Statement on the Cabinet Meeting of 26 April 2016
1. Implementation of Key Government Programmes
1.1. Cabinet welcomes President Jacob Zuma’s State Visit of to the Islamic Republic of Iran, which escalates economic and trade relations between both countries, through the signing of several agreements and commitments.
President Jacob Zuma and President Hasan Rouhani strengthened cooperation in the fields of trade, education and skills development; science and technology; energy, including petrochemical gas exploration and refining capacity; agriculture; mining and mineral beneficiation; infrastructure development and transport; finance, banking and insurance and tourism. All of which contributes to the implementation of the National Development Plan.
On the international front, the two leaders agreed to intensify the call for the reform of the United Nations especially the UN Security Council, in the interests of the developing world.
1.2. These outcomes reinforced the President’s Working Visit to the United Arab Emirates (UAE) where both states renewed their commitment towards the consolidation and elevation of bilateral relations, particularly in the trade, investment and economic fields into a comprehensive strategic partnership.
This built on President Jacob Zuma’s State Visit in November 2011 which saw the establishment of the SA-UAE Joint Commission that accelerated total trade momentum between the two countries from R13 billion in 2011 to R27 billion in 2015.
South Africa and the UAE also agreed to expand cooperation to take advantage of opportunities in the Ocean Economy, to promote the export of South African agricultural products, manufactured products and particularly defence procurement and partnerships.
The visit also promoted South African infrastructure building capacity targeting opportunities for South African companies at EXPO 2020 in Dubai, as well as cooperation in the field of peace, security and stability.
1.3. Cabinet welcomed the firm measures that have been put in place by the Minister of Sport and Recreation Fikile Mbalula to reconstruct the fragmented and deeply discriminatory sport and recreation landscape through its Transformation Charter. This will accelerate transformation towards a unified sport system underpinned by the principles of democracy, equity, transparency, demographic representation, access and increased participation in line with the aspirations of the National Development Plan.
1.4. Cabinet welcomes the budget votes being presented by various departments with extensive reports outlining the progress made towards improving the lives of South Africans.
This demonstrates implementation of the Medium Term Strategic Framework which takes us closer to the realisation of Vision 2030 of the National Development Plan.
Cabinet calls on South Africans to follow the budget votes on various media platforms to better understand Government’s Programme of Action.
1.5. Cabinet calls for continued commitment to secure meaningful workplace transformation in view of the findings from the 16th Commission for Employment Equity Annual Report for all designated employers which was launched under the theme “Transformation does make business sense”. The Report helps government to understand the status of employment equity in the country and its progress in workplace transformation for the year 2015.
1.6. Cabinet congratulated the Department of Human Settlements on the delivery of 4, 3 million houses and housing opportunities since the dawn of democracy. These opportunities include 2, 806 235 fully subsidized houses (BNG houses), 121 784 social/rental housing, 6329 Financial Linked Individual Subsidy Programme and 986 608 serviced sites.
This historic milestone has provided a roof for more than 20 million people and to celebrate this achievement the department has launched a national campaign to profile the country’s success.
The national launch took place in COSMO City, one of the integrated priority projects around the country which is also celebrating ten years of its existence.
Cabinet thanked all South Africans for their contributions, dedication and hard work in ensuring that the dignity of South Africans in need is restored through human settlements.
1.7. Cabinet commends the United Nations Secretary-General for convening the High-Level Signing Ceremony of the Paris Agreement, which was adopted by 176 Parties in December 2015. The signing of the Paris Agreement marked the first step in its implementation which will guide international efforts to; limit greenhouse gas emissions and to meet all the associated challenges posed by climate change. Cabinet looks forward to the conclusion of the respective domestic ratification procedures, by all, to enable timely entry into force for full implementation of the Paris Agreement by 2020.
1.8. Cabinet also notes that the Department of Environmental Affairs has partnered with the Department of Tourism in convening delivery labs titled “Biodiversity Lab: Growing the economic contribution of South Africa’s biological resources” from 10 April to 13 May 2016.
The aim is to realise the economic potential of South Africa’s rich biological diversity which is articulated in the draft National Biodiversity Economy Strategy that was approved by Cabinet in July 2015 for public participation.
2. Key Cabinet decisions
2.1. Cabinet approved the Industrial Policy Action Plan (IPAP) 2016/17 – 2018/19, which is a key pillar of the President’s Nine-Point Plan and contributes towards implementation of the National Development Plan.
