Minister Thembi Nkadimeng: Debate on the State of the Nation Address

Minister Nkadimeng remarks during the SoNA debate 2024 Cape Town City Hall, Western Cape

Speaker of the National Assembly, Honourable Nosiviwe Mapisa-Nqakula The Chairperson of the NCOP, Honourable Amos Masondo
Your Excellency; President Cyril Ramaphosa His Excellency; Deputy President Paul Mashatile
Chairperson of the House of Traditional and Khoi-San Leaders, Kgosi Seatlholo
Honourable Premiers Honourable Members Fellow South Africans Good Day

President, just last week, you addressed the nation, delivering a State of the Nation Address that filled us all with pride. Yes, Mr. President, as we gather here today, we are all reminiscent of Tintswalo, for each one of us has reaped and continues to reap the rewards of the tireless efforts of our democratic government especially developmental local government.

As we stand here, three decades into our democratic journey, we reflect on the significant strides we have made in the delivery of basic services and the democratisation of development that has touched the lives of all citizens, such as Tintswalo.
 
We stand here today, galvanised by the multitudes of ordinary South Africans who have stepped forward since your delivery of the State of the Nation Address to proudly proclaim, "I am Tintswalo."

Their stories embody the essence of opportunity, support, and determination to succeed against all odds. Thirty years before Tintswalo was born, municipal employees were only labourers but today the technical capacity building programme that stands as a beacon of opportunity, echoing the essence of a developmental local government’s promise of inclusive progress and empowerment. With over hundred (100) skilled built environment professionals deployed across all nine provinces, municipalities are receiving invaluable technical support aligned with the District Development Model (DDM), to ensure sustainable growth and development.

Additionally, the deployment of young graduates over the year not only augments technical capacity but also provides a pathway for professional registration, empowering the next generation of leaders. Over the past 10 years, our dedication to nurturing talent has been evident through the provision of technical skills training to hundreds of apprentices, young graduates, and experiential learners, alongside opportunities for municipal officials to acquire formal qualifications and attend technical training short courses (for example - 2443 Apprentices; 1129 Young Graduates; 1042 Experiential Learners).

Indeed Mr. President, Tintswalo's upbringing reflects the transformative impact of our government's commitment to improving the lives of all South Africans. Growing up in a household where basic water and electricity were provided by the municipality, and witnessing her grandparents receive a subsidy based on their indigent status, Tintswalo's story is a testament to our dedication to ensuring that every citizen, regardless of background or circumstance, has access to essential services and opportunities.

Tintswalo's journey exemplifies the tangible progress we are making towards building a more inclusive and equitable society, where the promises we make are not just words, but actions that positively impact the lives of our people. Being a child of democracy, she has witnessed over 70% of communities having access to sanitation which translates to over eleven (11) million households. Electricity access is 94,7% for communities representing over fifteen million households connected to the mains electricity supply.

Stats SA (Census 2022) further affirmed that formal dwellings have improved to 88,5% whilst waste removal once a week seats at 66,3%. We will be paying attention to the area of waste removal as we have seen that our municipalities such as the City of Cape Town in areas such as Nyanga in the Western Cape continues to struggle, this while the provincial government boasts of effective governance across all sectors. The glaring issue of inadequate waste management in communities these communities cannot be ignored.

We are embarking on a result driven approach to improve the delivery of services through the implementation of various infrastructure programmes using the Municipal Infrastructure Grant (MIG), among others. A total of R67,5 billion (of R77 billion) has been invested by municipalities over the past five years (2018/19-2022/23) on infrastructure development.

This has seen 272 954 poor households having access to water services, 238 125 poor households having access to sanitation services, a total of 4 961kms of roads infrastructure to poor communities improved, and 112 central collection points for refuse transfer stations, recycling facilities and solid waste disposal sites developed across the country to improve access to basic services.

