Government models 3.5% growth by 2029 as it launches 30 key reforms — here they are
Reform or bust: Ramaphosa bets on infrastructure, energy and local government fix as he launches the second phase of Operation Vulindlela.
If there's one programme that works well in government, it's Operation Vulindlela (OV), the presidential reform programme run by excellent technocrats and led by Rudi Dicks.
The parties in the Government of National Unity argue about most things, but agree that OV is the mechanism to get SA to grow, and grow in a way that ensures employment.
In its first phase, the programme unlocked R500-billion in the economy, mainly in energy, after the Cabinet lifted the cap on independent energy production. It has also seen a 51% reduction in data costs as the government finally achieved the spectrum auction. OV helps government departments and the three spheres of the state work together on often simple reforms.
The OV value has been independently verified. These energy reforms have generated 22,500MW of independent power (mostly renewable) to lift the pall of 12 years of load shedding, which has burdened South Africa. President Cyril Ramaphosa said the Northern Cape had seen billions of rands pour in for wind and solar plants.
'Electricity being delivered properly has had an impact on our people. The green shoots of reform are sprouting,' said Ramaphosa as he launched the second phase of OV on Wednesday.
'When I got off a boat in Cape Town, a young boy of about seven said, 'Can I talk to you?''
Ramaphosa agreed.
'He told me, 'Please bring electricity back. I want to watch my TV shows.''
A turbocharge
The second phase of the OV started on Wednesday, 7 May, and it has set 30 key reforms to work on, notably in the digital economy and local government (see below).
The Bureau for Economic Research has modelled the reforms and found that, if implemented, SA could target 3.5% growth by 2029. The National Treasury forecasts SA to grow at 1.9%, but on Tuesday, Moody's Ratings agency dropped its forecast growth for SA in 2025 to 1.5%.
'In the reform scenario, real GDP is R399.6bn (+7.7%) higher than in the baseline by 2029, and investment is R196.7bn (+22.3%) higher,' the OV Phase 2 finds.
OV is already working in eThekwini and Johannesburg.
The team will apply the lessons it learns in the six other metros before fanning out to the entire broken third sphere of the state.
Local government breakdowns harm the economy and are a rising concern for businesses, specifically for energy and water security. Saul Musker, the president's director of strategy, says the 30 reforms are meant to 'turbocharge' the economy.
Budget 3.0: An infrastructure Budget
The National Treasury is running this phase with OV, which can be read as a blueprint for the third 2025 Budget, which Finance Minister Enoch Godongwana will present later in May. The Treasury will increase conditional grants to the metros as announced in the Budget Review, but only on strict conditions of financial rectitude and with a commitment to reform.
Competition may be introduced to entities that provide water and electricity, with a key principle to ringfence revenues to ensure reinvestment through maintenance and new infrastructure investment.
Musker said the second phase of OV had a five-year horizon and would work in seven focus areas. Ramaphosa said SA would spend up to R1-trillion on infrastructure over the medium term and characterised Budget 3.0 as an infrastructure Budget.
'We need bold, far-reaching reform initiatives to revitalise our economy,' he said.
Both OV Phase 1 and Phase 2 depend on partnerships with businesses, which have invested human and financial resources in the reforms. In turn, the government is much more pragmatic in energy and logistics, where the private sector is encouraged to invest in generating electricity and, soon, running parts of the rail network.
THE 30 REFORMS
Energy Reform
Complete the restructuring of Eskom and establish an independent transmission system operator.
Establish a competitive wholesale market for electricity generation.
Streamline the regulatory framework for energy projects through the Energy Security Bill.
Reform the electricity distribution industry to establish financially and operationally sustainable distribution companies.
Strengthen and expand the national transmission network.
Logistics Reform
Complete the restructuring of Transnet and establish an independent National Ports Authority and rail infrastructure manager.
Enable open access to the freight rail network.
Introduce private sector participation (PSP) in ports and rail through a dedicated PSP Unit.
