Statement on the Cabinet Meeting of Wednesday, 18 September 2024

A. ISSUES IN THE ENVIRONMENT

1. ECONOMY

1.1. Positive Economic Indicators

1.1.1 Cabinet welcomed positive economic indicators as per the data released by Statistics South Africa (StatsSA).

1.1.2 On the 3rd September 2024, StatsSA announced a 0.4 percent increase in Gross Domestic Product (GDP) in the second quarter of 2024. This increase was influenced by improvement in the manufacturing sector of 1.7 percent growth year-on-year.

1.1.3 The improvements in the manufacturing sector were driven by five (5) of the ten (10) manufacturing divisions, namely food and beverages, basic iron and steel, nonferrous metal products, metal products and machinery sectors the recorded a rise in production.

1.1.4 The revival of the manufacturing sector is a critical success factor in the reindustrialisation of South Africa.

1.1.5 In addition, the Headline Consumer Price Index for all urban areas has indicated that annual inflation for August 2024 was 4.4%, which is down from 4.6% in July 2024. The annual inflation rate of goods was 4.4%, down from 4.6% in July 2024, and similarly annual inflation rate for services was 4.5%, down from 4.7% in July 2024. There has been a consistent improvement in the CPI since March 2024.

1.2 The Revitalisation of State-Owned Companies (SOCs)

1.2.1 Cabinet has welcomed the steady progress being made in revitalisation of the SOCs and improvements in SOC performance will positively contribute to SouthAfrica's industrialisation drive.

1.2.2 In this regard, it is worth noting that Denel posted a profit of R390 million before interest and tax for the 2023/24 financial year, with irregular expenditure declining by 98 percent. PRASA is making strong headway in getting passenger trains back on track with 31 of the 40 rail corridors now operational, and Eskom's Recovery Plan continues to deliver positive outcomes, with load shedding remaining suspended for more than 175 days as of 18 September 2024.

2. FIGHT AGAINST CRIME AND CORRUPTION

2.1 Operation Shanela

2.1.1 Cabinet welcomed progress being made in the fight against crime through Operation Shanela. Between 2nd and 8th September 2024, law enforcement agencies arrested 13 691 suspects for serious crimes such as murder, rape, possession of illegal firearms and business robberies. Since its launch in May 2023, Operation Shanelahas resulted in the arrest of 850 375 suspects, and seizure of 824 illegal firearms and over 17 282 rounds of ammunition. In addition, drugs worth over R13 million were seized at the OR Tambo International Airport over the past two months, and copper worth over R20 million was recovered from a scrapyard near Durban with a suspect arrested.

2.1.2 Through a coordinated multidisciplinary and intelligence-led operations, law enforcement agencies are focused on dismantling extortion syndicates across the country. In the past two weeks, 14 extortionists were arrested in various provinces.

2.2 Restoring Integrity of Law Enforcement Officers

2.2.1. Through a multidisciplinary collaboration, law enforcement agencies have arrested 14 suspects in Mpumalanga on charges of fraud and corruption for issuing illegal learners' and driver's licences, and 11 traffic officers were also arrested for soliciting bribes from motorists along the N1 freeway in Limpopo.

2.2.2 Three off-duty police officers and a civilian were arrested in Durban, KZN for soliciting a R100 000 bribe from a businessman in exchange for the release of confiscated goods, and 4 more police officers handed themselves over to the SAPS on the same case.

2.2.3 Furthermore, eight suspects were arrested for alleged involvement on tender fraud and corruption amounting to R850 million in the City of Cape Town, Western Cape.

3. EDUCATION

3.1 Cabinet has called on all qualifying students entering and already in tertiary education to apply for the National Student Financial Aid Scheme (NSFAS) bursaries and loan when they open. its online applications on Friday, 20 September 2024 for the 2025 academic year. To apply, aspiring and returning students should visit my.nsfas.org.za.

3.2 Basic Education Laws Amendment (BELA) Act

3.2.1 Cabinet welcomed the signing of the BELA Bill into law by President Ramaphosa, marking a significant step towards transforming and enhancing our basic education system. This landmark legislation requires school governing bodies to consider the linguistic needs of the broader community to ensure inclusivity in education.

3.2.2 In a move to strengthen early childhood education, the BELA Act makes Grade R the new compulsory starting age for school. It also holds parents accountable by criminalising the failure to ensure their children attend school.

3.2.3 Cabinet further welcomed the decision by President Ramaphosa to allow a 3 months period of engagement on 2 clauses concerning school admissions and language, as part of ensuring national cohesion.

