Category: English

Source: South Africa News Agency

By Neo Bodumela

The “vicious cycle” of crumbling infrastructure and failing service delivery besetting municipalities is now under sharper focus as the second phase of Operation Vulindlela (OV) kicks off.

Operation Vulindlela is a joint initiative of the Presidency and National Treasury to accelerate the implementation of structural reforms and support economic recovery. 

It was originally established in October 2020 with the first phase having zeroed in on reforms in five key areas with a high potential impact on growth and jobs: energy, logistics, telecommunications, water, and the visa system. 

The second phase of the operation was launched by President Cyril Ramaphosa recently. The launch at the Union Buildings was preceded by a technical briefing conducted by National Treasury.

At the briefing, Presidency Director of Strategy and Delivery, Saul Musker, explained the impact that municipal under performance has on South Africa’s growth prospects. This in a country that has 257 metropolitan, district and local municipalities.

“I think it’s widely understood that the deteriorating performance of local government is a major constraint on growth, and you can solve; say the energy supply problem. But if you still have interruptions, because [of] ailing distribution networks or failures in service delivery that affects businesses, it holds back investment. 

“That decline in local government performance is the result of both particular factors in each municipality, as well as structural causes that have their roots in the system. The local government system itself and the reforms that we proposed in OV2 really aim to address those structural challenges,” Musker explained.
According to the OV Phase II document, the “deteriorating performance of local government has emerged as a significant constraint on investment and growth.”

Enhancing local government performance is among the three key reforms introduced by the second phase of OV (the other two being tackling the legacy of spatial inequality and accelerating digital transformation).

The document notes that an “increasing number of municipalities is affected by weak or unstable governance, poor revenue collection and funding shortfalls, and an inability to deliver basic services or process regulatory approvals.”

This as Musker added that the “heart of the problem” is a lack of investment in infrastructure and maintenance which impacts service delivery. 

The document further adds that the reform of the local government system will be prioritised to prevent it from acting as a binding constraint on growth.
Musker revealed a new model for revenue collection and expenditure for some municipalities that is expected to ensure service delivery and sustainability.

“The fact that our electricity and water networks, roads and so on are not being maintained, and the investment is falling behind… creates a vicious cycle. Because as the infrastructure deteriorates, revenue declines and the ability to reinvest in those assets declines as well. We’ve got to break that cycle. 

“And so, the first priority that we’ve set out is to shift to [a] utility model for water and electricity services in future, also for waste management what are otherwise termed ‘trading services’ in local government, to ensure financial and operational sustainability,” Musker said.

He further explained that because these trading services are fully integrated into most municipalities, revenue collected “instead of being reinvested first in the infrastructure and the assets, is “just sucked into the pool and used for other functions” like the compensation of employees.

“How do we address that? On the one hand, institutional reforms making sure that these utilities have a single point of management accountability, that they’re actually responsible for the service, and have control of everything that they need to be able to deliver that service with professional and skilled staff. 

“The second is financing reforms, separate financial accounts for the utility and a clear relationship between the utility and the municipality, which governs the division of revenue so that billing revenue is controlled by the utility, [and that] enough of that revenue is retained to invest in the assets.

“It does not mean any particular institutional form. So, it doesn’t mean that we need all metros or municipalities to form a corporate sort of business to deliver these services.

“Some may choose to do so through a municipal owned entity. Others might choose to do a concession or some sort of public-private partnership, [or] others would have a business unit within the municipality. There are many models that could be used, but they need to adhere to those principles.”

He added that this will also mean that services are provided more professionally with the addition of a “much stronger licensing and regulatory regime”.

Professionalisation

Musker highlighted that another priority is the standardisation and professionalisation of the appointment of senior officials in local government.

“That means ensuring that all municipal managers and CFOs [chief financial officers] meet minimum competency requirements and extending the mandate of the Public Service Commission [PSC] through the PSC Bill, which is already in Parliament, to local government, to be able to actually enforce that properly.”

This as on 18 March 2025, the National Assembly passed the PSC Bill which aims to regulate the Commission “and enhance its independence by, among others, establishing its secretariat to support its operations.”

