The long walk continues...

Reflecting on #SONA2017 too many people are laughing and describing our parliament as a circus – and that is not because we take the cue from the president, who was laughing…

During the events I had a moment where I had to ask do we still have a democracy and democratic Parliament. 

Like 13 January 2015, the morning after, I lower my head in shame as a South African – this is not the democracy that hundreds of men and woman gave up their lives for us to enjoy.

Facial expressions one got from Chief Justice Mogoeng Mogoeng and former President Thabo Mbeki summed up that the undemocratic events during a Joint Sitting of the two houses of Parliament and should be of grave concern for each and every voter.

Our 490 members of Parliament have privileges on the chamber floor, or so I thought. How many times will we have to view the force removal of democratically elected members? They do represent a percentage of voters – whether it’s 0.8%, 6% or 30%.

 

Julius Malema and his caucus might have valid points, but as pointed out by the Leader of the Official Opposition, Mmusi Maimane, and Chairperson of the National Council of Provinces, Thandi Modise: the joint sitting was not the platform for them. 

Will there ever be a platform? ANC Chief Whip Jackson Mthembu’s point of order sounded like he was heading that way and then he made a u-turn. The former ANC spindoctor left a window open when he mention about “the ability of Parliament to remove the president”.

Given the few failed No Confidence and Impeachment motions I doubt it will happen in Jacob Zuma’s tenure. That makes me wonder do we really have to go through two more SONA’s that has more action than the Action Movie channel.

Whether you like or agree with him or not, Jacob Zuma is President of the Republic – duly elected by the democratically elected 400 members of the National Assembly.

The honourable members might have valid points of order, but until the President – irrespective of the person holding the office – is impeach, citizens have a right to hear (and not view) the State of our Nation.

As citizen and more particularly registered voter my hope and dream now is that our leaders – the Presiding Officers of Parliament will reach a point where they sit with leaders and Chief Whips of all parties represented in the house, along with the Leader of Government Business and the Parliamentary Counsellor to the President and – act in the interest of the country they meant to serve.

There is a dark cloud hanging over our democracy. If I read the last address, our first democratically elected president, the late Nelson Mandela delivered to Parliament [26 March 1999] I cannot wonder if Madiba knew that we would have to cross this bridge.

Tata warned us “the long walk continues. Mooi loop!”

#SONA2016

State of the Nation Address by Jacob G Zuma, President of the Republic of South Africa on the occasion of the Joint Sitting of Parliament on 11 February 2016

Good evening, sanibonani, molweni, dumelang, goeie naand, lotshani, riperile, ndimadekwana,

Today marks the 26th anniversary of the release of President Nelson Mandela from prison, which was one of the most remarkable episodes in the history of our country.

It is also the 50th anniversary of the declaration by the National Party regime that District Six would be a whites only area, leading to the forced removals of more than 60 000 residents.

The year 2016 also marks the 20th anniversary of the signing into law by Madiba, of the Constitution of the Republic. The signing took place in Sharpeville on 10 December 1996.

We are proud of our democracy and what we have achieved in a short space of time. Our democracy is functional, solid and stable. 

Compatriots,

The Constitution, which has its foundation in the Freedom Charter, proclaims that South Africa belongs to all who live in it. A lot has been done to promote inclusion and a non-racial society.

However, the journey to a non-racial society has not yet been completed. 

The nation was shaken last month when racism reared its ugly head on social and electronic media, causing untold pain and anger. 

There is a need to confront the demon of racism. Human Rights Day, March 21, will be commemorated as the national day against racism this year. It will be used to lay the foundation for a long-term programme of building a non-racial society.

Compatriots, I would like to remind you of a few other important anniversaries.

The year 2016 marks 60 years since the women’s march to the Union Buildings to demand an end to the pass laws. We are happy to have in our midst Ms Sophie de Bruyn, who was among the heroic leaders of that historic march. 

We also acknowledge the former President of the Black Sash, Ms Mary Burton. We acknowledge the organisation’s track record in fighting for human rights, justice and equality.

This year also marks 40 years since the landmark June 16 student uprising in Soweto. 

We welcome the photographer who shot the famous photograph of Hector Peterson carried by Mbuyisa Makhubu with his sister Antoinette, Mr Sam Nzima.

We also salute the class of 1976 for their bravery in standing up against the brutal apartheid regime. We acknowledge one of the activists of that era, the Deputy Secretary of Parliament, Ms Baby Tyawa, who is in our midst. 

This year we also mark 30 years since the ambush and brutal killing of the Gugulethu Seven by the apartheid police in March 1986.

The University of Fort Hare celebrates its centenary, which is a critical milestone in the liberation history of not only our country but the continent. The national celebrations will take place on the 20th of May. 

Let me recognise uMntwana wakwaPhindangene, the leader of the IFP who is a former student of the university. 

The year 2016 also marks the centenary of the battle of Deville Woods in France, which took place during the First World War. 

Scores of Black soldiers fought in the war but were treated badly due to the colour of their skin.

A memorial that will restore their dignity and humanity is scheduled to be unveiled in July this year in France.

Madam Speaker and Madam Chairperson,

A resilient and fast growing economy is at the heart of our radical economic transformation agenda and our National Development Plan.

When the economy grows fast it delivers jobs. Workers earn wages and businesses make profits. 

The tax base expands and allows government to increase the social wage and provide education, health, social grants, housing and free basic services - faster and in a more sustainable manner. 

Our economy has been facing difficulties since the financial crisis in 2008. We embarked on an aggressive infrastructure development programme to stimulate growth. 

Our reality right now is that global growth still remains muted. Financial markets have become volatile. Currencies of emerging markets have become weak and they fluctuate widely. 

The prices of gold, platinum, coal and other minerals that we sell to the rest of the world have dropped significantly and continue to be low. 

The economies of two of our partners in BRICS: Brazil and Russia - are expected to contract this year. The third, China, will not register the kind of robust growth that it is known for. 

Because our economy is relatively small and open, it is affected by all of these developments. 

Our economy is also affected by domestic factors such as the electricity constraints and industrial relations which are sometimes unstable. 

