Statement on the Cabinet meeting of 6 July 2016

8 Jul 2016

1. Implementation of Key Government Programmes

1.1. In improving the lives of our people, Cabinet welcomes the launch of the Ncora Bulk Water Treatment Works Project in the Eastern Cape by President Jacob Zuma. The R64 million water treatment plant is estimated to benefit 17 887 families from 208 villages in the four surrounding area. It has created 188 jobs, with local people, youth and women being major beneficiaries.

The launch of the R18 billion Vaal Gamagara Water Supply Scheme refurbishment and upgrade project in Northern Cape by the Minister of Water and Sanitation, Nomvula Mokonyane will serve close to 150, 000 people in 3 towns and 22 villages on completion. Also, the launch of the R15 million Jericho Rural Water Supply Project has increased the security of water supply to the communities of Jericho in Madibeng Local Municipality.

1.2. Government’s investment in transport infrastructure is creating a safe, reliable, efficient and affordable public transport service across the country. The spin-off from improved travel conditions is greater investor confidence and economic development.

The official opening of the R190 million investment Ballito Interchange and the P455 main road upgrade by the Minister for Transport, Dipuo Peters are models for smart co-funding with R123 million from SANRAL and R67 million from the KwaDukuza Municipality. These serve as catalysts for further growth and investment with the P455 main road upgrade unlocking the development of a new R1 billion retail complex which is due for completion in 2017.

New state-of-the-art trains procured by the Passenger Rail Agency of South Africa will be launched later in the year. These trains will assist with the improvement of the services and train availability for the Mamelodi train commuters. An additional 70 new commuter buses will be procured in the City of Johannesburg which will better connect residents and improve economic efficiency in the country’s financial hub.

These investments are changing our urban landscape in response to the needs of our people.

1.3. On 16 July 2016, Minister of Science and Technology, Naledi Pandor will commission 16 dishes to expand MeerKAT, a project of Square Kilometre Array South Africa (SKA SA), 90 kilometres northwest of Carnarvon. The MeerKAT telescope has produced remarkable images of the sky using just four of the eventual 64 dishes installed; revealing never before seen radio galaxies in the distant universe. The scientific promise of MeerKAT is receiving worldwide interest and is now within our reach. It is a testament to the dedicated work of hundreds of engineers, scientists, managers and other staff, as well as of the South African and international industrial partners, and the support of the government and people of South Africa.

1.4. The National Arts Festival hosted annually in Grahamstown takes place over 11 days from 30 June to 10 July 2016. This multidisciplinary festival, the biggest annual celebration of the arts on the African continent, contributes in realising the National Development Plan which advocates that “arts and culture open powerful spaces for debate about where a society finds itself and where it is going”.

It is supported through the Mzansi Golden Economy strategy, which repositions the cultural industries in South Africa to effectively and comprehensively contribute to economic growth and job creation. Through the Mzansi Golden Economy Open Call process, the Department of Arts and Culture is also establishing a Debut Fund for younger artists. The aim is to create opportunities for young artists to publish their first book, produce their first play, produce their first album or host their first exhibition.

1.5. In bringing crime prevention services closer to the people, Cabinet welcomes the newly built Keimoes police station in the Northern Cape, which serves an estimated 23 000 citizens.

In Phola in Mpumalanga, the donation of a police station to the community by Eskom’s Kusile power station in partnership with KCW JV contractor demonstrated the impact of working together. The construction of the station, valued at R3 million, has created job opportunities and empowered people with skills and knowledge to create a safer environment.

1.6. South Africa hosted the Commonwealth Local Government Forum – Southern Africa Regional conference on 28 to 29 June 2016. This conference convened under the theme, “Igniting Sustainable and People Centered Socio-Economic Development in sub-Saharan Africa”, reflected on the role of African governments in championing the new development Agenda of the Sustainable Development Goals which conclude in 2030, and realise its objectives within the context of Africa Agenda 2063. The SDGs define the development agenda at local level to be essentially about making municipal spaces more socially inclusive, economically productive, environmentally sustainable and resilient to climate change and other risks.

1.7. We welcome the outcomes of the first ever Municipal Demarcation Board (MDB) conference on Demarcation and Spatial Transformation that took place from 23 – 24 June 2016. The conference was convened under the theme, “Reviewing the Past and Mapping the Future” focusing attention on key issues related to demarcation and  examining challenges facing the metropolitan system of governance and the necessity of delimiting wards every five years. The role of ensuring sustainable municipalities came under the spotlight as an integral part of the demarcation process. Contributions from the conference will continue to shape the development and implementation of demarcation and spatial development policies.

2. Key Cabinet decisions

2.1. In preparation for the upcoming Local Government Elections on 3 August 2016, Cabinet was briefed on the State of Preparedness, as relates to safety and security.

