MIL Africa Engine

The Southern African Development Community (SADC) is facing the risk of further deindustrialisation after manufacturing’s contribution to the regional economy declined from 11.3% of GDP in 2024 to 10.9% in 2025.

Deputy Minister of International Relations and Cooperation Thandi Moraka said the decline was moving the region further away from its target of increasing manufacturing’s contribution to 30% of Gross Domestic Product by 2030.

Speaking at the closing of the ninth SADC Industrialisation Week in Durban on Thursday, Moraka said reversing the trend would require deliberate policy interventions, increased investment in productive sectors, stronger public-private partnerships and greater regional cooperation.

“The challenge before us is therefore not one of potential. It is one of coordination, implementation and follow-up,” Moraka said.

The four-day gathering brought together government officials, policymakers, investors, businesses, development finance institutions, researchers and academics to discuss ways of accelerating industrial development across the region.

Moraka said SADC countries needed to move away from exporting raw materials and importing finished products at higher costs.

She identified critical minerals as a major opportunity for the region, which has significant deposits of lithium, cobalt, manganese, graphite, rare earth elements and platinum group metals.

The focus should shift from extracting these resources to processing and refining them locally and developing higher-value manufactured products.

“Beneficiation must become our collective industrial strategy,” she said, adding that investment in downstream manufacturing should be a shared priority.

Agriculture and agro-processing were highlighted as key components of the region’s industrialisation strategy.

While the number of food-insecure people in SADC fell by 16% from 69 million in 2024 to 58 million in 2025, Moraka said the figure remained a major concern. Agricultural growth also recovered to between 2% and 3% in 2025, but remained below the African Union’s 6% target.

The spread of Foot and Mouth Disease across six SADC member states was identified as another threat to livestock production, regional trade and food security.

Moraka said greater investment in agriculture, agro-processing, logistics and technology was needed to strengthen regional value chains, create jobs and reduce food losses.

Although electricity generation capacity in the region had risen to 88 202 megawatts and electricity access increased from 56% in 2024 to 60% in 2025, access remained well below the regional target of 85% by 2030.

Moraka said reliable energy, transport infrastructure, logistics and digital connectivity were essential to industrial development.

She called for greater investment in technology, artificial intelligence, advanced manufacturing and digital infrastructure, saying SADC countries should become producers and innovators rather than merely consumers of emerging technologies.

The Deputy Minister said South Africa’s forthcoming Chairship of SADC would provide an opportunity to advance the priorities discussed during the Industrialisation Week.

She said the outcomes of the Durban gathering should translate into implementation, partnerships and industrial transformation across the region. – SAnews.gov.za

The Department of Social Development (DSD) has warned South Africans, particularly young people, to be cautious of fake online job offers that are increasingly being used by human trafficking syndicates to lure victims into exploitation.

The warning coincides with World Day Against Trafficking in Persons, observed on 30 July under the global theme: “Trapped Behind the Scam”, which highlights how organised criminal networks use fraudulent employment opportunities, often advertised on social media, to recruit victims.

Departmental Trafficking in Persons Manager Buti Kulwane said an increasing number of young South Africans have fallen victim to trafficking after accepting what appeared to be legitimate job opportunities in Thailand.

Instead of securing employment, victims are allegedly transported across the Thailand-Myanmar border, where they are forced to work in scam compounds carrying out cyber-enabled financial crimes under abusive conditions.

Kulwane said several groups of South African victims have been rescued and repatriated since 2024 through coordinated efforts involving the Department of International Relations and Cooperation (DIRCO), the South African Police Service (SAPS), the Directorate for Priority Crime Investigation (DPCI), the Border Management Authority, the Department of Home Affairs and civil society organisations.

He said survivors receive psychosocial support, family reunification and reintegration services upon their return to South Africa.

According to the department, traffickers typically lure victims with promises of lucrative salaries, free travel and overseas employment. However, victims reportedly endure long working hours, intimidation, violence and debt bondage once they arrive at their destinations.

The department also warned that many victims are forced to recruit friends and family members, allowing trafficking syndicates to expand their criminal operations.

The department urged young people to verify all overseas employment opportunities, research prospective employers and recruitment agencies, consult family members before accepting job offers and avoid relying solely on information shared on social media.

Parents, caregivers, educators and communities have also been encouraged to engage young people in discussions about the dangers of online recruitment scams and human trafficking.

