7.

Ms M O Seate (ANC) to ask the Deputy President:

Considering that during the recent trip to the United Kingdom he was able to meet major investors and financial institutions, what (a) sectors of the economy did international investors show an interest to invest in and (b) steps has he taken to ensure a conducive environment for investors who wish to invest in different sectors of the Republic’s economy? NO1662E

Reply:

Honourable Speaker,

We appreciate and value the question raised by Honourable Seate regarding the recent working visit we undertook to the United Kingdom.

Following the elections and formation of the GNU, the world was interested in knowing, how we are going to ensure political and economic stability of our country.

We have had various engagements, including in China during FOCAC and state visits and in the US led by the President during the United Nations General Assembly. I had the honour to lead a team of ministers and senior government officials in Ireland and the UK.

The overall aim of these engagements was to reassure the world and investors that our country is stable and open for business. In each of these meetings, we received a warm welcome.

Honourable Speaker,

In the UK, we met with more than 20 institutional investors who are already investing in the country, as well as potential investors. We also engaged with the government of the UK to strengthen and renew the historically deep and rich bilateral relationship between the two countries by exploring new initiatives and opportunities for enhancing trade and investment ties.

Following our working visits, we agreed to strengthen existing initiatives while also exploring new opportunities to maintain a strong trade and investor interest in our shores and increase trade. We anticipate that the upshot of our visit will contribute to an increase in UK investors who have shown a strong interest in doing business in our country.

The Ministerial Team from relevant line function departments presented opportunities and processes for our SOEs (Eskom and Transnet), energy, rail, and port projects, and water infrastructure projects, including the handing of the Investment Project Book developed by Infrastructure South Africa to interested parties.

Investors received updates on Operation Vulindlela's reforms, the progress of unlocking the regulatory environment, the faster deployment of energy projects, the easement of visa requirements, and the operationalisation of the National Transmission Company of South Africa. They also received updates on collaborations with the private sector in the National Energy and National Logistics Crisis Committees.

Interest was also shown on the decarbonisation value chain with a view to mobilise investment on the beneficiation of critical minerals at source to unlock the production in South Africa. The UK is a key investor in Business Process Outsourcing and engagements were further held with investors who showed an interest in increasing their operations in South Africa.

Honourable Speaker,

The Government has implemented several steps to stimulate foreign investment, including simple tax rules, investment incentives, and a more competitive regulatory strategy. We intend to continue with fundamental economic reform, increase investment in critical infrastructure, and improve the business operating environment including improved Visa regulations. 

These reforms aim to reposition South Africa as a world-class destination for investment, creating thousands of new jobs.

In conclusion, Honourable speaker, we have also assured investors and the rest of the world that the GNU is committed to sound monetary and fiscal policies, as well as enhancing regulatory and legal frameworks to combat corruption and make South Africa a more attractive business destination.
South Africa is open for business.

I thank you.
 

8.

Ms J S Petersen (PA) to ask the Deputy President:

Considering that the Republic is facing record-high unemployment, what (a) are the reasons that many of the critical skills on the critical skills list are sourced from outside the Republic instead of prioritising local talent development and (b) specific measures are being implemented to upskill and prepare South Africans in critical sectors of the economy? NO1660E

Reply:

Honourable Speaker,

According to the Operation Vulindela (OV) Report of the Work Visa Review, published by the National Treasury in 2023, South Africa’s available labour supply does not match demand from companies that are essentially looking to employ management-level personnel, professionals, engineers, technicians, science, and math educators, as well as IT experts. This means that, in the short term, we must source the requisite high-level skills internationally to support economic growth.

Therefore, one of the reasons we source the critical skills on the Critical Skills List from outside the Republic is because the skills that are offered within the country do not always align with market requirements. Consequently, we are implementing various measures to revolutionise the skills.

When the South African labour market is unable to generate skilled individuals in the short term, the Critical Skills List serves as a tool to provide a Critical Skills Visa to foreign nationals with skills in areas with a significant domestic shortage.

In response to these challenges, Government is promoting the use of the Critical Skills List in career development for young people; updating its website to showcase occupations in demand and shortages; providing descriptions, pathways, and program costs; and communicating the list to universities and TVET colleges to prioritise programs and qualifications.