The IMF and the World Bank predict that the South African economy will grow by less than one per cent this year. The lower economic growth outcomes and outlook suggest that revenue collection will be lower than previously expected. 

Importantly, our country seems to be at risk of losing its investment grade status from ratings agencies. If that happens, it will become more expensive for us to borrow money from abroad to finance our programmes of building a better life for all especially the poor. 

The situation requires an effective turnaround plan from us. 

It is about doing things differently and also acting on what may not have been acted upon quickly before. 

I will share a few points that we believe would make a difference.

First, our country remains an attractive investment destination. It may face challenges, but its positive attributes far outweigh those challenges.

We must continue to market the country as a preferred destination for investments. This requires a common narrative from all of us as business, labour and government. 

If there are any disagreements or problems between us, we should solve them before they escalate. This is necessary for the common good of our country.

We have had fruitful meetings with business, including the high level meeting with CEOs on Tuesday this week.

We have heard the suggestions from business community on how we can turn the situation around and put the economy back on a growth path. 

We have heard the points about the need to create the correct investment support infrastructure.

Government is developing a One Stop Shop/Invest SA initiative to signal that South Africa is truly open for business. We will fast-track the implementation of this service, in partnership with the private sector.

Such an initiative requires that government removes the red tape and reviews any legislative and regulatory blockages. 

We have established an Inter-Ministerial Committee on Investment Promotion which will ensure the success of investment promotion initiatives.

Compatriots, we have heard the concerns raised about the performance of state owned enterprises and companies.

Many of our SOCs are performing well.

Sanral has built some of the best roads in Gauteng and in many parts of the country. These make us the envy of many parts around the globe.

The Trans Caledon Tunnel Authority has constructed dams of varied capacities, thus making it possible for our people to have access to safe drinking water.

Transnet has built rail infrastructure which has enabled our country’s mines to move massive bulk of commodities through our ports to markets around the globe.

Eskom, in spite of the challenges, still manages to keep the economy going, against all odds.

Our development finance institutions such as the Industrial Development Corporation (IDC) or Development Bank of Southern Africa and others have provided finance for infrastructure, various industries and agricultural businesses without fail, even in the aftermath of the global financial crisis.

For the state owned companies to contribute to the successful implementation of the National Development Plan, they must be financially sound. 

They must be properly governed and managed. We will ensure the implementation of the recommendations of the Presidential Review Commission on State Owned Enterprises, which outlines how the institutions should be managed.

The Deputy President chairs the Inter-Ministerial Committee which is tasked with ensuring the implementation of these recommendations.

We have to streamline and sharpen the mandates of the companies and ensure that where there are overlaps in the mandates, there is immediate rationalization. 

Those companies that are no longer relevant to our development agenda will be phased out. 

Government departments to which they report, will set the agenda and identify key projects for the State owned companies to implement, over a defined period. Proper monitoring and evaluation will be done.

These interventions are essential for growth and also for the reduction of national debt levels. 

Compatriots, We must take advantage of the exchange rate as well as the recent changes of visa regulations, to boost inbound tourism.

SA Tourism will invest one hundred million rand a year to promote domestic tourism, encouraging South Africans to tour their country.

We have heard concerns from companies about delays in obtaining visas for skilled personnel from abroad. While we prefer that employers prioritise local workers, our migration policy must also make it possible to import scarce skills.

The draft migration policy will be presented to Cabinet during the course of 2016. 

We have heard the appeals for policy certainty in the mining sector, especially with regards to the Mineral and Petroleum Resources Development Bill.

The Bill was referred back to Parliament last year. We await Parliament to conclude the processing, which we trust will be done expeditiously. 

Compatriots

We need to empower SMMEs to accelerate their growth. Access to high-quality, innovative business support can dramatically improve the success rate of new ventures. 

The department of small business development was established to provide such targeted support to small business.

Economic transformation and black empowerment remain a key part of all economic programmes of government.  One of our new interventions is the Black Industrialists Scheme which has been launched to promote the participation of black entrepreneurs in manufacturing.  

We urge big business to partner the new manufacturers including businesses owned by women and the youth, as part of broadening the ownership and control of the economy.

Compatriots 

We are proud of our Top 10 ranking in the World Economic Forum competitiveness report with respect to financial services. 

Maintaining and indeed improving our ranking is important to our competitiveness as a country. 

It is also fundamental to our ambition to become a financial centre for Africa. 

The banks, through the Banking Association of South Africa, are to launch a project aimed at establishing a centre of excellence for financial services and leadership training. 

This will ensure that as a country we can attract, nurture, develop and retain the best talent in financial services in our country and across our continent. 

They will work with the Minister of Finance and the National Treasury to get this done. We believe that this will over time ensure that we can expand the pool of financial skills and broaden the job opportunities for many young people. 

This strategic project from the banking sector is a positive and encouraging outcome of our engagement with business this week. 

Together we move South Africa Forward!

Compatriots,

We have made an undertaking to spend public funds wisely and to cut wasteful expenditure, but without compromising on the core business of government and the provision of services to our people. 

In 2013, the Minister of Finance announced a number of cost containment measures. 

Excessive and wasteful expenditure has been reduced, but there is still more to be done to cut wastage.

I would like to announce some measures this evening. 

Overseas trips will be curtailed and those requesting permission will have to motivate strongly and prove the benefit to the country. 

The sizes of delegations will be greatly reduced and standardised. 

Further restrictions on conferences, catering, entertainment and social functions will be instituted.

The budget vote dinners for stakeholders hosted by government departments in Parliament, after the delivery of budget speeches will no longer take place. 

The Minister of Finance will announce more measures and further details in the budget vote speech on the 24th of February.

The executive management and boards of public agencies and state owned companies must undertake similar measures. 

I also invite Premiers of all nine provinces as well as mayors to join us as we begin eliminating wasteful expenditure within government. 

I trust that Parliament and the Judiciary will also be persuaded to consider the implementation of similar measures.

Compatriots

A big expenditure item, that we would like to persuade Parliament to consider, is the maintenance of two capitals, Pretoria as the administrative one and Cape Town as the legislative capital. 

