Support for spaza shops/informal traders
7.  Mr K M Mmoiemang (Northern Cape: ANC) to ask the Deputy President:
(1) Whether the Government has empowered spaza shops and informal traders to respond to incidents of food poisoning and sale of dangerous food products that continue to pose a threat to the communities; if not, why not; if so, what are the relevant details;
(2) whether the Government has developed any monitoring mechanisms to prevent the emergence of unscrupulous traders who are producing and supplying dangerous food products through spaza shops; if not, why not; if so, (a) what mechanisms and (b) what are the further relevant details? CO797E

REPLY: 
Honourable Chairperson,

Honourable Mmoiemang, your question opens wounds of pain. You will agree with me that there is no suffering like losing a child. 

As government, we condemn in the strongest of terms, the irresponsible acts that have led to the loss of lives due to food-contamination cases affecting mainly children in recent weeks.  

In response to this, President Cyril Ramaphosa outlined measures to address this challenge. The measures include among others, that all spaza shops and food handling facilities be registered by municipalities within 21 days. 

This will go a long way towards enforcing legal status of the spaza shops that are pivotal for township economies. We have a duty not only to provide a legal framework, but to also mainstream this into the broader economy.

The Department of Small Business Development (DSBD) is implementing measures to support small businesses to adhere to health and safety regulations. These include offering grants and loans to improve business infrastructure, customising training programs for food handling, hygiene, and safety standards, and training shop owners to verify product authenticity through serial numbers, and packaging. 

In addition, the Minister of Small Business Development has established a Task Force to coordinate and align programs for the Township Economy. The Task Force will ensure the eradication of counterfeit goods, and developing new initiatives to support township and rural entrepreneurs and SMMEs.

Equally, a joint fund of R500 million to support township and rural businesses has been established by the Department of Trade, Industry and Competition (DTIC). The funding will be used for business refurbishment and non-financial support such as technical skills, regulatory compliance, and capacity building.

The Department of Health is part of joint operations that are being conducted throughout the country as a monitoring mechanism for compliance of suppliers. Any premises found to be non-compliant are closed down, and illicit products found are confiscated.

Honourable Chairperson;

In the short term, we will establish Provincial Inspection Teams, increase investment in the awareness campaigns, product authentication, supplier vetting, and reporting mechanisms. While in the medium term, we will improve supply chain visibility and monitoring to prevent counterfeit goods from entering the value chain and foster relationships with reputable suppliers to ensure genuine products. 

In the long term, government will review and strengthen laws such as the Business Act and Business Licensing Bill to control business operations, govern counterfeiting, and increase penalties for offenders. 

Further, we are tackling foodborne incidences and unregistered spaza shops through the National Joint Operations and Intelligence Structure (NATJOINTS), which is a multi-sectoral intervention plan. The plan includes training spaza shops owners on food trading legislation, registration processes, and sourcing safe products from health-certified suppliers.  

Most importantly, we urge local communities to report suspicious activities and promote awareness to Environmental Health Officers of their local municipalities. I call upon communities to refrain from illegal registration of the spaza shops.  We all have a responsibility to ensure the safety and well-being of our communities, and in particular, our children.

Thank you, Chairperson.
 

Attracting private investment
8. Mr P J Swart (Western Cape: DA) to ask the Deputy President:
In light of the recent statements regarding the role of privatisation and private sector involvement in the economy, what strategies is the Government employing to attract private investment, particularly in critical sectors like energy and infrastructure? CO794E

REPLY:
Honourable Chairperson

I welcome the question by Honourable Swart because economic growth remains our number one priority. We have always appreciated the role of the private sector in the growth and development of our economy. 
In attracting investments, and stimulating economic growth, during the Sixth Administration, government adopted reforms aimed at improving energy and logistical constraints reducing barriers to private sector investment, addressing structural rigidities in the labour market, and tackling crime and corruption.

President Cyril Ramaphosa also launched Phase 2 of Business and Government Partnership in October this year. This partnership is aimed at supporting government efforts to accelerate the country's path towards sustainable inclusive economic growth and job creation, through increased investment.

About 140 CEOs from leading South African businesses pledged to work with government in increasing GDP growth, creating jobs, and promoting investor confidence. 

The collaboration between businesses and the government is essential in overcoming the current crisis and ensuring a sustainable future for South Africa.