At the time, Parliament said the bill will help position the commission to play a significant role in creating an efficient, innovative, and responsive public service.

“A key benefit of the Bill is that it will maintain and restore the PSC’s independence, like the institutions outlined in Chapter 9 of the Constitution while adhering to an agreed public administration mandate. The PSC will be recognised as a constitutional institution that reports to Parliament,” it said. 

Enhancing service delivery

Musker added that a review of the institutional structure of the local government system through an updated white paper is also in the works.

“It’s a thorough, comprehensive review of the White Paper on Local Government going back to first principles and really thinking about what a fit for purpose local government system would look like for South Africa. 

“[This is] including looking at the two-tier system of district and local municipalities, looking at the appropriate powers and functions for municipalities in different categories, [and] looking at the revenue model. 

“Taking a thorough look, given the evidence that we have since the first white paper was introduced, in reality of what municipalities are capable of and then putting forward a new model and that will be completed by this time next year,” he said.

Cooperative Governance and Traditional Affairs (CoGTA) Minister, Velenkosini Hlabisa officially published the Review of the 1998 White Paper on Local Government on 10 April with the deadline for public comments set for 30 June 2025.

The anticipated benefits of the review according to CoGTA are that it will enhance service delivery, strengthen financial management, build capacity and result in the engagement of communities.

Operation Vulindlela will also look at local government’s funding model, including the “use of conditional grants” and proposing amendments to the Municipal Finance Management Act (MFMA).

The object of the MFMA is to secure sound and sustainable management of the fiscal and financial affairs of municipalities and municipal entities.

“All of those reforms are interrelated [and] need to be done together, again to tackle the root causes, the structural causes of local government underperformance,” Musker said.

While the document states that local government “is in a state of crisis, with 66% of municipalities in financial distress and 64 out of the 257 deemed dysfunctional,” government is cracking the whip to address the issue with the launch of the second phase.
President Ramaphosa stated that growth is the is the only way to achieve fiscal sustainability and social progress.

“That is why we will not yield in our efforts to reform this economy, to fundamentally transform it and to remove the constraints on growth. We have established significant momentum,” he said at the launch.

That momentum will aid in propelling the wheels of the economy forward. – SAnews.gov.za

Source: South Africa News Agency

The second phase of Operation Vulindlela, will focus on three key reforms: tackling the legacy of spatial inequality, enhancing local government performance, and accelerating digital transformation. 

Launching the next phase of this important initiative at the Union Buildings, on Wednesday, 7 May 2025, President Cyril Ramaphosa emphasised that this new phase is aimed at driving rapid and inclusive economic growth for the benefit of all South Africans. 

“We need growth that is both rapid and inclusive. We need growth that serves the millions of people in our country who remain unemployed, and the young people who cannot see a way into the labour market. 

“And we need growth that improves people’s daily lives by fixing the infrastructure that is broken. That is why, in the next phase of Operation Vulindlela that we are launching today, we will implement reforms in three new areas,” the President said. 

He stressed that if these reforms are implemented swiftly and boldly, they will put South Africa firmly on the path of economic recovery and renewal. 

He acknowledged that the process of reform is never easy, and it is often contested, especially by those with vested interests.

“Yet we have a simple choice to make. If we do not reform our economy, it will not grow and we will not create jobs. Unemployment will rise and poverty will increase. On the other hand, if we implement these reforms – if we do so swiftly and boldly – we will place our economy on a path of growth and renewal. 

“There is a generation of South Africans that does not know what it is to live in a country that is growing. They have never experienced rising incomes, increasing jobs, thriving businesses and expanding opportunities. 

“It is our intention to ensure that every South African feels the benefits of rapid, sustained and inclusive economic growth,” he said.

The first focus area: Tackling Spatial Inequality 

The second phase will start by addressing the apartheid legacy of spatial inequality, which has forced millions of South Africans to live far from economic opportunity. 

The President noted that the country’s urban structure must be reshaped to enable citizens to live closer to where jobs and services are located. 