4. HEALTH

4.1 MPOX Disease

4.1.1 To mitigate the spread of mpox disease, all people in South Africa are encouraged to practise non-pharmaceutical measures. These include regular washing of hands with soap and water or using an alcohol-based hand sanitiser.

4.1.2 Although the risk of widespread Mpox transmission in the country remains low, an additional case of Mpox was confirmed and thus the number of confirmed cases to 25 in South Africa since the outbreak began in May 2024.

4.2 Bilharzia Outbreak - Mopani District of Limpopo

4.2.1 Cabinet was updated on the Bilharzia outbreak in Greater Tzaneen in Mopani (Limpopo) where 150 pupils have tested positive for Bilharzia.

4.2.2 Provincial Task Team was established by the Limpopo Provincial government and efforts are underway to contain this waterborne disease, dealing with the outbreak and assessing water quality in the affected areas.

4.2.3 Bilharzia is transmitted through contact with contaminated water. Cabinet urges the public to ensure that children do not swim or play in potentially contaminated water.

4.2.4 Parents and guardians should immediately take children suspected of contracting the disease to the nearest health facility for treatment.

4.3 Foot and Mouth Diseases outbreak in Sarah Baartman, Eastern Cape

4.3.1 Cabinet called on all livestock farmers to limit the movement of animals following the outbreak of foot-and-mouth disease in the Kouga and Koukamma municipalities of Sarah Baartman District of the Eastern Cape.

4.3.2 Animal movements in and out of the affected region continue to be monitored to prevent the spread of the disease to unaffected areas in terms of the Disease Management Area.

4.3.3 Cabinet reminded South Africans that the transportation of livestock from one place to another requires a Transport Permit from a local state veterinary office.

5. GNU management

5.1 Cabinet welcomed the decision by President Ramaphosa to set-up a clearing house mechanism at a government level on matters that parties within the GNU may be deemed to hold fundamental differences.

B. CABINET DECISIONS

(i) Publication of the Draft Policy Direction on phasing out of 10177, 10111 and 107 emergency numbers for public consultation

(a) Cabinet approved the publication of the Draft Policy Direction on phasing out of 10177, 10111 and 107 emergency numbers for public comment.

(b) Cabinet noted measures that are put in place for South Africa's transition to a single emergency number short code 112. This will ensure that people under stress do not have to remember multiplicity of numbers when they require emergency services or their calls routed inadequately.

(ii) White Paper on the Development and Promotion of Tourism in South Africa

(a) Cabinet approved the White Paper on the Development of Tourism in South Africa for public comments. The policy seeks to increase the contribution of tourism to the broader South African economy through increased volumes of visitors.

(b) In 2023, Cabinet approved the publication of the Green Paper on the Development of Tourism in South Africa, and the comments from affected parties were incorporated into this policy. This White Paper now provides an agreed policy framework and guidelines for tourism development and promotion in South Africa.

(c) This policy will promote entrepreneurship in the tourism sector and ensure the sector's enhanced contribution to employment. Policy proposals also focus on aligning the tourism policy with current government policy frameworks, and to enhance the sector's resilience and ability to respond to crises.

(iii) Micro, Small and Medium Enterprises (MSMEs) and Cooperatives Funding Policy

(a) Cabinet approved the final MSMEs and Cooperatives Funding Policy for implementation. The policy seeks to eliminate obstacles that prevent MSMEs and cooperatives from obtaining finance support. These interventions will also enable seamless transition from informal to formal enterprises and from small to medium enterprises.

(b) The policy provides for the creation of a funding environment for targeted groups such as youth, women and persons with disabilities. This policy forms part of other interventions to support small businesses, including the National Integrated Small Enterprise Development Framework that was approved by Cabinet in 2022.

(c) Government has prioritised support for MSMEs and cooperatives because these businesses create the most jobs and provide the most opportunities for people to earn a living.

(d) The implementation of the policy will eliminate credit gap in the MSMEs ecosystem and enable economic growth, which is the priority of government.

(iv) National Astro-Tourism Strategy and Implementation Plan 2023-2033

(a) Cabinet approved the publication of the National Astro-Tourism Strategy and Implementation Plan for public comments.

(b) The strategy aims to position South Africa as a world-class astro-tourism destination, and this will boost economic development and employment in the tourism sector. South Africa is the first African nation to develop a National Astro-Tourism Strategy, and this will boost the country's tourism diversification.

(c) The strategy focuses on various pillars, namely infrastructure development, optimising astronomy-tourism streams, public private partnerships, inclusive tourism and transformation.

