President Cyril Ramaphosa. (GCIS)
READ President Cyril Ramphosa’s 2019 state of the nation address.
STATE OF THE NATION ADDRESS BY PRESIDENT CYRIL RAMAPHOSA
PARLIAMENT, CAPE TOWN
13 FEBRUARY 2020
Speaker
of the National Assembly, Ms Thandi Modise,
Chairperson
of the National Council of Provinces, Mr Amos Masondo,
Deputy President
David Mabuza,
Chief
Justice Mogoeng Mogoeng and esteemed members of the judiciary,
Former
President Thabo Mbeki and Mrs Mbeki,
Former
President Kgalema Motlanthe and Mrs Motlanthe,
Former
Deputy President FW de Klerk and Mrs De Klerk,
Former
Speaker Ms Baleka Mbete and Mr Khomo,
President
of the Pan African Parliament, HE Mr Roger Nkodo Dang,
UN
Women SA Representative, Ms Anne Githuku-Shongwe,
Isithwalandwe,
Mr Andrew Mlangeni,
Ministers
and Deputy Ministers,
Premiers
and Speakers of Provincial Legislatures,
President
of SALGA and Executive Mayors,
Governor
of the South African Reserve Bank, Mr Lesetja Kganyago,
Heads
of Chapter 9 Institutions,
Leaders
of faith based organisations,
Leaders
of academic and research institutions,
Members
of the Diplomatic Corps,
Invited
Guests,
Honourable
Members of the National Assembly,
Honourable
Members of the National Council of Provinces,
Fellow
South Africans,
It is
30 years since Nelson Rolihlahla Mandela walked out of the gates of Victor
Verster Prison, a moment in our history that signalled perhaps more vividly
than any other that freedom was at hand.
As he
stood on the balcony of Cape Town City Hall to address the masses who had come
in their tens of thousands to welcome him, he said:
‘Our march
to freedom is irreversible. We must not allow fear to stand in our way.’
Now, 30
years later, as we continue our onward march to improve the lives of our people,
as we confront great challenges, as we endure troubled times, we too cannot
allow fear to stand in our way.
We must
forge ahead, permitting neither adversity nor doubt to divert us.
As we
gather to reflect on the state of our nation, we are joined by the family of
Basil February, a courageous young freedom fighter who lost his life in Zimbabwe
in the Wankie campaign of 1967.
For
half a century his resting place, like those of several of his comrades, has,
until now, remained unknown.
His
contribution, his sacrifice, has never been forgotten.
This
evening, we gather here humbled by the memories of those men and women who gave
their lives for our freedom, deeply aware of the great responsibility we carry
to realise their dreams.
There
are times when we have fallen short, there are times when we have made
mistakes, but we remain unwavering in our determination to build a society that
is free and equal and at peace.
Our history tells us that when we are united
in peace and faith, we can conquer all obstacles and turn our country into a
place in which we all feel safe and comfortable.
It is
in that spirit that we now approach the present moment.
Our
country is facing a stark reality.
Our
economy has not grown at any meaningful rate for over a decade.
Even as
jobs are being created, the rate of unemployment is deepening.
The
recovery of our economy has stalled as persistent energy shortages have
disrupted businesses and people’s lives.
Several
state owned enterprises are in distress, and our public finances are under severe
pressure.
It is
you, the people of South Africa, who carry this burden, confronted by rising
living costs, unable to escape poverty, unable to realise your potential.
Yet, at
the same time, there is another part to our reality.
It is
the reality of a youthful population that has more access to education than
ever before and which is achieving steadily improving outcomes.
It is
the reality of 2.4 million children in early childhood development and
pre-school.
It is about
the 81% of learners who passed matric last year, with an increasing proportion
coming from rural and township schools.
For
this great achievement, we applaud the Class of 2019.
Our
reality is also that of the 720,000 students who received state funding for
TVET colleges and universities last year.
It is
about the 6.8 million South Africans who know their HIV status, about the 5
million people who have been initiated on antiretroviral treatment and the 4.2
million people whose HIV viral load is, as a consequence, undetectable.
These
are not just statistics.
These
are lives being improved.
They
are signs of progress.
Our
reality is also one of unbounded potential.
Of a
soil that is rich in minerals and in a diversity of plant and animal life that
has few equals in the world.
Of a deep
capital base, extensive infrastructure, sound laws and robust institutions.
Of a
rich, diverse, young and talented people.
Tonight,
we are joined by Zozibini Tunzi, whose ascendance to the Miss Universe title is
a reminder of our potential to achieve greatness against the odds.
We also
welcome Springbok captain Siya Kolisi, who led a group of determined and united
South Africans to become the 2019 World Rugby Champions.