The total MSIG allocation for the 2023/24 financial year amounts to R146,516,000.00. Eleven (11) projects are currently budgeted for in the 2023/24 financial year. The cumulative expenditure since April 2023 to date amounts to R27,094,438.20.

Standing in this House, we know there are those who, despite seeing the work being done by local government, have counter-democracy distortions that are nothing but an impotent attempt to negate the fact that we have democratized development through our municipalities.

We continue to deliver basic services in an environment that is subject to the evolution of a multiparty democracy necessitating for us to be agile to maintain our upward trajectory on the service delivery scorecard including under coalition governments. We are aware that the strategy of our opponents is to consolidate anti-transformation forces through these coalitions or pacts so as to gain power, however where we are in coalition, we do so for the benefit of our people because we believe in meaningful coalitions.

In a recent Moneyweb article, The City of Tshwane is sinking deeper into debt and the amount it owes Eskom has ballooned from R1.1 billion in September to almost R3.9 billion at the end of January. Even so, on 30 June the city owed its trade creditors R12.6 billion, an increase of R1.6 billion compared to the balance a year before. The delay in finalising the statements has already prompted the JSE to issue a warning, which it did last week, that trade in the Tshwane bonds may be suspended if they are still outstanding by the end of February, which is a month after the original deadline. According to information submitted to National Treasury, the city owed Eskom R1.6 billion at 30 June
 
2023 and Rand Water R860 million. A mere 53% of its trade creditors were being paid within the prescribed 30 days. By September this had deteriorated to 43%. National Treasury has STOPPED R2.646 Billion grants meant for various services. This was money meant for Urban + Township development and Informal Settlements upgrade. Tintswalo aspirations in Tshwane are shattered. Tintswalo once had a reputable bus transport system, access to Wi- Fi, municipal bursary scheme, clean city, good and sound labour relations with workers being paid their increment as per the bargaining council regulations.

The City of Tshwane submitted their AFS for the year ending 30 June to the AG at the end of November. Three months after the deadline. As a result of the late submission, the AG finding is only expected in March whilst other municipalities already announced their audit outcomes during their January council. Mayor Randall Williams has received adverse audit outcomes for the previous financial year.

Notwithstanding the impact of slow economic growth, we have stabilised the management of debt owed to essential service providers like Eskom and Water Boards. We have Introduced the Smart Meters Grant which is Administered by the National Treasury, intended to provide capital and operational subsidies to co-fund smart metering systems on behalf of municipalities. The initial focus will be municipalities currently in the municipal debt relief programme. We are arresting the poor grant spending performance of municipalities to ensure that we ringfence as well as enforce dedicated spending on repairs and refurbishment initiatives particularly for bulk infrastructure.

While we celebrate the achievements we have made thus far, let us be clear: we are not complacent. We understand that there is still much work to be done, and we are fully dedicated to the task at hand.
 
We take pride to announce that the Result Management Office (RMO) we established is now fully operational. This office serves as a beacon of accountability, intervening swiftly and decisively where governance and service delivery lapses are identified. As part of our proactive and predictive approach, the RMO has identified the top 30 municipalities requiring urgent support over the next three months.

Those who are claiming that the DDM is a demonstration of the ANC’ adherence to central planning and control are missing a fundamental objective of the DDM, that is, to ensure that government works in an integrated manner. Such criticism smacks of the desire to return to apartheid separate development policies that disadvantaged black communities even to this day.

One of the lessons learned during the implementation of the DDM in the Pilot sites is the need to have a central portal that will provide all decision-makers across the spheres of government access to intelligent information and data for decision-making. It is against this background that the development of a DDM National Strategic Hub was initiated. The Hub will leverage data for improved decision-making and operational efficiencies in the public service, improved governance, improved service delivery and targeted resource allocation.

