We are making steady progress on economic reform

Dear Fellow South African, 

Last week, we released a progress report on Operation Vulindlela, a Government-wide initiative to accelerate progress on economic reform.

This report shows that the economic reform programme is making steady progress, opening the way to more rapid, inclusive and sustainable growth and job creation.

We established Operation Vulindlela in the Sixth Administration to remove the binding constraints that have long held back our economy’s growth: an unreliable energy supply, inefficient rail and ports, high data costs, and a visa system that had deterred investors and tourists.

We have made significant progress since then in clearing these obstacles with a clear view to enhance economic growth. The reduction in load shedding over the past year was supported by the reforms that we introduced to unlock private investment in electricity generation, while reforms in the telecommunications sector have brought down the cost of mobile data. We have reduced the turnaround times for approval processes for water use licences and energy projects, made great progress in clearing the visa application backlog, and expanding the eVisa scheme.

In April this year, we commenced the next phase of Operation Vulindlela to build on these successes and initiate a second wave of reform. 

We are moving quickly towards a competitive electricity market, which will introduce greater competition in electricity generation and reduce the chances of experiencing load shedding again.

The reform underway in the energy sector will introduce greater choice for consumers and drive down costs. As part of this process, work is underway to establish an independent Transmission System Operator within the next five years, in line with the Electricity Regulation Act.

We have also made significant progress towards enabling greater investment in our transmission network, including from the private sector, with regulations to govern these investments.

In April, the Rail Infrastructure Manager was established as a separate operating division of Transnet with its own management and reporting structure. It has made capacity available across the freight rail network to private train operating companies and has received 98 requests for access to date.

A revised Network Statement will soon be published and capacity allocated in response to these requests, marking the start of open competition in freight rail. A Private Sector Participation Unit has been established within the Development Bank of Southern Africa to facilitate and fast-track private sector participation in logistics.

A request for information for private sector participation projects in the rail system and ports has received a strong response from the market, and will enable us to mobilise new investment to modernise and expand our logistics infrastructure.

The reform of our visa system is making it much easier for people to visit South Africa and bring much-needed skills and investment while enhancing border security through the Border Management Authority, which we established in the Sixth Administration as part of the reform process. An Electronic Travel Authorisation system has been developed by the Department of Home Affairs and is being prepared to go live in September 2025.

As part of Operation Vulindlela Phase II, we are also reforming the local government system to ensure that basic services such as water and electricity – which are essential for economic growth – are delivered efficiently and reliably.

Several metros have submitted plans for the turnaround of their water and electricity utilities that outline a clear pathway for the ring-fencing of water and electricity services. Progress against these action plans will enable these municipalities to access a new performance-based incentive from National Treasury to drive much greater investment in water and electricity infrastructure.

All of these reforms are designed to boost economic growth and create jobs for South Africans.

The claims by some opposition parties that these reforms represent a form of privatisation are baseless and misguided. The measures we are taking are common sense reforms that will preserve public ownership of key infrastructure while introducing greater competition, dynamism and investment. A number of our peer countries introduced similar reforms, which have powered their economies to higher levels of growth.

Even as the world faces difficult economic headwinds, our economic reform agenda will create the conditions for higher growth and investment, while renewing our infrastructure for generations to come.

With best regards,

We are acting to safeguard the integrity and effectiveness of our police service

Dear Fellow South African, 

Just over a week ago, SAPS KwaZulu-Natal Provincial Commissioner Lt Gen Nhlanhla Mkhwanazi held a media briefing at which he made serious allegations that the Minister of Police and other individuals had colluded to interfere with police investigations.

Last night, I announced the establishment of a commission of inquiry headed by Acting Deputy Chief Justice Mbuyiseli Madlanga to investigate these allegations.

We have taken this decisive step because we are determined that the important work that has been done to rebuild our law enforcement agencies and security services should not be compromised. 

It is necessary that we establish the facts through an independent, credible and thorough process so that we can safeguard public confidence in the police service. This is particularly important as we seek to put the era of state capture behind us.

As I announced last night, the Commission will investigate allegations relating to the infiltration of law enforcement, intelligence and associated institutions within the criminal justice system by criminal syndicates.

Among the allegations that the Commission may investigate are the facilitation of organised crime; suppression or manipulation of investigations; inducement into criminal actions by law enforcement leadership; commission of any other criminal offences and intimidation, victimisation or targeted removal of whistleblowers or officials resisting criminal influence.

The Commission will investigate the role of current or former senior officials in certain institutions who may have aided or abetted the alleged criminal activity; failed to act on credible intelligence or internal warnings; or benefited financially or politically from a syndicate's operations.

These institutions are the South African Police Service, National Prosecuting Authority, State Security Agency, the Judiciary and Magistracy, and the metropolitan police departments of Johannesburg, Ekurhuleni and Tshwane.

The Commission will also investigate whether any members of the National Executive responsible for the criminal justice system, were complicit, aided and abetted, or participated in the acts mentioned above.

The Commission will be asked to report on the effectiveness or failure of oversight mechanisms, and the adequacy of current legislation, policies and institutional arrangements in preventing such infiltration.

It will make findings and recommendations for criminal prosecutions, disciplinary actions and institutional reform.

Once established, the Commission shall consider prima facie evidence relating to the involvement of individuals currently employed within law enforcement or intelligence agencies. 

Where appropriate, the Commission must make recommendations on the employment status of such officials, including whether they should be suspended pending the outcome of further investigations. 