“The poorest South Africans spend as much as 40 percent of their income on transport to get to work, more than almost any other country in the world. Imagine you earn R10 000 and R4000 of it is spent on transport,” he said. 

He emphasised that the structure of the country’s cities has to change to enable people to access work. 

To address this, government will change housing policies to introduce demand-side subsidies for home ownership and affordable rental options, empowering people to choose where they want to live. 

“While the millions of homes that we have built since 1994 have given families shelter and dignity at an unprecedented scale, we cannot continue to build houses on the periphery of our cities and towns.”

Publicly-owned land and buildings, particularly in inner cities, will be released for affordable housing, and the backlog of title deeds for affordable housing will be cleared. 

Reforms will also simplify the titling system, making it more accessible and affordable. 

The President added that this will turn houses into an asset for poor households. It will enable these households to access credit and use this asset to advance themselves. 

Finally, a comprehensive regulatory review will be undertaken to remove barriers to low-cost housing development and encourage investment in urban centres rather than peripheral areas.

“These reforms will help turn our cities and towns into thriving centres of economic activity,” he said. 

The second focus area: Strengthening Local Government

The second area of reform during this phase of Operation Vulindlela is improving the performance of local government. 

The President highlighted that many of the country’s municipalities are unable to deliver basic services to households and businesses. 

“Operation Vulindlela has set out a clear agenda for local government reform, which starts with improving the delivery of water and electricity services through professional utilities. 

“Utilities should have the right technical skills, strong regulation and oversight, and full control of their billing and revenue functions to allow them to invest in infrastructure and maintenance,” he said. 

Another key step is strengthening local government administration.

“We will work to ensure that capable, qualified people are appointed to senior positions in municipalities, such as municipal managers and CFOs,” he said. 

This will be done by extending the mandate of the Public Service Commission to local government and taking action against municipalities that fail to comply with minimum competency standards. 

The Minister of Cooperative Governance and Traditional Affairs has initiated the process to update the White Paper on Local Government, which includes a review of the institutional structure of local government. 

Finally, the National Treasury will review the local government fiscal framework, including the design of conditional grants, to ensure that the revenue of municipalities matches their responsibilities. 

The third focus area: Accelerating Digital Transformation

The third new area of focus is digital transformation. 

Last month, Cabinet approved a Digital Transformation Roadmap to drive the adoption of digital technologies in government and to build digital public infrastructure that can be used by all South Africans. 

This will include a digital identity system, rapid payments to expand financial inclusion, and enabling people to access services like applying for an ID or passport online. 

“We have established significant momentum. We have seen the green shoots of recovery. It is our responsibility to grow a flourishing crop and to ensure that all South Africans reap the benefits of its harvest,” he said. 

Successes of the first phase of Operation Vulindlela

Operation Vulindlela was established in October 2020 as a joint initiative of the Presidency and National Treasury to accelerate the implementation of structural reforms.

It was initiated in the aftermath of the COVID-19 pandemic and its devastating economic impact on the country and around the world. 

In its first phase, Operation Vulindlela focused on reforms in five key areas namely energy, logistics, telecommunications, water, and the visa system.

“The pandemic arrived just as the country was emerging from more than a decade of stagnant economic growth and rising unemployment and from the era of state capture. 

“When I addressed a joint sitting of Parliament in October 2020, I said in the aftermath of a fire, green shoots begin to emerge. The ashes enrich the soil, and new life takes root to replace what was lost. Over the past four years, we have seen the green shoots of economic reform,” the President said. 

Through far-reaching reforms in the electricity sector, government has substantially reduced the severity and frequency of load shedding, relieving a constraint on growth which had strangled the economy for years. 

These reforms have enabled private investment in energy generation, unlocking billions of Rands in new investment in renewable energy in every part of the country. 

The country has also embarked on a major reform of its ports and rail system through the Freight Logistics Roadmap.

Major successes include the opening of the rail network to competition and the invitation of private sector participation in port terminals, while ensuring that the network infrastructure remains state owned. 