This is the eighth annual iteration of successive government industrialisation plans which builds on the achievements, policy platforms and programmes of previous iterations.
IPAP 2016/17 seeks to achieve a higher impact industrial policy in difficult economic circumstances. These include the on-going effects of the global economic recession including the steel crisis and commodity slump as well as the severe drought and other significant domestic constraints.
Achievements from the previous year include the saving of approximately 67 000 jobs and the creation of an estimated 7 000 new decent jobs in the Clothing and Textile Leather and Footwear sector. The Agro-processing sub-sector is one of the largest domestic manufacturing sectors by employment, providing an estimated 216 090 jobs in 2015 compared to 208 822 in 2014. Over R600 million worth of investment was attracted in 2015/16, laying the basis for strengthening enterprise development with a focus on rural communities.
2.2. Cabinet approved the Final Integrated Urban Development Framework and 2016/19 Implementation Plan. The overall outcome of the Integrated Urban Development Framework is spatial transformation. This marks a new deal for South African cities and towns, which will steer urban growth towards a sustainable growth model of compact, connected and coordinated cities and towns, which are safer, resource efficient and good places to work and live in.
This responds to the National Development Plan directive to develop an urban development policy that will ensure proper planning, infrastructure investments and management to support growth and unlock the economic potential of our cities and towns.
2.3. Cabinet approved publication of the Draft National Career Development Services Policy – Building an effective and Integrated Career Development Services System for South Africa, in the Government Gazette for public comment.
The draft Policy once implemented will provide a coordinated approach to quality career development services for all citizens. This will enable them to make informed career choices to obtain employment, contribute to society and build the South African economy.
Career Development Services plays a key role in helping labour markets work and education systems meet their goals. This contributes towards the achievement of the National Development Plan recommendations of promoting economic growth and employment, matching of employed workers to jobs; and increasing skills development and the number of university graduates.
2.4. Cabinet was briefed on implementation of the National Evaluation System and approved the Annual report 2014/15 and the fifth National Evaluation Plan for 2016/17 to 2018/19, as part of the drive to improve service delivery,
The National Evaluation System emanates from the National Evaluation Policy Framework which ensures that credible and objective evidence from evaluations is incorporated in processes of planning, budgeting, organisational improvement, policy review, as well as on-going programme and project management so as to improve performance.
Forty-seven (47) evaluations have been completed or are underway, covering R75 billion of government expenditure. Fifteen (15) evaluation reports were approved and 12 tabled at Cabinet to date. Fourteen (14) improvement plans are being implemented and progress on these reflects substantial changes, to widen impact.
2.5. Cabinet was briefed on the evaluation findings and approved recommendations with a view to increase impact from the implementation of the Expanded Public Works Programme Social Sector (EPWP-SS).
This Programme plays an important social protection role for unemployed able bodied adults, by drawing them into productive work and receiving a monthly stipend of an average amount of R1 517. 69. Most of the social sector programmes provide specialised services to vulnerable and poor communities. The EPWP-SS grew rapidly between phase one and phase two, from 5 to 22 programmes which resulted in the sector achieving 175 769 work opportunities in phase one and 866 246 work opportunities in phase two, well above the 750 000 target.
The recommendations focus on improving implementation to reduce inefficiencies in decision-making, implementation (payments of stipends) and provision of training, as well as coordination.
2.6. Cabinet was briefed on the findings and endorsed the recommendations of the design and implementation evaluation of the Urban Settlement Development Grant and its Improvement Plan.
The findings support retaining the Urban Settlement Development Grant as a supplementary grant that funds a wider notion of sustainable and equitable human settlements for the benefit of poor and moderate income households.
This is instrumental in achieving the targets from the Medium Term Strategic Framework; provision of 1 495 million housing opportunities in quality living environments by 2019.
2.7. Cabinet approved the report on the Implementation and Impact Evaluation of the Technology and Human Resources for Industry Programme, the management response to the report and the improvement plan submitted by the Department of Trade and Industry.
This Programme was introduced by the Department of Trade and Industry in 1992 to strengthen skills development in science, engineering and technology. It contributes to job creation by producing a flow of highly skilled researchers and technology managers for industry and by improving the competitiveness of the participating business organisations.
The Programme is a valid, important and efficient element of innovation support that offers considerable value for money both in terms of technology development and developing human resources and industry-related skills. It also compares favourably to some international programmes.