The Commission will have the power to refer matters for immediate criminal investigation and urgent decisions on prosecution, taking into account the nature of the allegations and evidence the Commission will uncover.

In order for the Commission to execute its functions effectively, I have decided to put the Minister of Police Mr Senzo Mchunu on a leave of absence with immediate effect. The Minister has undertaken to give his full cooperation to the Commission to enable it to do its work.

I have decided to appoint Professor Firoz Cachalia as acting Minister of Police. Professor Cachalia is currently a professor of law at the University of the Witwatersrand and is the chairperson of the National Anti-Corruption Advisory Council. He previously served as an MEC of Community Safety in Gauteng.

This Commission is being established against the backdrop of significant progress in rebuilding and strengthening our country’s law enforcement agencies and security services.

In recent years, the South African Police Service, the Special Investigating Unit, the Asset Forfeiture Unit and other bodies have been making important inroads in the fight against organised crime and corruption.

It is essential that we maintain this momentum and that we intensify this work.

We will ensure that the SAPS and other law enforcement agencies continue to function without hindrance as the commission undertakes its work.

I call on all members of our law enforcement agencies and security services to remain steadfast in upholding the rule of law and adhering to their code of conduct.

I call on all South Africans to support the commission in its work and, where appropriate, to provide any information or assistance the commission may require.

In establishing this Commission of Inquiry, we are affirming our commitment to the rule of law, to transparency and accountability, and to building a South Africa in which all people are safe and secure.

With best regards,

Debt sustainability is the key to development

Dear Fellow South African, 

Last week, the world came together at the 4th Financing for Development Conference in Sevilla, Spain, to agree on a set of actions to advance development over the next decade.

This year’s conference took place at a moment of great consequence for humanity. We face more daunting challenges than at any other time, from the growing devastation caused by climate change to persistent levels of poverty in many parts of the world.

To confront these challenges, we need to mobilise funding to tackle climate change, reduce poverty and build infrastructure that enables sustainable and inclusive economic growth.

It is estimated that the world needs an extra $4 trillion dollars a year to meet the UN Sustainable Development Goals by 2030, a gap which can only be closed through more affordable, long-term sustainable financing.

A major contributor to this financing gap is the growing debt burden faced by many developing economies, particularly those in Africa. Around 3.4 billion people now live in countries that are spending more on interest payments to creditors than on health and education.

As the Jubilee Commission appointed by the late Pope Francis notes, while few countries have defaulted on their debt, “they are defaulting on their people, their environment and their future”.

Debt can be a tool for development, if it is affordable and spent efficiently on infrastructure and other investments that support growth. However, a succession of external shocks – including the COVID-19 pandemic, the destabilising effect of various conflicts around the world and tightening financing conditions – has caused the cost of debt to rise rapidly for many developing economies.

At the inception of our G20 Presidency, we appointed an Africa Expert Panel led by Trevor Manuel, our former Minister of Finance, to develop recommendations that the G20 can take forward. We did so because we are convinced that Africa’s development must remain front and centre this year and into the future.

We have since been focusing on practical solutions to achieve debt sustainability, such as improving the G20 Common Framework for debt treatments to enable timely and adequate debt restructuring.

We are also working to expand the use of innovative mechanisms to alleviate the debt burden in times of crisis, such as climate resilient debt clauses, which automatically pause debt payments when a country faces a climate disaster.

Going forward, a key priority is to ensure that more support is available to countries facing financial liquidity challenges, with interventions taking place early enough and providing enough relief to avoid a crisis.

We have shown that this is possible through previous efforts spearheaded by the G20, such as the Debt Service Suspension Initiative, which created fiscal space for low-income countries during the COVID-19 pandemic.

There is no shortage of solutions to address the debt burden. What we need is the political will to translate proposals into action and to do so at a scale that matches the size of the challenge.

Countries committed in Sevilla to “take concrete actions to enhance fiscal space, address debt challenges of developing countries and lower the cost of capital”.

This commitment was reinforced by the Rio de Janeiro Declaration adopted at the BRICS Leaders’s Summit in recent days, which recognised the need to “address in an effective, comprehensive and systematic manner the debt vulnerabilities of both low and middle income countries.”

The world cannot stand by and watch as rising debt service costs crowd out development for a generation or more.

For this reason, South Africa is committed to working together with all countries to confront the debt challenge in a manner that is effective, sustainable and just.

With best regards,

This year’s Nelson Mandela International Day on 18 July will be celebrated under the theme: It’s still in our hands to combat poverty and inequity. 

Nelson Mandela, in addressing the scourge of poverty, suffering and deprivation, said: "It is in your hands to make our world a better one for all, especially the poor, vulnerable and marginalised."

These profound words by our global icon and father of our nation are at the heart of our actions this Nelson Mandela Day in tackling poverty, fighting inequality and building a society based on justice.

The day is an opportunity for citizens to recognise their individual power to change the world for the better. We can also play a part by raising awareness and expanding the reach of Mandela’s values which include fighting injustice, helping people in need and advancing reconciliation.

We can restore our nation by helping one person at a time. Every action we take has a knock-on effect, which will soon snowball into rebuilding our nation. It is through this united front that we can build stronger communities and stronger societies.

Government encourages citizens to donate their time to make a difference in their communities this Nelson Mandela Day. Through our actions we can help make sustainable and long-term interventions in combatting climate change and food insecurity.