We believe that the matter requires the attention of Parliament soon.

Compatriots

We all have a lot to do to turn the economy around and to cut wastage. We will go through a difficult period for a while, but when the economy recovers, we will be proud of ourselves for having done the right thing. 

Compatriots,

I would now like to report back on the undertakings made last year. During the State of the Nation Address in February 2015. I announced the Nine Point Plan to respond to sluggish growth.

The nine point plan consists of: 

a. Revitalisation of the agriculture and agro-processing value-chain;

b. Advancing beneficiation adding value to our mineral wealth; 

c. More effective implementation of a higher impact Industrial Policy Action Plan;

d. Unlocking the potential of SMME, co-operativess, township and rural enterprises; 

e. Resolving the energy challenge;

f. Stabilising the labour market;

g. Scaling-up private-sector investment;

h. Growing the Ocean Economy;

i. Cross-cutting Areas to Reform, Boost and Diversify the Economy;

i. Science, technology and innovation

ii. Water and sanitation

iii. Transport infrastructure

iv. Broadband rollout 

v. State owned companies. 

We have made significant progress in the implementation of the plan. 

Progress has been made to stabilise the electricity supply. There has been no load shedding since August last year which has brought relief for both households and industry alike. 

Government has invested eighty three billion rand (R83 billion) in Eskom which has enabled the utility to continue investing in Medupi and Kusile, while continuing with a diligent maintenance programme.

Additional units from Ingula power station will be connected in 2017, even though some of them will begin synchronisation this year.

The multiple bid windows of the Renewable Independent Power Producer Programme have attracted an investment of one hundred and ninety four billion rand. 

This initiative is a concrete example of how government can partner with the private sector to provide practical solutions to an immediate challenge that faces our country.

In 2016, government will select the preferred bidders for the coal independent power producer. 

Request for Proposals will also be issued for the first windows of gas to power bids.

The nuclear energy expansion programme remains part of the future energy mix. 

Our plan is to introduce nine thousand six hundred megawatts of nuclear energy in the next decade, in addition to running Koeberg Nuclear Power Plant. 

We will test the market to ascertain the true cost of building modern nuclear plants. 

Let me emphasise that we will only procure nuclear on a scale and pace that our country can afford.

Compatriots,

Our government through the Department of Trade and Industry introduced a number of incentives in the past few years to boost investments in the manufacturing sectors especially textiles, leather and the automotive sectors.

Progress has been made in these sectors.

The incentives for the automotive sector have attracted investments of over twenty five billion rand over the last five years. We welcome key investments from Mercedes, General Motors, Ford, Beijing Auto Works, the Metair group, BMW, Goodyear and VW. 

The clothing and textile sector has also been successfully stabilised after a difficult few years. 

Multinational companies such as Nestle, Unilever Samsung and Hisense have also affirmed South Africa as a regional manufacturing hub. 

They have retained and expanded their investments in new plants. 

Indeed the progress made in manufacturing has certainly demonstrated that the incentive programmes are effective and attractive to investors.

Compatriots,

I announced programmes for the revitalisation of agriculture last year. We introduced the Agri-Parks programme, aimed at increasing the participation of small holder farmers in agricultural activities.  

Construction has begun in at least five agriparks, which are: Westrand in Gauteng, Springbokpan in North West, Witzenberg in Western Cape, Ncora in the Eastern Cape and Enkangala in Mpumalanga. 

The agricultural programmes must empower women farmers as well. Allow me to introduce the winner of the Female Entrepreneur of the Year 2015, Ms Julia Shungube, from Nkomazi municipality in Mpumalanga. 

Honourable Speaker and Chairperson,

Land reform remains an important factor as we pursue transformation.

I spoke about the fifty/fifty policy framework last year, which proposes relative rights for people who live and work on farms. 

Twenty seven proposals have been received from commercial farmers and four are being implemented in the Eastern Cape and the Free State.

I also announced the Regulation of Land Holdings Bill which would place a ceiling on land ownership at a maximum of 12 000 hectares and would prohibit foreign nationals from owning land. They would be eligible for long term leases. The draft Bill will be presented to Cabinet in the first semester of the year.

We also announced the re-opening of land claims for people who had missed the 1998 deadline. The number of new land claims that have been lodged stood at close to one hundred and twenty thousand as of December last year.

Compatriots,

As we are aware, five provinces have been seriously affected by drought, namely North-West, KwaZulu-Natal, Free State, Limpopo and Mpumalanga. 

Government provides relief to affected communities. Isomiso sixakile impela ezifundazweni eziningi. Imfuyo iyafa kanti nezolimo zisele emuva. Isikhathi esinzima lesi. 

Uhulumeni uzoqhubeka nokuxhasa abalimi kanye nokusiza imiphakathi ngezimoto ezithwala zamanzi.

Let me take this opportunity to commend the civil society initiative, Operation Hydrate  and others for the provision of water relief to many communities in distress.

The building of water infrastructure remains critical so that we can expand access to our people and industry.

The first phase of the Mokolo and Crocodile Water Augmentation project in Lephalale area in Limpopo is fully operational. It will provide 30 million cubic meters of water per annum.

The raising of the Clan William Dam wall in the Western Cape entails raising the existing dam level by 13 metres to provide additional water supply. 

To curb water wastage, the Department of Water and Sanitation has begun its programme of training fifteen thousand young people as artisans. 

Madam Speaker, Madam Chairperson,

On improving labour relations, we welcome the agreement reached by social partners at NEDLAC on the principle of a national minimum wage. 

Deliberations continue on the level at which the minimum wage must be placed.

It is important to emphasise that the national minimum wage should be implemented in a manner that does not undermine employment creation, the thriving of small businesses or sustained economic growth.

We are also encouraged by reports from NEDLAC that a framework to stabilize the labour market by reducing the length of strikes and eliminating violence during strike action is being finalized.  

We have heard the concerns of labour about the Tax Amendment Act that I signed into law in December, following its passing by Parliament.

Government is in discussion with COSATU about the matter and a solution is being sought.

