President Cyril Ramaphosa’s oral replies to questions in the National Assembly – Thursday, 02 November 2023
Mandate of the South African Reserve Bank
Honourable Members,
The mandate of the South African Reserve Bank is set out in section 224 of the Constitution, which states that the primary object of the South African Reserve Bank is to protect the value of the currency in the interest of balanced and sustainable economic growth in the Republic.
South Africa faces a structural growth and unemployment problem, which cannot simply be addressed by a more accommodative monetary policy stance.
We need instead to focus on the structural factors constraining our economy. That is why, as part of our efforts to accelerate growth and employment creation, we are committed to macroeconomic stability, the rapid implementation of structural reforms and a capable state that provides the necessary public goods and services.
Price stability supports economic growth as low and stable inflation creates certainty about future prices, which helps facilitate investment and consumption decision-making by firms and households.
Low and stable inflation also makes South Africa’s exports competitive relative to trade partners. By contrast, higher inflation harms economic growth and stifles employment creation. Higher inflation erodes the purchasing power and living standards of everyone, especially the poor.
As inflation rises, the cost of living goes up. Most items cost more and people are not able to afford many of the items they usually buy. While the Reserve Bank should, without sacrificing price stability, take account of broader objectives such as employment creation and economic growth. There is therefore currently no intention to review the mandate of the South African Reserve Bank.
In terms of the Constitution: "The South African Reserve Bank, in pursuit of its primary object, must perform its functions independently and without fear, favour or prejudice, but there must be regular consultation between the Bank and the Cabinet minister responsible for national financial matters."
In terms of the South African Reserve Bank Act, the Bank must publish a monthly statement of its assets and liabilities and an annual report to Parliament. The Bank is therefore accountable to Parliament. The Governor of the Bank holds regular discussions with the Minister of Finance and from time to time appears before the parliamentary Portfolio and Select Committees on Finance.
I thank you.
Milestones of commissions of inquiry established by the President
Honourable Members,
Since taking office in 2018, I have established two commissions of inquiry in terms of section 84(2)(f) of the Constitution:
The first of these was the Commission of Inquiry into Tax Administration and Governance by the South African Revenue Service (SARS), which was established on 23 May 2018.
The second was the Commission of Inquiry into Allegations of Impropriety regarding Public Investment Corporation (PIC), established on 17 October 2018.
In respect of the second part of the question, in 2013 former President Jacob Zuma appointed a Commission of Inquiry into the Remuneration and Conditions of Service in the Public Services and Public Entities.
The Commission was called the Presidential Remuneration Review Commission, and was headed by retired Chief Justice Ngcobo and retired Deputy President of the Supreme Court of Appeal, Justice Kenneth Mthiyane.
The Commission completed its work and its report was approved by Cabinet in February 2021. The report and its recommendations were referred to the Department of Public Service and Administration to inform its work with respect to matters of remuneration standards.
Strategies to end violence against women and children
Honourable Members,
Violence against women and children is a deeply entrenched problem in South Africa, which continues despite clear political commitment and several measures taken to combat it. Our country has high levels of socioeconomic inequality, which can lead to increased levels of violence, including gender-based violence.
Cultural norms, patriarchal values and toxic masculinity perpetuate gender inequality and contribute to violence against women. Through the National Strategic Plan on Gender-Based Violence and Femicide, we have embarked on several strategies to end violence against women.
Critical among these is the work underway to improve the response of the criminal justice system to gender-based violence, with a focus on more effective law enforcement, better training for police officers and streamlined legal processes.
The laws we have enacted have led to increased sentences for offenders, tighter bail and parole conditions and provided greater protection for women at risk of domestic violence.
Through specialised units like the NPA Sexual Offences and Community Affairs Unit, the state is securing more convictions and longer sentences for perpetrators of violence against women and children.
The conviction rate for matters emanating from Thuthuzela Care Centres, for example, currently stands at 76.5 per cent, up from 60 per cent in 2010.
Various campaigns and initiatives seek to raise awareness about gender-based violence and promote gender equality. These efforts aim to challenge traditional norms and educate the public about the consequences of such violence.
Ending gender-based violence requires a sustained, multi-pronged approach that addresses the underlying structural issues in South African society and changes cultural norms and attitudes. It is a long-term challenge that requires the commitment of not just political leaders but society as a whole.
In this regard, we should commend the National Assembly for passing the National Council on Gender-Based Violence and Femicide Bill earlier this week. This is a vital piece of legislation that will strengthen our national response to this scourge.
The South African Police Service is implementing the Gender-Based Violence and Sexual Offences Action Plan.
A key focus of the Action Plan is active partnerships with civil society organisations, including faith-based organisations and traditional authorities, that help to strengthen positive norms and values in communities.
The SAPS has also undertaken the Children’s Programme, which aims to identify and ensure sustainable protection of children at risk of crime.
The programme supports the establishment of Child Committees at police stations in areas where there is a high prevalence of crimes against children or committed by children. These commitees identify children at risk of crime, indicate the factors that place them at risk and ensure the appropriate officials address the factors placing them at risk.
The SAPS also conducts awareness raising programmes addressing any emerging trends and tendencies that make children particularly vulnerable to becoming crime victims.
The SAPS has a partnership with the Department of Basic Education for the implementation of the Schools Safety Programme. This includes conducting searches at schools, for drugs and weapons that could be used to harm members of the school community.
