Press Releases

Press Releases

FROM THE DESK OF THE PRESIDENT - 2 SEPTEMBER 2024

 

Eskom is showing the way towards the empowerment of women in the workplace

Dear Fellow South African,  

We have just ended Women’s Month, in which we have celebrated the achievements of South Africa’s women across many areas of life. 

We have recognised the great progress that has been made in improving the position of women in our society. We have also recognised the many challenges that still remain and the tasks that we must undertake to build a truly non-sexist and equal society.

At the same time, the country has gone more than 150 days without load shedding. This is in large part due to the concerted efforts of the leadership and staff of Eskom to improve the performance of its power stations.

While there is much attention on what Eskom is doing to stabilise our electricity system, another significant change has been quietly underway at the company over the course of the last few years. Women are taking a more prominent role in the work of Eskom and are playing a pivotal role in keeping the country’s lights on.

Two years ago I met with Eskom’s power station managers and I was pleased to see that a number of them were women. I found this to be a complete departure from the past where power station managers were always white men. This represented tremendous transformation on a demographic as well as gender basis.

The inspiring story of Maserati Lesolang, the general manager of the Matla power station in Mpumalanga, is a demonstration of Eskom’s successes in growing a new generation of female leaders. Under Lesolang’s able leadership, Matla power station has implemented a turnaround plan resulting in it now being among Eskom’s better performing power stations.

At a number of state-owned enterprises, women are excelling not only in management and leadership positions, but also in technical roles and occupations that were previously the preserve of men. 

Within Eskom itself, women are working as power station managers, engineers, artisans, operators and technicians.  

This is the result of a deliberate and sustained initiative to increase female representation in the form of Eskom’s Women Advancement Programme. The programme was launched ten years ago to redress the under-representation of women in leadership and technical roles at Eskom.  

The programme’s focus has been on creating a pipeline of female leaders. It has also focused on transforming workplace culture to make it more gender-friendly, on skilling and training more women to occupy specialist roles, to conduct outreach in communities where Eskom operates, and to address issues of equal work for equal pay. 

Among the achievements of the programme since its inception has been that just over 33% of Eskom’s workforce is now female, 20% of Eskom executives are women, and women occupy approximately 43% of senior management roles. This is important progress, but there is still same way to go to achieve gender parity.

Eskom has succeeded in narrowing the gender pay gap from 41% to below 6%. The company’s procurement spend on black-women owned businesses has increased from R6 billion in 2013 to over R16 billion by 2022. 

The national power utility continues to invest heavily in skilling and training for women, with just over half of further study opportunities at Eskom taken up by women. 

Another key focus area of the programme is conducting outreach at schools and in communities to encourage female learners to consider future careers at Eskom.

Earlier this year Eskom also launched a Young Professionals Development Programme, a graduate trainee programme that places participants in positions across the span of its operations. Eskom has made a concerted effort to encourage female graduates to apply. 

We call on other companies, both public and private, to put in place deliberate programmes to eradicate workplace discrimination and make workplaces more conducive to women’s participation and development. Companies need to empower women in decision-making and technical roles. This is to ensure that every workplace and every occupation reflects the demographics of our country. 

We must commend the leadership of Eskom and of other state-owned entities, as well as many other businesses, for all they are doing to advance gender equality in the workplace.

By continuing and intensifying this work, we can make sure that we have more and more to celebrate during Women’s Month in the years to come.

With best regards,
 

Signature

 

FROM THE DESK OF THE PRESIDENT - 26 AUGUST 2024

We must work together to fulfil Chief Justice Zondo’s immense legacy
 
Dear Fellow South African,  
 
The Constitutional Court held a special sitting on Wednesday last week to pay tribute to Chief Justice Raymond Zondo on the occasion of his retirement from the court. It was a fitting end to a distinguished legal career and a worthy celebration of a jurist who has upheld and championed our democratic constitutional order.
 
