
Ramaphosa says SA's economic reform agenda will create conditions for higher growth
Ramaphosa said the progress report on Operation Vulindlela, which is government's initiative to accelerate economic reform, shows steady progress.
Ramaphosa was writing in his latest newsletter, where he gave an update on government's efforts to turn the economy around.
In the first quarter of the year, South Africa's economy expanded by a marginal 0,1% compared with the fourth quarter of 2024.
But Ramaphosa said they'd made some headway in clearing obstacles that have held back the country's growth agenda.
He said these include the reduction in load shedding over the past year, which was supported by reforms to unlock private investment in electricity.
Ramaphosa said they're moving at pace 'towards a competitive electricity market, which will introduce greater competition in electricity generation and reduce the chances of experiencing load shedding again'.
He said government had also reduced the turnaround times for approval processes for water use licences and energy projects.
Ramaphosa said the measures were 'common sense reforms' that would preserve public ownership of key infrastructure while introducing greater competition and investment.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

IOL News
an hour ago
- IOL News
US tariffs threaten local jobs, but we can still be competitive
South Africa will be hit with a 30% tariff on all its exports to the United States from August 1, following a formal letter from US President Donald Trump to President Cyril Ramaphosa demanding action on trade imbalances and long-standing market restrictions. Image: Lee Rondganger/IOL As global trade tensions rise and the possible 30% US tariff could make international markets more volatile, local enterprises in Ekurhuleni can protect local jobs by being globally competitive and regionally focused. South Africa's export sectors, and especially mining and related services, will potentially lose competitiveness in the US should the 30% tariff on South African goods take effect on August 1. When South African goods become more expensive overseas due to a tariff, there is a decrease in demand for our goods. This hits exporters first, and the ripple effects land hard at home. Ekurhuleni is especially at risk – our metropole is the industrial heart of South Africa, with heavy engineering, metal manufacturing, the automotive industry and other similar industries driving local jobs and income. 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 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. Next Stay Close ✕ But rather than retreat, companies based right here in Ekurhuleni can adapt and diversify where possible. Local companies are aware of this threat and are planning their responses. As a local company, we are doing all we can to ensure we continue to deliver on our North American contracts, but also to ensure that we continue to develop avenues into other markets, including the rest of Africa. The foundry has been a vital part of Benoni since its founding in 1937. In such a long time, we have weathered many international storms. With such a long history in Ekurhuleni, our company also knows how valuable jobs and employment are to our community. In times of great volatility, our people-first approach has been a stabilising force, ensuring that workers are supported, retained, and empowered. That's why we must support industrial exporters in our region, from local city councillors to the national government. When we buy local, invest local, and push government to create trade conditions that protect our industries, we help keep factories open and workers employed. In a city built on manufacturing muscle and engineering skill, the fight for fair trade is the fight for our future. We cannot afford to let international tariffs silently steal jobs from our communities. We must recognise, support, and champion the companies that are holding the line. Because the cost of doing nothing is not measured in lost profits, it is measured in lost livelihoods. William Price Ekurhuleni

IOL News
5 hours ago
- IOL News
Cyril Ramaphosa advised to adopt diplomacy amid US sanctions threat
Government leaders who are members of the ANC have been cautioned to avoid being targeted by proposed US sanctioning bill. Image: IOL / Independent Newspapers President Cyril Ramaphosa and his ANC ministers should tone it down to avoid being the victims of the United States of America's bill, designed to sanction some of the party members, an international relations expert said. Dr Bongiwe Ngcobo of the University of South Africa's Thabo Mbeki African School of Public and International Affairs, commented following a growing pressure on South Africa from US President Donald Trump's administration and some of his country's parliamentarians. While Ramaphosa's administration was still trying to navigate the US's 30% tariff on the country and Trump's Executive Order, US Congressman Ronny Jackson proposed US-South Africa Bilateral Relations Review Act of 2025, which seeks to impose sanctions against some ANC leaders accused of, among others, supporting China, Russia, and Iran, and mismanaging state resources. The US House of Representatives Foreign Affairs Committee has already passed the bill and is now awaiting tabling at the full House of Representatives for a vote. US embassy spokesperson Rubani Trimiew declined to comment, saying the questions about the bill should be directed to the members of Congress who proposed it. Jackson did not respond to questions emailed to him on Friday. 