President Jacob Zuma convened the mid-year Cabinet Lekgotla from 26-28 July 2011 at the Presidential Guest House, Pretoria.
The meeting was attended by the Deputy President, Cabinet Ministers, Deputy Ministers, premiers, local government representatives, directors-general from national and provincial departments.
The Lekgotla took place against the background of the recent local government elections in May this year. The local elections brought to sharp focus the need to further accelerate the provision of basic needs and infrastructure in rural and urban areas to improve the quality of life of all South Africans.
The meeting focused on two priorities - service delivery and job creation. On service delivery, it was emphasised that the extension of water, sanitation, electricity, roads and other basic needs were urgent. Lekgotla further emphasised that whatever blockages existed to delivery must be attended to without delay by all spheres of government.
On job creation, the meeting recalled the damage to the economy caused by the recent global economic downturn which cost the country about 900 000 jobs. The Cabinet Lekgotla resolved to fast-track interventions that will help create employment.
Given the centrality of infrastructure development and job creation in dealing with poverty and inequality, Cabinet resolved to elevate the management of the two priorities to the Presidency by establishing an Infrastructure Commission to be chaired by the President and a Job Creation Commission to be chaired by the Deputy President.
Cabinet adopted a 12 point implementation plan on job creation, within the ambit of the New Growth Path. The focus on the 12 areas does not mean that other programmes will be halted. The 12 areas are being singled out because they are urgent and effective.
These are the following:
1. Short-term employment schemes: This includes the expansion of the Community Works Programme to up to a million positions by 2013/14. Secondly, the Jobs Fund management will proactively identify programmes that will ensure commitment of its resources by the end of the financial year, which is R2 billion this year until the end of March.
2. Infrastructure and public investments: The Infrastructure Commission will ensure systematic selection, planning and monitoring of large projects. This intervention will systematically improve the capacity of state agencies to deliver infrastructure and help connect the work of all spheres of government. The revitalisation of rail infrastructure for freight and passenger was also highlighted.
3. Unblocking investments in major projects: A small high level team reporting to the co-ordinating Ministers for the Employment Cluster will focus on proposed changes and regulations to unblock private-sector projects with a substantial impact on employment investment. Measures will include tougher action to address the concentration of ownership and monopoly practices that limit the entry of new enterprises.
On Industrial Policy Action Plan (IPAP) specific action will be implemented to expand productive sectors and to improve competitiveness.
4. Interventions to improve competitiveness and expand the productive sectors: This will include industrial policy through prioritising actions that expand the productive sectors of the economy, supporting a reduction in the costs of amongst others, communication, transport, electricity, construction and food and strengthening the Competition Act.
5. Enterprise development and promotion of small businesses: Interventions include scaling up small business incubation programmes, use of the Broad-Based Black Economic Empowerment (B-BBEE) Codes to encourage private sector support, improve small business funding and expand micro-finance, and possible financial penalties for CEOs and accounting officers that fail to pay small businesses within 30 days.
6. Rural Development: Interventions include scaling up in size the existing rural programmes aimed at expanding agricultural production by small scale farmers, extending core infrastructure to rural areas, increasing jobs and revitalising rural towns. Targets will be set for investment in rural infrastructure for example water, roads, fencing and energy.
7. Greening the economy: Measures include power Purchase Agreements involving 1000MW of renewable energy by 2013 should be in place with a targeted 3800MW by 2016 with clear commitments to local procurement of technologies. Scale up financial support for the achievement of the target of a million solar water heaters installed by 2014.
8. Beneficiation: Ministers of Trade and Industry, Mineral Resources and Economic Development will recommend concrete steps to reduce steel prices by the end of September 2011. In addition there must be a report on the work of the state-owned mining company, setting out its role and the business plan for realising greater beneficiation.
9. Public Sector Training
- It is proposed that all Government Departments should spend at least 1% of payroll to develop skills with regular reports on progress through the Department of Higher Education and Training(DHET).
- Artisanship training should be expanded across the state.
10. Local procurement
- It is proposed that there should be inter-departmental consultations to identify an initial list of products that can be designated for local procurement, by the end of September 2011.
- Firm action to combat corruption in tender processes with a high level team to be put in place to consider complaints about tender delays or abuses that negatively impact on jobs, cost-effectiveness or economic development.
11. The Post Bank
- It is proposed that action should be taken to accelerate implementation process following the legislation that was passed recently to operate Post Bank as a registered bank.
12. African development: Government will seek to maximise benefits from the Tripartite Free Trade Areas Agreement that brings together SADC, East African Community and COMESA to remove obstacles to moving goods and people across borders. Further work will be undertaken to identify specific interventions in the continent that will strengthen regional integration and opportunities for the domestic economy.
B. Service delivery priorities
The Cabinet Lekgotla committed to give greater focus to coordinating and integrating service delivery in common priority areas where backlogs are the highest and on transforming apartheid special development patterns. These include twenty one rural districts in six provinces with highest backlogs such as Sekhukhune, uMkhanyakude and OR Tambo.
It was noted that less than 30% have access to basic services in 21 districts in 6 provinces (this excludes Gauteng, Free State and Western Cape).
The projects to be implemented will address at least water, sanitation, electricity, waste management and access roads.Other very important services such as education, health, policing and housing will also be included.
The infrastructure cluster service delivery task team to compile a set of integrated project plans for each district by end of 2011.
Metros, large towns and cities with large informal settlements
- Cabinet Lekgotla agreed to Informal settlement upgrading plan in 45 large metro areas, large towns and cities. Projects will cover security of tenure, water, sanitation, public transport, area lighting, electrification and waste management. There will also be provision of social services and amenities such as public open spaces and recreational facilities.
Some of the recommendations included:
- Improvement of the infrastructure delivery management process, eradication of under- expenditure and improve value for money.
- All provinces and relevant national departments will participate in infrastructure Delivery Improvement Programme.
- All struggling municipalities will participate in COGTA special purpose vehicle to address key blockages in service delivery.
- Accelerate building of infrastructure delivery skills and capacity where it is lacking in government and municipalities.
- National government will put in place stronger norms and standards for infrastructure delivery and monitor and enforce these measures.
Conclusion
President Zuma welcomed the commitment of the executive to ensure that the projects identified are implemented without delay, within the agreed time frames. He emphasised the need for all to move away from perpetual planning to visible action that will respond to the needs of the people. The President also stressed the need for departments to spend the funds allocated to them or risk losing the allocations.
The Cabinet lekgotla agreed that government will continue working closely with business, labour, and the community constituencies in the fulfilment of its developmental programme of action.
The President once again called upon all the political principals to participate in Public Participation Programme (PPP) and be a government that knows where people live and which responds timeously and in a caring manner to their concerns.
Enquiries:
Jimmy Manyi (Cabinet Spokesperson)
Cell: 082 379 3454