We
are joined this evening by another remarkable young person, Miss Sinoyolo
Qumba, a Grade 11 learner from Lenasia South, who spent much of yesterday helping
me to write this State of the Nation Address.
Her
intellect, her social awareness, her passion and her diligence give me great
confidence in the future of this country.
In my
first two addresses to the nation I spoke at length about the necessity of
social compacting, and the great responsibility we shoulder as government to
drive collaboration and consensus.
In 1994
we chose the path of negotiation, compromise and peaceful settlement, instead
of hatred and revenge.
Our
history and contemporary experience has taught us that if we are to achieve
what we set out to do, we must focus on what unites instead of divides.
The
greatest strength of our constitutional democracy, and the reason it has
endured, is because we have been able to forge broad-based coalitions and
social compacts, be they with business, labour, special interest groups or
wider civil society.
Achieving
consensus and building social compacts is a not demonstration of weakness. It
is the very essence of who we are.
That is
why over the past two years we have been hard at work seeking to forge and
build consensus around our economic recovery plan.
In his
inaugural address on the 10th of May 1994, President Nelson Mandela
said:
“Today we enter into a covenant that we shall
build a society in which all South Africans, both black and white, will be able
to walk tall, without fear in their hearts, assured of their inalienable right
to human dignity.”
This
government remains irrevocably committed to upholding that covenant.
It is a
covenant that is rooted in the strategic objective of our National Development
Plan, which is to eliminate poverty and reduce inequality by 2030.
Let us
frankly admit that that the government cannot solve our economic challenges
alone.
Even if
we were to marshal every single resource at our disposal, and engage on a huge
expenditure of public funds, we would not alone be able to guarantee employment
to the millions of people who are out of work.
What we
have achieved, we have achieved together.
Over
the course of the last two years – since I first stood here to deliver a State
of the Nation Address – we have worked to forge compacts among South Africans
to answer the many challenges before us.
Through
the Jobs Summit, we brought labour, business, government and communities
together to find solutions to the unemployment crisis, and we continue to meet
at the beginning of every month to remove blockages and drive interventions
that will save and create jobs.
We have
come together, as government and civil society, as communities and faith-based
groupings, to confront the violence that is perpetrated by men against women.
We have
brought business, labour and government together to craft master plans for
those industries that have the greatest potential for growth.
We have
come together as different spheres of government, as different state entities,
as business associations and community groups under a new district development
model that is fundamentally changing our approach to local development.
We have
been building social compacts because it is through partnership and cooperation
that we progress.
Together,
over these last two years, we have worked to stabilise our economy and build a
foundation for growth.
We have
been deliberate in rebuilding institutions and removing impediments to
investment.
We have
acted decisively against state capture and fought back against corruption.
We have
steadily improved the reach of education, improved the quality of health care and
tended to the basic needs of the poor.
Yet,
that has not been enough.
It has
not been enough to free our economy from the grim inheritance of our past, nor
from the mistakes that we ourselves have made.
It has
not been enough to spare us from the debilitating effects of load-shedding, nor
from an unstable and subdued global economy.
And so
we find ourselves today at a decisive moment.
We have
a choice.
We can succumb
to the many and difficult and protracted problems that confront us, or we can confront
them, with resolve and determination and with action.
Because
we choose to confront our challenges, our immediate, vital and overarching task
is to place our economy on a path of inclusive growth.
Without
growth there will be no jobs, and without jobs there will be no meaningful
improvement in the lives of our people.
This
State of the Nation Address is therefore about inclusive growth.
It is
about the critical actions we take this year to build a capable state and place
our economy on the path to recovery.
This
year, we fix the fundamentals.
We
pursue critical areas of growth.
And we
ensure excellence in planning and execution in government.
Fellow
South Africans,
For
over a decade, South Africans have had to contend with the effects of a
constrained energy supply.
I have
spoken extensively about the critical role that Eskom plays in the economy of
our country and in the livelihood of every South African.
The
load shedding of the last few months has had a debilitating effect on our
country.
It has
severely set back our efforts to rebuild the economy and to create jobs.
Every
time it occurs, it disrupts people’s lives, causing frustration, inconvenience,
hardship.
At its
core, load-shedding is the inevitable consequence of Eskom’s inability over
many years – due to debt, lack of capacity and state capture – to service its
power plants.
The
reality that we will need to accept is that in order for Eskom to undertake the
fundamental maintenance necessary to improve the reliability of supply,
load-shedding will remain a possibility for the immediate future.
Where load-shedding is unavoidable, it
must be undertaken in a manner that is predictable and minimises disruption and
the cost to firms and households.