Discussions are also on-going within government, led  by the Department of Social Development and National Treasury, with regards to finalising the comprehensive social security policy.

Compatriots,

Only a few years ago, our mining sector was in turmoil especially on the platinum belt. 

The situation has improved and we commend business and labour for the progress made. 

Another positive development in the mining sector was the Leaders’ Declaration to Save Jobs which was signed by mining industry stakeholders in August 2015. 

We urge the parties to implement the agreement and to continue seeking ways of saving jobs. 

We appeal to business again that retrenchments should not be the first resort when they face difficulties.

Compatriots,

In 2014 we launched the popular operation Phakisa Big Fast results methodology and implemented it in the ocean economy, health, education and mining sectors.

Seven billion rand has been committed in new port facilities, following the adoption of a Public- Private-Partnership model for port infrastructure development by Transnet National Ports Authority.

Compatriots, we were concerned that South Africa did not own vessels while we are surrounded by about three thousand kilometres of a coastline. 

Through the oceans economy segment of Operation Phakisa, we are trying to solve this challenge.

I am pleased that two bulk carrier vessels have been registered in Port Elizabeth, and a third tanker in Cape Town under the South African flag. 

Another positive Operation Phakisa development has been the launch of a fuel storage facility here in Cape Town, bringing an investment of six hundred and sixty million rand.

Aquaculture appears to be an important growth area within the oceans economy segment of Operation Phakisa. 

Close to three hundred and fifty thousand rand private sector investment has thus far been committed in the Aquaculture sector. Nine aquaculture farms are already in production.  These farms are located within the Eastern Cape, KwaZulu-Natal, Western Cape and Northern Cape.  

We continue to promote innovation within the Nine Point Plan programme. 

The Department of Science and Technology will finalise the Sovereign Innovation fund, a Public private funding partnership aimed at commercialising innovations that are from ideas from the public and the private sectors. 

Government will fast track the implementation of the first phase of broadband roll-out to connect more than five thousand government facilities in eight district municipalities over a three year period.

Funding to the tune of 740 million rand over a three year period has been allocated in this regard.

Compatriots

A lot of work was done in the social sector as well in the past year.

Government has responded to the financial shortfall arising from the zero per cent university fee increase, as agreed in meeting with students and vice-chancellors last year.

The Minister of Finance will provide the details of education shortfall funding in the Budget speech. 

I have appointed a Judicial Commission of Inquiry into higher education. We urge all stakeholders to cooperate with the Commission and help ensure its success.

On the health front, the life expectancy of South Africans for both males and females has significantly improved and is currently 62 years across genders, which is an increase of eight and a half years since 2005.  

The HIV policy turnaround in 2009 led to a massive rollout of HIV testing and treatment for 3.2 million people living with the virus. 

This has contributed immensely to healthier and longer lives for those infected. 

We acknowledge the contribution of partners in the South African National Aids Council which is chaired by the Deputy President.

Our next step is to revive prevention campaigns especially amongst the youth. The Minister of Health will soon announce a major campaign in this regard.

I am also happy to announce that the state-owned pharmaceutical company, Ketlaphela, has been established. The company will participate in the supply of anti-retroviral drug to the Department of Health from the 2016/17 financial year.

Meanwhile, the White Paper on National Health Insurance was released in December aimed at improving health care for everyone in South Africa. 

Compatriots,

Local government elections will be held within three months after the 18th of May, the date of the last elections. 

We urge all citizens who are over the age of 18 to register to vote during the first registration weekend, 5 and 6 March 2016. 

We urge the youth in particular who are turning 18 years of age this year, to register in their numbers for this first ever opportunity to cast their votes.

Our Back to Basics local government revitalisation plan was launched in September 2014 and 2015 has been the year of intensive implementation. 

In this second phase of implementation, national government will engage in more active monitoring and accountability measures. 

This includes unannounced municipal visits, spot checks of supply chain management processes, the implementation of recommendations of forensic reports, site visits of Municipal Infrastructure Grant funded projects, and increased interventions to assist struggling municipalities.

A 10 point plan of Back to Basics priority actions has been developed to guide this next phase.

The plan includes the promotion of community engagement, which is absolutely critical to enable communities to provide feedback on their experience of local government.

I already undertook a walkabout at Marabastad taxi and bus rank in Pretoria on Monday to speak to informal traders and commuters.

The majority of complaints and issues raised related to municipal services.

They would like the Tshwane municipality to clean the area and also to fix some broken sewerage pipes. Traders said they needed and were prepared to pay.

They alerted me that many people in Elandspoort receive RDP houses but instead of occupying them, they either sell them or rent them out other people. 

Mrs Baloyi who runs a stall complained about nyaope drug addicts who steal goods from traders.

Other commuters said I must visit Kwaggafontein in the former KwaNdebele and see the lack of service delivery. I will visit the area soon.

I was also able to speak to foreign nationals who said they queue daily to apply for documentation from the Department of Home Affairs. We will continue to visit communities to hear their concerns and suggestions. Issues raised during the visit will be followed up by the respective departments.

Compatriots

The South African Police Service is undergoing a turnaround and has adopted the Back to Basics approach to management to rebuild the organisation and to improve performance at all under-performing police stations.

We note sadly, as well that fifty seven police officers have been murdered to date during the 2015/16 financial year. We condemn this criminality strongly.

We urge the police to defend themselves when attacked, within the confines of the law.

Compatriots 

The African continent remains central to our foreign policy engagements. 

South Africa continued to support peace and security and regional economic integration through participation in the African Union and the Southern African Development Community initiatives.

We continued to assist sister countries in resolving their issues for example in Lesotho and South Sudan. 

The South African National Defence Force represented the country bravely and remarkably well in peacekeeping missions on the continent.  We are truly proud of our soldiers. They will be showcasing their capability in Port Elizabeth from the 13th to the 21st of February, the celebration of Armed Forces Day.

The Agreement by BRICS nations on the New Development Bank or BRICS Bank came into force and the bank is envisaged to approve its inaugural projects in April this year.

We participated in the India-Africa Summit as well as the Forum on Cooperation between Africa and China as we strengthened these important partnerships.

