Category: Africa

Government has welcomed the latest data released by Statistics South Africa showing that South Africa’s economy grew by 1.1% in 2025, with Gross Domestic Product (GDP) expanding by 0.4% in the fourth quarter.  

Fourth quarter performance, covering the period from October to December, marks the fifth consecutive quarter of economic growth, signalling continued resilience in the economy, despite a challenging global environment. 

On the production side, growth was largely driven by key service-related sectors, including finance, real estate and business services, as well as trade, catering and accommodation and personal services.

Positive contributions were also recorded in agriculture and general government services, further supporting overall economic activity during the quarter.

On the expenditure side, economic expansion was supported by increased household spending, growth in gross fixed capital formation, and higher government consumption, which together contributed to the positive quarterly outcome.

The fourth quarter performance helped to lift annual GDP growth to 1.1% in 2025, the highest annual growth rate since 2022 when the economy expanded by 2.1%.

Government said the sustained growth reflects the impact of ongoing economic reforms and partnerships aimed at strengthening the country’s economic performance.

“Government believes that the reforms that are being implemented through Operation Vulindlela and the Government-Business partnership are enablers of this sustained growth,” government said in a statement. 

Government said that it will continue working with social and economic partners to accelerate inclusive growth, support investment and build a resilient economy. 

“Government will continue to work with all partners to accelerate inclusive growth, support investment and build a resilient economy that delivers sustainable development and job creation,” the statement read. – SAnews.gov.za

Gauteng MEC for Finance and Economic Development Lebogang Maile has tabled a R179.2 billion budget for the 2026/27 financial year aimed at improving frontline services, accelerating infrastructure delivery and maintaining fiscal discipline.

Maile presented the provincial government’s budget in the Gauteng Provincial Legislature on Tuesday morning.

The MEC described the budget as demonstrative of government’s determination to tackle Gauteng’s most pressing challenges, despite a constrained fiscal environment.

“The reality of the situation is that while Gauteng remains the economic nerve-centre of the national economy, we do not have limitless resources. 

“We too are constrained by the realities of the global and national economic environment. For this reason, we recognise that we cannot resource everything. We must be intentional in funding what works,” he said.

Frontline services

Maile said the social wage, consisting of Health, Education and Social Development, accounts for some 83% of the total budget.

The provincial Health Department has been allocated a total of R70.3 billion in 2026/2027, increasing to R218.6 billion over the Medium Term Expenditure Framework (MTEF).

“[This] is to strengthen the public health system, expand access and improve the quality of care.

“The funding will support maternal and child health, the Ideal Clinic and Ideal Hospital programmes, improved emergency medical response times, the integration of mental health services at community level, digital health systems and electronic records, as well as stronger HIV and TB interventions,” Maile said.

Education receives some R70.9 billion in the 2026/2027 financial year, increasing to R221.8 billion over the MTEF.

“[The allocation is] to improve learning outcomes from early childhood right through to matric, while also strengthening safe and inclusive schooling.

“This allocation supports the Early Childhood Development Strategy, learner performance programmes such as the Secondary School Improvement Programme, school safety initiatives, pro-poor interventions, including nutrition and scholar transport, Schools of Specialisation, and inclusive education through special schools,” the MEC explained.

An allocation of R5.6 billion in 2026/2027 has been directed towards social development.

The allocation will increase to R17.2 billion over the MTEF to “strengthen partnerships and targeted social programmes”.

“The funding will go towards skills development for vulnerable groups, the provincial homelessness strategy, food security interventions, Bana Pele, child and youth care centres, community prevention services, substance use disorder treatment, aftercare services, and upgrades to State-owned facilities,” Maile said.

Infrastructure development

In line with the national stance on the importance of infrastructure development, Gauteng’s budget includes a R36.4 billion allocation for the programme over the 2026 MTEF.

“Of this allocation, R26.2 billion is from conditional grants and R10.2 billion from the Provincial Equitable Share.

“The Departments of Health, Education, Human Settlements, Roads and Transport, and Education received an allocation of R34.4 billion, whilst the Departments of Sports, Arts, Culture and Recreation, Infrastructure Development and Economic Development Social Development, Agriculture and Environment received a total funding of R2.1 billion,” Maile said.

Explaining how this would be carved up, Maile said that some R22.7 billion is aimed at “increasing the existing infrastructure capacity in response to increasing demand for services”.

Another R13.8 billion is made available to “improve the condition of the existing infrastructure and activities undertaken to support the delivery of infrastructure”.