Establish the Transport Economic Regulator.
Finalise the National Rail Bill to establish a legal framework for a competitive rail sector.
Water Sector Reform
Implement institutional reforms to improve the management of water resources.
Strengthen the regulation and oversight of water service provision.
Support the introduction of private sector partnerships in the water sector.
Develop a National Water Action Plan.
Establish a coordination structure to ensure water security.
Visa System Reform
Implement the points-based system for Critical Skills visas and General Work visas.
Implement the Remote Work Visa.
Expand the Trusted Employer Scheme.
Implement an Electronic Travel Authorisation for tourist visas.
Local Government Reform
Shift to a utility model for water and electricity services to ensure financial and operational sustainability.
Review the institutional structure of the local government system through an updated white paper on local government.
Review the funding model and functions assigned to local government, including the use of conditional grants.
Standardise and professionalise the appointment of senior officials in local government.
Require all metros to establish or appoint ringfenced, professionally managed and independently licensed utilities within two years.
Spatial Inequality Reform
Revitalise and restore passenger rail services.
Strengthen demand-side housing policy to support densification.
Release public land and buildings for affordable housing and other development.
Clear the backlog of title deeds and make the titling system more accessible and affordable.
Review land use, building and other regulations to enable low-cost property developments.
Digital Transformation
Develop and implement a digital transformation roadmap for South Africa, including:
Digital identity;
Data exchange;
Digital payments; and
Digital service delivery platforms (eg, relaunch of Gov.za). DM
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Daily Maverick
14 hours ago
- Daily Maverick
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A reminder of what the GNU promised in its statement of intent Rapid, inclusive and sustainable economic growth, the promotion of fixed capital investment and industrialisation, job creation, transformation, livelihood support, land reform, infrastructure development, structural reforms and transformational change, fiscal sustainability, and the sustainable use of our national resources and endowments. Macroeconomic management must support national development goals in a sustainable manner. Creating a more just society by tackling poverty, spatial inequalities, food security and the high cost of living, providing a social safety net, improving access to and the quality of, basic services, and protecting workers' rights. Stabilising local government, effective cooperative governance, the assignment of appropriate responsibilities to different spheres of government and review of the role of traditional leadership in the governance framework. Investing in people through education, skills development and affordable, quality healthcare. Building state capacity and creating a professional, merit-based, corruption-free and developmental public service. Restructuring and improving state-owned entities to meet national development goals. Strengthening law enforcement agencies to address crime, corruption and gender-based violence, and strengthening national security capabilities. Strengthening the effectiveness of Parliament in respect of its legislative and oversight functions. Strengthening social cohesion, nation-building and democratic participation, and undertaking programmes against racism, sexism, tribalism and other forms of intolerance. Foreign policy based on human rights, constitutionalism, the national interest, solidarity and peaceful resolution of conflicts to achieve the African Agenda 2063, South-South, North-South and African cooperation, multilateralism and a just, peaceful and equitable world. DM
IOL News
17 hours ago
- IOL News
How austerity measures are undermining education rights in South Africa
Breadline Africa says there's no excuse for any child in South Africa to still be using a pit latrine at school. Image: Supplied The rights of pupils in government schools in South Africa are being violated, while the years of austerity measures implemented by the National Treasury have devastatingly affected the quality, accessibility, and equity of education across the country. The National Teachers Union (Natu) stated that 'education is a right, not a budget line'. Natu general secretary Doctor Ngema said the constitutional right to basic education, enshrined in Section 29 of the Constitution, is systematically eroded. Ngema said during the 2023/24 financial year, over 23,000 posts in provincial education departments across the country were cut, with the total number of unfilled but funded vacancies exceeding 46,000. 