Over
the next few months, as Eskom works to restore its operational capabilities, we
will be implementing measures that will fundamentally change the trajectory of
energy generation in our country.
We are
taking the following measures to rapidly and significantly increase generation
capacity outside of Eskom:
- A Section 34 Ministerial Determination will
be issued shortly to give effect to the Integrated Resource Plan 2019, enabling
the development of additional grid capacity from renewable energy, natural gas,
hydro power, battery storage and coal.
- We will initiate the procurement of emergency
power from projects that can deliver electricity into the grid within 3 to 12
months from approval.
- The National Energy Regulator will continue
to register small scale
distributed generation for own use of under 1 MW, for which no licence is
required.
- The National Energy Regulator will ensure
that all applications by commercial and industrial users to produce electricity
for own use above 1MW are processed within the prescribed 120 days.
It should be noted that there is now no limit to installed capacity above 1MW.
- We will open bid window 5 of the renewable
energy IPP and work with producers to accelerate the completion of window 4
projects.
- We will negotiate supplementary power
purchase agreements to acquire additional capacity from existing wind and solar
plants.
- We will also put in place measures to enable
municipalities in good financial standing to procure their own power from
independent power producers.
In line
with the Roadmap announced last year, Eskom has started with the process of
divisionalising its three operating activities – generation, transmission and
distribution – each of which will have its own board and management structures.
The social
partners organised under Nedlac have been meeting over the last two weeks to
agree on the principles of a social compact on electricity.
This is
a historic and unprecedented development since it demonstrates the commitment
of all social partners to take the necessary actions and make the necessary
sacrifices to secure our energy needs.
Through
this compact the social partners seek an efficient, productive and
fit-for-purpose Eskom that generates electricity at affordable prices for
communities and industries.
This
requires both a drastic reduction in costs – including a review of irregular
contracts – and measures to mobilise resources that will reduce Eskom’s debt
and inject fresh capital where needed.
The
social partners – trade unions, business, community and government – are
committed to mobilising funding to address Eskom’s financial crisis in a
financially sustainable manner.
They
would like to do this in a manner that does not put workers pensions at risk
and that does not compromise the integrity of the financial system.
While they
work to finalise this agreement, the reality is that our energy system will
remain constrained until new energy generation comes on stream.
Through
these immediate measures and the work underway to fundamentally restructure our
electricity industry, we will achieve a secure supply of reliable, affordable
and, ultimately, sustainable energy.
We
undertake this decisive shift in our energy trajectory at a time when humankind
faces its greatest existential threat in the form of climate change.
Yesterday
I met Ayakha Melithafa, a young climate activist from Eerste Rivier who
attended the World Economic Forum in Davos this year to call on world leaders
to stand firmly for climate justice.
Ayakha
asked me to make sure no African child is left behind in the transition to a
low-carbon, climate resilient and sustainable society; and it is a promise I
intend to keep.
The
Presidential Commission on Climate Change will ensure that as we move towards a
low carbon growth trajectory that we leave no one behind.
We will
finalise the Climate Change Bill, which provides a regulatory framework for the
effective management of inevitable climate change impacts by enhancing adaptive
capacity, strengthening resilience and reducing vulnerability to climate change
– and identifying new industrial opportunities in the green economy.
Honourable
Members,
We need
to fix our public finances.
Low
levels of growth mean that we are not generating enough revenue to meet our
expenses, our debt is heading towards unsustainable levels, and spending is
misdirected towards consumption and debt-servicing rather than infrastructure
and productive activity.
We
cannot continue along this path. Nor can we afford to stand still.
When he
delivers his Budget Speech two weeks from now, the Minister of Finance will
outline a series of measures to reduce spending and improve its composition.
We are engaged
with labour and other stakeholders on measures to contain the public wage bill
and reduce wastage.
Efforts
to reduce government spending, prioritise resources more effectively, and
improve the efficiency of our tax system are important – but insufficient –
contributions towards stabilising our public finances.
Achieving
sustainability will ultimately require us to address structural challenges in
the economy that raise the cost of living and doing business.
By
working with the Auditor-General to reduce irregular expenditure, by shifting
government spending from consumption expenditure to investment in
infrastructure, we aim to improve the state of public finances.
The
National Treasury and the SA Reserve Bank are working together to ease pressure
on business and consumers.
We
have decided to establish a sovereign wealth fund as a means to preserve and
grow the national endowment of our nation, giving practical meaning to the
injunction that the people shall share in the country’s wealth.
We
are also proceeding with the establishment of a state bank as part of our
effort to extend access to financial services to all South Africans.
The
Minister of Finance will provide details on these in his Budget Speech.