During a career spent in the service of justice, one of Judge Zondo’s most prominent and outstanding contributions was as the chairperson of the judicial commission established to investigate allegations of state capture and other corruption. It has become known as the Zondo Commission.
 
Through the work of the commission, which Judge Zondo led with diligence and integrity, the country came to understand what happened during the era of state capture. There were revelations on who was involved. We saw what effect state capture had on our state, economy and society. It was a huge undertaking, involving more than 400 days of hearings, over 300 witnesses and more than 1.7 million pages of documentary evidence.
 
The report of the commission contained findings and recommendations that will help define the course of public affairs in South Africa for many years to come. Judge Zondo has established standards of ethical conduct, accountability and transparency that enable us to build a better society.
 
Since Judge Zondo handed over the commission’s report to the President, we have been hard at work to implement its recommendations. Not only have we worked to hold those responsible for state capture to account and to recover stolen funds, but we have also put in place laws, institutions and practices to ensure that state capture never happens again. We continue to take steps to prevent, detect and act against corruption.
 
In the last few months, I have signed into law several pieces of legislation that respond directly to the commission’s recommendations and which, in many instances, will fundamentally change the way government works.
 
The Public Procurement Act is one such law. It recognises the assertion by Judge Zondo that corruption in procurement was “the centrepiece of state capture”. Among other things, the law prohibits any person from trying to interfere with or influence procurement. Suppliers who abuse the system are debarred from participating in future procurement processes. Certain categories of people – mainly public office bearers and people who work for the state – may not do business with the state.
 
Another law is the National Prosecuting Authority Amendment Act, which establishes the Investigating Directorate against Corruption. The Directorate will be a permanent, prosecution-led agency with full criminal investigative powers. It will be able to recruit and retain specialist skills and develop capabilities such as the collection and analysis of digital evidence.
 
The Electoral Matters Amendment Act, which was signed into law in May, amended the Political Party Act to make it a criminal offence to make donations to gain political influence or favour. 
 
In responding to another recommendation by the Commission, the Companies Second Amendment Act strengthens actions against delinquent directors or company officers for wrongdoing. It extends the period during which proceedings may be launched to recover any loss, damages or costs against such a person.
 
Other draft legislation is currently being considered by Parliament which would, among other things, make a clear distinction between the powers of elected officials, such as Ministers, and professional public servants, such as Directors-General. This will help to prevent the kind of undue political interference that the State Capture Commission found sometimes enabled corruption. As part of the draft legislation, public servants who leave government may not, within 12 months of leaving, accept employment or appointment to the board of a service provider to which they were involved in awarding a contract.
 
Work is underway, with the assistance of the National Anti-Corruption Advisory Council, to review the country’s anti-corruption architecture. Other areas where policy reforms are being considered is in the appointment of key positions like the SARS Commissioner and the National Director of Public Prosecutions, support and protection of whistle-blowers, and the creation of a statutory offence for the abuse of public powers.
 
As we strengthen our efforts to prevent and combat corruption, in line with the recommendations of the state capture commission, our law enforcement agencies have been undertaking investigations recommended by the commission against alleged perpetrators.
 
The state has secured nearly R10 billion in forfeiture orders and settlement agreements linked to State Capture cases. In addition, preservation and restraint orders to the value of R17 billion have been granted while court processes are underway.
 
All of this work demonstrates that the recommendations of the State Capture Commission are being steadily and thoroughly implemented across government. 
 
But there is much more to do. Not only do we need to complete the reforms we have embarked on and ensure that all perpetrators are brought to book, but we need to continuously work to build a society in which corruption no longer has any place.
 
Chief Justice Raymond Zondo can retire from office knowing that he has done his country an invaluable service. It is now our responsibility as a society to work together to give effect to his legacy and to build a fairer, just and ethical nation.
 
With best regards,
 

Signature

 

FROM THE DESK OF THE PRESIDENT - 19 AUGUST 2024

Let us harness improved confidence to drive inclusive growth

Dear Fellow South African,  
 
Over the last few months, we have seen a growing confidence among investors, businesses and citizens about the prospects for our economy.
 