Furthermore, South Africa has implemented various policies, strategies, and initiatives to address skills development and to bridge skills gaps in the country. Amongst others, these include the National Skills Fund which directs resources towards in-demand occupations and conducts program assessments to evaluate TVET colleges' programs against the Critical Skills List, advising them to review their offerings in light of local contexts.

The Employment Services South Africa (ESSA) database matches work seekers with job opportunities, bursaries, learner ships, and other training options. Both the industry and the South African Government have crucial roles to play in spearheading skills initiatives to address the skills gap.

Honourable Speaker,

We are also implementing the HRDC strategy, which aims to address global competition, poverty reduction, and inequality by accelerating development to match supply and demand for a skilled workforce. This strategy includes high and intermediate skill development, supporting large-scale employment growth through skills training at lower levels.

We are also addressing the digital skills shortage by offering training opportunities through technical and vocational education and training (TVET) colleges. These courses focus on practical digital skills like computer programming, software development, networking, and cybersecurity.

In line with the vision of our National Digital and Future Skills Strategy, we are ensuring that the South African community becomes digitally adaptive to ensure digital inclusivity for future generations, making them employable.

Addressing skills deficiencies and implementing human resource development programs can strengthen the South African economy. By investing in skills development and fostering strategic partnerships, the country can contribute to workforce growth and avoid reliance on outsourced skills, ensuring increased local employment rates.

We call on all industry players to collaborate with government agencies, educational institutions, and non-profit organisations to develop and deliver skill training programs tailored to the needs of the South African labour market.

I thank you.
 

9.

Mr. S J Moore (DA) to ask the Deputy President:

What steps has the Water Task Team taken to ensure that municipalities are in a position to immediately implement the recommendations made by Rand Water (details furnished), particularly that the water storage in Gauteng will soon be depleted if municipalities do not implement the recommendations?  NO1682E

Reply:

Honourable Speaker,

I have had discussions with the Minister of Water and Sanitation regarding the water challenges in the country, especially in Gauteng. The Minister of Water and Sanitation has also convened urgent meetings with the Provincial Government of Gauteng in this regard, and critical measures are currently being implemented to ensure we do not reach a stage where an adequate supply of water becomes a crisis in the Province.

The Water Task Team is also monitoring the implementation of measures to ensure that municipalities are able to immediately implement the recommendations made by Rand Water to avert water depletion. The reasons for the water supply disruptions in the Gauteng Province have been identified as the high levels of leaks in municipal water distribution systems, and high average consumption levels by residents. 

In addressing these challenges, the following measures are currently being implemented:

- The Department of Water and Sanitation, Rand Water, and the Gauteng Metropolitan Municipalities have set up a Technical Team to monitor water storage and municipal consumption. 

- The Department of Water and Sanitation is also engaging with the municipalities to encourage them to address the leaks in their water distribution systems and address illegal connections. 

- As the next step from the Level 1 water restrictions that are currently being implemented by municipalities, the Department of Water and Sanitation is working together with the Gauteng Provincial Government to encourage municipalities to put in place Level 2 and Level 3 water-use restrictions and to enforce them. 

In addition, the Department of Water and Sanitation facilitated the establishment of the Platform for a Water-Secure Gauteng, in collaboration with Rand Water, municipalities, as well as business and civil society leaders within the province. This platform is aimed at improving communication regarding water supply challenges and to raise awareness of the need to use water sparingly.

The Platform is currently raising funds which will be used for a major public communications and awareness campaign in the province regarding the need to save water.

Further, a shared information repository and dashboard, accessible to the public, has been created on the Department’s website, to communicate strategic and timeous information regarding water supply issues in the province. 

Given that water challenges are not only confronting the Gauteng Province, the government together with partners, is also implementing several interventions to address water challenges across the country.

In this regard, the Department of Cooperative Governance and Traditional Affairs has, in consultation with National Treasury has commenced with the conversion of the Municipal Infrastructure Grant from a Schedule 5b (direct grant) to a Schedule 6b (indirect grant) to address the challenges faced by Municipal Infrastructure Grant receiving Water Services Authorities (WSA) in respect of repairs and maintenance of their waste-water treatment works and associated infrastructure. 

The conversion has already commenced in two municipalities, namely Uthukela District Municipality in KwaZulu-Natal and Emfuleni Municipality in the Gauteng Province.