Through the National Joint Operational and Intelligence Structure (NATJOINTS), operations are in place to create a safe and secure environment to ensure that people in South Africa are and feel safe. This is key in contributing towards the credibility of the upcoming elections.

In addition the SAPS, National Prosecuting Authority, Department of Justice and Constitutional Development and the Legal Aid Board have entered into the Local Government Elections Integrated Case Management Protocol to enforce the Electoral Offences Act.

2.2. Cabinet was also briefed on the on-going preparations for the Third United Nations Conference on Housing and Sustainable Urbanisation (Habitat III) to be held by the General Assembly of the United Nations in Quito in Ecuador from 17 to 20 October 2016.

Habitat III aims to secure a renewed global commitment to addressing housing and sustainable urbanisation for the next 20 years through the adoption of a forward-looking, action orientated outcome agreement. Cabinet supports the Common African Position on Habitat III that will be tabled at African Union Summit of Heads of State and Government in Kigali, in July 2016. This forms the basis for South Africa’s negotiating position. Consultations are ongoing to inform a South African Habitat III outcome position document.

South Africa also contributed to the international preparations by hosting a Habitat III Thematic Conference on informal settlements in April 2016 under the theme “Leading change in the City: From slums to integrated, safe, resilient and sustainable human settlements” which adopted the Pretoria Declaration as a formal input into the Habitat III draft outcome document.

2.3. The decision by the Minister of Trade and Industry to designate the Musina-Makhado Special Economic Zone in the Vhembe Region of Limpopo, and to grant a Special Economic Zone Licence to the Limpopo Economic Development Agency was ratified by Cabinet. The Hoi Mor Consortium will plan, develop, manage and market the South African Energy and Metallurgical Industrial Park within the zone.

The designated zone will promote industrial development in the region with a specific focus on mineral beneficiation, agro-processing, petro-chemicals, and other light industries as envisaged in the Nine Point Plan.

This Special Economic Zone is anchored through an investment of over R40 billion in an Energy and Metallurgical Industrial Cluster. The implementation of various projects over the next five years is expected to create over 21 000 jobs.

The Musina-Makhado region is also part of the Trans-Limpopo Spatial Development Initiative and is well positioned for regional integration and linkages with Mozambique, Zimbabwe and Botswana.

2.4. Cabinet approved the submission of the Report on the Performance of the Research and Development (R&D) Tax Incentive Programme 2014/15 to Parliament.

Government offers an R&D tax incentive so as to encourage the private sector to undertake R&D in South Africa. The incentive consists a 150% tax deduction on expenditure incurred on R&D activities approved by the Minister of Science and Technology. This can be accessed by companies of all sizes in all sectors of the economy.

876 companies participated in this incentive from November 2006 to February 2015, claiming R6 billion in R&D tax deductions. It is estimated that R33.3 billion in R&D expenditure was supported through the incentive in this period. Some of the results by companies which benefited include: 765 scientific publications; 649 conference proceedings; 1062 new products launched; 111 forms of intellectual property; and 33 local and international patents.

2.5. The Intellectual Property (IP) Consultative Framework was approved by Cabinet. The IP Consultative Framework aims to facilitate what will be continuous engagement with governmental partners and society at large towards the formulation of South Africa’s IP Policy.

The key objective is to strengthen the consultative process in the formulation of South Africa’s IP policy to ensure that it is broadly representative of government and the perspectives of affected stakeholders in the broader society.

Government will ensure that the IP policy respects property rights as enshrined in the Constitution while striking appropriate balances with public interest and responds to South Africa’s unique innovation and development dynamics.

2.6. Cabinet was briefed on the outcomes from the High Level meeting of the General Assembly on the World Summit on Information Society which was held from 15 to 16 December 2015.

South Africa led the process on behalf of G77+China, and outcomes reached were in keeping with the South African position. The Department of Telecommunications and Postal Services will be developing South Africa’s Information and Communications Technology development agenda in due course.

2.7. Cabinet approved the South African Police Service Public Order Policing Enhancement Strategy. This reinforces government programmes and initiatives aimed at maintaining peace and stability in the country. This impacts on the confidence of foreign investors and contributes to the realisation of the National Development Plan. Public order and the rule of law is the basis to ensure that all people in South Africa are and feel safe.

3. Upcoming events

3.1. Cabinet calls on all South Africans and all sectors to participate as the country counts down to the 21st International AIDS Conference under the theme “Access Equity Rights Now”, from 18 to 22 July 2016, at the Albert Luthuli International Convention Centre in Durban.

As part of the build up to AIDS 2016 and to mobilise all sectors, Deputy President Cyril Ramaphosa, as the Chairperson of the South African National Aids Council, will lead the five-day countdown at the Union Buildings on 13 July 2016. #5Days to #AIDS2016 has been created to ensure a platform of interaction. In addition #1Day to #AIDS2016 will be used from 17 July 2016 which will mark the one day count down.