Anyone who suspects human trafficking or exploitation is urged to report it to SAPS by calling 10111 or contact the Gender-Based Violence Command Centre on 0800 428 428. – SAnews.gov.za
 

By Dr Salomon Hoogenraad-Vermaak
The fight to safeguard public resources cannot be won only through arrests and prosecutions alone. While accountability for wrongdoing remains essential, the most effective strategy is one that prevents misconduct before public funds are misused and public trust eroded.

This is where lifestyle audits in the public service are playing a significant role. Far more than a routine compliance check, it represents a shift in how government strengthens integrity, manages risk and builds capable institutions. These audits move the public service from merely reacting to corruption towards identifying early warning signs to prevent it before it takes root.

Corrupt acts are often concealed through complex arrangements, undisclosed business interests, unexplained wealth, and off-book transactions that can remain undetected for years. By the time investigations commence, as seen in the various commissions established by government to uncover misconduct, public funds have often already been diverted, confidence in institutions has been undermined, and the cost of recovery is substantial.

Lifestyle audits are helping rebalance this equation by annually assessing whether a public servant’s standard of living is reasonably consistent with their known income, assets and declared financial interests. Introduced by the Department of Public Service and Administration (DPSA) as an objective risk management tool, it assists in identifying financial anomalies that may warrant further inquiry, while reinforcing transparency and ethical conduct across government.

This preventative approach reflects international best practice in public sector governance. Strong institutions are built not only on enforcing the law but also through systems that detect risks early, discourage misconduct, and make corruption significantly more difficult to conceal. Lifestyle audits strengthen accountability long before disciplinary or criminal processes become necessary.

Importantly, they also reinforce a culture of ethical leadership. Public office carries a constitutional responsibility to act in the interests of citizens and not personal enrichment. Lifestyle audits give practical expression to Section 195 of the Constitution, which requires a high standard of professional ethics throughout the public service. It sends a clear message that transparency, accountability and responsible stewardship of public resources are non-negotiable principles of public administration.

The introduction of the audits form part of government’s broader programme to professionalise the public service. 

Announced by President Cyril Ramaphosa in the 2018 State of the Nation Address, lifestyle audits were institutionalised through the adoption of a Guide to implement Lifestyle Audits in the Public Service (March 2021), providing a framework for conducting lifestyle audits in the public service and have since become mandatory across all national and provincial departments. They are now firmly embedded within Strategic Priority 3 of the Medium-Term Development Plan 2024–2029, which seeks to build capable state institutions founded on professionalism, ethics and accountability.

The progress achieved thus far demonstrates that this reform is moving from policy into practice. By March 2025, 91% of national and provincial departments were implementing lifestyle audits, a significant increase from 61% in 2023. During the 2025 reporting cycle, lifestyle reviews were conducted on 8 982 members of the Senior Management Service (SMS) and more than 160 000 other public servants. Where unexplained financial discrepancies were identified, the matters were referred for further investigation.

These statistics are more than mere performance indicators. They demonstrate that accountability is becoming institutionalised across government. Importantly, the true value of lifestyle audits lies not simply in the number of assessments completed, but in the establishment of governance systems that continuously monitor risk, strengthen ethical conduct, and reinforce public confidence in state institutions.

Lifestyle audits in the public service are part of a broader integrity system alongside financial disclosures, ethics management, consequence management, internal controls, whistle-blower protections and independent investigations. All these mechanisms create interlocking safeguards that make corruption harder to commit, easier to detect, and quicker to address.

Government is now building on this momentum. Working alongside the Special Investigating Unit, departments are strengthening investigative capacity through using specialised investigators capable of supporting complex lifestyle audit enquiries. At the same time, a single regulatory framework is being developed under the Public Administration Management Act to make lifestyle audits compulsory across all three spheres of government. These reforms will improve consistency, strengthen oversight, and ensure that ethical governance becomes embedded throughout the public administration system.

Every improvement in integrity strengthens investor confidence, supports economic growth, and reinforces the credibility of the state. When citizens trust that public resources are managed responsibly, confidence in democratic institutions grows, creating a stronger foundation for inclusive development.

Building a capable state requires institutions that consistently uphold ethical leadership, transparency, and accountability. Lifestyle audits play a vital role in making this possible, demonstrating that the development of a professional, ethical, and capable developmental state that earns and deserves the trust of all South Africans is within our grasp.

