The introduction of measures designed to cushion the effects of the economic downturn exacerbated by the COVID-19 pandemic has played a substantial role in keeping millions out of poverty in South Africa.
Speaking to the nation on Monday evening, President Cyril Ramaphosa said one of the key pillars of the reconstruction and recovery plan, post COVID-19, was the expansion of social protection and public employment.
The President was frank about the mammoth task that lies ahead in moving the country forward, in terms of creating the requisite jobs and expanding the economy. However, he commended the role played by the country’s commitment to strengthening social protection through initiatives designed to propel the recovery trajectory.
“Over the last two years, the number of people with jobs has increased by two million, bringing the level of employment close to its pre-pandemic level.
“The special SRD [Social Relief of Distress] Grant, known as the R350 grant, which we introduced in 2020, has kept millions of people out of poverty, and continues to provide much-needed support for those who are unemployed.
“The Presidential Employment Stimulus has created over 1.2 million opportunities since its establishment, representing the largest expansion of public employment in South Africa’s history,” the President said.
To date, over four million young people have registered on the SAYouth online platform, and more than one million of them have been able to access opportunities for learning and earning.
“Every one of those jobs created is a reason for hope. Every person who no longer lives in poverty is a reason for hope,” President Ramaphosa said.
Acknowledging the sustained challenges imposed by domestic and global pressures on the South Africa economy, the President made it clear that constraints to growth, including load shedding and the underperformance of the ports and rail network, must be overcome if the country is to realise its own economic growth targets.
Government spending, the President noted, has exceeded revenue since the 2008 global financial crisis, without a commensurate increase in economic growth.
“As the Minister of Finance has noted, for every rand that government collects in revenue, 18 cents go towards servicing our national debt. This means that we are now paying more in interest on our national debt than we are budgeting for the police force.
“Ultimately, more rapid and inclusive growth is the only solution to unemployment, poverty and inequality. Growth is also necessary for the sustainability of public finances.”
The President reiterated the commitment to stabilising the levels of debt and adopting a responsible fiscal policy, saying that the Minister of Finance will set out government’s plans to achieve this trajectory in the Medium Term Budget Policy Statement (MTBPS) on Wednesday, 1 November.
Strengthening municipal performance
The President said urgent and necessary interventions are being undertaken at municipal level in order to improve service delivery in the areas of water and sanitation, electricity, roads and waste collection.
“These interventions are accelerating service delivery where basic services have collapsed.
“While addressing the immediate problems, we are introducing necessary institutional reforms and professionalisation in the appointment of senior municipal officials.”
Spending on health, education, policing and other essential services will be protected as far as possible, the President said.
“As we move to target spending on programmes that are working for the poor, we need to acknowledge that our social grants, including the SRD Grant, as well as our public employment programmes, are vital in supporting those who are vulnerable.
“These programmes have not only reduced poverty, but have enabled recipients to search for jobs and to engage in other economic activity to support their livelihoods.”
The Minister of Finance is expected to provide more details on these and other spending priorities when he presents the MTBPS on Wednesday.
Tackling crime and corruption
The President said the South African Police Service has established 20 Economic Infrastructure Task Teams throughout the country to protect critical infrastructure and tackle the “construction mafia”.
“We are seeing results in arrests for illegal mining, cash-in-transit heists, cable theft, drug smuggling and similar crimes. Increasing the number of police men and women will further strengthen our capacity to curb acts of criminality.
“I have also extended the employment of 880 members of the SANDF [South African National Defence Force] to support the police in combating criminal activity that targets critical economic infrastructure. The police have arrested several people for extortion at construction sites and made over 3 000 arrests for illegal mining.
“Through the intensive efforts of our law enforcement agencies, dozens of illegal mines, unregulated coal yards and unregistered second hand dealers have been shut down.”
Additionally, the Economic Infrastructure Task Teams have confiscated significant quantities of copper cable, rail tracks, coal and other metals.
Turning to State capture, the President acknowledged that over the last four years, the National Prosecuting Authority (NPA) Investigating Directorate has taken 34 State capture and corruption cases to court, involving 205 accused persons.
Freezing orders of R14 billion have now been granted to the Asset Forfeiture Unit for State capture related cases. Around R5.4 billion has to date been recovered and returned to the State.
“As recommended by the State Capture Commission, we are putting in place laws, institutions and practices that reduce the potential for corruption of any sort and on any scale.
“We are continuing to build meaningful compacts with key stakeholders in a number of areas,” said President Ramaphosa. – SAnews.gov.za