The latest Business Confidence Index published by the South African Chamber of Commerce and Industry (SACCI) points to an increase in business confidence since the elections in May. This sentiment is evident in the Johannesburg Stock Exchange’s All-Share Price Index, which increased by about 8% from the end of May to the end of July 2024. 
 
This is welcome news, particularly in light of the most recent employment figures released by Statistics South Africa, which show that unemployment remains extremely high at 33.5%.
 
Business confidence is so important to our efforts to create jobs because it signals an improved business environment and encourages new investment. Greater investment in the economy enables faster growth and more job opportunities.
 
For several years, the country has experienced low levels of business confidence. Business confidence was negatively affected by the prolonged electricity crisis, state capture, concerns about corruption, the decline of state-owned enterprises and the manner in which law enforcement agencies had been compromised.
 
Investors have also been concerned about obstacles to growth, such as delays in the release of broadband spectrum, inefficiencies in ports and rail operations, and regulations that have slowed down licencing processes.
 
The successful holding of our national and provincial elections in May and the formation of the Government of National Unity have had a positive effect on business confidence. The progress we have recorded in our reform process thus far has also contributed to the improved sentiment.
 
We have shown our determination to tackle corruption. Bodies like the National Prosecuting Authority (NPA), Special Investigating Unit (SIU) and the Hawks are reinvigorated and have brought several high-profile cases to trial. The permanent establishment of the NPA’s Investigating Directorate has given further impetus to the fight against corruption.
 
Crime is being tackled. Across the country initiatives such as Operation Shanela have upped the war on crime. We are clamping down on illicit mining operations. Criminal syndicates involved in cable theft and extortion at construction sites are being dealt with. 
 
Through a concerted effort from all stakeholders, we have confronted the electricity crisis. We have now had more than 140 consecutive days without load shedding. There has been a huge increase in new power generation capacity. 
 
Investors have seen the growth opportunities in the far-reaching energy reforms we are undertaking. Just last week, I signed into law the Electricity Regulation Amendment Act, which will enable the establishment of a competitive electricity market.
 
The progress we have made in electricity gives us confidence that we can overcome the problems on our freight rail lines and in our ports. Transnet’s recovery plan is showing progress. The private sector is providing significant technical support and resources to Transnet Freight Rail and Port Terminals.
 
In Gauteng, the Western Cape and KwaZulu-Natal, new state-of-the-art passenger trains are ferrying commuters along refurbished and newly reopened rail corridors. This saves users considerably in terms of commuting time and transportation costs. 
 
We have made changes to immigration regulations that make it easier to attract skills, investment and tourists into the country. We have also significantly speeded up approval processes for water use licences and energy projects, and released broadband spectrum to unleash the potential of our telecommunications industry.
 
We are also making progress on infrastructure investment. According to Nedbank’s Capital Expenditure Project Listing, the value of fixed investment project announcements in the first half of this year rose to approximately R800 billion. This was up sharply from just over R190 billion in 2023. The public sector accounts for most of these projects, in areas such as energy, transportation, health facility upgrades, roads and housing. 
 
As Government, we held a meeting with business leaders last week. Business expressed optimism about the recovery and growth of our economy. They committed themselves to a new era of partnership with government. We agreed on key actions we must now take to build on the progress that has already been made.  
 
We cannot rebuild our country unless all South Africans work together. We will continue to work with business, labour and other social partners to drive the structural reform process that will boost inclusive economic growth and jobs.
 
There is indeed an air of optimism in our country. Let us harness this confidence and goodwill to increase the momentum of our shared efforts to build and strengthen our economy.
 
With best regards,

Signature

 

FROM THE DESK OF THE PRESIDENT - 12 AUGUST 2024

The onward march towards economic freedom for women

Dear Fellow South African, 

Last week we commemorated the Women’s March to the Union Buildings on 9 August 1956. This historic protest by more than 20,000 South African women was a response to the cruel and dehumanising practices of the apartheid regime. 