We will
be undertaking far-reaching economic reform measures that we will include those
contained in the paper produced by National Treasury, entitled ‘Economic
Transformation, Inclusive Growth and Competitiveness’.
This
year, we are moving from the stabilisation of state-owned enterprises to
repurposing these strategic companies to support growth and development.
After
years of state capture, corruption and mismanagement, we are working to ensure
that all SOEs are able to fulfil their developmental mandate and be financially
sustainable.
In
consultation with the Presidential SOE Council, we will undertake a process of
rationalisation of our state owned enterprises and ensure that they serve
strategic economic or developmental purposes.
The
extent of capture, corruption and mismanagement in SOEs is best demonstrated at
South Africans Airways, which was placed in business rescue late last year.
The
business rescue practioners are expected to unveil their plans for restructuring
the airline in the next few weeks.
In the
interests of South Africa’s aviation industry and our economy, it is essential that
a future restructured airline is commercially and operationally sustainable and
is not dependent on further government funding.
A key
priority this year is to fix commuter rail, which is vital to the economy and
to the quality of life of our people.
Our
rail network daily transports over a million commuters to and from work.
We are modernising
PRASA’s rail network.
The
Central Line in the Western Cape and the Mabopane Line in Pretoria have been
closed for essential refurbishment and upgrades.
We are
investing R1.4 billion in each of these lines to provide, a safe, reliable and
affordable service.
Work
underway on other lines includes station upgrades, parkway replacements, new
signalling systems and overhead electrical traction upgrades.
As we
work to fix the capabilities of the state, we know that growth and job creation
will in large measure be driven by private enterprise.
We are
therefore building an operating environment that is favourable to doing business.
Working
together with social partners, we have continued to address several issues that
have been barriers to job creation.
Water
use licences, which are so essential to operations on farms, factories and
mines, have previously taken an inordinately long time to process, sometimes up
to 5 years.
We are
able to announce that water use licences are now issued within 90 days.
It used to take months to have a company
registered.
Through the Bizportal platform one can now
register a company in one day, register for UIF and SARS and even open a bank
account,
Our
ports are congested and inefficient.
During
the course of this year, we will undertake a fundamental overhaul of the Durban
port – the third largest container terminal in the Southern Hemisphere – to reduce
delays and costs.
The
most significant contribution we can make to inclusive economic growth is in
the development of appropriate skills and capabilities.
The
investments we make now in early childhood development and early school
learning will yield great economic benefits in the next two decades – and
beyond.
But
there are immediate interventions that we are making to improve the quality and
the relevance of our educational outcomes.
We are
making progress with the introduction of the three-stream curriculum model,
heralding a fundamental shift in focus towards more vocational and technical
education.
Various
technical vocational specialisations have already been introduced in 550
schools and 67 schools are now piloting the occupational stream.
We are
building nine new TVET college campuses this year, in Sterkspruit, Aliwal
North, Graaff Reinet and Ngungqushe in the Eastern Cape, and in Umzimkhulu,
Greytown, Msinga, Nongoma and Kwagqikazi in KwaZulu-Natal.
Through
bilateral student scholarship agreements we have signed with other countries,
we are steadily building a substantial cohort of young people who go overseas
each year for training in critical skills.
We have seen the impact this can have with
the Nelson Mandela Fidel Castro Medical Training Programme in Cuba, which has
produced over 1,200 medical doctors and a further 640 students are expected to
graduate in December 2020.
This programme is a living monument to these
two great revolutionaries.
Last
year I spoke about our plan to issue tablet computers to school students.
The
process of distributing these tablets is underway.
We said
that every 10-year-old needs to be able to read for meaning.
Our
early reading programmes are gathering momentum.
This
year, we will be introducing coding and robotics in grades R to 3 in 200
schools, with a plan to implement it fully by 2022.
We have
decided to establish a new University of Science and Innovation in Ekurhuleni.
Ekurhuleni
is the only metro in our country that does not have a university.
This
will enable young people in that metro to be trained in high-impact and
cutting-edge technological innovation for current and future industries.
Investment
and growth require a safe, stable and crime-free environment.
More
importantly, it is fundamental to the aspirations of all our people to live in
security, peace and comfort.
Police
visibility, effective training and better resourcing of police stations are our
priorities.
I
have prioritised our response to the growing problem of criminal groups that
extort money from construction and other businesses.
Specialised
units – bringing together SAPS and the National Prosecuting Authority – are
mandated to combat these crimes of economic disruption.
To
support the growth of the tourism industry, the SAPS will increase visibility
at identified tourist attraction sites.
It
is training Tourism Safety Monitors and will establish a reserve police
capacity to focus on the policing of tourist attraction areas.