China announced investments of fifty billion US dollars of which South Africa will receive ten billion US dollars for infrastructure, industrialisation and skills development. 

On North-South cooperation, we continued our engagements with the European Union as a bloc which is our largest trading partner and foreign investor. 

Over 2000 EU companies operate within South Africa creating over three hundred and fifty thousand jobs. 

South Africa’s relations with the USA and Canada continue to strengthen, especially in the areas of economy, health, education, energy, water, safety and security, capacity building and the empowerment of women.

The renewal and expansion of the African Growth and Opportunity Act (AGOA) provides a platform for the enhancement of industrialisation and regional integration. All outstanding issues around AGOA are being attended to.

Compatriots 

We extend good wishes to all athletes who have qualified for the Olympic Games to be held in Rio de Janeiro. 

We encourage participation in several programmes aimed at promoting healthy lifestyles and nation building.

These include the National Recreation Day, the Nelson Mandela Sports and Culture Day; the World Move for Health Day, the Golden Games and the Andrew Mlangeni Golf Development Day.

Compatriots,

A committee has been established to coordinate the participation of our performing arts legends in nation building activities in the country.

The Living Legends committee is chaired by playwright Mr Welcome Msomi working with music icon, Ms Letta Mbulu, as deputy chairperson.

We are also happy that musicians and actors amongst others heeded our call to unite and have formed the Creative Industries Federation of South Africa. The Presidency has established the Presidential Creative Industries Task Team to support our artists.

Compatriots,

To achieve our objectives of creating jobs, reducing inequality and pushing back the frontiers of poverty we need faster growth. 

In the National Development Plan, we set our aspirational target growth of five per cent per year, which we had hoped to achieve by 2019. 

Given the economic conditions I have painted earlier on, it is clear that we will not achieve that growth target at the time we had hoped to achieve it. 

The tough global and domestic conditions should propel us to redouble our efforts, working together as all sectors. In this regard, it is important to act decisively to remove domestic constraints to growth. 

We cannot change the global economic conditions, but we can do a lot to change the local conditions. 

Let us work together to turn the situation around. It can be done.

I thank you.

State of the Nation Address by Pres. Jacob Zuma

Speaker of the National Assembly, Baleka Mbete
Chairperson of the National Council of Provinces, Thandi Modise
Deputy Speaker of the National Assembly and Deputy Chairperson of the NCOP,
Deputy President of the Republic, Honourable Cyril Ramaphosa,
Honourable Ministers and Deputy  Ministers,

Former Deputy President Kgalema Motlanthe,
Honourable Chief Justice of the Republic, and all esteemed members of the Judiciary,
Premiers and Speakers of Provincial Legislatures,
The Heads of Chapter 9 Institutions,
Members of the diplomatic corps,
Honourable members,
Chairperson of SALGA, and all local government leadership,
Chairperson of the National House of Traditional Leaders,
Leaders from all sectors,Fellow South Africans,
Distinguished guests

Good evening, sanibonani, molweni, riperile, dumelang, ndi madekwana.

It is a great pleasure to address you on this first State of the Nation Address of the fifth democratic administration.

Let me begin by extending our deepest condolences on the sad passing of the Secretary of Parliament, Mr Michael Coetzee.

His contribution to the struggle for freedom and democracy will never be forgotten.

Last week we also lost our mother, Mama Epainette Mbeki. Her guidance and wisdom will be sorely missed. We extend our heartfelt condolences to the Mbeki family.

Our hearts go out to the families of SANDF members who died in a tragic helicopter crash in Mpumalanga today during a training camp.  We wish the injured a speedy recovery.

Compatriots,

We have recently emerged from a successful national general election held on the 7^th of May. We look forward to working with all the parties in Parliament as we move South Africa forward.

In the February State of the Nation Address, I related the good story of 20 years of freedom and democracy.

We stated that South Africa is a much better place to live in than it was in 1994, and that the lives of millions of our people have improved.

However, as the National Development Plan and the Presidency Twenty Year Review highlight, the triple challenges of poverty, inequality and unemployment continue to affect the lives of many people.

As we enter the second phase of our transition from apartheid to a national democratic society, we have to embark on radical socio-economic transformation to push back the triple challenges.

Change will not come about without some far-reaching interventions.

We have put in place a programme of action based on the ANC Manifesto and the National Development Plan.

The economy takes centre stage in this programme.  It remains our strong belief that the most effective weapon in the campaign against poverty, is the creation of decent work, and that creating work requires faster economic growth.

We have set a growth target of 5 per cent by 2019. To achieve this, we will embark on various measures and interventions to jump-start the economy.

We have set this target during a difficult period. The economy has grown below its potential over the last three years and many households are going through difficulties.

The slow growth has been caused in part by the global economic slowdown and secondly by domestic conditions, such as the prolonged and at times violent strikes, and also the shortage of energy.

Given the impact of the untenable labour relations environment on the economy, it is critical for social partners to meet and deliberate on the violent nature and duration of the strikes.

The social partners will also need to deliberate on wage inequality. On our side as Government we will during this term investigate the possibility of a national minimum wage as one of the key mechanisms to reduce the income inequality.

Deputy President Cyril Ramaphosa will convene the social partners dialogue, within the ambit of NEDLAC.

Secondly, Government will play its part in the implementation of the landmark Framework Agreement for a Sustainable Mining Industry entered into by labour, business and government last year, under the leadership of former Deputy President Kgalema Motlanthe.

The process will now be led by the President.

We will implement the undertaking to build housing and other services to revitalize mining towns, as part of the October 2012 agreement between business, government and labour.

The focus is the mining areas of Motlosana, Emalahleni, Sekhukhune, Lephalale, West Rand and Matjhabeng.

An Inter-Ministerial Committee on the Revitalisation of Distressed Mining Communities has been established under the leadership of the Minister in the Presidency responsible for Planning, Performance Monitoring and Evaluation, Mr Jeff Radebe.

The members of the committee include the Ministers ofMineral Resources, Water and Sanitation, Trade and Industry, Social Development, Labour, Human Settlements, Health, Economic Development and Finance.