The march was also a protest against economic injustice.

As one of the regime’s so-called ‘influx control’ measures, the pass laws restricted freedom of movement for black men, thereby curtailing their ability to work. The decision to extend the pass laws to black women would have effectively shut off all remaining opportunities for black families to earn a livelihood. 

This spurred the pioneers of 1956 to march on the seat of apartheid power. 

The significance of the 1956 Women’s March is enduring, not least of all because it underscored the centrality of women’s economic empowerment to the broader effort to achieve gender equality. 

Thirty years into democracy we have made impressive strides in advancing gender equality across society, but we still have a long way to go in broadening women’s economic participation. 

This is borne out by a recently published Gallup study titled ‘Gender Power in Africa’. The report analyses the disparities and imbalances that shape the lives of women in five African countries, including South Africa. 

South Africa ranks the highest of the countries surveyed with respect to the rate of female participation in political decision-making, low rates of child marriage, and the participation and completion rates of girls in primary and secondary education. 

However, of the countries surveyed, South Africa has the highest rate of unemployed women and women not in the workforce. The percentage of South African women considered to be self-employed or entrepreneurs is the lowest, at 5%. In this respect, we lag behind the rest of the continent. According to the World Economic Forum, women constitute 58% of self-employed people across Africa. 

In a country such as ours, with a high unemployment rate, entrepreneurship is an important tool to empower more women and broaden their participation in the economy. This includes in the informal sector, which accounts for 18% of total employment in the country. 

Through its various departments and entities, the state provides financial support to women to enable them to start their own businesses and to sustain existing businesses. Women-owned businesses are also able to access training in business and project management, IT and other skills. 

We have set a target to allocate at least 40% of public procurement spend to women-owned businesses. In 2021, we launched a Women’s Economic Assembly to enable women-owned enterprises to participate in local industry value chains. Since its inception this programme has yielded promising results in a number of key economic sectors, notably the automotive sector. 

We are also striving to expand women’s access to economic activity through land ownership, enabling female farmers to own land through the state’s land redistribution programme and supporting them with equipment and other agricultural inputs.  

From citrus farmers in North West to cooperatives making affordable school furniture in KwaZulu-Natal, to cosmetics companies and tech start-ups in the Western Cape, all across the country women-owned enterprises are benefiting from an integrated approach to supporting small businesses.

The private sector is playing an important role in guiding these entrepreneurship journeys through start-up incubators, women entrepreneurship awards and programmes such as the Youth Employment Service.

With the help of the Social Employment Fund and others, government is enabling women entrepreneurs to employ workers and provide mentorship to trainees.  

There is much more that the private sector can do. Access to financial resources, including credit lines, is vital to the viability of women-owned businesses. Another important area is access to tools of financial inclusion like bank accounts and mobile money and payment technologies. It will be critical to broaden the reach of financial services to include women in the informal sector and in rural areas. 

Empowering women contributes to thriving economies, spurs productivity and boosts economic growth. 

With greater collaboration between government and business, together with the support of labour and civil society, we can use entrepreneurship to lift more women out of poverty. We can create more jobs for women and help more women secure their financial freedom. 

The achievement of economic freedom for South Africa’s women would be the most fitting tribute to the courageous women who marched on the Union Buildings in 1956.

With best regards,
 

Signature

 

FROM THE DESK OF THE PRESIDENT - 29 JULY 2024

Making public funds work for all South Africans

Dear Fellow South African,

In the report of the Commission of Inquiry into State Capture, Chief Justice Raymond Zondo described corruption in procurement as “the centrepiece of state capture”. He consequently made a number of recommendations on how to prevent corruption in the procurement of goods and services by government.

A few days ago, as part of the extensive work we are undertaking to prevent corruption and consign state capture to the past, I signed into law the Public Procurement Act.

This law eliminates the problem identified by Chief Justice Zondo of fragmentation in procurement laws by creating a cohesive regulatory framework.