'This has led to dangerously overcrowded classrooms, where learners are deprived of individual attention and teachers are stretched beyond capacity. Due to years of budget cuts, we now face chronic underfunding and infrastructural decay, resulting in many schools having dilapidated classrooms and a lack of basic amenities such as toilets and electricity,' he said. Earlier this year, more than 2,400 teacher posts were cut in the Western Cape, resulting in legal action against the Department of Education in the province. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Sadtu said the austerity measures and budget cuts have resulted in overcrowded classrooms that hinder effective teaching and learning. The lack of substitute teachers has increased the workload for the remaining educators, negatively impacting their health. In May, Finance Minister Enoch Godongwana said the provincial education sector baseline over the 2025 MTEF is R1.04 trillion, and R9.5 billion will be added over the medium term to keep teachers in classrooms and hire more staff. Godongwana said an additional R10 billion has been added to the baseline as announced during the March 12 Budget to expand access to early education. The minister said this will increase the ECD subsidy from R17 per child per day to R24. The extra funding will also support increased access to ECD for 700,000 more children, up to the age of five years. Public interest law centre, Section27, said building a nation starts in classrooms, and the Budget marks a significant shift from years of harsh austerity. While not without gaps, this Budget reflects pressure from communities and civil society to put the people of South Africa at the centre of South Africa's budget priorities. For Budget 3.0 to mark a real turning point, its promises must be delivered, especially at the provincial level, where services are meant to reach people. The centre said the education sector has experienced chronic underfunding, with per-learner spending declining in real terms over the past decade. 'This year's allocation to Basic Education rises from R325 billion to R347 billion - a 6.7% nominal increase, translating to a real increase of 2.6% after inflation.' While Section27 welcomed this as the largest basic education increase in years, the centre said it follows a period of sustained underfunding. 'As a result, this allocation alone is not enough to fully address overcrowded classrooms, infrastructure backlogs, and chronic teacher shortages in public schools.' According to the centre, per pupil, government spending will increase nominally from 2024/25's R24,230.58 to R25,669.53 in 2025/26. 'However, once adjusted for inflation, per learner spending will actually decline to R23,755.34 in 2025/26 - highlighting the ongoing erosion of real investment.' Natu stated that the promises to improve infrastructure have not materialised, leaving pupils in unsafe and undignified conditions. Last month, Breadline Africa, a non-profit organisation that has launched a nationwide campaign to eradicate pit toilets in schools, warned that more than 500,000 pupils are estimated to still rely on dangerous and unhygienic pit toilets at their schools in various parts of the country. The Federation of Unions of South Africa (Fedusa) said progress has been slow in eliminating pit toilets in South African schools. Unfortunately, some pupils have lost their lives because of pit toilets, which continue to put other pupils in danger if not eradicated, it said. 'To push the government for urgent intervention in eradicating pit latrines, Fedusa would like the government and responsible departments to think of the families of the 5-year-old Viwe Jali from the Luna Primary School in Bizana, Eastern Cape Province, who fell into a pit latrine on 12 March 2018 and passed away, Michael Komape who fell into a pit toilet at his school on 20 January 2014, and drowned, and Langalam Viki, a 3-year-old who died after falling into a pit toilet at Mcwangele Primary School in Vaalbank village in the Eastern Cape, 6 March 2023.' While acknowledging the Sanitation Appropriate for Education initiative (SAFE) by the Department of Basic Education, Fedusa believes more can be done to address the issue. Robert Erasmus, managing director of Sanitech, a portable toilet hire company, said that the slow rate of pit latrine eradication in South African schools is attributed to budgetary, logistical, and infrastructural challenges. 'Funding allocation at a provincial level often sees delays in execution due to bureaucratic red tape, complex tender processes, and financial mismanagement,' he said. Erasmus said many affected schools are located in remote, rural areas where finding reputable contractors is a challenge. 