This year, 2025, will see government implementing changes to the composition of two departments that execute programmes that deal with energy and agriculture.
This is according to National Treasury’s document on the 2024 Medium Term Budget Policy Statement (2024 MTBPS), which was released on 30 October 2024.
Government plans to separate the Department of Mineral Resources and Energy into two departments, as well as establish the agriculture department as a standalone.
“The Department of Mineral Resources and Energy will be separated into two departments by April 2025. The newly established Department of Electricity and Energy will advance the development of transmission infrastructure, oversee the amended Electricity Regulation Act (2006) and manage the Integrated National Electrification Programme (INEP),” National Treasury said.
Government plans to separate the Department of Mineral Resources and Energy into two departments, as well as establish the agriculture department as a standalone.
“The Department of Mineral Resources and Energy will be separated into two departments by April 2025. The newly established Department of Electricity and Energy will advance the development of transmission infrastructure, oversee the amended Electricity Regulation Act (2006) and manage the Integrated National Electrification Programme (INEP),” National Treasury said.
INEP is an initiative of government to provide capital subsidies to municipalities to address the electrification backlog of permanently occupied residential dwellings.
The purpose of the programme is to manage the electrification planning, funding and implementation process, with the aim of addressing the electrification backlog.
Municipalities own and operate approximately half of South Africa’s electricity distribution grid and facilitate universal access to electricity.
“One hundred and sixty-five municipalities are electricity service providers. Through the Integrated National Electrification Programme grant, municipalities are responsible for addressing the electrification backlog.
“Municipalities therefore need to be in the driving seat when it comes to providing clean, affordable energy to communities, businesses and industry,” President Cyril Ramaphosa said at the Inaugural Just Energy Transition (JET) Municipal Conference in August.
Government is reviewing the integrated national electrification programme grant and will finalise related reforms over the medium term.
From April 2025, the agriculture function will become a standalone national department that will prioritise support for subsistence and smallholder farmers.
“The Department of Agriculture, Land Reform and Rural Development is working to ensure equitable land access and support resettled farmers for improved farm productivity, food security and job creation,” National Treasury said.
Government of National Unity
Following the establishment of the Government of National Unity (GNU) in June 2024, and the subsequent appointment of Ministers and Deputy Ministers in July 2024, administrative and legal measures are being implemented to establish new Executive portfolios and support structures.
“The seventh administration is initiating reforms within these portfolios and departments to fulfill the vision of a developmental state, align with the National Development Plan, and ensure efficient use of resources.
“These reforms aim to integrate functions, enhance synergy among ministerial portfolios, and maintain accountability, in line with the objectives of the new government.
“Government is committed to minimising disruptions in public services while improving coherence, coordination, and resource optimisation. Such reforms are crucial for achieving a developmental State and maintaining effective administration,” National Treasury said.
This process is part of the National Macro Organisation of Government (NMOG) project, a process led by the Presidency to reconfigure executive and departmental structures.
The NMOG project involves:
- The establishment of ministries and departments;
- Transfer of legislation administration by the President to Ministers;
- Renaming, merging, splitting, establishment, and abolishment of departments;
- Transfer of functions between departments, and approval of start-up organisational structures for departments (institutions attached to departments will move between portfolios and departments in accordance with how functions are transferred), and
- Resource allocation to ensure departments are functional with approved budgets.
As part of the NMOG process, the National Treasury is responsible for ensuring the process adheres to sound economic, financial, and budgeting principles by guiding affected departments and institutions, applying uniform treasury standards, and maintaining continuity in the government's spending programme for service delivery.
The National Treasury is also responsible for providing sound advice on accounting and financial practices for in-year financial administration and departmental budgets.
Transitional arrangements and funding for new Ministers and Deputy Ministers
National Treasury issued a circular on 22 July 2024, regarding funding for new Ministers and Deputy Ministers in national departments.
“To accommodate their office expenditure, departments are expected to reprioritise their current budget baselines. If new Ministers and Deputy Ministers' offices are established in a new department, the department aligned with, must for transitional purposes bear the reprioritisation costs.
“Regarding the renaming of two departments, i.e. the former Ministry of Higher Education, Science and Innovation and the creation of the new Ministries for Higher Education and Science, Technology and Innovation, which does not involve any changes in functions or staff transfers, the modifications can be implemented in time to be included in the Adjustments Appropriation Bill... in line with Proclamation 188 of 2024: Amendment to Schedule 1 of the Public Service Act,” National Treasury said.
The changes will come into effect from the date on which the Adjustments Appropriation for 2024/25 Act is published as an Act in Gazette.
“Concerning the splitting of the Department of Mineral Resources and Energy and the Department of Agriculture and Land Reform, it is agreed that the foundational documents for these departments should be published with an effective date of 1 April 2025.
“If the proclamation is published by 31 October 2024, it will align with the budget process for the fiscal year 2025/26. However, an earlier publication date is preferable to provide the affected departments more time for planning,” National Treasury said. - SAnews.gov.za