To further promote improved living conditions for mine workers, Government is monitoring the compliance of mining companies with Mining Charter targets, relating to improving the living conditions of workers.

Companies are expected to convert or upgrade hostels into family units, attain the occupancy rate of one person per room and also facilitate home ownership options for mine workers.

We urge the companies to meet the 2014 deadline for these targets and extend this right to dignity to mine workers.

Honourable Members

Distinguished guests,

The low level of investments is a key constraint to economic growth. We are determined to work with the private sector to remove obstacles to investment.

We would like to see the private sector showing as much confidence in the economy as the public sector.

We will continue to engage business in promoting inclusive growth and to build a more prosperous society. In this regard, I will soon convene a meeting of the Presidential Business Working Group.

After the last meeting of the Working Group last year, six work streams were established and these have been discussing solutions to various obstacles to doing business in South Africa.

These issues were also raised by owners and CEOs of major companies that I hosted in three separate, intensive working sessions at the Mahlamba Ndlopfuresidence in November and December last year.

The next meeting of the Working Group will take forward the partnership for inclusive growth and sustainable development.

Fellow South Africans,

We need to respond decisively to the country’s energy constraints in order to create a conducive environment for growth.

The successful electrification programme which has changed the lives of many households was achieved by tapping into artificial electricity reserves, which had not been designed to cater for mass energy distribution.

This situation calls for a radical transformation of the energy sector, to develop a sustainable energy mix that comprises coal, solar, wind, hydro, gas and nuclear energy.

The transformation will require structural changes in the manner in which government departments, affected state owned companies and the industry as a whole address the energy challenges.

The energy plan also calls for the injection of capital and human resources into the energy sector.

We will also need to identify innovative approaches to fast-track procurement and delivery by government in the energy sector.

To prepare the institutional capacity, we are in the process of converting the National Nuclear and Energy Executive Coordinating Committee of Cabinet, into the Energy Security Cabinet Sub-committee.

The sub-committee will be responsible for the oversight, coordination and direction of activities for the energy sector.

The sub-committee will also ensure that Eskom receives the support it requires to fulfil its mandate and that it remains focused on achieving its goals and targets.

To achieve our energy security goals, state owned companies involved in the Energy Sector, such as Eskom, South African Nuclear Energy Corporation and the Central Energy Fund will have to adapt to the redefined roles to achieve these objectives.

Work needs to be done at a technical level on all forms of energy especially nuclear energy and shale gas with regards to funding, safety, exploitation and the local manufacture of components.

Nuclear has the possibility of generating well over 9000 megawatts, while shale gas is recognised as a game changer for our economy.

We will pursue the shale gas option within the framework of our good environmental laws.

There are also some urgent activities that we are engaging in, in the short term. Progress at Medupi power station construction site will be accelerated.

Plans on the financing of the next large coal fired power station, Coal 3, will be speeded up so that the procurement process can commence.

We will also continue the 4^th window of the renewable energy independent power producers programme, to take advantage of wind, solar, biomass and other technologies that increase the opportunity for rural development.

Honourable Speaker and Honourable Chairperson,

We are also looking beyond our borders for energy security.

In October last year we signed the Grand Inga Hydro Power Project Treaty with the Government of the Democratic Republic of Congo. This massive and strategic project has the potential to generate 40 000 megawatts of hydro-electricity.

Our country will benefit enormously from this milestone project.

To prepare for the implementation of the energy plan, we need to finalise the legislation that relates to the restructuring of the energy industry as envisaged by the Independent System Market Operator Bill, the Integrated Resource Plan and other policies affecting the Energy sector.

Honourable members,

Distinguished guests,

We are a nation at work.

In addition to our major energy security interventions, we will continue to implement the successful National Infrastructure Plan, under the supervision of the Presidential Infrastructure Coordinating Commission, throughout the country.

During the past five years, we invested about one trillion rand in new infrastructure to provide water, energy, transport, sanitation, schools and clinics and internet connections to our people.

Over the next three years, we will spend 847 billion rand on the infrastructure and several projects are to be started or completed.

The construction of Mzimvubu Dam in the Eastern Cape will continue, and also the raising of the wall of Clanwilliam Dam in the Western Cape.

During the next five years the bulk of the construction work on Phase 2 of the Lesotho Highlands Water Project will be completed.

In the next five years, we will finish building more than 60 MeerKat dishes and start building the first 100 Square Kilometre Array dish antennas.

We will expand, modernise and increase the affordability of information and communications infrastructure and electronic communication services, including broadband and digital broadcasting.

Cabinet adopted “South Africa Connect”, our Broadband Policy and Strategy, in December last year to take this mission forward.

We will continue with various other infrastructure projects that will change the living conditions of our people and boost economic growth.

Compatriots

Our radical socio-economic transformation programme will be taken further with the implementation of the Industrial Policy Action Plan.

We will promote local procurement and increase domestic production by having the state buy 75% of goods and services from South African producers.

We will utilise the renewable energy sector, the manufacturing of buses, Transnet’s R50 billion locomotive contracts and PRASA’s passenger rail projects among others, to promote local content and boost growth.

We will also over the next five years promote regional economic development and industrialisation, through the creation of Special Economic Zones around the country.

We will continue to support through incentives, the competitiveness of the auto, clothing, leather, footwear and textile industries, which are labour intensive.

Honourable members

Despite tough global trading conditions in its traditional markets, South Africa’s tourism sector continued to show positive growth in 2013, reaching a record high of 9.6 million international tourist arrivals.

People love our country and continue to visit South Africa.

We have set a target to increase the number of foreign visitor arrivals to more than 15 million annually by 2017.

We are also looking at increasing the contribution of tourism to the country’s revenue to more than 125 billion rand by 2017.

Over the next five years, we will prioritise support to small business, as well as township and informal sector businesses in particular, thus using the SMME development programme to boost broad-based black economic empowerment.

We will sharpen the implementation of the amended Broad-based Black Economic Empowerment Act and the Employment Equity Act, in order to transform the ownership, management and control of the economy.

