Programme Director, Mr Alec Hogg;
Executive Mayor Dr Annelie Rabie, Members of the Mayoral Committee and Councillors present;
Leaders and Members of different Political Parties present;
CEOs and Business Leaders Present;
Ladies and Gentlemen,
I am pleased to be with you this morning, at this BizNews Conference to share my reflections and engage with you on issues of importance as we build the South Africa we want, which truly belongs to all who live in it, black and white.
We had previously agreed that I would open the conference. As you are all aware, we were busy finalizing the Budget and had to adjust and agree that I would speak towards the end of the conference.
Therefore, I would like us to have a conversation on crucial issues that influence the future of our country, affecting not just the government but also society at large. We must do this with the intention of finding solutions to the challenges that confront our nation.
As we embark on this journey, we must have a full appreciation that the first 15 years of democracy were characterised by high economic growth; however, the last decade and a half has been characterised by stagnant growth. Hence, we must embark on structural reforms of the economy, which entails ensuring that the growth sectors of the economy contribute to GDP growth as well as creating much-needed jobs.
I must state from the onset that the responsibility of guiding South Africa to greater prosperity is not solely on the shoulders of the government. It is a shared responsibility among the business community, NGOs, civil society, and all those who aspire to see our country prosper.
At the core of the issues that require immediate intervention is; poverty, inequality, unemployment, and corruption. These existential challenges pose a danger to our democratic constitutional system. They keep us, and if I may say so myself, awake at night because if we do not swiftly overcome these systemic economic issues, we shall experience perpetual unrest.
What I am saying is that if we fail to integrate most marginalised people into the mainstream economy to help them sustain their livelihoods, we will find ourselves in a difficult position as a country. Equally, we must deal decisively with gross inequality as an integral part of overcoming these challenges.
I have come to this important conference with the knowledge that many of you here share the same concerns about the state of the economy, as well as our country's future. I trust that you share my conviction that we must work together to find workable solutions.
Future of SA under the GNU
Programme Director, yesterday, we witnessed the presentation of the Budget of the Government of National Unity (GNU) by the Minister of Finance, which was in response to President Cyril Ramaphosa's priorities as outlined during the State of the Nation Address.
As you are all aware, we decided to postpone the budget presentation on the 19th of February because we needed to find each other on some of the proposals by Treasury.
We have subsequently reached consensus on a mutually agreeable resolution that puts our people first.
Through this process, we have drawn lessons, and as such, we will have to improve our budget process so as to avoid what happened over the last few weeks.
As I have indicated on several occasions, having a GNU Cabinet does not imply that we will agree on everything. There will be times when we do not view things the same way, but this does not spell the end of the GNU.
In reality, what has transpired proves that the GNU is far more powerful than many people realise. Several coalition governments around the world have collapsed as a consequence of misunderstandings about the country's Budget; this is but a reflection of democracy at work.
To illustrate our seriousness and dedication to the GNU, President Ramaphosa, together with GNU Leaders established the GNU Clearing House Mechanism to resolve policy disagreements. We have, through the GNU Clearing House Mechanism, which I am chairing, has already resolved critical policy differences, and we will continue to work together for the good of the people of our country.
Hence, our focus as GNU is on the immediate task of driving inclusive growth and job creation to reduce poverty, tackle the high-cost of living, and build a capable, ethical, and developmental state.
For us to reach our objective, the National Development Plan’s Vision 2030 remains the central pillar to guide our development approach, which in turn informs the outcomes to be achieved in this seventh administration.
As you would know, we are now a few years away from 2030. It is critical that government in all its efforts, speeds up the execution of the programme outlined in the NDP and the newly adopted Medium-Term Development Plan (MTDP).
We must also start looking into the future beyond 2030. We must perhaps look into the South Africa we want by 2055, the centenary of the Freedom Charter.
As part of looking into the future, the President will announce the convening of the National Dialogue sometimes this year, coinciding with the 70th anniversary of the Freedom Charter. We will ensure that this Dialogue is inclusive and allows everyone to contribute on what we need to do to build a country of our dreams.
The recently adopted MTDP directs that we must invest in initiatives to create a more inclusive country that lives up to the commitments of the GNU. Our goal is to encourage fixed capital investments, industrialisation, job creation, and the transformation of our people's lives.
As a nation, we have a duty to transform South Africa and create a country in which all South Africans, regardless of race, class, or gender, may enjoy a decent quality of life and access to economic opportunities that will improve their well-being. One of the primary transformational interventions and policies includes the Land Expropriation Policy.
Land Expropriation
To address the land question, President Cyril Ramaphosa signed the Expropriation Bill into law on 23 January 2025.
