Building a capable and effective state
To achieve any progress in addressing the urgent challenges, South Africa needs a capable and effective State. The greatest weaknesses are in state-owned enterprises and local government. Many of the state-owned enterprises are struggling with significant debt, under-investment in infrastructure, the effects of state capture and a shortage of skills.
Government will implement the recommendation of the Presidential State-owned Enterprises Council to establish a state-owned holding company as part of a centralised shareholder model that will ensure effective oversight of state-owned enterprises.
Rationalising government departments, entities and programmes
Separately, the President has instructed The Presidency and National Treasury to work together to rationalise government departments, entities and programmes over the next three years.
National Treasury estimates that government could achieve a potential saving of R27 billion in the medium term if it deals with overlapping mandates, closes ineffective programmes and consolidates entities, where appropriate. The poor performance of many local governments remains an area of concern.
Improving municipalities
Too many of the municipalities, 163 out of 257, are dysfunctional or in distress due to poor governance, ineffective and sometimes corrupt financial and administrative management and poor service delivery.
Government is implementing a number of interventions to address failures at local government level and improve basic service delivery. These include enhancing the capacity of public representatives and officials, maintaining and upgrading local infrastructure, and invoking the powers of national government to intervene where municipalities fail to meet their responsibilities.
Professionalising the public sector
A professional public service, staffed by skilled, committed and ethical people, is critical to an effective state and ending corruption, patronage and wastage. In response to the State Capture Commission and in line with the framework for the professionalisation of the public service, integrity assessments will become a mandatory requirement for recruitment to the public service and entry exams will be introduced.
Government is amending legislation and strengthening the role of the Public Service Commission to ensure that qualified people are appointed to senior management positions and to move towards creating a single, harmonised public service.
Related links
Source: State of the Nation Address Highlights [PDF]