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 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. Next Stay Close ✕ The bill, which the South African Communist Party described in April as an imperialist agenda, accused Ramaphosa and former International Relations and Cooperation minister Naledi Pandor of being pro-Palestinian and Hamas and anti-Israel. Ngcobo, who described the bill as concerning, said the president and ministers have to be diplomatic in how they comment on issues that are sensitive to the US, as South Africa is still negotiating a trade deal and repairing its relations with the US. 'They have to be willing to compromise to gain bigger things that we are trying to achieve. 'Criticising Trump publicly will not benefit South Africa in any way, so they need to find a strategy to air their thoughts without being aggressive,' said Ngcobo. Ngcobo said that since South Africa is not a global influencer, it should take a beggar's approach. 'We are not Russia or China, we don't have the economic and military strength to counter the US, because even continentally, our influence is weaker than before. 'With the Democratic Republic of Congo, we could not mediate, and that peace was mediated by the US, which shows that we won't get much global support. 'This means that South Africa would have to beg,' she said. It remained unclear which individual ANC members would be the targets of the proposed act. However, the bill specifically mentioned Pandor, who is an ANC veteran, Ramaphosa, ANC president, party spokesperson Mahlengi Bhengu-Motsiri, and Ebrahim Rasool, an ANC activist whom the US expelled as the ambassador. It blamed Pandor for saying in 2024 that Israeli-South Africans would be arrested for fighting in the Israeli Defense Forces in Gaza 'upon their return home and could strip them of their South African citizenship.' It said Pandor also encouraged protests outside the United States Embassy. 'Pandor called for the International Criminal Court to issue an immediate arrest warrant charging Israeli Prime Minister Benjamin Netanyahu with violations of international criminal law. 'On October 14, 2023, President Cyril Ramaphosa of South Africa accused Israel of 'genocide' in statements during a pro-Palestinian rally. 'On October 8, 2023, the ANC's national spokesperson, Mahlengi Bhengu-Motsiri, said of the devastating Hamas attack, 'the decision by Palestinians to respond to the brutality of the settler Israeli apartheid regime is unsurprising," read the bill. The bill blamed the ANC for its ongoing attempt to rename the street where the United States Consulate in Johannesburg is situated after Palestine activist Leila Khaled. Its author, Jackson, took offense at ANC Deputy Secretary General Nomvula Mokonyane, who he quoted as saying, 'we want the United States of America embassy to change their letterhead to Number 1 Leila Khaled Drive'. It was reported that the US had rejected former deputy finance minister Mcebisi Jonas as a Ramaphosa-appointed special envoy following Rasool's expulsion from that country. Ngcobo said it was likely that the targets would be high-profile ANC leaders who had been vocal on the Gaza and South Africa's land expropriation issues. 'It would be key individuals whom they know the sanction would affect their operations. 'At this point, I am not sure who they are targeting,' she said. AfriForum, which had been accused of badmouthing the country in the US, welcomed the bill as a weapon to implement targeted sanctions against corrupt and extremist South African politicians. "AfriForum maintains that ordinary citizens should not be punished for the extremism and corruption of politicians. 'AfriForum has never advocated for sanctions that target South Africa as a whole. 'Therefore, the introduction of targeted sanctions against these politicians will be a welcome development,' said AfriForum's public relations head, Ernst van Zyl. Ramaphosa took a wait-and-see stance, saying the bill still has a long way to go before reaching the final stage, as after the House of Representatives vote, it will proceed to the Senate for final consideration. 'Our bilateral dealings and engagements with the United States will continue, and we'll talk about all manner of things - including this issue.' 'We are very positive that the outcome of our engagements with the United States will be comprehensive and all-encompassing, so we can return to good deals with the United States,' he said. On behalf of the ANC, Bhengu-Motsiri said: 'Remember, we come from a history where sanctions were imposed against the apartheid system. 'The ANC was also isolated by countries that worked closely with the apartheid regime, including the United States,' she said. Zimbabwe's Zanu–PF spokesperson Christopher Mutsvangwa said the sanctions, which started in 2000, failed to bring his country to its knees.

IOL News
10 hours ago
- IOL News
R4bn Question: Can UIF sustain its core mission amid job creation push?