Among other things, the law establishes a Public Procurement Office in the National Treasury, which must put in place measures to ensure the integrity of the procurement process. All the members of this office must perform their functions impartially and without fear, favour or prejudice.

The Public Procurement Office must promote standardisation in procurement and modernise the system through technology and innovation. The law focuses on the people who are involved in procurement, requiring them to comply with a code of conduct and receive professional development and training.

No government official may be directed, either verbally or in writing, to violate the required procurement processes. And no official can be victimised or suffer ‘occupational detriment’ for reporting any unlawful instruction. This is an important provision because many of the abuses that took place during the state capture era involved political office bearers, business people and others putting pressure on managers to flout procurement regulations.

The law specifically prohibits any person from interfering with or trying to influence any procurement, or trying to tamper with any tender bid after its submission or award. Suppliers who are found to abuse the procurement system or otherwise commit fraud and corruption are prevented through a ‘debarment order’ from participating in any procurement processes for a specified period.

Certain categories of people are automatically excluded from submitting bids to the State. These include public office bearers, public servants in any sphere of government, officials in Parliament and provincial legislatures, special advisers and employees of public entities. In other words, people who work for the state may not do business with the state.

The Act will also make the procurement system far more transparent. It provides for the use of technology to disclose procurement information, including awards of bids, the process followed and suppliers awarded. This follows our decision in 2020 to make information on all COVID-related contracts available online. No longer will tenders be awarded in dark corners far from public scrutiny.

Public procurement is about getting the best value for the state. It is also an opportunity to promote transformation of the economy and society. The new law therefore provides for set-asides in the allocation of contracts to advance companies owned by people historically disadvantaged by unfair discrimination. These include black South Africans, women, youth, persons with disabilities and military veterans.

The approach in the Act is in line with the Constitutional requirement that public procurement must be done in accordance with a system which is fair, equitable, transparent, competitive and cost-effective. The Constitution also says that this should not prevent procurement policies that provide for the protection or advancement of people disadvantaged by unfair discrimination.

The Act will enable and encourage the procurement of goods that are produced and services that are provided in South Africa. It will enable government and public entities to use procurement more strategically and effectively to promote the growth of local industry and to create jobs to meet the needs of the state.

As we intensify our collective efforts to build an inclusive economy that creates jobs, the Public Procurement Act allows us to make best use of public funds to support transformation and local development.

At the same time, by implementing measures to prevent the abuse of public procurement, the Act will help to ensure that public funds are put to the uses for which they are intended.

The report of the State Capture Commission shone a bright light on the weaknesses in our public procurement system. We are now fixing the problems the Commission identified and are making public procurement a more effective instrument for social and economic change.

With best regards,

Signature

 

FROM THE DESK OF THE PRESIDENT - 22 JULY 2024

A capable state requires capable and committed leadership

Dear Fellow South African,

To build an inclusive economy that creates jobs and reduces poverty, South Africa needs a capable, ethical and developmental state.

A fundamental feature of such a state is a public service that is professional and competent. It needs people with skills, experience, foresight and integrity, who must act in the best interests of the people. They must be able to resolve conflict, forge partnerships and build dynamic institutions that go beyond meeting their basic mandates.

The diversity and political pluralism reflected in the composition of the new National Executive will put these qualities to the test. For their part, public servants should be commended for demonstrating their ability to manage the transition to the new administration.

The Government of National Unity has identified as one of its priorities the rebuilding of the capability of the state and creating a professional public service.

This work is already well underway. The national framework for the professionalisation of the public service was adopted by Cabinet in 2022 to guide public service reform.

The Department of Public Service and Administration (DPSA) has already issued two directives giving effect to the framework.

The framework aims to build meritocracy in the public service. Recruitment and selection processes are being overhauled, as are performance management systems. Competency-based assessments and integrity tests are being introduced. These tests will be used across the public sector, including to persons appointed into political offices such as ministerial advisers and chiefs of staff.

The induction of new public servants is now mandatory. Those seeking promotion will have to complete compulsory courses with the National School of Government, including Nyukela which is a mandatory programme for pre-entry into senior management.