“In the National Budget, it was reiterated that infrastructure investment is the base for long-term growth, improved service delivery and job creation, and that government is shifting spending toward growth-enhancing infrastructure. 

“When we speak about infrastructure, we are not speaking about concrete for its own sake. We are talking about clinics and hospitals that work, safe communities with functioning police stations, learning spaces that do not fail young people, and post-school opportunities that are real.

“This is the practical meaning of hope, and this is what commitment looks like when it is written into the budget,” Maile reflected.

Fiscal discipline and accountability

Maile outlined the province’s measures to strengthen financial management, including the roll out of the Budget Monitoring Initiative from the beginning of the next financial year.

“[We] will roll out the Budget Monitoring Initiative in departments and entities, which will ensure that approved budgets are seamlessly uploaded and aligned across our platforms, creating a single source of truth.

“This integration enables automated, real-time validation of funds before any procurement commitment is made. These reforms have been rolled out through a careful, phased approach – starting with extensive stakeholder awareness, capacity building, and readiness assessments,” he said.

The move is complemented with the expansion of the Digital Requisition Forms (RLS01) and Requests for Quotation (RFQ) for departments and the TendaSwift tender management platform.

“This ensures that procurement activities remain aligned with approved budgets and embedded controls, while shortening processing times, standardising procedures, and generating reliable, paperless audit trails.

“Our efforts to automate and digitise the entire tender management process in the province are gaining momentum.

“Since the launch of the pilot phase of TendaSwift in December last year, in partnership with the Gautrain Management Agency, the province has since advertised three tenders on the platform, a clear demonstration that we are committed to increase transparency, open competition and modernise the procurement process,” he explained.

The MEC emphasised that as the province enters the new financial year, “maintaining fiscal discipline is non-negotiable”.

“Fiscal discipline demands that the provincial and municipal governments maintain fiscal positions that are consistent with macroeconomic stability and sustained inclusive economic growth.

“We will continue to do everything possible to restore public finances, create fiscal space, improve the quality of spending and sustain investment in priorities and infrastructure to realise the Gauteng that we want to live and work in,” Maile concluded. – SAnews.gov.za

Cooperative Governance and Traditional Affairs Minister, Velenkosini Hlabisa, has called for urgent and coordinated action to reform South Africa’s local government system, stressing that municipalities must become stable, capable and reliable drivers of economic growth and service delivery.

Hlabisa made the call during the White Paper on Local Government Executive Dialogue with business leaders organised under the National Business Initiative in Centurion on Tuesday.

“South Africa requires a stable, capable and predictable local governance system that works consistently. Such a system cannot be rebuilt through short-term fixes. This is why the review adopts short-, medium- and long-term horizons, recognising that meaningful reform must be sequenced over time,” the Minister said.

The dialogue, hosted at Exxaro Resources, brought together senior government officials and business leaders to discuss the revised draft White Paper on Local Government and explore ways to strengthen municipalities.

The review process is guided by the theme: “Every Municipality Must Work: A Call to Collective Action”.

Hlabisa said government aims to ensure that municipalities function effectively for communities and businesses. 

“Local government is the sphere closest to the people and the primary platform for economic growth and social development,” he said.

The Minister highlighted that the first White Paper on Local Government was adopted in 1998; and with this exercise, government is reimagining the next 30 years and charting a clear path for a modern, coherent, and resilient local government system. 

“Today is about moving South Africa’s local government reforms from paper to practice, from discussion to disciplined execution, and from isolated fixes to a system that works in real places for households and firms, every day,” he said. 

The Minister said government launched the review process last year and received 266 submissions from municipalities, business organisations, civil society, academia and traditional leaders.

These inputs helped shape the revised draft White Paper, which outlines a sequenced reform agenda aimed at modernising the country’s local government system over the next 30 years.

Hlabisa said the reforms come at a time when many municipalities are under severe pressure.

According to the latest consolidated municipal finance report by the Auditor-General of South Africa, only 41 of the country’s 257 municipalities achieved clean audits in the 2023/24 financial year, highlighting ongoing financial and governance challenges.

“These findings echo what communities and businesses experience: failing infrastructure, rising operating costs, and declining trust in the reliability of basic services,” Hlabisa said.

He outlined several key proposals contained in the draft White Paper, including treating local government as an integrated system rather than isolated institutions.

Among the proposals is the establishment of a national policy coordination centre to streamline regulations affecting municipalities and reduce duplication and conflicting requirements.