The UIF Labour Activation Programme's mandate is to mobilise resources, partnerships, and implementation capacity to drive sustainable job creation, retain existing jobs, and support unemployed and vulnerable groups. Image: Supplied SOUTH Africa stands at yet another crossroads where political expediency challenges institutional integrity, as the Unemployment Insurance Fund (UIF) assumes an unprecedented role in funding a job creation programme traditionally financed by the National Treasury. The Department of Basic Education (DBE), in partnership with the Presidential Employment Stimulus (PES) initiative under the Presidency, has turned to the UIF for R4 billion to fund the Teacher Assistant Programme — a short-term intervention aimed primarily at unemployed youth. According to the DBE's April 2025 CareersPortal document, the Teacher Assistant Programme, now in its fifth phase, aims to create about 200 000 positions for young unemployed people aged between 18 and 34. Participants receive monthly stipends of R4 000, plus R30 airtime, for six months of practical work experience in schools across South Africa. President Cyril Ramaphosa confirmed the programme's scale and significance during a June 2 statement. 'Today marks the 'first day at school' for about 200 000 young people at over 20 000 schools nationwide. They are participants in the fifth phase of the Basic Education Employment Initiative (BEEI), the largest youth employment programme in South Africa's history.' Ramaphosa further emphasised that the initiative is funded by the UIF Labour Activation Programme alongside national government contributions. 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 Lala Maje, director for initial teacher education, stated: 'This initiative comes as South Africa continues to battle high levels of youth unemployment and an education system that is stretched and overburdened during these difficult economic conditions. Phase five of the BEEI, a component of PES, offers a timely intervention.' However, this funding model starkly contrasts with the UIF's core statutory mandate. The UIF is 'a statutory social security mechanism' funded by contributor deductions and owes its duty solely to those who have been previously employed and have made contributions. The UIF Labour Activation Programme's mandate is to mobilise resources, partnerships, and implementation capacity to drive sustainable job creation, retain existing jobs, and support unemployed and vulnerable groups. It is designed to complement and accelerate PES's broader economic recovery and inclusive growth objectives. The Industrial Development Corporation (IDC), which has been appointed as the paymaster for the programme, confirmed receiving an advance disbursement of R2 billion — half of the total requested R4 billion — from the UIF. Questions sent to the UIF, DBE, and the Office of the Presidency were unanswered at the time this report was compiled. The UIF recently came under fire in Parliament for delaying payments to workers who became unemployed or were unable to work. The Fund is reportedly plagued by persistent service delivery challenges, payment delays, and limited accessibility for vulnerable workers, which exacerbates the hardships experienced by those it is meant to protect. The Fund briefed the Parliamentary Select Committee on Economic Development and Trade on its budget and strategic plan, as well as its annual performance plan. MPs stated that the UIF was failing workers who became unemployed or were unable to work due to various reasons. The Labour Party of South Africa has condemned the 'diversion' of UIF funds to the PES, describing it as 'economic injustice' that violates the fund's mandate. 'The UIF was never designed to be a general job creation fund,' the party said, emphasising that PES beneficiaries did not contribute to the scheme. The party highlighted the R2 billion advance payment made to PES programmes, lamenting that retrenched workers would wait months while billions flowed unchecked to 'political programmes'. The party warned that paying non-contributors higher stipends than UIF beneficiaries risked collapsing the fund. The UIF and PES operate under distinctly different mandates, frameworks, and funding models that reflect fundamentally divergent labour market roles. This situation raises critical questions about whether the PES is effectively encroaching on the UIF's mandate by sourcing funding — including advance payments — in ways inconsistent with UIF's legal and operational principles. The UIF, established by the Unemployment Insurance Act, is legally empowered to register all employers and employees in South Africa for unemployment insurance benefits. It primarily provides short-term unemployment relief to eligible contributors who have formally paid into the fund. The UIF functions under strict governance and financial protocols — its payments were intended as a stopgap during times of crisis, such as the Covid-19 lockdowns, to provide relief for a limited period until economic recovery could resume. Payments are disbursed monthly based on verified claims, and advance payments are strictly prohibited to protect the fund's sustainability and accountability. In contrast, the PES is funded directly from the National Treasury and designed as a temporary economic relief initiative targeting short-term employment, especially among youth, and to stimulate the economy through multiple exit strategies. The reported R2bn PES advance payment already made marks a significant departure from UIF norms, exposing the fund to financial risks and contradicting social insurance principles. Meanwhile, the UIF attributed delays in Labour Activation Programme stipends to 'administrative discrepancies and attempted fraud' by partner companies. It promised improvements via stricter invoice verification and a new electronic payment system to resolve backlogs. Jacky Molisane, acting director-general of Employment and Labour, warned beneficiaries against protests, stating: 'The Department reserves the right to take legal action against those undermining processes.' She confirmed that there was sufficient budget allocation for current stipend payments. Tshepo Ramodibe, IDC Head of Corporate Affairs, assured that the funds would be managed in accordance with the Public Finance Management Act (PFMA), with oversight from internal audit and subject to external audit. Ramodibe clarified that the IDC's role is strictly as a pay agent for BEEI, distinct from an implementation agent with autonomy. He firmly denied any claims that political or executive pressure influenced IDC's acceptance of this role. South Africa's youth face a persistent unemployment crisis that limits their economic independence and future prospects. Initiatives like PES and the UIF Labour Activation Programme have the potential to be transformative if implemented effectively. The UIF focuses on accredited training and sustainable job creation, offering structured pathways into formal employment, while PES provides essential short-term relief and work experience. Nonetheless, fundamental questions remain: Is the PES pushing the UIF out of its core mandate? Is the use of UIF funding in this manner undermining the fund's sustainability, legal integrity, and governance standards? Get the real story on the go: Follow the Sunday Independent on WhatsApp.