Anti-Gang
Units will be further strengthened, with priority given to the Western Cape,
Eastern Cape, Gauteng and Free State.
Following
the graduation of 5,000 police trainees last year, 7,000 new police trainees have
been enlisted this year to strengthen local policing.
To
improve the quality of general and specialised SAPS investigations, we are
establishing a Crime Detection University in Hammanskraal.
Fellow
South Africans,
Over
the last six months, the nation has been galvanised – across communities,
government, civil society, religious groupings, the judiciary and parliament –
to end the crisis of violence perpetrated by men against women.
It has
been a truly united and determined response from all South Africans.
Through
building social compacts across society to fight this scourge we will be able
to achieve much more.
But it
is only the beginning of the struggle.
We
implemented an emergency action plan and reprioritised R1.6 billion to support
this plan until the end of the current financial year.
There
has been progress in several areas.
We will amend the Domestic Violence Act to better protect victims in violent domestic relationships and the
Sexual Offences Act to broaden the categories of sex offenders whose names must
be included in the National Register for Sex Offenders, and we will pass a law
to tighten bail and sentencing condition in cases that involve gender-based
violence.
We
will not let up in the fight against corruption and state capture.
We
need to work together to root out corruption and strengthen the rule of law.
We
should not solicit or pay bribes or engage in corrupt acts.
We
should upgrade our culture of reporting crime when we see it being committed.
This
battle can only succeed if it is taken on by the whole of society, if we build
a formidable social compact of all formations.
We
therefore welcome the work of the joint government and civil society working
group charged with developing a national anti-corruption strategy and
implementation plan, which is close to completion of this phase of its work.
We
plan to launch the strategy by mid-year.
The
Zondo Commission of Inquiry into State Capture continues with its critical work
with the full support of government and other institutions.
I have
received a detailed and voluminous report on the Commission of Inquiry into the
Public Investment Corporation.
I
will make it available to the public together with a plan on taking the
findings and recommendations forward in a few days.
Fellow
South Africans,
As we
fix the fundamentals, as we deepen the reforms we have made, we pursue critical
areas of inclusive growth.
In the previous SONA, I said
that is a critical area of investment that supports structural transformation,
growth and job creation.
The
Infrastructure Fund implementation team has finalised the list of shovel-ready
projects and has begun work to expand private investment into public
infrastructure sectors with revenue streams.
These
include areas like student accommodation, social housing, independent water
production, rail freight branch lines, embedded electricity generation,
municipal bulk infrastructure, and broadband roll-out.
The
team has a project pipeline with potential investments of over R700 billion
over the next 10 years, including both government and non-government
contributions.
The cranes
and yellow equipment that we have longed to see across the landscape of our
country will once again soon be an everyday sight.
The
social housing programme to build rental housing for low-income families is at
implementation stage, which could leverage as much as R9 billion of private
investment in the construction of 37 000 rental apartments.
The
young people who are at university and TVET Colleges face serious accommodation
challenges.
Some
don’t even have places to sleep after lectures and resort to sleeping in
libraries.
We are
going to spend R64 billion over the next years in student accommodation and
will will leverage at least another R64 billion in private investment.
These
building projects are ready to start.
We have
been speaking about the Umzimvubu Dam in the Eastern Cape for almost a decade,
with little to show on the ground.
We are
determined to overcome the financial and other challenges that have held back
progress and denied the people of this areas such a vital resource.
Road
construction on the site has commenced, and I will soon be visiting the site to
ensure that we take this work forward.
We are
launching a Tourism Equity Fund this year to stimulate transformation in
tourism.
Last
year, I asked the nation to join me in imagining a new smart-city, a truly
post-apartheid city that would rise to change the social and economic apartheid
spatial architecture.
A new
smart-city is taking shape in Lanseria, which 350,000 to 500,000 people will
call home within the next decade.
The
process is being led by the Investment and Infrastructure Office in the
Presidency alongside the provincial governments of Gauteng and North West,
working together with the cities of Johannesburg, Tshwane and Madibeng.
Working
with development finance institutions we have put together an innovative
process that will fund the bulk sewerage, electricity, water, digital
infrastructure and roads that will be the foundation of the new city.
It will
not only be smart and 5G ready, but will be a leading benchmark for green
infrastructure continental and internationally.
We will
be piloting an alternative rural roads programme during which four experimental
road stretches of 50km each will be constructed.
This
initiative will ensure cost effective solutions for the State, meaningful
skills transfer and higher potential for labour intensive job creation than
conventional roads construction methods.
Fellow
South Africans,
We are
confronted by the crisis of youth unemployment.