We call on all citizens to adhere to the guidelines for water use, and to use this scarce resource sparingly, so that we conserve water, not only for us, but for generations to come. Water is life!

I thank you.

 
10.

Mrs H Denner (FF Plus) to ask the Deputy President:

Considering his role in service delivery interventions at service delivery hotspots, what (a) emergency measures and (b) long-term strategies will his office implement to address the wide-spread contamination of water sources by sewage in municipalities, (details furnished)? NO1664E

Reply:

Honourable Speaker,

Since the establishment of a service delivery Task Team, we have been engaging with both the Department of Water and Sanitation, and CoGTA to intervene in service delivery hotspots. In this regard, I have had a meeting with Minister Hlabisa, after having met and worked with his predecessor on how best we can deal with the challenges of services delivery in municipalities. 

Since then, there is relative improvement.

According to assessment by CoGTA in 2023, the number of stable municipalities has increased from 30 in 2022 to 61 across the country. Further, the number of municipalities identified as being in distress has decreased from 66 in 2022 to 34 in 2023. 

Honourable Speaker,

We have received reports on severe water and sanitation infrastructure challenges faced by Free State Municipalities. In the main, the lack of maintenance and upgrading of existing infrastructure is the cause of wide-spread contamination of water sources by sewer spillages into the Vaal River. 

To this end, the Department of Water and Sanitation has opened criminal charges against 53 municipalities for various acts of pollution and environmental damage. These charges are at various stages of investigation by the law enforcement agencies. 

Furthermore, the Department of Water and Sanitation has issued directives to various municipalities for failing to comply with the relevant standards in the processing of effluent from their waste-water treatment works.

Special attention is being given to municipalities such as such as Mafube, Maluti-a-Phofung, Mangaung and Metsimaholo. Water Intervention Steering Committees have been established in these areas to tackle the pressing issues of water supply and sanitation.

Amongst other intervention measures, the Free State Provincial CoGTA Department has allocated R5million towards the construction of Emergency Sewer ponds at Frankfort to ease the plant not to pollute the Vaal River during power failures. Progress to address the sewer spillages into the Vaal River is closely monitored by the Department of Water and Sanitation.

Madam Speaker,

When delivering her maiden budget vote speech on 12 July 2024, the Minister of Water and Sanitation announced that the new Polihali Dam is under construction in the mountains of Lesotho, which is part of the R42 billion second phase of the Lesotho Highlands Water Project that will provide additional water to the Integrated Vaal River System which supplies Gauteng and parts of the Free State, Mpumalanga, North West, and Northern Cape Provinces.

As part of implementing long term strategies to address the wide-spread contamination of water and infrastructure challenges in municipalities, the Department of Water and Sanitation has put in place the Water Partnerships Office in collaboration with the Development Bank of Southern Africa (DBSA) and the South African Local Government Association (SALGA). The role of the Office is to provide support to municipalities to establish partnerships with the private sector. 

For example, the Water Partnerships Office is currently supporting the eThekwini, Mangaung, Buffalo City, Nelson Mandela Bay, and Tshwane municipalities to mobilise private sector finance for the replacement of leaking municipal water distribution pipes which are resulting in high levels of non-revenue water. 

In conclusion, on 27 August 2024, President Cyril Ramaphosa assented into law, the South African National Water Resources Infrastructure Agency SOC Ltd Bill, which sets up a new agency that will be responsible for developing and managing national water infrastructure, and will be able to mobilise finance for new projects through innovative models to crowd-in private investment.

We call on all Municipalities, especially those on the banks of the Vaal River to urgently prioritise repairs and maintenance of their waste-water treatment works and associated infrastructure to avoid further pollution of our water resources.

I thank you. 
 

11.

Ms D R Direko (ANC) to ask the Deputy President:

With reference to the partnership between the Presidency and the National Business Initiative to convene a national dialogue to enhance service delivery through strengthening local government in cooperation with the Department of Cooperative Governance and Traditional Affairs and the subsequent announcement by the President, Mr M C Ramaphosa, to prioritise fixing local government as the Government of National Unity, (a) what are the outcomes of the national dialogue and (b) how far has the Government gone in implementing those commitments? NO1663E

Reply:

Honourable Speaker,

Let me thank the Honourable member for asking this important question on the need to fixing local government. This is a two-part question in that it requires a response on the partnership between business and government in supporting developmental local government. Secondly, it touches on the work we did last year in response to the challenges of coalition governments in municipalities.