We will promote more employee and community share ownership schemes and boost the participation of black entrepreneurs in the re-industrialisation of the economy.

Compatriots,

The total assets of our Development Finance Institutions amount to some R230 billion.

However, their impact on development is not sufficiently broad-based and their investment programmes are not well coordinated.

The institutions will be repositioned in the next five years to become real engines of socio-economic development.

In the same vein, Postbank will be supported so that it can play a leading role in the expansion of banking services to the poor and the working class.

Honourable members,

Distinguished guests,

Youth empowerment will be prioritised in our economic transformation programme.

Government will introduce further measures to speed up the employment of young people, consistent with the Youth Employment Accord.

We will expand the number of internship positions in the public sector, with every government department and public entity being required to take on interns for experiential training.

The private sector has responded positively to the introduction of the employment tax incentive. In only five months, there are 133 000 employees who have benefited and 11 000 employers who have participated in the incentive scheme.

The majority has been employed in wholesale and retail trade, manufacturing and finance sectors.

Honourable Speaker,

Honourable Chairperson,

Government has since 2004 run the successful Expanded Public Works Programme which provides work opportunities and training for the unemployed. The new phase will provide six million work opportunities by 2019. We are building on the success of the past few years.

We created around four million work opportunities in the past five years.

The Expanded Public Works programme environmental initiatives such as working on waste, working on wetlands, working for water, working on fire and the Environmental Youth Services programme will also be upscaled up to 2019, in support of youth development.

In addition, the local government- based Community Work Programme will be expanded to provide a million work opportunities by the end of 2019.

Compatriots

We have identified agriculture as a key job driver. Our target is for the agricultural sector to create a million jobs by 2030.

Government will provide comprehensive support to smallholder farmers by speeding up land reform and providing technical, infrastructural and financial support.

Support will be provided to communities as well to engage in food production and subsistence farming to promote food security, in line with the Fetsa Tlala food production programme.

We will accelerate the settlement of remaining land claims submitted before the cut-off date of 1998. We will also re-open the period for the lodgement of claims for the restitution of land for a period of five years, and codify the exceptions to the 1913 cut-off date for the descendants of the Khoi and San.

Honourable speaker,

Honourable Chairperson,

Sub-Saharan Africa is increasingly becoming a more important trade partner for our country. We are encouraged that South African investments in the continent increased from 5.5 billion rand in 2002 to 32.3 billion rand in 2013.

Our exports into the continent are also increasing each year, having been at 28.5 percent up from 22.6 percent in 2002.

South Africa will continue to champion broader regional integration through the Southern African Customs Union, SADC and the envisaged Tripartite Free Trade Area that spans Eastern and Southern Africa.

Fellow South Africans,

We would like our people’s experience of local government to be a pleasant one.

We have listened to the complaints and proposals of South Africans over the past five years, relating to the performance of municipalities.

I would like to share with you now, our plan of action to revitalise local government.

Our municipalities are built on a firm foundation, built over the last 20 years of democracy.

We have evaluated all our municipalities.

We have inspected their financial management, how they work within legislative processes as well as their ability to roll out projects and to address capacity constraints.

We have also looked at how they respond to service delivery protests. There have been many successes in many municipalities. However we face a number of challenges in others.

We are pleased that eleven municipalities stand out for consistent good performance in audits, expenditure on municipal infrastructure grants and service delivery.

The eleven municipalities are the following;

1.      Nkangala District Municipality.

2.      Cacadu District Municipality.

3.      Zululand District Municipality.

4.      Umzinyathi District Municipality.

5.      Ilembe District Municipality.

6.      Knysna Local Municipality.

7.      The West Coast District Municipality.

8.      Matzikama Local Municipality.

9.      Mossel Bay Local Municipality.

10.  Breede Valley Local Municipality and

11.  Steve Tshwete Local Municipality.

We congratulate the municipalities for this performance.

A comprehensive assessment of various municipalities has indicated where they need support.

We will provide assistance to the following municipalities amongst others:

In Amathole District Municipality in the Eastern Cape, our Development Bank of Southern Africa has approved funding to develop infrastructure.

One hundred numerous projects, mainly in water and sanitation, will be started and the objective is to complete them over the next 12 months.

In Umzinyathi District Municipality, KwaZulu-Natal, funding will be provided to develop infrastructure projects covering mainly the electrification of households.

The local municipalities to be serviced include Msinga, Umvoti and Nqutu.

In Alfred Nzo District Municipality in the Eastern Cape, funding will be provided for infrastructure development projects covering water provision, sanitation, and electrification.

Local municipalities involved include Mbizana and Ntabankulu, catering for a population of about one million people.

We will support Lukhanji Local Municipality to reorganize its administration and implement support plans for the provision of water and electricity.

We will assist OR Tambo District municipality to stabilise the administration and organizational structure and fast-track the implementation of the Presidential Intervention Plans.

In Mbashe Local Municipality we will implement waste management plans and address ground water contamination issues.

At Ngaka Modiri Molema District Municipality in the North West, national government will provide support and work with the Development Bank of Southern Africa to resolve financing for water and sanitation infrastructure.

We will support the City of Joburg in Gauteng to resolve problems with the billing system.

We will support Moqhaka Local Municipality in the Free State with the eradication of the bucket system and open toilet challenges.

Meanwhile work is underway to eradicate the bucket system throughout the country. This will also be the priority of the Inter-Ministerial Task Team on Service Delivery that I have established. The team is led by Minister Pravin Gordhan.

The team comprises the Ministers of Planning, Performance Monitoring and Evaluation in the Presidency, Human Settlements, Water and Sanitation, Transport, Home Affairs, Public Enterprises, Energy, Rural Development and Land Reform, Health and Basic Education.

Honourable Speaker and Honourable Chairperson,

A key focus area in local government in the next five years will be how we respond to the  reality of rapid urbanisation.

South Africa is becoming an urban country. By 2011 almost 63% of our population were residing in towns and cities and this trend is expected to continue over the coming decade.

Our government’s Integrated Urban Development Framework will be finalised by 30 July 2014.

It will provide a new deal for South African cities and towns.