Of the
1.2 million young people who enter the labour market each year, approximately
two thirds remain outside of employment, education or training.
More
than half of all young people are unemployed.
We need
to make this country work for young people, so that they can work for our
country.
The
solution to this crisis must be two-pronged – we must all create opportunities
for youth employment and self-employment.
On
youth employment, as from today, we begin the implementation of the Presidential
Youth Employment Intervention – six priority actions over the next five
years to reduce youth unemployment.
First,
we are creating pathways for young people into the economy.
We are
building cutting-edge solutions to reach young people where they are – online,
on the phone and in person.
This
will allow them to receive active support, information and work readiness
training to increase their employability and match themselves to opportunities.
Starting
this month, we are launching five prototype sites in five provinces that will
grow to a national network reaching three million young people through multiple
channels.
This
will allow them to receive active support, information and work readiness
training to increase their employability and match themselves to opportunities.
Second,
we are fundamentally changing how we prepare young people for the future of
work, providing shorter, more flexible courses in specific skills that
employers in fast-growing sectors need.
Third,
we are developing new and innovative ways to support youth entrepreneurship and
self-employment.
Fourth,
we are scaling up the Youth Employment Service and working with TVET colleges
and the private sector to ensure that more learners receive practical
experience in the workplace to complete their training.
Fifthly,
we are establishing the first cohort of a Presidential Youth Service programme
that will unlock the agency of young people and provide opportunities for them
to earn an income while contributing to nation building.
Finally,
we will lead a youth employment initiative which will be funded by setting
aside 1% of the budget to deal with the high levels of youth unemployment.
This
will be through top slicing from the budget, which will require that we all
tighten our belts and redirect resources to address the national crisis of
youth unemployment.
The
Minister of Finance will prioritise this initiative and give specific details
when he delivers the Medium Term Budget Policy Statement later this year.
These six
actions will together ensure that every young person in this country has a
place to go, that their energy and capabilities are harnessed, and that they
can contribute to the growth of their communities and their country.
As part
of this intervention, the National Youth Development Agency and the Department
of Small Business Development will provide grant funding and business support
to 1,000 young entrepreneurs in the next 100 days – starting today.
We have
invited three of these young entrepreneurs to join us here this evening: Siyabonga
Tiwana, Sibusiso Mahone and Tholakele Nkosi.
They
and others like them prove that, given the necessary support, young people can
create their own opportunities.
These
three young entrepreneurs form part of a larger and more ambitious programme to
assist 100,000 young entrepreneurs over the next 3 years to access business
skills training, funding and market facilitation.
The
empowerment of women is critical to inclusive economic growth.
We are
introducing the SheTradesZA platform to assist women-owned businesses to participate
in global value chains and markets.
Over
the next five years, the Industrial Development Corporation is targeting R10
billion of own and partner funding for women empowered businesses.
To
create a larger market for small businesses, we plan to designate 1,000 locally
produced products that must be procured from SMMEs.
The
Procurement Bill will soon be presented to Parliament as part of our efforts to
empower black and emerging businesses and advance radical economic
transformation.
This
year, we intensify our investment drive with the establishment of an
integrated investment promotion and facilitation capability coordinated from
the Presidency.
We will
hold our third South Africa Investment Conference in November to review the
implementation of previous commitments and to generate new investment into our
economy.
At the
second South Africa Investment Conference last year, over 70 companies made
investment commitments of R364 billion in industries as diverse as advanced
manufacturing, agro-processing, infrastructure, mining, services, tourism and
hospitality.
In the
first two years of our ambitious investment drive, we have raised a total of
R664 billion in investment commitments, which is more than half of our five-year
target of R1.2 trillion.
More
importantly, these investments are having a real impact.
Already,
projects with an investment value of R9 billion have been completed and 27
projects worth just over R250 billion are in implementation phase, with more
coming on-stream this year.
I have
visited newly-built factories that make smartphones, and plants expanded to
produce more cars, and walked through the dust on construction sites at
supplier parks.
We have
been to the opening of facilities producing goods ranging from power cables to
sanitary products, from tyres to food.
We have
made important progress in finalising and implementing master plans in vital
parts of our economy.
These
master plans bring government, labour and business together to develop
practical measures to spur growth at sector level and each partner contributes
to making it work.
Thanks
in large measure to the Auto Master Plan, we sold more cars to the rest of the
world last year than ever before, providing jobs for young people in Eastern
Cape and KwaZulu-Natal.
We
launched a new auto SEZ hub in Tshwane, which will expand production and local
manufacture of components.
The
Clothing and Textiles Master Plan, which was signed last year, aims to create
121,000 new jobs in the retail-clothing textile and footwear sector over the
decade.