*Hoogenraad-Vermaak is head of the Public Administration Ethics, Integrity and Disciplinary Technical Assistance Unit at the Department of Public Service and Administration (DPSA)
 

The Minister of Finance, Enoch Godongwana, has reappointed Naheem Essop as the Deputy Pension Funds Adjudicator (DPFA) at the Office of the Pension Funds Adjudicator (OPFA) for a period of three years, effective from 1 August 2026 to 31 July 2029.

In a statement on Thursday, the Minister said Essop’s reappointment provides continuity at a time when the retirement funds environment continues to undergo legal, operational and regulatory change.

These changes include the implementation of the two-pot retirement system, persistent complaints relating to employers’ non-payment of retirement fund contributions, and the anticipated evolution of the Office of the Pension Funds Adjudicator.

Godongwana first appointed Essop as Deputy Pension Funds Adjudicator on 1 August 2023, in terms of section 30C of the Pension Funds Act, 24 of 1956.

Essop is an admitted attorney and holds an LLB degree. Before joining the OPFA, he practised as an attorney and later served in the Pension Funds Department of the Financial Services Board, which later became the Financial Sector Conduct Authority. –SAnews.gov.za

President Cyril Ramaphosa has endorsed a landmark report by the Eskom Restructuring Task Team (ERTT), setting out the framework for establishing a fully independent state-owned Transmission System Operator (TSO).

The report sets the stage for a restructuring of the electricity sector to “create competition, unlock investment, reduce electricity prices and ensure energy security for sustained economic growth and job creation.”

“This report shows how government can ensure that the architecture of the electricity sector can change as the sector continues to evolve, creating the foundation for South Africa’s growth.

“It is welcomed that all the key stakeholders are aligned on this objective,” President Ramaphosa said in a statement on Friday.

According to the Presidency, the report sets out recommendations for an “independent Transmission System Operator separate from Eskom.”

“The TSO is a key enabler of a successful competitive wholesale electricity market that is expected to deliver reliable and cost-effective electricity. This reform will support higher rates of economic growth, investment and job creation,” the Presidency said.

The report includes recommendations that:

• show that the restructuring is feasible, in line with international best practice, and can be done in a manner that does not compromise Eskom’s financial sustainability.
• highlight that the growth in municipal arrear debt to Eskom needs to be addressed because of the threat it poses to Eskom and the broader electricity sector.
• identify several actions that can be taken immediately to enable the restructuring.

“In Phase II, which starts immediately, the detailed transaction structure and implementation plan will be developed. Phase II will proceed over the next three months.

“The ERTT has proposed that a working group develop a consolidated action plan, encompassing all initiatives aimed at arresting the growth in municipal arrears and identifying those to be scaled up and accelerated.

“Such initiatives include stronger enforcement of credit controls, rolling out smart meters and Distribution Agency Agreements (DAAs), and stricter license enforcement, as well as the continued implementation of the Municipal Debt Relief Programme, Metro Trading Services Reform and the Electricity Distribution Industry (EDI) Reform Roadmap,” a Presidency statement noted.

Actions that can be implemented immediately include:

• strengthening interim measures to support the existing National Transmission Company of South Africa’s (NTCSA’s) independence and the internal ring-fencing of the NTCSA’s different licensed activities.
• taking first steps toward unbundling tariffs.
• clarifying the payment waterfall within the restructured market environment.
• developing mechanisms to insulate market participants from non-payment.

“The proposals to strengthen NTCSA’s independence during the interim period until the TSO is established include various requirements to ensure good governance and strengthened regulatory oversight.

“Directors serving on the Eskom board will not be appointed to the board of the NTCSA or serve on the boards of both the NTCSA and Eskom. The appointment of the Chief Executive Officer (CEO) and senior management of NTCSA will be the sole responsibility of the NTCSA Board,” the statement read.

Furthermore, there will be “clear delegation of authority from Eskom to the NTCSA of all decision-making related to the market, financial and operational ring-fencing of NTCSA from Eskom”. 

“Decisions on access to the transmission network are to be relocated to the NTCSA and eventually to the TSO. This includes cases in which connections are at the distribution level but have implications for the market or transmission network.

“Eskom Distribution will retain a Grid Access Unit to manage connections to its distribution network where projects connect at this level,” the statement concluded. – SAnews.gov.za