The School Liaison Officer can also address children on the risks and emerging trends that make children vulnerable to crime and provide information on how to build resilience against becoming crime offenders or victims.
I thank you.
Lessons learned from Census 2022 results
Honourable Members,
The Census 2022 results show substantial shifts in important indicators such as access to education, housing, electricity, water and sanitation facilities. The results have significant implications for policy and planning in South Africa.
The Census 2022 data will be used in the work being coordinated by the Department of Planning, Monitoring and Evaluation on the 30-year review of progress since the advent of democracy and for the development of the medium-term national development plan for 2024 to 2029.
The Census shows that South Africa continues to have relatively high levels of population growth and urbanisation.
The population increased by 20 percent from 2011 to 2022, an increase of 10.3 million people.
Gauteng, as South Africa’s most populous and most urbanised province saw an increase in population to 15.1 million people, more than double that of the Western Cape, at 7.4 million.
From a policy and planning perspective, this points to the need to more deliberately and consistently plan for urbanisation, to ensure adequate infrastructure, service delivery and economic opportunities.
While increasing efforts to advance rural development, government will also focus more on leveraging the role of cities as engines of growth and shared prosperity.
The Census further demonstrated that South Africa’s population remains young, with a median age of 28 years. Just over 61 percent of the population under 35-years old.
South Africa therefore needs to continue with efforts to improve early childhood development, education outcomes and post-school education and training.
The figures further showed significant improvements in education levels in 2022 compared to 1996.
For example, the percentage of people aged 20 years and older who completed secondary education more than doubled from 16 percent in 1996 to 38 percent in 2022.
The number of households almost doubled between 1996 and 2022, pointing to significant pressure on housing and services.
Significantly, there was a huge increase in the percentage of households that reside in formal dwellings, from 65 percent in 2011 to 89 percent in 2022.
There has been a massive increase in access to basic services over the last three decades. For example, there was an increase in access to electricity for lighting from 58 percent to 95 percent between 1996 and 2022.
Census 2022 clearly demonstrates the effectiveness of the economic and social policies that have been pursued by successive democratic administrations.
The results of the Census show that as we continue to work for universal access to basic services, housing, health and education, we need to pursue stable and prudent macroeconomic policies that have a strong developmental perspective.
I thank you.
Sustaining frontline services alongside prudent government expenditure
Honourable Members,
The Minister of Finance yesterday tabled the Medium-Term Budget Policy Statement, which outlined the country’s fiscal position and provided information on government’s spending priorities over the next three years.
Among other things, the Minister of Finance indicated in the MTBPS that we are resolved to stabilise public finances while maintaining support for the most vulnerable and protecting front line services.
At the same time, we are fast tracking growth-enhancing reforms, which includes a new financing mechanism for large infrastructure projects. Work is underway to reconfigure the structure and size of the state, while strengthening its capacity to deliver quality public services.
The cost containment guidelines issued by the National Treasury give advice and guidance to government departments to ensure a sound and prudent management of public finances in the context of significant constraints.
The increase in fiscal constraints is mainly due to reduced revenues. The cost containment guidelines target non-critical spending items such as travel, catering, accommodation and capital items that have not yet commenced.
The discussions that the President and Deputy President have with Ministers on an ongoing basis are focused on how the programmes and activities undertaken by their departments advance economic growth, social development and service delivery.
Ministers and their departments engage with National Treasury on how best to implement any budget restructuring and delay projects where necessary without compromising the needs of communities.
As indicated in the MTBPS yesterday, we are on course to prudently manage government expenditure while we retain our focus on infrastructure, health, education and policing as critical areas of growth and development.
I thank you.
SANDF ready, willing and able to secure the nation
Honourable Members,
As the Minister of Finance indicated in the Medium-Term Budget Policy Statement yesterday, the severely constrained fiscal environment is putting pressure on every component of the state and on all of its programmes.
We have therefore embarked on a path to consolidate our spending, pursue growth through reforms and reconfigure the size and structure of the state, while protecting key services.
The work of the South African National Defence is critical to the security of our country and the safety and well-being of its people.
The constrained fiscal environment has required that the SANDF prioritise its activities to optimise the effectiveness and efficiency of all aspects of the defence organisation.
Based on an extensive analysis, the SANDF has developed a plan that is known within the Department of Defence as the ‘Journey to Greatness’.
In terms of this plan, the disaster management capability of the SANDF will form part of the greater rapid deployment capability. This capability consists of land, air, maritime and military health forces with dedicated specialist and supporting elements capable of being deployed for a wide range of missions at short notice.
Despite the constraints, the SANDF continues to demonstrate that it is ready, willing and able to respond to international, regional and internal threats.
The SANDF has participated in various peacekeeping missions under the auspices of United Nations, African Union, and Southern African Development Community.
The SANDF played a critical role in responding to the catastrophic flooding that struck KwaZulu-Natal in April 2022.
Through Operation Chariot, which is a standing contingency operation for support to other government departments for disaster management and humanitarian relief, the SANDF undertook search and rescue operations, transported relief material and equipment, and assisted with the repair and rehabilitation of roads and bridges.
We should expect that the country will continue to experience extreme weather events due to climate change, and that the SANDF will be called upon to assist in responding to any disasters that may arise.
We can all agree that we would want the SANDF, as with all critical components of the state, to have more resources. The Defence Force has nevertheless shown itself capable of responding effectively when called upon to do so.
I thank you.