The professionalisation framework is developmental in outlook, striving to lower barriers to entry for young people who aspire to careers in the public service.

One of the DPSA directives issued earlier this year waives the experience requirement for entry level posts with no supervisory responsibilities. It also makes provision for verification of academic qualifications from applicants who do not have their degree certificates because of outstanding student debt.

A capable state requires capable leaders.

The National School of Government continues to grow its suite of executive education programmes designed for elected officials and executive managers. These involve formal learning programmes delivered by renowned experts, high-level masterclasses and seminars on issues ranging from the art of execution to ethics and economic governance. There are also flagship programmes tailored for accounting officers and induction training for boards of state-owned enterprises.

One of the other key aspirations of the professionalisation framework is the depoliticisation of the public service. Those who work in the state need to be insulated from undue political interference and vested interests.

State capture provided a bitter lesson on the vulnerabilities of the public sector to interference by private business interests. As the Government of National Unity, as a country, we must ensure that this never happens again. We must actively guard against the forms of executive overreach witnessed in the past.

We must strive to stabilise and ensure greater continuity in the public service. In this regard, the professionalisation framework brings greater stability to the senior ranks of the public service by extending the tenure of Directors-General and provincial Heads of Departments, subject to them meeting the requirements of the position and regular performance reviews.

Leaders in national and provincial governments will undergo training and development programmes throughout the seventh administration, starting with the National School of Government’s ethical leadership and oversight programme. Other areas of training include economic governance, scenario planning and digital transformation. It is encouraging that traditional leaders are also prioritising their development through short learning programmes and formal qualifications.

A united government cannot succeed without a united public service.

While there may be a temptation for members of the Executive to favour the policies of their own political parties, we are working to develop the Medium-Term Development Plan and implement the programme of government as a united government, not as individual parties.

Within the public service, professionalism, integrity and commitment to the policies of the government of the day must transcend all political and ideological affiliations.

If we continue along the path of collaboration and cooperation, the Government of National Unity has the means and political will to transform the public service into a powerful driver of service delivery, economic growth and development.

With best regards,

Signature

 

FROM THE DESK OF THE PRESIDENT - 15 JULY 2024

 

We must act now to make our country climate resilient

Dear Fellow South African, 

The severe storms that have lashed parts of the Western Cape over the past week are a devastating reminder that extreme weather is becoming more frequent and intense.

The effects of climate change are worsening. We recall that in 2022 parts of KwaZulu-Natal experienced the heaviest rains in more than half a century, leading to the deaths of more than 300 people and causing catastrophic damage to homes, businesses and key infrastructure. This year alone, there have been severe storms and floods in some parts of the country and heatwaves in others.

Like many developing economy countries, South Africa is extremely vulnerable to the effects of climate change. As these countries, we carry the least responsibility historically for the greenhouse gas emissions that cause global warming.

Beyond the cost to human health, safety and livelihoods, climate change is very much an economic issue.

Agriculture, tourism, mining and manufacturing are just some of the areas of economic activity that could be adversely affected by climate change. Then there is the equally dire effects on water security, food security, public infrastructure, human settlements, health care and education. 

The increasing frequency of disasters has an impact on public finances. On the one hand, disasters affect economic growth and lower tax revenues. On the other hand, they require increased expenditure on disaster relief, health care and other forms of social support for affected communities. 

As part of the effort to ensure that our economy is resilient in the face of climate change, the National Treasury is hosting a symposium this week, in partnership with the Presidential Climate Commission, on financing our country’s climate actions.

This critical seminar brings together representatives from government, industry, academia, civil society as well as climate experts and development partners to discuss how to scale up climate action across the economy and society.

South Africa is undertaking a range of policies and programmes to both adapt to climate change and to mitigate its impact.

We embarked, for example, on the Renewable Energy Independent Power Producer Procurement Programme. This has been a success, attracting over R209 billion in investment and adding much-needed capacity to our electricity grid.

