON (Ms W Ngwenya): The hon Nhanha, you
cannot hear me. I am speaking and you are speaking!

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Page: 203
Uza kundiva kanjani xa uthetha ndibe nam ndithetha noogxa
bakho babe bethetha?
So ...
... uzongizwa kanjani ukuthi ngitheni?
Mr M NHANHA: Alright, I am listening.
The HOUSE CHAIRPERSON (Ms W Ngwenya): Oh! No. You must respect
me, Mr Nhanha! Respect me!
Mr M NHANHA: I am respecting you, Mama Ngwenya.
USIHLALO WENDLU (Nkz W Ngwenya): Ndithethile, akwaba
ubumamele, ngabe undivile ndithini!
Ms H S BOSHOFF: House Chairperson, on a point of order.

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The HOUSE CHAIRPERSON (Ms W Ngwenya): Do not act as if I do
not know my work, I know my work!
Mr M NHANHA: I am not sure about that!
USIHLALO WENDLU (Nkz W Ngwenya): Kodwa ngeke nikhulume nonke
kanye kanye bese nilindela ukuthi ngizonizwa nonke. Anifuni
yini ukuya emakhaya? [Ubuwelewele.]
Deputy Chairperson, come in!
very much. Hon House Chairperson, at the moment that the hon
Aucamp raised the issue. The Deputy Minister did say I am
sorry then and I withdraw. That is exactly what happened. I do
not know why the commotion is going on. Can we please now
allow the Deputy Minister to conclude, because she really did,
for us that are listening, we heard her saying that she is
withdrawing. Can we just please continue.
Ms H S BOSHOFF: Well is it not strange House Chairperson that
we could not hear anything, but ...

TUESDAY, 31 MAY 2022
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there was a lot of noise, hon Boshoff can we respect one
another and can we allow the Deputy Minister to conclude the
Ms H S BOSHOFF: I do not think you know the word respect.
Mr G MICHALAKIS: House Chairperson, on a point of order,
The HOUSE CHAIRPERSON (Ms W Ngwenya): Hon member, I think all
of us here we are hon members. However, if we are not going to
listen to each other, trying to make noise wanting to confuse
me. Please!
The Deputy Chairperson has spoken and now you want me to
repeat what has been said. No, hon member.
I was pointing at you.
Ms D G MAHLANGU: My hand is up, House Chairperson.

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Page: 206
The HOUSE CHAIRPERSON (Ms W Ngwenya): Yes, mme. It was
yourself and the hon Mthethwa. So, can the hon Mthethwe speak
Ms H S BOSHOFF: What about the hon Michalakis?
The HOUSE CHAIRPERSON (Ms W Ngwenya): Then the hon Mahlangu
will follow.
Ms D G MAHLANGU: Thank you, mama.
Mr E M MTHETHWA: Thank you, House Chairperson. The Deputy
Chairperson has covered me. Thank you very much, House
Chairperson. I withdraw.
The HOUSE CHAIRPERSON (Ms W Ngwenya): Thank you very much hon
Mthethwa. The hon Mahlangu.
Ms D G MAHLANGU: Hon House Chairperson, thank you very much
for the opportunity. I just want to plead with the hon members
that we should be responsible enough to be able to hold the
decorum of this House. You have made a ruling and the hon
member who is challenging or who is not happy with the ruling
you made, there are other processes that they can follow

TUESDAY, 31 MAY 2022
Page: 207
outside here. There is no need for this commotion to can
challenge you. This becomes a behavior that we see each time
you preside. And we are not taking it well. We are pleading,
The HOUSE CHAIRPERSON (Ms W Ngwenya): Thank you very much, hon
Mr G MICHALAKIS: Hon House Chairperson.
The HOUSE CHAIRPERSON (Ms W Ngwenya): No, I did not allow you
to speak. For now, you are going to take us back.
Mr G MICHALAKIS: Hon House Chairperson, I was the subject of
this commotion.
The HOUSE CHAIRPERSON (Ms W Ngwenya): Unless you have
something new to tell us.
Mr G MICHALAKIS: Hon House Chairperson, I do have something
new to tell you.
The HOUSE CHAIRPERSON (Ms W Ngwenya): I have made a ruling on
this matter. So, I do not know what are you coming with?

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Mr G MICHALAKIS: Hon House Chairperson, well if I can get the
opportunity I will happily tell you House Chairperson, if I
The HOUSE CHAIRPERSON (Ms W Ngwenya): Alright, hon member,
Mr G MICHALAKIS: Thank you, hon House Chairperson. Hon House
Chairperson, I respect your ruling that you will consult with
Hansard and come back to us, with regards to the Deputy
Minister’s comment. Thank you very much for that. I respect
your ruling in that regard. However, I do want to ask you as
well - as the subject of the insult - that you also please go
back to Hansard and look at two other comments that were made
along with this similar line. One of which I picked up was the
Deputy Chairperson of this House. I would also like you to
make a ruling on that once you have consulted with the
Because House Chairperson, these allegations are quite
serious. If they are true as the suspicions were raised then
the public needs to know that among the Greek, Italian,
Portuguese, Lebanese immigrant families who are citizens of

TUESDAY, 31 MAY 2022
Page: 209
this country, the ANC does not want or does not need a single
vote in the next elections. Thank you very much, mam.
The HOUSE CHAIRPERSON (Ms W Ngwenya): Thank hon member and
yes, after taking the ruling when I allowed the Deputy
Minister to come in, she did apologise as the Deputy
Chairperson have said. Thanks, hon member. Can I now allow the
hon Deputy Minister to conclude?
Hon MEC Dukwana, thank you for the support. The Free State is
one of the provinces contributing to human settlements.
I would also want to thank hon Nkosi and hon Mashile for your
Hon De Bruyn, it is not surprising that your interest is on
politics against appalling conditions under which our people
live. We are correcting the injustices of apartheid government
which had no regard for delivery of services to the
marginalized groups and have always been in the majority.
Hon Ryder, in conclusion, nothing to write home about in your
input. Typical of the DA including the majority of South

TUESDAY, 31 MAY 2022
Page: 210
Africans you call them bunch of people. Thank you for not
disappointing me. The hon MEC Simmers, thank you for
recognising the efforts that we are making in the human
settlements space.
As I conclude, let me take the opportunity to thank the NCOP
for always giving us guidance on the work that we do.
Hon Minister Kubayi, again my Minister, for her guidance and
leadership, the Portfolio Committee on Human Settlements,
senior management of the department led by Director-General,
DG, Ntshangana, our entities and mostly the people of South
Africa. I thank you very much, House Chairperson. Good bye.
The HOUSE CHAIRPERSON (Ms W Ngwenya): I wish to thank the
Minister and the Deputy Minister, MECs, SA Local Government
Association, Salga, representatives and all special delegates
for availing themselves for this debate. Hon delegates, that
concludes the business of the day. This House is adjourned.
Debate concluded.
The Council adjourned at 19:07.


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