The completion of the spectrum auction enabled significant investment in telecommunications infrastructure while improving network quality and reducing data costs for every South African. 

The water use license system, which once served as a barrier to investment, now works efficiently and has allowed projects in forestry, mining and other sectors to proceed. 

As of last year, the country has implemented an entirely new framework for skilled visas to attract investment and encourage businesses to establish themselves in our country and create jobs. 

“All of this progress has been made possible thanks to the cooperation and commitment of the relevant government departments, state owned enterprises, public entities and social partners.

“I commend in particular, the Ministers, Deputy Ministers, Directors-General and CEOs that have provided leadership to these efforts. Over the last four years, Operation Vulindlela has become a government-wide initiative. This is meaningful progress and it will enable higher growth in the years to come,” the President said. – SAnews.gov.za

Source: South Africa News Agency

President Cyril Ramaphosa has reaffirmed South Africa’s commitment to global diplomacy, describing the upcoming G7 Leaders’ Summit as a critical opportunity to strengthen international partnerships and promote the country’s leadership within the G20.

Speaking to members of the media during a visit to Sefako Makgatho Primary School in Saulsville, Pretoria, the President confirmed that South Africa had been officially invited to attend the G7 by Canada, this year’s chair of the summit.

“Yes, we are going to the G7. We’ve been invited by Canada, who are the conveners, who are the head of the G7 this time around. I’m hoping that when we meet the various leaders of the G7, we’ll be able to interact meaningfully with them,” President Ramaphosa said.

The President outlined a number of key bilateral engagements scheduled on the sidelines of the summit, including meetings with the Chancellor of Germany, the Prime Minister of Canada, and the President of the United States, Donald Trump.

“The G7 gives us an opportunity to go and propagate our message, the message about the presidency of South Africa’s G20 and how we want to see great outcomes of the G20. We’re going to use it as a platform to begin to consolidate what we want to have in November when the leaders’ summit takes place here,” the President said on Tuesday.

President Ramaphosa is set to jet off to Canada, Kananaskis from 14-17 June to attend and participate in the G7 Leaders’ Summit. 

READ | President Ramaphosa to attend G7 Leaders’ Summit in Canada

Reflecting on the US working visit

Reflecting on his recent visit to the White House in Washington DC, President Ramaphosa dismissed criticism of the trip, saying it was a strategic move to reset relations with one of South Africa’s key trading partners.

“We do confirm that our visit to the White House in the United States was a moment where South Africa set out to reset the relationship with the United States, and I do believe that we have achieved that. 

“Many people were very critical of our going there…and some were even suggesting that we were summoned. We were not summoned. In my telephone conversation with President Trump two weeks earlier, I said, I want to come and see you. And immediately conceded to that, and later they gave us a date. So that is not summoning, it is us taking the initiative that we want to go and see him,” the President said. 

He said there was engagement that was taking place between the Department of Trade and Industry and Competition and the Department of International Relations. “So, we’ve opened the way for us to engage seriously with the United States. And on the other hand, we were also going to talk about trade matters, and that is now underway,” the President said. 

He added that the White House meeting was also used to underscore the importance of President Trump attending the upcoming G20 Summit, which South Africa will host in November. 

The President added that President Trump had “immediately conceded” that the G20 is not fully effective without the participation of the United States. 

“For us, it’s important as a nation to reposition ourselves in the very turbulent geopolitical architecture or situation that we have, and that is why it was important to go to the United States, as we will go to many other countries, both on our own continent, in the Middle East and in Asia and in Europe as well. 

“We are a country that is exposed and has relations with many countries around the world, and where the challenges and problems, we should immediately take action to correct those,” the President said. – SAnews.gov.za

Source: South Africa News Agency

The Basic Education Employment Initiative (BEEI) is not only curbing youth unemployment but reshaping labour market access for South Africa’s most excluded youth, with government now working to elevate the programme to new heights.

President Cyril Ramaphosa witnessed the impact of the programme on Tuesday when he visited the Sefako Makgatho Primary School in Saulsville, Tshwane, to interact directly with beneficiaries, educators and learners. 