It
involves commitments by retailers to buy goods locally, by manufacturers to
invest and support transformation, and by labour to develop bargaining
structures that promote agile manufacturing.
For its
part, Government has already begun to act vigorously against illegal imports, seizing
almost 400 containers with under-invoiced products in the last quarter of 2019.
This
suit that I am wearing today, like last year, was proudly made by South African
workers.
We
completed the Poultry Master Plan to support chicken farmers and processors and
save 54,000 jobs while creating new jobs.
The
industry is now focused on growth, greater production and more investment.
We will
within two weeks set a new poultry import tariff adjustment to support the
local industry.
We have
developed a plan with farmers and industrial users to save jobs in the sugar
industry and will finalise a Sugar Master Plan within the next six weeks; and
expect a new steel Master Plan to be finalised in the coming six months.
Effective
today, new regulations published in the Government Gazette will enable
investigation and action against abuse of buyer power and price discrimination.
This
will help even the playing field for small businesses and emerging
entrepreneurs.
Market inquiries
into data services, the grocery retail market and health care have provided the
basis for measures to reduce costs to consumers and make these sectors more
competitive.
The
competition authorities are now working towards a resolution with the large
mobile operators to secure deep cuts to data prices across pre-paid monthly
bundles, additional discounts targeted at low income households, a free daily
allocation of data and free access to educational and other public interest
websites.
This is
an important step to improve lives, bring people into the digital economy and
stimulate online businesses.
The digital
economy will increasingly become a driver of growth and a creator of
employment.
The
Presidential Commission on the Fourth Industrial Revolution has made
far-reaching recommendations that impact on nearly every aspect of the economy
and in many areas of our lives.
The
Commission’s report provides us with the tools to ensure that we extract the
greatest benefit of these revolutionary technological changes.
An
important condition for the success of our digital economy is the availability
of high demand spectrum to expand broadband access and reliability.
The
regulator, ICASA, has undertaken to conclude the licensing of high demand
spectrum for industry via auction before the end of 2020.
Because
of additional requirements, the licensing of the wireless open access network –
or WOAN – is likely to completed during the course of next year.
Agriculture is one
of the industries with the greatest potential for growth.
This
year, we implement key recommendations of the Presidential Advisory Panel on
Land Reform and Agriculture to accelerate land redistribution, expand
agricultural production and transform the industry.
Government
stands ready – following the completion of the Parliamentary process to amend
section 25 of the Constitution – to table an Expropriation Bill that outlines
the circumstances under which expropriation of land without compensation would
be permissible.
To
date, we have released 44,000 hectares of state land for the settlement of land
restitution claims, and will this year release round 700,000 hectares of state
land for agricultural production.
We are
prioritising youth, women, people with disabilities and those who have been
farming on communal land and are ready to expand their operations for training
and allocation of land.
A new
beneficiary selection policy includes compulsory training for potential
beneficiaries before land can be allocated to them.
Because
of the drought in many parts of the country, farmers lost crops and livestock
and many workers have lost their livelihoods.
Working
with the Agricultural Research Council and other scientific and agricultural
bodies, we have developed drought mitigation strategies that focus on
developing drought resistant seeds, planting and storing fodder, removing of
invasive plants
and
management strategies to prevent soil degradation.
This
year we will open up and regulate the commercial use of hemp products,
providing opportunities for small-scale farmers; and formulate policy on the
use of cannabis products for medicinal purposes, to build this industry in line
with global trends.
The
regulatory steps will soon be announced by the relevant ministers.
A
fundamental condition for growth and development is a healthy and productive
population, with access to quality, affordable health care.
We have
noted the enthusiastic support from South Africans during public hearings on
the National Health Insurance, and are putting in place mechanisms for its implementation
following conclusion of the Parliamentary process.
In
preparation for NHI, we have already registered more than 44 million people at
over 3,000 clinics in the electronic Health Patient Registration System, and
are now implementing this system in hospitals.
I have
established the Presidential Working Group on Disability to advise my office on
measures to advance the empowerment of persons with disabilities as government
plans, budgets and implements programmes.
Following
the recognition by the Department of Basic Education in 2018 of South African
Sign Language as a home language and the recommendation by the Parliamentary
Constitutional Review Committee that it be the 12th official
language, we are now poised to finalise the matter.
Fellow
South Africans,
Earlier
this week, I returned from Addis Ababa in Ethiopia, where South Africa assumed
the chairship of the African Union for 2020.
We take
up this responsibility at an important time for our continent.
This
year, the African Continental Free Trade Area will come into effect.
This is
our moment, as the people of the continent, to give effect to the dreams of the
founding fathers of African unity.