Citizens are encouraged to wear red, white or black clothing, organisations to display educational material and condoms at strategic points, and places of worship to conduct special prayer services and light memorial candles. Mobilisation of all sectors is key in the build up to AIDS 2016. The details of these and other activities can be found on www.gov.za

3.2. Nelson Mandela International Day on 18 July is a reminder of our duty to improve the lives of those less fortunate than us. "There is no end in doing better. We have to do it again and again." We encourage all South Africa’s people to use 67 minutes of their time to engage in selfless service because together through a collective effort we can change the world.

This year the focus will be on education and literacy, food security, shelter and the environment. Cabinet calls on South Africans to Play Their Part by helping to establish food gardens, reading to children, painting schools and contributing towards the development of communities. 

3.3. This year South Africa commemorates the 60th anniversary of the Women’s March, under the theme: “Women united in moving South Africa forward” to reaffirm Governments commitment to strive towards a society free from all forms of discrimination and to move South Africa Forward by raising awareness about the critical role that women play in the country’s socio-economic development. The empowerment of women is an integral part of social cohesion and nation building.

The 60th commemoration of the National Women’s Day on 9 August, 2016 will highlight the history of struggle of women, through telling ‘HerStory’. The contribution women made in the struggle against oppression and discrimination as well as the achievements by women under democracy will be highlighted. A public education programme through various communication channels by government, civil society and the private sector will be undertaken with a build-up of activities in all provinces leading to Women’s Day on 9 August.

The main Womens Day event will take place at the Union Buildings in Pretoria. The day will start with a parade from Bosman Station to the Lilian Ngoyi Square where President Jacob Zuma will open the Women’s Living Monument. The formal proceedings will also be preceded by the march of women from various parts of town to the Union Buildings.

3.4 The Minister of Telecommunications and Postal Services Dr Siyabonga Cwele will lead the South African delegation to the Pan African Postal Union (PAPU) Plenipotentiary Conference scheduled for 22-23 July in Yaoundé, Cameroon. The conference aims to finalise Africa’s position ahead of the Universal Postal Union (UPU) Congress, scheduled for 19 September- 7 October in Istanbul, Turkey.

Cabinet approved South Africa’s intentions for the country to stand for re-election in the UPU Governance body, in line with the foreign policy objectives of reforming the governance of global institutions and to champion the developmental agenda. The PAPU and UPU are focused on improving integration and interoperability between designated postal operators and other key stakeholders in order to strengthen the universal postal services globally to ensure that they reduce the digital divide and provide access to communications and financial services.

4. Cabinet’s position on key issues in the environment

4.1. South Africans noted with appreciation that President Jacob Zuma declared 3 August 2016 as a public holiday to enable all eligible and registered voters to vote freely on the day. While the IEC will endeavour to ensure that elections are free and fair, it is the primary responsibility of all the stakeholders including communities and political parties. Cabinet would like to urge all South Africans to ensure peace and calm ahead of, during and post the 2016 local government elections. The law enforcement agencies will not tolerate any disruptive actions aimed at disenfranchising voters. We encourage all registered voters who will not be able to vote on 3rd of August to apply for a special vote with the IEC.

4.2. All South Africans are encouraged to participate in the nomination process for the 2017 National Orders Awards. National Orders are the highest awards that a country, through its President, bestows on its citizens and eminent foreign nationals.

Members of the public are invited to nominate persons they believe deserve to receive the country’s highest honours. Members of the public must attach a short motivation on the person nominated and nominations forms can be accessed on The Presidency website.

4.3. We welcomed the findings from the 2016 State of the South African Cities Report (SOCR) released on 22 June 2016 by the South African Cities Network. The SOCR presents a 5-year perspective on the performance and conditions of the country’s largest cities and sets the development Agenda by communicating essential messages about the planning, development and management of cities to the next generation of civic leaders. This report elevates actions to make our cities better, more inclusive and productive places for those who live in them.

4.4. Government interventions are beginning to bear fruit and municipalities supported through initiatives such as Back to Basics are responding positively and showing signs of improvement. It is a further indication of the progress made in deconstructing apartheid spatial planning and improving service delivery. It underscores the many achievements that have transformed our urban landscape into democratic spaces in which all citizens are free to interact. This echoes the Auditor-General’s Report on Municipal Finances that showed a considerable improvement in Audit Outcomes in the past 5 financial years from 2010/11 to 2014/15. The 2015 Financial Census of Municipalities report released recently by Statistics South Africa is another indication that government is able to provide quality basic services to the people. According to Stats SA’s 2016 Community Survey, the country’s growing population is better off than before.