'Local municipalities also struggle with procurement processes that require locally sourced resources, further delaying progress,' he said. Despite these challenges, Erasmus said innovative sanitation technologies offer hope and provide safer and more hygienic alternatives to traditional pit latrines. He said the Khusela unit features a rotating bowl, a replaceable bladder to prevent waste exposure, and microbiological products that treat waste while eliminating odours. Its elliptical shape optimises space and waste containment, making it ideal for schools. 'This solution also aims to ensure safety and dignity, especially for school environments where tragic incidents have occurred,' he said. Given the government's slow progress, Erasmus said the private sector must step up to bridge the gap. He said in 2022, South African companies allocated R10.9 billion to Corporate Social Investment (CSI) initiatives, with half of these funds directed toward education. 'By channelling a portion of this budget to sanitation infrastructure, corporates can expedite the eradication of pit latrines while enhancing their Environmental, Social, and Governance (ESG) ratings,' said Erasmus. According to Erasmus, CSI initiatives offer the advantage of bypassing bureaucratic hurdles, allowing for faster implementation. Businesses can guarantee successful project implementation by partnering with trusted sanitation companies, he said. For example, the Khusela unit offers a budget-friendly and functional improvement as it is adaptable for use with current Ventilated Improved Pit (VIP) latrines. 'Eradicating pit latrines in South African schools requires a multi-faceted approach. While the government must fulfil its commitment to replacing these facilities by the proposed deadlines, the urgency of the situation calls for immediate action. Corporate South Africa, through CSI initiatives, can play a pivotal role in accelerating progress. By investing in innovative, cost-effective solutions, businesses can ensure that no child has to risk their life or dignity to attend school,' said Erasmus. The South African Democratic Teachers Union (Sadtu) stated that Section 34(1) of Chapter 4 of the South African Schools' Act, (Act 84 of 1996) states: 'The State must fund public schools from public revenue on an equitable basis in order to ensure the proper exercise of the rights of learners to education and the redress of the past inequalities in education provision.' In addition, the union said Section 28(2) of the SA Constitution further affirms that a child's best interests are of paramount importance in every matter concerning the child. With regard to the controversial Basic Education Laws Amendment (BELA) Act (Act No. 32 of 2024), Theresa Michael, a key advocate in the Afrika Tikkun Bambanani initiative, believes that the BELA Bill presents an opportunity to create a stronger and more inclusive early learning system in the country. The BELA Bill, which amends the South African Schools Act of 1996 and the Employment of Educators Act of 1998, aims to improve school governance and management by addressing compulsory schooling, admissions, language policies, and home-schooling regulations. Michael said that by enforcing national standards and ensuring accountability, the Bela Act can drive improvements in the quality of education that young children receive. 'Our work in upskilling practitioners and equipping centres aligns with the need for structured, high-quality early learning environments. If implemented effectively, this act can help bridge the gap between policy and practice, ultimately benefiting the youngest learners,' she said. Similarly, Tessa Forman, who has been at the forefront of empowering practitioners through training and mentorship at the organisation, sees the BELA Act as a catalyst for meaningful change. 'Many ECD centres operate without the necessary oversight, leading to inconsistencies in teaching quality and resource allocation. The act, if supported with the right implementation strategies, could provide much-needed standardisation and support. At Afrika Tikkun Bambanani, we have witnessed the transformative power of structured training and curriculum implementation. If the government aligns its efforts with organisations like ours, we can ensure that every child gets a fair start in life,' she said. The youth of 2025 are facing challenges with dilapidated classrooms, school infrastructure, and a lack of basic amenities such as toilets, electricity, and safe classrooms. Image: File
IOL News
a day ago
- IOL News
Cyril Ramaphosa denies summoning NPA Director Batohi amid controversy