It will set out a policy framework on how the urban system in South Africa can be reorganised so that cities and towns can become inclusive, resource efficient and good places to live in over the next 20 to 30 years.

Together let us move local government forward!

Compatriots

Over the past twenty years, we have steadily expanded support for marginalised and vulnerable households through investments in housing, extensions to our social grants programmes and improved access to education and primary health care.

Over the period ahead, poverty reduction will continue to be reinforced.

We will continue to invest in education and skills development as that is the key to economic growth and development. We need engineers, electricians, plumbers, doctors, teachers and many other professionals to build our country’s economy.

Education therefore remains an apex priority for this government. We will continue to promote universal access to education by ensuring that all children between ages 7 and 15 are in school.

We will increase the number of Grade 12 learners who can gain entrance to university, moving from 172 000 in 2013 to 250 000 in 2019.

We opened at least one new school a week in the Eastern Cape last year and will continue to eradicate mud schools and other inappropriate structures.

The number of young people in universities and colleges has increased over the years.  Contractors will move on site in September to build new universities in the Northern Cape and Mpumalanga.

By January next year, the first intake of medical students will be enrolled at the new medical university in Limpopo.

In addition, 12 training and vocational education colleges will be built to expand the technical skills mix in the country.

Compatriots

Together we must continue to fight drugs and substance abuse in our schools and communities. We will also prioritise safety in schools, scholar transport and child health.

In the area of health, we will work harder to increase life expectancy at birth from 60 years in 2012 to 63 years in 2019.

The campaign to reduce child and maternal mortality ratios will continue.

This will require the  implementation of the National Health Insurance and the improvement of the quality of care in the public sector.

We will build on the success of our HIV and AIDS treatment and support programme by expanding our mass HIV prevention communication campaigns.

Compatriots

We will take forward the advances we have made in promoting women’s empowerment and development.

The Minister in the Presidency responsible for Women’s development, Ms Susan Shabangu, will work with other Government departments, agencies, the private sector and non-governmental organisations, to promote women’s socio-economic empowerment, development and human rights.

To further consolidate our democratic gains, we will continue to advance and improve the lives of people with disabilities over the next five years.

We will work with the Disability sector to identify key areas in which we should fulfil South Africa’s role as signatory to the UN Convention on the Rights of Persons with Disabilities and its Optional Protocols.

Another key intervention this term will be to finalise the National Disability Rights Policy which includes the National Disability Rights Framework.

The Policy and the Framework will guide Government action to promote a more inclusive society and to promote the involvement of people with disabilities in decision-making processes.

Fellow South Africans

Some progress has been made over the past five years in reducing the levels of serious crime such as murders, aggravated robberies, crimes against women, children and other vulnerable groups, but they remain unacceptably high.

We will work to further reduce levels of crime.

The Special Investigating Unit, the Anti-Corruption Task Team the Asset Forfeiture Unit and the Hawks, have made notable progress in our quest to combat corruption in society broadly and in the public sector. This work will continue in the next five years.

Weaknesses in procurement, management and operations systems that undermine the efficiency and effectiveness of government will be addressed.

One of the key steps, which is already underway, is to centralise procurement under the Office of the Chief Procurement Officer in the National Treasury.

We have begun piloting this new approach with the centralised procurement of school furniture in the Eastern Cape. The furniture will be delivered in all Eastern Cape schools by the middle of August 2014.

Measures will be introduced to prevent public servants and public representatives from doing business with the state.

These will be supported by improved implementation of the Financial Disclosure Framework, strengthened protection of whistle-blowers, and the provision of technical assistance to departments for the effective management of discipline.

Compatriots

Over the next five years we will continue to promote the building of a better Africa and a more just world.

South Africa will continue to support regional and continental processes to respond to and resolve crises, promote peace and security, strengthen regional integration, significantly increase intra-African trade and champion sustainable development in Africa.

This will entail supporting and executing decisions of the African Union as well as the promotion of the work of its structures.

We will also continue to promote South-South cooperation by utilising membership and engagements with formations and groupings of the South.

Similarly we will continue to promote mutually beneficial relations with countries of the North.

We will continue to deepen economic development, trade, and investment partnerships with the BRICS through the work of the BRICS Contact Group for Economic and Trade Issues.

Honourable Members,

Distinguished guests

The South African National Defence Force has been a source of national pride as it participated in peacekeeping missions in the continent.

This role will continue and government is looking into the resourcing of the SANDF mandate in line with recently concluded Defence Review.

Fellow South Africans,

To take this programme of action forward, the Deputy President and I will be meeting with Ministers and Deputy Ministers to discuss the detailed implementation plans for each department.

Each Minister will sign a performance agreement with the President outlining what each department will do to deliver on the programme of action.

Compatriots

The 17^th of June marks the 22^nd anniversary of the horrific Boipatong massacre in Gauteng.

Looking back at one of the worst horror stories in recent history, we are reminded of the fact that we need to prioritise healing and nation building more than ever before.

We must continue to build understanding, tolerance and reconciliation, and together fight racism, xenophobia, homophobia and all related intolerances.

The use of sports and culture as a unifying factor in our country will continue during this term.  We will also continue to promote the Constitution in schools and ensure that our children grow up with positive values and love for their country and its people.

We will continue to build inclusive heritage over the next five years through building monuments and other symbols that honour the heroes of the struggle that delivered the freedom and democracy we enjoy today.

As part of our 20 years of freedom and democracy celebrations, records turning 20 years this year, such as those of the late former President Nelson Mandela’s first days in Office will be transferred to the National Archives.

This year will also see the listing of the CODESA Multi-Party Negotiating Forum Records in the International Memory of the World Register.

Next month the country and the world will mark International Mandela day.

All South Africans should dedicate at least 67 minutes on the 18^th of July, to clean South Africa, which is our theme for this year.

Let us begin planning for a major clean-up of our cities, towns, townships, villages, schools and beautify every part of our country.

Fellow South Africans,

This programme of action is aimed at making South Africa a better place for all.

We urge all South Africans to work with us make the implementation of these programmes a success.

Together let us move South Africa forward.

I thank you