4.5. Cabinet reaffirmed its support for media freedom, freedom of expression and the right of any person to access information in South Africa. These rights, well enshrined in the Constitution, will always be upheld and protected by all.

The role of the SABC as the public broadcaster remains vital for the development of our young democracy. The current discussion over the SABC’s editorial decisions regarding the broadcasting of images of violence and destruction of property should be held in a constructive manner that would serve to strengthen our democracy.

Cabinet remains confident that the public broadcaster will continue to serve the interests of all the people of South Africa.

4.6. South Africa's improvement by 14 places in the World Bank's 2016 Logistics Performance Index tells us that South Africa is certainly open for business. South Africa stands at 20th of 160 countries assessed by the survey, moving up from 34 in 2014. The ease of movement for goods and services contribute significantly to a country’s competitiveness, particularly as a destination for investment.

4.7. Cabinet received a report from the Ministers of Mineral Resources, Labour and Finance following their constructive engagement with stakeholders in the banking industry. The outcome of this report will be communicated in due course.

4.8. Cabinet welcomes the 2016 Community Survey Report by Statistics South Africa that shows the progress we have made as a nation in key areas of service delivery, particularly in life expectancy of our people.

These statistics are an important yardstick to inform strategic planning for government particularly the new and incoming administration of local government following the elections on 3rd of August. Government will intervene to address the challenges highlighted in the report through the National Development Plan Vision 2030, which is the plan of the people by the people.

4.9 Cabinet congratulates the following:

  • Nkosinathi Maphumulo, popularly known as Black Coffee, for becoming the first South African to win the prestigious Black Entertainment Television (BET) Best International Act: Africa Award.
  • Bafana Bafana for winning the 2016 Edition of the COSAFA Cup. The team which comprised mostly of under 23 players bodes well for the country’s future success in the international arena.
  • The Springboks on their victory over Ireland in the third test to win the series.
  • The winners of the 18th National Science and Technology Forum Awards which are the most significant science, engineering, technology and innovation (SETI) awards in South Africa. The awards honour outstanding contributions to SETI by encouraging and rewarding excellence.
  • The City of Tshwane which received international recognition at the World Wi-Fi Day Awards for Most Innovative City or Government Program to bridge the Digital Divide. The awards were held at the Wireless Global Congress in the United Kingdom. The Tshwane Free Wi-Fi (knowns as TshWi-Fi) brought 1.8 million citizens in the Capital City online in the biggest deployment of municipal Free Wi-Fi on the African continent. The rollout was the result of a partnership with Project Isizwe.

4.10 Cabinet extends its condolences:

  • To countries which have experienced recent terror attacks, including Somalia, Turkey, Bangladesh and Iraq. South Africa stands firmly with the international community in condemning all forms of terrorism.
  • On the passing of highly regarded academic, author and thought leader, Professor Adam Small.
  • To the family and friends of Limpopo Agriculture MEC Joy Matshoge who died in a car accident in Mokopane, Limpopo.
  • To the family of accomplished businessman Don Mkhwanazi who played an instrumental role in black economic empowerment and driving economic transformation in the country. He was the founder of the Black Management Forum.

5. Appointments

All appointments are subject to the verification of qualifications and the relevant clearance.

5.1. Advisory Board of the National Intellectual Property Management Office for a period of four years:

a) Ms Morne Barradas;
b) Dr Antonel Olckers;
c) Mr Mkhetwa Alvin Maluleke;
d) Dr Carol Bernice Nonkwelo;
e) Prof Deresh Ramjugernath;
f) Ms Mary Tumelo Mashabela (re-appointment);
g) Mr Duncan Raftesath (re-appointment);
h) Mr McLean Sibanda (re-appointment and Chairperson); and
i) Mr Vishen Pillay.

5.2. National Radioactive Waste Disposal Institute:

a) Secondment of Dr. Wolsey Otto Barnard, from the Department of Energy, as the Acting Chief Executive Officer, for a 3 year period.

5.3. Board of Directors of the National Energy Regulator of South Africa:

a) Mr Yusuf Adam

5.4. Members to the Estate Agency Affairs Board for a period of three years:

a) Eugenia Xoliswa Kula-Ameyaw Gyarko;
b) Nkosinathi Biko;
c) Amanda Zolisa Cuba;
d) Jill Corfield;
e) Johannes (Jan) Frederick Davel;
f) Thandiwe Sylvia January-McLean;
g) Manare Jeoffrey Legodi;
h) Phumzile Peterson Makhosana;
i) Rev. David Gauta Mogomane;
j) Viloshnee Naidoo;
k) Yusuf Patel;
l) Mmatlou Hellen Phaleng-Podile;
m) Thembeka Semane;
n) Frans Johannes Van der Westhuizen; and
o) Christoffel Willem Weilbach;

Enquiries:
Mr Donald Liphoko
Cell: 082 901 0766