There are challenges facing the National Prosecuting Authority under advocate Shamila Batohi. Image: Henk Kruger / Independent Media President Cyril Ramaphosa has denied summoning National Director of Public Prosecutions Advocate Shamila Batohi to explain to him remarks she made about some prosecutors being in cahoots with rogue external elements to sabotage prosecutions of high-profile cases. Ramaphosa's denial, through his spokesperson, Vincent Magwenya, came after media outlets reported that he had called her to a high-level meeting to explain her remarks. 'At no point did the president say he would be 'summoning' Advocate Batohi over her comments,' said Magwenya. Batohi's term of office, which will end early next year, has faced difficulties as the NPA has struggled to prosecute high-profile suspects such as the Gupta brothers, which is a failure to secure their extradition from their United Arab Emirates hideout. Recently, controversial Nigerian Pastor Timothy Omotoso was acquitted of charges of assaulting women. One of former Free State Premier Ace Magashule's co-accused, Moroadi Cholota, was acquitted based on her botched extradition process from the United States of America. The NPA has indicated its intention to appeal Cholota's acquittal. NPA's spokesperson, Advocate Mthunzi Mhaga, did not respond to questions sent to him on Thursday. The NPA is still struggling to extradite Prophet Shepherd Bushiri and his wife, Mary Bushiri, from their home country, Malawi, to come back to South Africa to face fraud and money laundering charges. The uMkhonto weSizwe Party (MKP) has called on Ramaphosa to either fire Batohi or institute an inquiry into her performance. The reports about Ramaphosa calling Batohi to a meeting came after she recently remarked on national TV that there was external and internal interference in the prosecutions, although she said in her term of office, she had never experienced any interference from the executive political sphere. 'But there are other issues that I cannot speak about, but it worries me sometimes that the NPA is being infiltrated by people who do not have the rule of law at heart, and that for me, as the national director, is hugely concerning.' She said the interference did not make her sleep comfortably at night, as she thought the NPA was not a failing organisation. 'I can't speak a lot about this, but I am concerned about the attacks on the NPA, on the national director. 'It is something that I am going to take up very, very seriously with the executive, (as) we need to understand what is going on,' she said. Batohi stated that sometimes it was 'so difficult' to do her job. 'Because you have all the challenges of the system, but you also have lots of agendas externally and internally. 'The majority of the prosecutors, and I can put my head on the block and say this, are committed, dedicated prosecutors who would do anything to stand up for the rule of law, and they would ensure that they do their job without fear or favour. 'But I cannot say that all the prosecutors in the NPA would do that, and that is a serious concern,' she said. Batohi added that having some prosecutors not aligned with the vision of fighting for the rule of law reflected on additional challenges, 'in addition to all of the systematic challenges in this country'. It was reported that after making the remarks, she met Justice and Constitutional Development Minister Mmamoloko Kubayi to explain herself. Magwenya told this reporter that Ramaphosa heard Batohi's comment and noted that she clarified those comments to the minister. 'Now, why would the president summon her over something she has clarified? 'It makes no sense. Secondly, the president will never discuss prosecutorial matters with the NDPP nor seek to interfere with the work of the NDPP.' He said, unlike his predecessor, Ramaphosa had never had NDPPs removed from office. 'There's nothing sinister in the president or NDPP seeking to meet over institutional matters; they'll never meet to discuss prosecutorial issues. 'Parliament is an independent arm of the State (which) can engage with the NDPP in whatever manner,' said Magwenya. The EFF had since written to national Parliament Speaker Thoko Didiza requesting that Batohi be hauled before MPs to explain her statement. EFF MP Carl Niehaus, who is the member of the Justice and Constitutional Development Portfolio Committee, said his party needs MPs to hear what was going in the NPA. 'Batohi made some serious allegations, and as the head of the NPA, in a high-profile media interview. 'She said unequivocally so, now we must take that statement of hers on face value and she must prove it by explaining herself,' said Niehaus. He said Batohi would have to tell the MPs whether there has been political meddling in the Phala Phala case. 'We will raise the issue of Phala Phala, and it will continue to refuse to die because it is being covered up. 'Covered up something as big as that, it would keep raising its head under the carpet,' said Niehaus. Legal expert Advocate Mbulelo Mneno said instead of crying foul, Batohi should quickly identify prosecutors who are sabotaging cases and take action against them so that she could leave the NPA on a positive note. He said Batohi should have acted swiftly against internal saboteurs. 'Why is she not charging those people instead of uttering such a statement. She is trying to exonerate herself,' said Mneno.