South
Africa will host an Extraordinary AU Summit in May this year to finalise the
modalities of the Free Trade Agreement before its implementation on 1 July
2020.
Here we
will finalise the rules that define what is a ‘Made in Africa’ product, the
tariff lines that will be reduced to zero over the next five years, and the
services sectors that will be opened up across the continent.
Allow
me to take this opportunity to congratulate our compatriot, Mr Wamkele Mene,
who was this past weekend elected as the first Secretary-General of the African
Continental Free Trade Area, and assure him of our full support as he assumes
this historic and challenging responsibility.
South
Africa has therefore prioritised the economic empowerment of Africa’s women during
its term as AU chair, working with all member states on measures to promote
financial inclusion, preferential procurement and preferential trade arrangements
for women.
The AU
Heads of State have pledged their support for measures to end gender-based
violence on the continent, and will work towards the adoption of an AU
Convention on Violence against Women during the course of this year.
Through
the African Peer Review Mechanism, South Africa will work with other countries
to advance good governance and democracy.
We will
use all the means at our disposal – including our membership of the UN Security
Council – to promote peace and security on the continent.
Honourable
Members,
Fellow
South Africans,
Everything
we do must be underpinned by effective implementation.
That is
why we have developed the District Development Model, a unique form of social
compacting that involves the key role players in every district so that we can
unlock development and economic opportunities.
It
builds the capability of the state where it has been most broken.
During
the SONA of February 2019 I addressed the five most urgent tasks of the moment,
key among which was the need to strengthen the capacity of the state to address
the needs of the people.
A
broad range of critical work is being done across government to strengthen the
capacity of local government, as the sphere of government closest to the
people, to achieve its developmental mandate of finding sustainable ways to
meet the social, economic and material needs of communities and improve the
quality of their lives.
Provincial
and national government will re-double their support and strengthen the
capacity of municipalities as required by Section 154 of the Constitution and
provide for the monitoring and support of municipalities.
It
is only when the structured support has failed that the provincial executive or
national government will invoke a Section 139 intervention.
Currently
there are 40 municipalities in the country subjected to such
intervention.
The
measures that will be taken will complement the objectives of the new
district-based model of development, that seeks to take an integrated approach
to` service delivery
Residents
of the Mamusa Municipality in North West have already seen this approach in
action, where the District Development Model was effectively utilised to clear
illegal dumping sites, refurbish pump stations to stop sewage spilling in the
streets, build roads and lay water pipes, and provide water and toilets to
local schools.
This
year, we plan to expand the district development model to 23 new districts,
drawing on lessons from the three pilot districts – OR Tambo District
Municipality, Ethekwini and Waterberg District Municipality.
To
strengthen the capacity of the state and increase accountability, I will be
signing performance agreements with all Ministers before the end of this month.
These
agreements – which are based on the targets contained in the Medium-Term
Strategic Framework – will be made public so that the people of South Africa
can hold those who they elected into office to account.
We see
these performance agreements as the cornerstone of a new culture of
transparency and accountability, where those who are given the responsibility
to serve – whether as elected office bearers or public servants – do what is
expected of them.
It is a
culture where corruption, nepotism and patronage are not tolerated, and action
is taken against those who abuse their power or steal public money.
Since I took office, we have built capacity
in the Presidency and elsewhere in the state to fast-track progress on a clear
list of urgent reforms.
We have established the Project Management
Office, the Infrastructure and Investment Unit and the Policy and Research
Services to address obstacles to reform and improve government delivery.
These units are working closely with the
Presidential Infrastructure Coordinating Commission, InvestSA and the Ease of
Doing Business Task Team to remove impediments to investment and growth and
ensure that government demonstrates visible progress quickly.
With an efficient and capable machinery now
in place at the centre of government, we will focus on the most urgent reforms
and intervene where necessary to ensure implementation.
Fellow South Africans,
We find ourselves at a decisive moment in our
history.
It is a time of great difficulty and doubt,
but also a time laden with great opportunities.
Over the last two years, we have worked
together to build a foundation for progress.
Now is the time for us to build on that foundation,
to unite, to work, to perservere.
We will not surrender our future to doubt, or
despair, or division.
We will continue our onward march to freedom.
We will embrace change.
We will cherish life.
We will fear nothing.
As we do so, we will recall the inspired
lyrics of one of South Africa’s most treasured musicians, uBab Joseph
Shabalala, the founder of Ladysmith Black Mambazo, whose passing we mourn this
week.
Written in a different era, his words still
ring true:
“We may
face high mountains,
Must
cross rough seas,
We must
take our place in history,
And
live with dignity,
As we
climb to reach our destiny
A new
age has begun.”
I thank you.