“I’m glad to be here and to see you all. When I made the announcement a little while ago that we will be having up to 200 000 of you in all our schools, I did expect that you would all be coming through, and now I can see that you are real people, that you exist. 

“We are so delighted to have you as our teacher assistants, you are assisting in our schools [and] a very important area of our nation’s lives, education. You are the ones who are going to be preparing these young people for the future of our country that we all desire,” the President told the young teacher assistants. 

The President acknowledged the difficult socio-economic challenges young people face and highlighted government’s efforts to expand opportunities.

“I’m delighted that it is through you, young people, that we are doing this. Yes, I know that your own situation is not the most ideal. We are working very hard to create more permanent positions for you in many, many ways in the economy. 

“When government is dealing with these problems, it also initiates programmes like this one. We have up to now brought in almost two million of you as young people into this type of programme. 

“I am proud to be working with Ministers and Deputy Ministers in departments, who have taken this whole process of creating job opportunities very seriously,” the President said. 

He told the teacher assistants that what they are doing is very important to the country and government continues to invest money in youth initiatives meant to benefit young South Africans.

“We devote a lot of money and effort to education, and you are the products of that. We now need to take you to the next level, and we will work very hard to take you to the next level, where you will get more permanent jobs and better livelihoods, so you can support your own families,” the President said. 

He lauded the BEEI as a phenomenal programme, which has been able to employ more than two million young people since its inception. It is an overarching programme that covers over 25 000 schools across the country. 

According to President Ramaphosa, the initiative also develops discipline, management, and interpersonal skills among participants. These skills are essential for success in future employment. 

“That, to me, is hugely empowering for these young people, and we’ve had more than two million of them, and of course, we would want it to be much longer than what it is now. It’s a question of not having sufficient resources to be able to extend it beyond [that]. 

“But those who participate are then empowered and beyond this, they are then able to get other jobs, get other opportunities. They are now job ready, as it were, and that is a great benefit of what we are doing here. 

The President added that the programme is becoming a world-renowned programme.

“Many other countries are looking at what we are doing here and some of them are going to copycat what we are doing… So, we are trailblazers in many ways,” he said. 

President Ramaphosa praised the integrity of the programme, saying it has been “flawlessly executed” with the dedicated leadership within the Presidency and Departments of Basic Education and Employment and Labour.

Two young teacher assistants, who are currently benefiting from the programme, shared the same sentiments with the President, confirming that the initiative has made a huge difference in their lives. 

Joshua Given Machete told SAnews that he was grateful for the opportunity to become part of the labour market through the Basic Education Employment Initiative. 

“I have benefited by getting employed as a curriculum assistant and I really appreciate the opportunity by our President, as well and the Department of Basic Education for initiating this. 

“I work in the classroom, doing basic classroom management while the teachers focus on teaching. 

“This programme contributes to human dignity in a sense that you are now able to look after yourself and buy the things you need. Economically, it has made a difference in my life and I’m going to use some of the stipend to further my studies. 

“I encourage unemployed young people not to lose hope and keep on applying for programmes such as these. The President has promised that there will be more opportunities,” he said. 

Valria Ndleve told SAnews that she is employed as an education assistant at WF Nkomo, helping teachers and learners. 

“My job is to assist the teachers and learners in the classroom. This initiative is going to assist me personally and professionally. I am now financially stable and gaining experience at the same time,” she said.

The BEEI is a flagship programme of the Presidential Employment Stimulus (PES), designed to address the dual challenges of youth unemployment and support, for the basic education system by placing young people in roles within public schools as education and general school assistant. 

The programme is implemented by the Department of Basic Education and administrated by the Industrial Development Corporation.

This visit is part of President Ramaphosa’s programme to engage with youth beneficiaries of the Presidential Youth Employment Intervention (PYEI) and Presidential Employment Stimulus (PES) flagship programmes in Pretoria.