Phase 2 will also strengthen the acceleration of the market reform needed for long-term energy security and infrastructure development for inclusive economic growth. 
Over the medium term, government is transforming its approach to public-sector infrastructure by creating the conditions to attract private-sector participation.

Private-sector resources were mobilised to address the energy crisis. As we are all aware that we have not had uninterrupted power supply since 26 March 2024, which is over 250 days. 

Together with the private sector, we are now focusing on augmenting public sector capability and to provide new channels for financing. We are now focusing on addressing water and infrastructure related challenges, including freight and logistics. 
We will continue to mobilise private-sector resources to augment the capability of the public-sector to fast-track the provision of sustainable energy and critical infrastructure to support inclusive economic growth.

Thank you Chairperson.
 
 
Growing intergovernmental debt
9. Ms M Dhlamini (Free State: ANC) to ask the Deputy President:
Whether the Government has considered developing mechanisms to address the growing intergovernmental debt that has a negative impact on the delivery of reliable services to communities (details furnished); if not, why not; if so, (a) what mechanisms and (b) what are the further relevant details? CO798E

REPLY:
Honourable Chairperson

I would like to thank Honourable Dhlamini for this important question. Inter-governmental debt is a challenge which hampers government efforts to deliver services, particularly at local government level.  

Government is implementing a number of measures to address the challenge of intergovernmental debt. In this regard, Accounting Officers are required to settle all contractual obligations, and pay all monies owed, including inter-governmental claims, within 30 days of the submission of an invoice, or on a specific period agreed with creditors or suppliers.

As part of revenue support initiatives, the National Treasury is strengthening the existing budget funding methodology to improve the budget processes of municipalities.  

Furthermore, the National Treasury is enforcing the implementation of section 216 (1) of the constitution by withholding the Local Government Equitable Share and other conditional grants for persistent municipal failure, including non-payment of bulk suppliers and third parties. 

In addition, the Municipal Finance Management Act (MFMA) enforces a debt management process through a combination of the municipal debt relief conditions that require applicant municipalities to use electricity and water as collection tools to enforce credit control. 

A similar support is intended by the Department of Water and Sanitation (DWS) for water debt owed to Water Boards, Water User Associations and municipalities that are Water Service Authorities.  

Honourable Chairperson,

The Department of Public Works and Infrastructure chairs the National Government Debt Forum. This Forum is aimed at resolving the current challenges of non-payment of municipal accounts by organs of state. The Forum deals with challenges such as those relating to property ownership; incorrect tariff charges; huge interest charges that cannot be justified; as well as budget constraints.

To complement efforts by the Department of Public Works and Infrastructure, the Department of Cooperative Governance will be issuing communication to Directors-General and Heads of Departments, requesting them to provide plans to settle municipal debts. 

National Treasury will also consider top-slicing budgets of Departments that owe Municipalities in order to settle debt. We will continue to implement these and other measures to eliminate the challenge of intergovernmental debt, and to improve the delivery of services to our communities. 
Thank you Chairperson!

 
Promoting credible/democratic governance
10. Mr M M Peter (Eastern Cape: UDM) to ask the Deputy President:
(1) With reference to the ongoing political and human rights violations in Zimbabwe and Mozambique that are causing regional economy instability (details furnished), what diplomatic and/or proactive measures is the Government undertaking through Southern African Development Community and the African Union to promote credible democratic governance;
(2) whether the Government will undertake measures to promote peace and stability in the region; if not, why not; if so, what are the relevant details? CO783E

REPLY:
Honourable Chairperson

Let me start by appreciating the question by Honourable Peter. Honourable Chairperson, on the 20th November 2024, I had an opportunity to attend the Extraordinary Southern African Development Community (SADC) Summit held in Zimbabwe on behalf of President Ramaphosa. 

The Summit was convened precisely to discuss how best we can respond to the current challenges in the DRC, as well as the recent violence after the elections in Mozambique. 
I can also report that the Summit noted the outcomes of the elections in Botswana and Madagascar. 

Equally, the Summit appreciated that there were upcoming elections in Namibia, which we now all know they were free and fair, and in this regard, we would like congratulate the people of Namibia.

Honourable Chairperson,

We are not aware of any human rights violations by the governments of Zimbabwe and Mozambique. We, through our diplomatic engagement, and as part of SADC, continue to engage with our sister countries on the variety of issues including socio-economic development and boarder management.

