Summary of SA President Jacob Zuma’s State of the Nation Speech, delivered on Valentine’s Day 2013 (14 Feb).
State of the Nation 2013:
Strategy:
• The Zuma Administration has embraced the National Planning Commission’s National Development Plan for South Africa. The ANC intends following this 20 year roadmap as its way to achieve required GDP growth of 5% plus to eliminate poverty, inequality and unemployment.
• A target of 11m new jobs by 2030 has been set. To achieve this the economy will need to treble in size. The business sector has identified obstacles that need to be removed. Further discussions will be held with business, labour and civic society to work together to address this challenge.
• Accelerating infrastructure development is key. In February 2013, an Infrastructure Development Bill was published for public comment. The State is determined to address corruption, tender fraud and price fixing in the infrastructure programme. Focus is being given to improve implementation. Many projects announced by the PICC will be fast-tracked.
• Strong and consistent intervention by the State in key sectors will continue after successes in the manufacturing sector. A broad financial support scheme has stabilized the clothing, textiles and footwear industry after it was sliding for 15 years.
• A revised broad-based BEE Act and Codes are being finalized to prioritise development of Black-owned enterprises and industrialists.
• Youth unemployment is a crisis. To address this:
– An accord at NEDLAC is to be signed in February 2013.
– SOEs to increase apprenticeships and learnerships
– Private sector is asked to absorb 11 000 unemployed graduates of Further Education and Training courses.
– The National Rural Youth Services Corps has enrolled 11 740 young people (run by Dept Rural Development)
– Nine rural hubs per province are planned, including the 23 poorest districts in SA
– The Expanded Public Works and Community Work programmes are to be used to absorb young people.
• Tourism has been identified as a job driver.
• In Mining, Govt, labour and business have agreed to work together to strengthen collective bargaining and to address housing problems in mining towns. Specific plans are being drafted for Rustenburg, Lephalale (Ellisras), Emalaheni (Witbank), west Rand, Weklom, Klerksdorp, Burgersfort/Steelport, Carletonville and Madibeng (Brits). The current mining royalties regime will be evaluated as part of the Minister of Finance’s study of SA’s current tax practices to be commissioned in 2013.
• Education is a requirement for a successful society. A Presidential Remuneration Commission is to be established with its first priority investigating the appropriateness of teachers remuneration, conditions of service and return on investment.
• In 2014 the NHI will be created with progress in pilot districts accelerated. In April 2013 the first group of 300 private medical practitioners will be contracted to provide medical services at 533 clinics within villages and townships; and in 10 of the pilot districts.
• Lessons from the missed land reform targets are being addressed by changing the “willing buyer, willing seller” principle to “just and equitable” to stop the State overpaying for land. Also, amendments are being made to the Act to re-open the ability of people who missed the 1998 deadline to lodge restitution claims. Included in these are claims by descendans of the Khoi and San. Adequate post-settlement support must be provided plus better incentives for mentoring commercial farmers.
• Cabinet has approved the Bill on Gender Equality and Women Empowerment for public comment. It will legislate the 50/50 policy position in decision making structures.
Forecasts:
• SA’s GDP in 2013 is expected to average 2,5%, down from 2012’s 3,1%
Progress report:
• Between 2009 and March 2013 the Government will have spent R860bn on infrastructure. These include:
– Phase one of Mokolo and Crocodile River Water Augmentation for Eskom’s new Matimba and Medupi power stations.
– Since October 2012 construction of the bulk water distribution system for the De Hoop Dam to supply water to three northern Limpopo municipalities.
– Construction will begin soon on the Majuba coal railway line in Mpumalanga.
– Substantial work is underway developing the City Deep inland terminal in Gauteng.
– Initial work has begun on expanding Pier 2 in the Durban Port and land has been purchased to develop a new dug-out port at the old Durban airport.
– Construction is underway to develop a new transshipment hub at Ngqura in the eastern Cape.
– Preparatory work has begun on the new Umzimvubu Dam.
– Construction has begun on the upgrading of the Mthatha Airport and the Nkosi Dalibhunga Mandela Legacy Road and Bridge in the Eastern Cape.
– Backlogs in the North West Province are to be fast tracked over the next two years addressing electricity, schools, clinics, roads and water.
– The rail capacity of the iron ore line on the West Coast has been expanded through the delivery of 11 locomotives.
– Phase One to expand Saldanha’s iron ore export capacity to 60m tpa was competed in September 2012.
– Construction work to integrate bus, taxi and train transport is taking place in Cape Town, PE, Rustenburg, Durban and Pretoria.
– Electricity transmission cables covering 675lm have been laid to connect fast growing economic areas and power rural areas.
– Government has signed contracts worth R47bn in the renewable energy sector involving 28 wind and small hydro projects in the Cape and Free State.
– Over half of the R800m national green fund has been approved for allocation to projects.
– As of January 2013, a total of 315 000 solar water geysers had been given to poor households who previously had no hot water.
– Close to 200 000 households were connected to the electricity grid in 2012. 12,1m (85%) of SA households now have access to electricity; nine out of 10 now have access to water.
– In 2012, 7 000 new fibre optic cables were laid by the private and public sector with plans for 100% broadband penetration by 2020.
– By end March 2013, 98 new schools will have been built, almost half of them replacing mud schools in the Eastern Cape.
– Construction will begin in September on new universities in the Northern Cape and Mpumulanga.
– The Passenger Rail Agency (PRASA) and Transnet have committed hundreds of billions of rand to improving the commuter and freight train network.
– Tourist arrivals grew at 10,7% between January/Sept 2012, well above global average of 4%.
– In late January, Zuma nmet with Anglo American chairman Sir John Parker to discuss the plans to restructure and retrench 14 000 Angloplat workers.
– R70m of the R126m set aside for GAP housing by Provincial Governments has been used in projects including Walmer Link (PE); Lady Selbourne (Pretoria); Nelmapius (Pretoria); Bohlabela Borwa (not sure where this is except somewhere in Gauteng); Cosmo City (Jhb); Fleurhof (Jhb); Intabazwe Corridor (Harrismith); Seraleng (Rustenburg).
– Adult education system Khari Gude has reached more than 2,2m people between 2008 and 2011.
– Studies from the Medical Research Council and the Lancet medical journal report a dramatic increase in life expectancy from an average baseline of 56 in 2009 to 60 in 2011. There has also been a significant decrease in infant and under-5 mortality.
– Rapid urbanization continues with 63% of the population now living in urban areas with this expected to increase to over 70% by 2030.
– The Special Investigating Unit has grown from an initial 70 to over 600 staff members. Since 2009 the SIU has been given 34 proclamations to investigate allegations of corruption, fraud or maladministration in the public sector. In 2012 additional funding of R150m from the Criminal Assets Recovery Account was approved for the work of the Anti-Corruption Task Team. By September 2012, criminal investigations had been initiated against 203 people in the 67 priority cases. 66 people under investigation are alleged to have received R5m or more in benefits through corruption. Freezing orders have been obtained against 46 people. The Asset Forfeiture Unit has seized assets worth R541m. 107 officials in the criminal justice system were convicted.
