Growth and job creation. Reducing poverty and tackling the high cost of living. Building a capable, ethical and developmental state.
These are the three strategic priorities President Cyril Ramaphosa said the new Government of National Unity (GNU) would dedicate its time to over the next five years. The President seemed to be in top form on Thursday evening when he gave his Opening of Parliament Address for the seventh administration at Cape Town’s City Hall.
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“Exactly 50 days ago, the people of South Africa went to the polls to decide the future of our country,” said Ramaphosa.
“Through their votes, they determined that the leaders of our country should set aside their political differences and come together as one to overcome the severe challenges that confront our nation.
“They sent a clear message that without unity, cooperation and partnership, our efforts to end poverty, unemployment and inequality will not succeed. Guided by this directive from the people, political parties from across the political spectrum have elected to establish a Government of National Unity.
“In an act that is unprecedented in our democratic history, 10 political parties represented here in our Parliament have agreed to craft a common programme to build a better, more equal and more just South Africa. They have come together, despite their differences, because they have a commitment to a nation that is united, prosperous and inclusive.”
Growth and job creation
Ramaphosa said “inclusive economic growth” would be at the top of the GNU’s national agenda. His key plan for revitalising the economy is to start by fixing ailing municipalities.
Only 38 of SA’s 257 municipalities received a clean bill of health from the Auditor-General in her 2021/22 municipal audit report. Municipalities around the country grossly underperform in terms of governance, financial management and service delivery.
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Municipalities must be fixed because “growth happens at a local level”, said Ramaphosa. They must, he said, work to attract investment and create jobs at a more localised level.
“We will put in place systems to ensure that capable and qualified people are appointed to senior positions in municipalities and ensure independent regulation and oversight of the appointment process.
“As an immediate priority, we will bring stability to governance in our metros and restore the delivery of services. We have already begun this work,” he said.
Last week, Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa vowed to crack the whip on underperforming municipalities, warning that they would be dissolved and new elections held.
Improving infrastructure is part of this plan, according to Ramaphosa.
South Africa would “forge a new inclusive growth path” by pursuing “a massive investment in infrastructure”, said the President.
He said projects were under way around the country in areas such as transport, roads, water, energy and human settlements.
“From our largest metros to our deepest rural areas, we have a clear intention to turn our country into a construction site, as roads, bridges, houses, schools, hospitals and clinics are built, as broadband fibre is laid and as new power lines are installed.”
South Africa would also expand its exports and, in doing so, create more job opportunities, said Ramaphosa.
“To create more jobs for South Africans, we will focus on processing our minerals so that we export finished products rather than raw commodities,” he said.
As part of its export plan, Ramaphosa said the country “will seize the enormous opportunity in renewable energy for inclusive growth”.
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“South Africa has some of the best solar and wind resources in the world. As we undertake a just transition towards renewable energy, South Africa must create a green manufacturing sector centred on the export of green hydrogen and associated products, electric vehicles and renewable energy components.
“We have seen, for example, how the Northern Cape has already attracted billions of rands of investment in renewable energy projects.”
Electricity and Energy Minister Kgosientsho Ramogkopa previously told Daily Maverick he would not hold back on “aggressively driving” the renewable energy programme now that he has more powers.
Reducing poverty and tackling the high cost of living
Ramaphosa said the GNU would look to expand the basket of VAT-exempt essential food items and “undertake a comprehensive review of administered prices, including the fuel price formula, to identify areas where prices can be reduced”.
Civil society organisations have long campaigned for this.
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The implementation of the National Health Insurance (NHI) was another measure which would ensure the government reduced the high cost of living, said Ramaphosa.
“An important task of the next five years is to ensure that we also reduce the high cost of living through ensuring that everyone in South Africa has equal access to equitable, accessible and affordable quality healthcare…
“While there is much contestation around the NHI, there is broad agreement that we must draw on the resources and capabilities of both the public and private sectors to meet the healthcare needs of all South Africans equally,” he said.
Building a capable, ethical and developmental state
Ramaphosa said the GNU would work to “restore the financial position and operational performance of our state-owned enterprises [SEOs]”.
“We will complete the implementation of a new centralised ownership model for SOEs. This will improve accountability, transparency, governance and oversight, while reducing inefficiency and the potential for corruption. The establishment of a state-owned SOE holding company will give us greater capacity to build a sovereign wealth fund,” he said.
To tackle priority crime and corruption, South Africa must have “capable and independent law enforcement agencies”, said Ramaphosa. Priority crimes would continue to be tackled through specialised police units, he said.
Last, but not least, Ramaphosa punted the need for a National Dialogue to – together with the GNU – “set ourselves along the path towards a ‘cooperation nation’”.
“Despite all the challenges, despite our differences, despite all the headwinds, as South Africans we are called upon to remain firmly committed to pursue the path of cooperation, growth and inclusion,” said Ramaphosa. DM
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