The White Paper also proposes a clearer framework outlining powers and functions across the three spheres of government to improve coordination and reduce disputes over responsibilities.

Hlabisa said the reforms will also introduce a data-driven oversight and early-warning system to identify risks in municipalities early and trigger support interventions before governance or financial crises occur.

He further emphasised the need for professionalisation within municipalities, including merit-based appointments and enforceable standards for senior officials.

The revised White Paper also proposes the development of a municipal digital governance system to integrate financial management, procurement, asset management and service delivery processes, improving transparency and accountability.

Hlabisa said collaboration between government and business would be critical to ensuring the success of the reforms.

“This dialogue is not another consultation tick-box. It is a working session at a critical juncture: the last structured opportunity for organised business to shape the final Draft White Paper before Cabinet consideration at the end of this month. We have the analysis. We have the architecture. What we need now is joint execution discipline,” he said.

He urged business leaders to provide practical proposals that could strengthen the implementation of reforms and help ensure municipalities become functional and investment ready.

The final draft of the White Paper on Local Government is expected to be submitted to Cabinet for consideration later this month. – SAnews.gov.za

Deputy President Paul Mashatile has reaffirmed government’s commitment to strengthening the role of traditional leaders, saying they remain a vital pillar of governance and social cohesion, particularly in rural communities. 

The Deputy President delivered the virtual keynote address at the Eastern Cape Traditional Leaders’ Summit held at the East London International Convention Centre, on Tuesday. 

The two-day summit, which brings together traditional leaders, government officials and other stakeholders, is aimed at addressing challenges facing traditional leadership institutions and exploring ways to strengthen cooperation between government and traditional authorities.

Mashatile said traditional leaders continue to play a significant role in preserving cultural heritage, promoting social cohesion and supporting development in communities.

“Government will never render traditional leaders irrelevant. On the contrary, we recognise that traditional leadership remains a vital pillar of governance, particularly in rural communities,” he said.

He noted that traditional leaders historically served as the centre of governance in African societies, long before colonial rule, resolving disputes and guiding communities through systems rooted in trust and service.

The Deputy President said South Africa’s democratic order recognises the importance of traditional leadership through constitutional provisions that affirm the institution and its role in society. 

Legislative frameworks, such as the Traditional Leadership and Governance Framework Act, have aligned traditional leadership with democratic principles, enabling traditional councils to work alongside municipalities within the system of cooperative governance.

Mashatile said government has taken steps to restore the dignity and recognition of traditional leadership, including the establishment of platforms such as the National House of Traditional and Khoi-San Leaders, and Provincial and Local houses.

“Platforms such as the National House of Traditional and Khoi-San Leaders, as well as Provincial and Local Houses, ensure that traditional leaders participate in shaping policies that affect rural communities.

“Through these structures, traditional leaders have consistently raised critical issues including land rights, socio-economic development, institutional capacity, infrastructure support, policy reforms, and social cohesion,” he said.

Mashatile also highlighted the establishment of the Inter-Ministerial Task Team on Matters of Traditional Leadership in 2022 to address issues raised by traditional leaders.

The task team focuses on advancing land rights and socio-economic development, strengthening traditional institutions, investing in infrastructure and skills, promoting nation-building and unity, and finalising policy and legislative reforms.

The Deputy President urged traditional leaders to work closely with municipalities and provincial governments to address service delivery challenges and mobilise communities to protect public infrastructure such as schools, clinics and water systems.

He further called on traditional leaders to take an active role in tackling social challenges such as gender-based violence, substance abuse and youth unemployment.

“Our government has classified gender-based violence and femicide as a national disaster to strengthen coordination in addressing this crisis. But legislation alone cannot change behaviour. Community leadership is essential in challenging harmful attitudes and practices that perpetuate violence,” he said. 

Mashatile also emphasised the role of traditional leaders as custodians of communal land, saying the responsible management of land could unlock opportunities for agriculture, job creation and food security in rural communities.

Government initiatives such as the Presidential Employment Stimulus have already created more than 2.5 million employment and livelihood opportunities, many benefiting young people in rural areas. 

Mashatile also encouraged traditional leaders to actively participate in the ongoing National Dialogue process, noting that traditional and Khoi-San leaders are represented in the Eminent Persons Group and the National Dialogue Steering Committee.

The summit continues until Wednesday and is expected to produce practical recommendations to strengthen cooperation between government and traditional leadership for the benefit of communities under traditional authorities. – SAnews.gov.za