Lessons from the Presidential Imzimbizo has born the following results:

  • Gert Sibande District in MP, which have 33 intergovernmental catalytic projects funded to the tune of R29.4 billion of which 10 projects were successfully completed to date.
  • Ehlanzeni District have 13 funded intergovernmental catalytic projects to the tune of R60 billion, notable the Sibange and Driekoppies Bulk water schemes to the value of R279 million are 91% completed.
  • Sedibeng District have developed a DDM GIS and implementation tool to track and monitor the implementation of intergovernmental catalytic projects. The Gauteng province has established various DDM focused partnerships with stakeholders such as the CSIR, Water Research Commission, Mining Qualification Authority.

The Institution of Traditional and Khoi-San Leadership continues to play a role in development initiatives for communities under their areas of jurisdiction, to fight unemployment, poverty and inequality. Working as part of the DDM, we are making good progress in our partnership with the Department of Mineral Resources and Energy (DMRE) to streamline Social Labour Plans (SLP) protocols thus fostering meaningful dialogue with mining stakeholders. This collaboration seeks to ensure that SLPs comply and align with national development goals as well as the Integrated Development Plan (IDPs) in enhancing socio-economic benefits for historically disadvantaged communities, where mining activities are taking place.

We are focusing on 10 SLPs as a start, covering areas such, Bakubung Ba Rantheo, Royal Bafokeng and Barolong Bo Ratlou. Mr. President, we look forward to having you officially open the National House of Traditional and Khoisan leaders later on this month, where we will look into the challenges traditional leaders face and provide solutions for traditional communities. This will include the collaboration with Traditional Leaders in the implementation of the Invest Rural strategy as well as the Eastern Seaboard Development as well as development-oriented capacity building interventions for traditional leaders.

At the heart of our work in the implementation of the DDM, lies the crucial element of forging partnerships with diverse institutions, both within our nation and beyond. These collaborative efforts are a testament to the confidence and
 
trust placed in the efficacy of our work. Among the array of partnerships we have cultivated, several stand out prominently:

  • In the realms of governance, water management, and disaster mitigation, we have established fruitful collaborations with esteemed entities such as the National Business Initiative (NBI), Cell C, Sekhukhune Mining Houses, Sibanye Stillwater, and Anglo American.
  • Additionally, our engagement extends globally, encompassing partnerships with renowned international organizations like the European Union (EU) and the World Resources Institute (WRI). These collaborations focus on capacity building initiatives, water management projects as well as JET. By leveraging the collective knowledge and resources of these esteemed organizations, we are amplifying our impact and driving positive change on a global scale.
  • DBSA has refocused itself to be centrered around municipalities and will be collaborating with municipalities in project preparations and blended financing.

One crucial aspect of our work is disaster management. The increasing frequency of disasters highlights the urgent need for enhanced investment in early warning systems, Disaster Risk Reduction, and Climate Change Mitigation measures by government entities at all levels.

Since 2018, almost R7bn has been allocated for disaster response and recovery. The Department is also in the processing of finalizing proposals for the Review of the Disaster Management System in the country to reorientate the system towards disaster reduction and improve responsiveness.

As I conclude, our message to South Africans is that while the 6th administration has done much, we are aware of work that still awaits us in the
 
7th administration. The journey of Tinstwalo will continue as we will in the 7th administration build on the work such as the one done in:

  • The Diphichi Water Scheme that is underway in five communities in Mogalakwena municipality. This unique project after completion will have house connections instead of the street or communal taps.
  • The rehabilitation of the D19 Matlala Road from Polokwane to Kalkspruit which was riddled with potholes.
  • Extention 7 in Kwazamokuhle where residents tabled a request for roads and storm water drainage systems in the IDP. This 720-meter project is underway and is estimated to be completed this month.

We have said it before, ours is a democracy that is inclusive, and we will not stop #TillWeGetItRight. As I step down, I urge all those who resonate with the spirit of Tintswalo in this House to join me in raising their hands, symbolizing our collective commitment to ensuring that the next three decades surpass even our loftiest/biggest aspirations.

I thank you
 

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