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 7th 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 4th 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
17th of June marks the 22nd 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 18th 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
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