We know too well that lack of stability in the SADC region has an impact on South African economy hence through our diplomatic channel, we are engaging with the people of Mozambique to find a lasting solution to the current situation. 

Honourable Chairperson,

We continue to call for calm and utmost restraint while urging all political parties and their supporters to allow due-process to be completed in the overall supreme interest of stability in Mozambique.

As a member of SADC, South Africa we will further support all initiatives that are aimed at resolving conflicts, mediation and promoting peace, stability and good governance in the Region.  

Thank you, Chairperson.
 

Fast-tracking land reform
11. Ms M Makesini (Free State: EFF) to ask the Deputy President:
Whether, given the critical importance of land reform to address historical injustices and unlocking economic potential, any tangible steps have been taken thus far to (a) fast-track land reform and (b) coordinate agricultural support programmes; if not, why not; if so, (i) what steps and (ii) how such efforts impacted vulnerable communities, particularly (aa) emerging farmers and (bb) rural dwellers? CO782E

REPLY:
Honourable Chairperson

The question asked by Hon Makesini has been raised a number of times, not only by members of this House, but also in the National Assembly. As I said on previous occasions, the land question constitutes a critical part of the tasks of our Government as it seeks to address historic injustices.

Therefore, accelerating land reform remain the key a priority of this government. To date, our interventions are focused on expediting the process of land claims for agricultural production to subsequently improve food security. Minister Mzwanele Nyhontso recently handed over title deeds to Rakwadu claimant community in Limpopo following the successful processing of their land claim by the Commission on Restitution of Land Rights.

As part of ensuring that there is significant increase in agricultural production and improved food security, government continues to strengthen post settlement support to those whose claims have already been settled to utilise land productively. 

To this end, Cabinet has approved the National Policy on Comprehensive Producer Support and Development. The Policy provides for the different categories of farmers, and the type of support to be provided to these farmers, especially those from disadvantaged communities, including women, youth and persons with disabilities who are involved in agricultural production.

We will not rest until we have dealt with this historical injustice. 

Thank you, Chairperson.
 

Strengthening foreign missions
12. Mr M G Modise (Gauteng: ANC) to ask the Deputy President:
Whether the Government is aware of the economic value of foreign direct investment to suppas considered strengthening foreign missions to encourage investment in provinces while also ensuring that South African businesses are ort the country’s drive to fight unemployment, poverty and underdevelopment; if not, why not; if so, what are the relevant details? CO799E

REPLY:
Honourable Chairperson 

The question by Hon Modise on strengthening foreign missions to encourage investment is important. 

Foreign Missions play and important role in attracting investment and support local businesses in understanding the value of Foreign Direct Investment are integral components of South Africa’s economic strategy.

Equally, our foreign missions are actively engaged in economic diplomacy, which is in line with the priorities of the Government of National Unity. This commitment focuses on inclusive growth and job creation, which are central to their efforts.

This work is done through collaboration between the Department of International Relations and Cooperation (DIRCO) and the Department of Trade, Industry, and Competition (DTIC).

In addition, through BrandSA, we promote the country as a whole to ensure that South Africa attracts and promotes investment opportunities in the provinces and cities both urban and rural. 

By utilising market and economic intelligence, South African missions abroad are dedicated to connecting with potential investors, garnering expertise and capacity to support our crucial sectors such as agriculture, manufacturing, and technology. 
Export and investment initiatives undertaken by our Missions abroad underscore the vital role that economic diplomacy plays in advancing our national interests. 

Honourable Chairperson,

My most practical experience of how missions are promoting and attracting investment was during my recent visit to Ireland and United Kingdom. I was deeply impressed about how the two missions identified critical sectors of the economy that can promote trade within our country and these two countries.   

Their efforts to encourage local businesses to collaborate with international investors create a wealth of investment opportunities within South Africa, which is a promising sign for our economic future.

Through these initiatives, our foreign missions are better placed to market our country as an investment destination with a potential to grow the economy for the betterment of all South Africans.

Thank you, Chairperson.

NOTE: Honourable Chairperson, allow me to wish you and honourable members a peaceful holiday season as we come to the end of term of Parliament. May you all remain safe as you travel to your destinations, until we meet again next year.