The Just Energy Transition Investment Plan sets out a plan that will drive huge investments in the electricity grid, green hydrogen, electric vehicles, economic diversification and skills development. We continue to explore opportunities to meet our emissions reduction targets in industries like mining, green hydrogen production and electric vehicle manufacturing.

The symposium on building resilience in our economy is informed by both national and global realities.

The first reality is that the carbon intensity of our economy has become unsustainable. The world is moving towards greener economies. These include a number of our major trading partners, who are taking measures to decarbonise that will in the long run affect the competitiveness of South Africa’s exports to these markets.

Secondly, as a signatory to the Paris Agreement to Combat Climate Change, we have an obligation to reduce emissions and make a fair contribution to the global climate change effort.

Thirdly, low-carbon development is necessary if we are to successfully adapt to and mitigate the effects of climate change and build resilient communities

We have often said that we will decarbonise at a pace and scale that the country and our economy can afford, and mitigate the impact of such a transition on all sectors of society, particularly vulnerable workers and communities

The increasing frequency of extreme weather events is a stark reminder that we have to accelerate the pace of our efforts

We need to use our fiscal policy – how we manage public finances – to support our response to the shocks of climate change and to advance the just transition to a more inclusive, resilient and sustainable economy.

We need to work with social partners and development institutions to marshal investment into green economy initiatives and secure finance for local adaptation and mitigation efforts. We need to raise funds to support industrial policy that facilitates the just energy transition.

It is essential that countries with developed economies fulfil their financial commitments to support the climate actions of countries that are most affected, including making funds available for the loss and damage that these countries experience due to climate change.

Through this symposium and through the ongoing collaboration across society and with international partners, we are strengthening the effort to make our economy and society more climate resilient. In doing so, we are enabling our country to respond more effectively to the challenge of climate change and better weather the storms to come.

With best regards,

Signature

 

FROM THE DESK OF THE PRESIDENT - 8 JULY 2024

Electricity milestone gives us encouragement to do more

Dear Fellow South African, 

Last Friday marked 100 days since South Africa last experienced load shedding. This is the longest continuous period without load shedding since 2020.

While this is a welcome milestone, it is not a reason to relax. Our electricity system remains vulnerable and we cannot yet rule out a possibility of further load shedding.

Rather, this milestone provides encouragement for us to do more and to work faster to ensure a secure supply of electricity now and into the future.

We have seen real progress in the implementation of the Energy Action Plan, which we initiated in July 2022, and are now witnessing some of the results of the cooperation between government, business and other social partners.

Thanks to the diligent implementation by Eskom of its Generation Operational Recovery Plan as well as a stepped up maintenance schedule, there has been a marked improvement in the performance of the power stations that produce the bulk of South Africa’s electricity. 

Eskom last week successfully commissioned Unit 5 at the Kusile power station, adding an additional 800 MW to the grid. This follows the power utility’s work to return three units at Kusile to service ahead of schedule. 

The improvement in the reliability of power supply has been a relief for households, who have been able to go about their daily lives without the inconvenience of loadshedding. It has also been a great relief for businesses.

The latest consumer confidence index compiled by the Bureau for Economic Research (BER) found that the suspension of load shedding was a factor that contributed towards increased consumer confidence in the second quarter of this year.

This improvement is also a boost to the national economy, which is reliant on the availability and reliability of electricity supply for growth. There is cause for optimism that business and investor confidence will improve. 

Earlier this month steelmaker ArcelorMittal announced that it would not go ahead with plans to close its operations in Newcastle and Vereeniging, citing improvements in the country’s electricity and logistics situations as among the factors behind its decision. 

In its April Monetary Policy Review, the South African Reserve Bank noted that “as electricity supply improves gradually, underpinned by the ongoing private investment in renewable energy generation and increased maintenance by Eskom”, South Africa’s near and medium-term outlook for growth is set to increase. 

The Reserve Bank underscored the importance of the full implementation of energy and logistics sector reforms if growth is to improve. 