(d) South Africa boasts several unique advantages that make it an ideal astro-tourism destination. These include unpolluted night skies and favourable weather conditions.

(f) The Department of Tourism, in collaboration with the Department of Science and Innovation, will launch the National Astro-Tourism Strategy at the National Tourism Day celebrations in the Northern Cape on 27 September 2024, where the Square Kilometer Array project is located.

(v) Municipal Performance Turnaround Plan

(a) Cabinet received and approved the Chairperson, members and expanded terms of reference of the Inter-Ministerial Committee (IMC) on implementation of the initiatives to address local government underperformance.

(b) The overall objective of the IMC is to oversee implementation of various activities to address local government underperformance through various interventions on the following specific areas:

i. Professionalisation of local government;
ii. Accountability, oversight and consequence management;
iii. Governance, political stability and administration;
iv. Financial management and improved audit outcomes;
v. Service delivery and infrastructure maintenance;
vi. Local economic development and spatial planning; and
vii. Inter- and intra-governmental relations.

(c) The IMC will prioritise interventions to the most distressed municipalities.

(d) Cabinet further directed that government departments and public entities must urgently settle their debts owed to municipalities and National Treasury was assigned the responsibility to ensure this is done.

(vi) Outstanding municipal debt to water boards

(a) Cabinet was briefed on growing and unsustainable municipal debts to water boards, which are now threatening the sustainability of the Vaal Central Water Board owed R9.9 billion and Magalies Water R930 million by end of July 2024 with possibility of bankruptcy of these two boards.

(b) Debts owed to water boards have a potential to threaten provision of water even to municipalities that are paying their water debts.

(c) Cabinet approved that an IMC be established to address municipal turnaround. The IMC will also prioritise interventions to address municipal debt payments to water boards, particularly to those facing imminent bankruptcy.

C. BILL

1. Traditional Khoi-San Leadership Bill of 2024

1.1. Cabinet approved the submission of the Traditional Khoi-San Leadership Bill of 2024 to Parliament. The Bill is a response to the Constitutional Court ruling that declared the Traditional and Khoi-San Leadership Act, 2019 (Act 3 of 2019) to be invalid based on insufficient public participation by Parliament.

1.2. The Bill will give Parliament an opportunity to comply with the order of the Constitutional Court. The Traditional and Khoi-San Leadership Act of 2019 replaced the Traditional Leadership and Governance Framework Act, 2003 (Act 41 of 2003)

D. UPDATES TO CABINET

1. Outcomes of the State Visit to China and participation in the Forum for China-Africa Cooperation (FOCAC)

1.1. Cabinet received a briefing about the outcomes of the recent successful State Visit to the People's Republic of China and FOCAC meeting held in Beijing, China from 2 to 6 September 2024. Cabinet noted the following key outcomes for South Africa:

1.1.1. An agreement to change the structure of trade into more value-added manufactured products, in particular, an agreement to exchange a list of 100 value-added products from South Africa that China will consider importing.

1.1.2. In addition, South Africa secured cooperation from China on three value chains relating to decarbonisation, digitalisation, transport and logistics. This cooperation will pave the way to promote investments in electric vehicles, battery manufacturing, renewable energy storage, as well as in identified Special Economic Zones and Industrial Development Zones.

1.1.3. Key Chinese investors in both Shenzhen and Beijing expressed interest to either expand their investments or for greenfield investment into South Africa.

1.1.4. Memoranda of Understanding were signed during the state visit aimed at promoting cooperation between China and South Africa.

1.1.5 The MoUs include the groundbreaking MoU on Foot and Mouth Disease (FMD) that limits the restrictions on the exporting of beef to the specific district affected by FMD instead of the whole country. Work on this MoU commenced during the 6th Administration.

2. Progress report on the repatriation of remains of freedom fighters from Zambia and Zimbabwe

2.1. Cabinet received an update on the preparations to repatriate the mortal remains of South Africas freedom fighters who are buried in Zimbabwe and Zambia.Among the remains to be repatriated to South Africa are those of struggle stalwarts Adv. Duma Nokwe, Mama Florence Mophosho and Basil February.

2.2. The repatriation of the remains from Zambia and Zimbabwe forms part of the Resistance and Liberation Heritage Route Project (RLHR). The RLHR is a national memory project aimed at commemorating, celebrating, educating, promoting, preserving, conserving and providing a durable testament of South African's road to freedom.

2.3. A Homecoming Ceremony will take place at the Waterkloof Airforce base on 27 September 2024 when the mortal remains arrive in South Africa.