On 17 April 2024, the Department of Cooperative Governance and Traditional Affairs (CoGTA), in partnership with the National Business Initiative (NBI) convened the Thought Leadership Dialogue, which I had an opportunity to attend, to strengthen local government, as a convergence point of service delivery. 
 
The Thought Leadership Dialogue was anchored on the idea of leveraging new and strengthening existing partnerships to advance our country’s nation-building and development efforts. Through such collaborations, we have been able to harness our skills, resources, and expertise to address our country’s complex challenges and create an opportunity for progress and prosperity.

The dialogue saw prominent government leaders across the three spheres of government, business leaders, non-governmental organisations, state institutions, and international organisations come together to build a best practice forum, that will guide the public-private partnership model for a successful running of local government.

The main output of the dialogue was a partnership agreement between CoGTA and the NBI, which is anchored on the District Development Model and focuses on research and policy analysis on thematic areas such as:

- Just Energy Transition (JET), 
- Water and sanitation, 
- Institutional capacity and 
- Local Economic Development. 

Honourable Speaker,

In August 2023, we held a National Dialogue on Coalition Governments in municipalities. The dialogue was in response to challenges in coalition governments at the local government level. The National Dialogue was attended by parties represented in the 6th Parliament, parties outside Parliament and civil society sectors.

Jointly, political parties agreed to the following considerations towards making Coalition Governments effective:

- Consensus, a clear and shared agenda.
- Strong Leadership and Communication. 
- Compromise. 
- Strengthened Institutions.
- Power Sharing Mechanisms.
- Capacity Building for Public Officials and Politicians within the Coalition.
- Conflict Resolution Framework.
- Confronting Corruption

We are pleased to report that CoGTA is taking forward the implementation of the outcomes. 
Through our collective efforts both in the public and private sector, we will continue to work together to strengthen Local Government, empower communities, and improve service delivery.

I thank you.
 

12.

The Leader of the Opposition (MK) to ask the Deputy President:

Whether, in his role of leading Government efforts to fast‑track land reform and co-ordinating Government programmes to accelerate land reform and agricultural support, he intends to facilitate the introduction of a Bill by the Government to amend section 25 of the Constitution of the Republic of South Africa, 1996, to give effect to expropriation without compensation instead of expropriation with nil compensation; if not, why not; if so, what are the relevant details? NO1658E

Reply:

Honourable Speaker.

Accelerating land reform remains the key priority of this government. Thus far we have updated this August House on the work that is done by the Inter-Ministerial Committee on Land Reform and Agriculture. 

For example, in the past five years alone, the IMC through the relevant departments and state organs has redistributed 305 990 hectares, where 127 525 ha were allocated to women, 111 071 ha to youth, and 2 781 hectares to people with disability between 2019 and 2024.

About 2.3 million people have benefitted from land restitution, where a total of R25 billion was spent on the restitution of 3 972 331 hectares. An additional R22.5 billion has been spent on financial compensation for those beneficiaries who opted to receive financial compensation instead of the land being transferred.

Regarding the matter of the introduction of a Bill to amend section 25 of the constitution, this is a matter that falls within the structures of Parliament. 

Honourable Members would remember that the 6th Parliament established the Joint Constitutional Review Committee (Joint CRC) which conducted public hearings in all the provinces of South Africa to get public inputs on the amendment of Section 25 of the Constitution.

This process culminated into the development of a Bill that was aimed at amending section 25 of the Constitution to allow for expropriation of land without compensation.

However, the National Assembly could not pass this Bill since its support could not meet the required two-thirds majority vote for the 18th amendment of the Constitution.

Honourable Speaker,

The current constitutional framework provides for expropriation of property subject to just and equitable compensation. To this end, Parliament has passed the Expropriation Bill which has been sent to the President for assent. The Bill provides for the expropriation of property for a public purpose or in the public interest and matters connected therewith.

Let me assure this House that our agenda of accelerating land reform and land restitution will continue, however, we are certain that once the President has completed his consultation process, and assented the Bill into an act, government will be in a better position to accelerate the pace of land reform, land restitution and sustainable development that will benefit all the people of South Africa.

I thank you.