We are committed to continue and complete the far-reaching structural reforms we started during the sixth administration to resolve the immediate electricity supply challenges and lay the groundwork for energy security into the future. 

These reforms included the removal of the licensing threshold for new power generation projects, tax incentives for rooftop solar, opening more bid windows for renewable energy projects, and improving Eskom’s operational viability. 

The latest milestone reached in the structural reform journey is the commencement of trading last week of the National Transmission Company South Africa (NTSA), which will own and operate the country’s national electricity transmission system. This forms part of the reforms we have been driving to establish an electricity market that will enable competition, secure supply and revolutionise the energy sector. 

As the Government of National Unity begins its work, we will sustain this momentum. 

For us to continue to implement the Energy Action Plan and support the hard-working management and staff of Eskom, who are day by day helping to bring us out of this crisis, we must all pull in the same direction. 

By focusing on the broader picture and by scaling up what has already been achieved, we are in a far better position to achieve the task we have set ourselves: to end load shedding and achieve an energy-secure future. 

We have reached 100 days without load shedding by working together. 

This should encourage us to redouble our efforts and to strengthen the collaboration between all stakeholders in both the public and private sectors.

With best regards,

Signature

 

FROM THE DESK OF THE PRESIDENT - 1 JULY 2024

A new era of partnership and national unity

Dear Fellow South African,  

In the coming days, the ministers and deputy ministers of the new Government of National Unity will be sworn in. This is a significant moment in our country’s democracy.

We have made good on our promise to the South African people to work together as political parties for the good of the country, and to deliver a government that will be united in action and purpose. 

This provides a firm basis for greater stability, coherence and a focus on implementation.

Even in some of the world’s most established democracies, the formation of multi-party governments is often protracted and fraught with challenges. That we have reached this pivotal point just over four weeks since the election results were announced is a credit to our constitutional order. It is also testament to the authentic, collaborative spirit that has underpinned the negotiations over the past few weeks.  

This is the first time in South Africa’s history that such a broad range of parties, from across the political spectrum, will constitute a government. In mandating us to form a government that serves all, the South African people have a rightful expectation that the seventh administration begins its work as soon as possible.

South Africans appreciate that a GNU is the best way to take our country forward. As political leaders, we must prove ourselves worthy of the trust our citizens have placed in this government.

The partnership between the GNU parties is guided by a Statement of Intent, which outlines fundamental principles and a minimum programme of priorities. 

All the parties have made a commitment to respect the constitution and to promote a accountable and transparent governance, evidence-based policy and decision-making, the professionalisation of the public service, integrity and good governance. 

The incoming government will prioritise rapid, inclusive and sustainable economic growth and the creation of a more just society by tackling poverty and inequality. It will continue the economic reforms that are underway in key industries like electricity, telecommunication, water and transport. 

The new administration will build on the progress that has already been made in the drive for greater investment in infrastructure and an improved environment for business.

Guided by the Statement of Intent, the GNU will safeguard the rights of workers and ensure there is adequate social protect for the poor and vulnerable. The government will invest in South Africa’s people through quality education and health care. It will work to build state capacity, address crime and corruption and strengthen social cohesion. The administration will pursue a foreign policy based on human rights, solidarity and peace.

While the ministers and deputy ministers who make up the National Executive come from different parties, they will be expected to serve the people as a whole. They will be expected to implement a shared mandate and a common programme of action.

The new government will soon hold its first lekgotla to collectively develop the programme of government for the next five years. This will be outlined in greater detail in the Opening of Parliament Address to be delivered in just over two weeks’ time.

In the spirit of partnership and collaboration, the incoming government will work together with other formations to convene a National Dialogue. All parties, civil society groups, labour, business and other stakeholders will be invited to work together to address the critical challenges facing the nation. 

We are determined that the principles and programme that underpin the Government of National Unity extends beyond the institutions of the state. 

This is an opportunity for all South Africans to work together more closely and with greater purpose to ensure that we build a South Africa for all.

With best regards,

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