The newly assented Expropriation Act No. 13 of 2024 comes 50 years after the implementation of the old 1975 Expropriation Act.
The 1975 Act lacked clear definitions of critical legal terms, neglected to consider socio-economic transformation, and did not establish a structured process for fair compensation.
The new Act, however, introduces a transparent expropriation framework that balances land reform with legal safeguards. It introduces Expropriation Without Compensation under specific conditions, strengthens legal protection, and clarifies compensation principles.
This comes after a lengthy and extensive process by various lead line-function departments, coordinated at the level of the Inter-Ministerial Committee on Land Reform and Agriculture, as well as an Independent Commission and advisory panels.
The law has been carefully crafted to accommodate a diverse range of requirements by considering a variety of demographics and incorporating flexible approaches wherever it is possible to do so.
I must emphasise that South Africa is a constitutional democracy that is firmly rooted in the principles of justice, equality, and the rule of law. These principles are important in guiding our efforts to correct historical injustices and seeks to redress an unjust past that eroded people’s access and rights to land, not just as a commodity but as an integral part of people’s livelihoods and identity.
The speculations that assert that the signing of the Expropriation Act is responsible for farm murders are not only unfounded but also irresponsible. This issue has been prevalent within farming communities in South Africa for years now, and victims of this violence are both farm workers and owners to varying degrees.
It was for this reason that we introduced the Rural Safety Plan. The Rural Safety Plan is a long-term initiative aimed at protecting our farming communities, as well as our food security value chain. This means that rather than dismantling this approach, we must step up our efforts to implement the National Rural Safety Strategy to prevent violent crime on farms, working collaboratively with farming organisations and other vital role-players.
Ladies and Gentlemen,
SA-USA Relations
Another issue that has gained traction in public discourse is the issue of South Africa and the United States of America’s diplomatic relations. As a country, we are focusing on stabilising our relations with the USA, considering that our partnership is long-standing and has been, and is critical to our economic development goals.
I should say that the cutting of the President’s Emergency Plan for AIDS Relief (PEPFAR) funding is quite regrettable. PEPFAR has been a key component of global health since it was founded by President George W. Bush in 2003, who was from the Republican party, just like President Trump.
The withdrawal of PEPFAR funding highlights the urgent need for South Africa to further strengthen its own interventions to reach the most vulnerable and access health services and support.
The withdrawal should serve as a wake-up call for the country to develop sustainable healthcare solutions independent of external influences.
In this regard, we have been investing heavily in healthcare reform and responding to the dual epidemics of HIV/AIDS and TB. The Department of Health has put measures in place to ensure that patients receiving TB and HIV treatment are not affected and do not default.
Furthermore, we must, as various actors, unite and support the government in promoting our nation's interests in the United States, including through mechanisms such as the African Growth and Opportunity Act (AGOA).
The loss of AGOA benefits would have the most devastating effect on South African farmers and agriculture workers. The AGOA is presently providing support to South Africa's agriculture and manufacturing sectors, which is expected to generate around $21 billion in trade with the United States.
Therefore, our position is that South Africa should maintain strong bilateral relations with the USA. Most importantly, as a country, we are committed to improving mutually beneficial trade, political, and diplomatic relations with the USA.
As we look to the future, we must also consider diversifying our export markets to lessen our reliance on single trading partners and to limit the kind of perils that we face. We must, therefore, expand our trade relations with other countries, such as China, Russia, India, and European countries.
President Ramaphosa is today Co-Chairing the EU–South Africa Summit, which is aimed at strengthening relations between South Africa and the EU Zone. It will also focus on improving cooperation in the following areas: trade and investment, the green and digital transitions, security and defence, energy, critical raw materials, skills development, and education.
We must also take advantage of intra-Africa trade and financial cooperation through the African Continental Free Trade Area (AfCFTA). The African Continental Free Trade Area has the potential to boost intra-African trade and financial cooperation, stabilise economies, and lessen dependency on unstable global markets.
Adapting to a New Reality
Ladies and Gentlemen,
Our nation has a wealth of natural resources, with gold being among the most significant minerals. Moreover, South Africa has vast agricultural land and property assets suitable for real estate development.
As an investor, you can accumulate money by engaging in these premier South African investment options.
Government is committed to removing blockages to economic growth, lifting economic expansion to above three percent 3% in the medium term and creating a cycle of investment, growth, and jobs.
We must also adapt to a new reality by changing business practices and reviewing policies to keep pace with global trends. Government plans to invest in the Fourth Industrial Revolution Skills (4IR) to revive economic development, revitalise skills, and generate high-quality employment.