3. Acceleration of the implementation of land reform

3.1. Cabinet received and considered the progress report on the acceleration of the implementation of land reform in the country. The Acceleration of Land Reform Programme gives effect to the recommendations of the Presidential Advisory Panel on Land Reform and Agriculture that presented its report and recommendations to Cabinet in 2019.

3.2. The various land reform acceleration programmes continue to be implemented and the progress was reported to Cabinet as follows:

i. Through the Transformation of Certain Rural Areas Act, 1998 (Act 94 of 1998), a total of 630 000 hectares was transferred;

ii. Some 659 602 hectares of agricultural state land were released and allocated;

iii. By 31 March 2024, some 83 205 land claims were settled;

iv. Some 2, 895, 935 hectares of land were acquired at a cost of R26.4 billion.

v. Financial compensation of R26 billion was awarded to beneficiaries.

vi. Some 2 376 976 households benefited from the restitution programme.

vii. The Commission on Restitution of Land Rights has planned to finalise 339 land claims in 2024/2025 financial year.

4. Lesotho-Highlands Tunnel closure for planned maintenance

4.1. Cabinet was briefed on the closure of the Lesotho Highlands Water Project's tunnel for planned maintenance from 1 October 2024 to 31 March 2025.

4.2. The planned maintenance work is crucial to protect the infrastructure for another 20-30 years and failure to undertake this work will risk the transfer of water to the Integrated Vaal River System (IVRS), which provides the water supplied by Rand Water to its customers and all municipalities in Gauteng.

4.3. A thorough analysis to assess the risk to the performance of the IVRS, which consists of 14 interconnected dams, was undertaken by the DWS. The analysis confirmed that the impact of the tunnel closure on the overall IVRS will be minimal as most dams in the IVRS are currently full.

4.4. Cabinet noted existing water supply disruptions in Gauteng and in some Free State municipalities that are not related to the tunnel closure, and further noted that the DWS has supported municipalities to engage stakeholders in relation to the closure of the Lesotho Highlands Tunnel.

4.5. Cabinet further noted that in Gauteng, rapid population growth, lack of infrastructure maintenance, lack of enforcement of by-laws and delays in implementation of the phase two of the Lesotho Highlands project have contributed immensely to the current water disruptions. However, the completion of Phase 2 of the Lesotho Highlands project will bring relief if supplemented by water demand management interventions, use of new water-saving technologies and proper maintenance of infrastructure.

4.6. Cabinet noted that the DWS has held readiness meetings since February 2022 with the Free State municipalities receiving water from the Liebenbergsvlei River to mitigate risks of service interruptions during the tunnel maintenance. However, delays by municipalities to upgrade and/or refurbish their infrastructure remains a challenge. Cabinet noted that the DWS will monitor and where necessary, intervene to support these municipalities.

5. Water restrictions in Gauteng

5.1. Cabinet was briefed on the implementation of Level 1 water restrictions in Gauteng. This is a result of Rand Water reaching its maximum water output on the IVRS.

5.2. Water demand in Gauteng continues to grow because of population growth, increase in non-revenue water in municipal systems, including illegal and unbilled connections, and lack of maintenance resulting in huge water leaks, which are at 33% average across Gauteng municipalities.

5.3. Currently, the peak demand for water from Rand Water's municipal customers is close to and occasionally exceeds the supply available from its treatment plants and storage reservoirs.

5.4. To avert greater restrictions Gauteng municipalities must prioritise reducing water leaks in their water distribution systems and enforce water-use restrictions.

5.5. The DWS, Rand Water and Gauteng municipalities are partnering with the World Bank 2020 Water Resources Group to implement mass awareness and communications campaign on using water sparingly, in collaboration with the civil society and business leaders.

E. APPOINTMENTS

All appointments are subject to verification of qualification and relevant security clearance.

(a) Mr Captain Rufus Lekala as the Chief Executive Officer (CEO) of the South African Maritime Safety Authority for five years.

(b) Mr Luvuyo Xola Ntoyi as the CEO of the Vaal Central Water Board for five years.

(c) Mr Gift Zowa as the CEO of the Broadband Infraco for five years.

F. UPCOMING EVENTS

1. Heritage Day

1.1. President Ramaphosa will deliver the keynote address at the country's official Heritage Day celebration on Tuesday, 24 September 2024 at the Meqheleng Stadium in Ficksburg in the Free State, which is being marked under the theme: "Celebrating the lives of our heroes and heroines who laid down their lives for our freedom."

1.2. In marking Heritage Day, we pay tribute to heroes and heroines who gave up their lives fighting for our liberation, particularly those freedom fighters who were forced into exile by the apartheid state and died in foreign lands.