He began the visit at the Sefako Makgatho Primary School in Saulsville. He then proceeded to South African Creative Industries Incubator (SACCI) in Eersterust and ended at the Foundation for Professional Development (FPD) in Pretoria East. – SAnews.gov.za

Source: South Africa News Agency

The Eastern Cape Provincial Government has made strides in empowering young entrepreneurs, through the Isiqalo Youth Fund, an initiative that is aimed to support legally registered, youth-owned businesses across the province.

The fund is part of a broader strategy to foster youth development, promote entrepreneurship, and create sustainable employment opportunities in the province.

Launched in June 2019, the fund forms part of a broader provincial strategy aimed at fostering youth development, promoting entrepreneurship, and creating sustainable employment opportunities.

The fund provides both financial and non-financial support to businesses that are still in the early stages of growth.

To ensure accessibility, the Office of the Premier opens an annual application window, allowing young entrepreneurs to submit their proposals via a dedicated online portal. The call for applications is widely publicised through official websites, social media platforms, and municipal public notice boards across the province.

According to the provincial government, the initiative has already yielded tangible impact, with a total of 82 youth-owned businesses having been approved for support through the Entrepreneurship and Empowerment Programme during the previous term.

Of these, 22 enterprises have received funding, with over R12 million disbursed. The remaining 60 entrepreneurs have been identified in the programme pipeline and are scheduled to receive financial support during the current financial year.

“In addition to financial support, the initiative will offer business development training, mentorship, and market linkage facilitation to help improve the sustainability and growth potential of the supported enterprises,” the provincial government said.

Efforts are also underway to strengthen monitoring and evaluation mechanism to better track the impact of the fund and enhance accountability.

Eastern Cape Premier Lubabalo Oscar Mabuyane, highlighted the province’s commitment to expand the reach and impact of the programme through deeper collaboration with financial institutions and private sector partners.

He added that public awareness campaigns will be intensified to ensure that more young people are informed about the fund and can benefit from the initiative.

“Isiqalo Youth Fund is not just about disbursing money, it is about building a new generation of confident, capable entrepreneurs who can transform their communities.

“Young business owners across the Eastern Cape are urged to stay informed about future application windows, by following updates on official government platforms,” Mabuyane said. – SAnews.gov.za

Source: South Africa News Agency

Tuesday, June 10, 2025

Source: South Africa News Agency

Public Works Deputy Minister Sihle Zikalala has, during a media briefing on Tuesday, set the record straight regarding the appointment of the Independent Development Trust (IDT) Chief Executive Officer, Tebogo Malaka.

The Deputy Minister said he had noted with “deep concern” media articles which appear to have been deliberately planted and arranged to defame and tarnish his image, disguised as concerns about issues of governance in the IDT.

The IDT is a Schedule 2 State-owned entity, which manages the implementation and delivery of critically needed social infrastructure programmes on behalf of government. It reports to the Minister of Public Works and Infrastructure, who is the shareholder representative.

Addressing the media in Pretoria, the Deputy Minister explained that when he was appointed as Minister in March 2023, the appointment of the CEO had already been processed by the IDT Board with the concurrence received from his predecessor.

He said the recommendation to appoint Malaka as CEO had already been submitted to Cabinet for final processing when he joined the department.

“As the Minister, I withdrew the matter due issues that were emerging at the time about the entity and had to deal with the issues of due diligence,” Zikalala said.

He added that also informing his decision to withdraw the matter were allegations related to the office lease at the IDT, which was an issue that had been in the public domain long before his arrival in the department.

“I had to ensure that there is no conflict of interest. During the period of my arrival at the department, I found the IDT plagued by challenges and infighting among the board members, which defocussed the entity from its primary mandate of delivering social infrastructure to communities,” Zikalala said.

According to the Deputy Minister, at the time of his appointment as Minister, there were serious concerns about governance affairs of the IDT.

“As Minister at the time, I held a number of meetings to refocus the board to its governance and fiduciary duties, these efforts to focus the board on governance issues did not yield expected results. 

“I am the first Minister to task the board of the IDT to investigate the matter of the office lease and to give a report after six months,” Zikalala said. 

The Minister said he was committed to serving with integrity, transparency and accountability. – SAnews.gov.za