In this regard, the National Digital and Future Skills Strategy provides a framework for inclusive collaboration between industry, labour, higher education institutions, and society to develop new skills and capabilities for the nation.
The government is focusing on implementing measures to increase productivity and develop necessary skills for a knowledge and skills-based economy.
Through the Human Resource Development Council, which I chair, we approved the Reconceptualised Human Resource Development Strategy 2024–2033, together with its implementation plan, the Master Skills Plan 2024–2030, in November 2024.
Aligned to the National Development Plan Vision 2030, this Reconceptualised Human Resource Development Strategy adopts four priority goals, namely:
• Improving early learning and schooling outcomes
• Improving the employability of youth who are not in employment, education, and training
• Improving the responsiveness of the Post-School Education and Training system to skills demand, and
• Improving governance, leadership, and management in the public sector.
These documents serve as blueprints for social partners to respond to human resource development challenges by developing skills needed to transform our country as an economy of the 21st century.
Ladies and Gentlemen,
South Africa is committed to combating corruption. The country signed the United Nations Convention Against Corruption in 2003 and ratified it in 2004.
As a member state, South Africa has a responsibility to promote and strengthen measures to prevent and combat corruption. This includes facilitating international cooperation and providing technical assistance. Additionally, South Africa should promote integrity, accountability, and the proper management of public affairs and property.
This is out of our conviction that corruption erodes democracy and the rule of law. It poses a threat to business and obstructs the delivery of essential government services to those in need.
It is for this reason that government is taking decisive steps to expose and punish corrupt activities in both the public and private sectors. We are reforming our institutions to make them stronger and more transparent and to restore a professional and effective public service.
South Africa has enacted the Prevention and Combating of Corrupt Activities Act to combat corruption in both public and private sectors. The NPA Investigating Directorate has been established to prosecute significant corruption cases.
In November 2020, the country adopted the National Anti-Corruption Strategy 2020-2030 to create an ethical and accountable state, ensuring integrity in power, respect for the rule of law, and zero tolerance for corruption in the business and civil society sectors.
Through new legislation, we have strengthened our ability to prevent money laundering and fraud and secure South Africa’s removal from the grey list of the Financial Action Task Force (FATF).
The country has addressed 20 of the 22 action items relating to combating money laundering and terrorist financing. These improvements are essential not only to remove ourselves from the grey list, but also to strengthen the battle against crime and corruption, which is crucial for the betterment of all South Africans.
We will continue to resolve both remaining action items by June, towards our removal from the grey list by October 2025.
South Africa's G20 Presidency
Let me conclude by putting a focus on the G20. As you know, Program Director, South Africa has assumed the G20 Presidency under the theme Solidarity, Equality, Sustainability. Our intention during this Presidency includes placing Africa’s development at the top of the agenda.
It is important to ensure that the G20 remains sensitive to the needs of the developing economies of Africa and to advance the interests and aspirations of the Global South.
As President Ramaphosa said during the G20 Finance Ministers’ and Central Bank Governors’ Meeting, South Africa has identified four priorities for its G20 Presidency.
Our first priority is to strengthen disaster resilience and responses. This is important, as we have recently witnessed floods across South Africa, affecting both our coastal and inland provinces. Natural disasters cause widespread damage to infrastructure, economic activity interruption, and livelihood destruction, including the unfortunate loss of lives.
The second priority is to ensure debt sustainability for developing economies. The G20 will prioritise debt sustainability for developing economies, address rising sovereign debt levels and servicing costs, demonstrate leadership in addressing global economic imbalances, and fill the funding gap necessary to achieve the Sustainable Development Goals.
The third priority of South Africa's G20 Presidency is to mobilise finance for a just energy transition. South Africa's G20 presidency aims to mobilise financing for a just energy transition by focusing on limiting global temperature rises in an equitable and just manner. The country has pioneered the use of country platforms to coordinate funding through the Just Energy Transition Partnership.
The fourth and final priority is harnessing critical minerals for inclusive growth and sustainable development. Our hosting of the G20—and the Business 20—provided an opportunity to promote South Africa as a business and investment destination and for the country to take the lead on global economic challenges. As business leaders, it is crucial that you maintain this momentum.
In closing, I wish to emphasise the importance of collaboration across all sectors to tackle future challenges and harness the talents of all South Africans. We must uphold values of justice, equality, and freedom, guided by a vision of an inclusive South Africa.
With courage and determination, we can build a stronger, more prosperous South Africa, ensuring that every individual has an equal opportunity to succeed.
Our collective efforts will pave the way for a better tomorrow.
Thank you, Baie Dankie.
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