1.3. A Homecoming Ceremony will take place on 27 September 2024 when the mortal remains of several Struggle stalwarts return from Zambia and Zimbabwe to South Africa as part of our Exile Repatriation Project.

1.4 As part of Heritage Month celebrations, government will host an Indigenous Games Festival between 24 and 29 September 2024 in the Free State to showcase indigenous games, music, dance, cuisine and crafts.

2. Public Service Month (PSM)

2.1. As we continue to commemorate PSM, government's focus this week recognises frontline workers who serve our nation with pride and distinction. In the week, we also profile our country's Thusong Service Centres, which facilitate access to information and services to the people.

3. Deaf Awareness Week

3.1. South Africa will join the international community in marking the international week of Deaf people from 23 to 29 September 2024 under the theme: "Sign up for Sign Language Rights".

4. Brazil, Russia, India, China and South Africa (BRICS) Summit

4.1. In preparation for the upcoming BRICS 2024 Summit from 22 to 24 October 2024 to be held in Russia, South Africa is participating in numerous preparatory meetings to add its voice to key issues and promote common interests in the grouping.

5. International Conference on Theory and Practice of Electronic Governance

5.1. The Department of Public Service and Administration, in partnership with the University of the Witwatersrand School of Governance, will host the 17th International Conference on Theory and Practice Electronic Governance (ICEGOV) between 1 and 4 October 2024 under the theme: "Trust and Ethical Governance for the World We Want".

G. MESSAGES

1. Congratulations Cabinet extended its congratulations and well wishes to:

- Team South Africa for their outstanding performance at the 2024 Paralympics in Paris and winning six medals.

- Simoné Kruger for winning gold in the discus throw F38 at the Paralympic Games.

- Cyclist Nicolas Pieter du Preez for winning bronze in the Men's H1 Individual Time Trial at the Paralympic Games in Paris.

- Donald Ramphadi and Lucas Sithole for winning bronze in wheelchair tennis Quad doubles at the Paralympic Games in Paris.

- The world champion Springboks for their epic double over New Zealand in the Rugby Championship. The Springboks remain unbeaten in the Rugby Championship and will play Argentina in their next game.

- South African musician Tyla who made history by becoming the first South African to win an MTV Video Music Award.

- Team South Africa at the WorldSkills Conference 2024 in France for showcasing the best of our nation's skills and talents.

- Cabinet has congratulated The Douglas Weir in the Northern Cape on its recognition as a World Heritage Irrigation Structure by the International Commission on Irrigation and Drainage. This is the first time a South African irrigation structure has received the award. The 130-year-old weir is maintained by the Department of Water and Sanitation and forms part of the central infrastructure of the Lower Orange Vaal Water User Association, supplying an area of around 8,1113 ha of irrigation.

- Cabinet joined President Ramaphosa in congratulating His Excellency President Abdelmadjid Tebboune on his re-election as President of the People's Democratic Republic of Algeria. Cabinet looks forward to engaging with the Government and people of Algeria to strengthen bilateral relations.

2. Condolences Cabinet expressed condolences to the friends and family of:

- Mr Pravin Gordhan, who stood as a vanguard against state capture, and worked tirelessly to preserve the rule of law and good governance. Throughout his long career in service of the people, he served in multiple ministerial portfolios and as Commissioner of the South African Revenue Service. His contributions have been crucial to South Africa's economic development, advocating for transparency, accountability, and combating corruption. He was an anti-apartheid activist who dedicated his life to the liberation of our nation.

- Ms Regina Brookes, the apartheid activist who defied the Immorality Act in the 1950s and was harassed by the apartheid government for living with Black people as a White woman. In 1955 she requested to be reclassified as a Coloured to enable her to live among Black people.

- Renowned writer, poet and activist, Mr James Matthews, who was an Esteemed Member of the National Order of Ikamanga. He received this honour in 2004 for his excellent achievements in literature, contributing to journalism and his inspirational commitment to the struggle for a non-racial South Africa.

- Kwaito legend, Mr Sandile Ngwenya, popularly known as Mapaputsi, who contributed immensely to the evolution of kwaito music.

- Actors Darlington Michaels, Sello Motloung and Paul Lückhoff, who work, advanced the local film and entertainment industry. through their

- Legendary comedian, Mr Philani Mabanga, popularly known as 'Mfundisi Ntshebe', who kept us laughing and entertained through his fictional comic music.

Enquiries: Ms Nomonde Mnukwa - Acting Government Spokesperson
Mobile: 083 653 7485

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