2.8. Cabinet was briefed on the findings of the Report by the Ministerial Task Team probe into the allegations of the ‘educator posts for sale’ involving individuals, teacher unions and officials of certain Provincial Education Departments. Cabinet endorsed recommendations to deal systematically and pointedly with the findings.
In its final Report the Ministerial Task Team provides a critique of the role played by all stakeholders in the process of the selection and recruitment of educators.
It also notes the significant problems in the current system of appointments to posts in the basic education sector; and provides recommendations to assist the Department of Basic Education and the basic education sector in general to address the identified challenges.
3.1. Cabinet approved submission of the National Forest Amendment Bill to Parliament. The Bill amends the National Forests Act, 1998 (Act No. 84 of 1998).
Implementation of the amendments will improve sustainable forest management and also encourage participation of vulnerable groups, who rely on forestry for their livelihoods, into the National Forests Advisory Council.
4. Upcoming events
4.1. President Jacob Zuma will attend the inauguration and swearing-in ceremony of Ugandan President Yoweri Museveni in Kampala on 12 May 2016. The outgoing visit will further strengthen bilateral relations between South Africa and Uganda.
4.2. President Jacob Zuma will officiate a National Day of Prayer to be held at ABSA Stadium in Durban on 29 April 2016. Religious leaders and leaders of civil society formations will join government in praying for the further consolidation of democracy, national unity, social cohesion as well as successful and peaceful 2016 Local Government Elections.
4.3. Cabinet was briefed on plans by the Department of Arts and Culture to host Africa Month in May 2016 under the theme: “Building a Better Africa and a Better World” as part of the continent’s celebration of the establishment of the Organisation of Africa Unity, now the African Union and the work it has done. President Jacob Zuma will launch Africa Month on the National Day of Prayer on 29 April 2016.
In 2016 Africa Month will focus on women and youth development initiatives, while we commemorate the 60th year of the Women’s March and the 40th year of the Youth Uprisings in Soweto.
South Africans are urged to participate in the multi-disciplinary programme that involves a wide range of activities including visual arts, theatre, music, lectures and colloquia as well as the 10th anniversary of the African World Heritage Fund. Africa Month serves as a platform to reconnect and recommit ourselves to Pan Africanism and African Renaissance in bringing the people of the continent closer.
4.4. On 20 May 2016 government will lead the national celebration of the centenary of the University of Fort Hare at the Alice campus in the Eastern Cape. In preparation for the main celebration, President Jacob Zuma has established an Inter-Ministerial Committee (IMC) to plan and coordinate the historic centenary celebration.
This historic learning institution served as a beacon during our struggle for freedom and is also known as the “crucible of African leadership” with it being the alma mater of anti-apartheid struggle figures such as the great ZK Matthews, Nelson Mandela, Robert Sobukwe, Oliver Tambo and Govan Mbeki. It is the only Southern African university to have produced five heads of state: Nelson Mandela of South Africa, Yusuf Lule of Uganda, Robert Mugabe of Zimbabwe, Ntsu Mokhehle of Lesotho and Sir Seretse Khama of Botswana.
As part of the University of Fort Hare’s centenary celebrations Cabinet calls on the Alumni and members of the public to share their Fort Hare memories for the Tell Your Story campaign using the hashtag #MyFortHare.
4.5. Deputy President Cyril Ramaphosa will lead the South Africa delegation to the 26th World Economic Forum (WEF) Africa in Rwanda between 11 and 13 May 2016. The forum is hosted under the theme: “Connecting Africa’s Resources through Digital Transformation”.
Government through its Nine-Point Plan is advancing the country’s own digital transformation. It is rolling out the first phase of its broadband initiative that will connect more than 5 000 government facilities in eight district municipalities over a three-year period. Funding to the tune of R740 million has been allocated in support of the rollout.
4.6. INDABA 2016 at the Inkosi Albert Luthuli Convention Centre in Durban from 7 to 9 May 2016, is a Pan-African platform that will promote our tourism products to international buyers.
Tourism, as one of the six pillars of economic growth of the National Development Plan, contributed R357 billion to our GDP in 2014 and supported 9 per cent of total employment in South Africa. The World Travel and Tourism Council estimates that tourism will contribute R560 billion to our GDP by 2025 and will support over two million jobs.
Growing the Tourisms impact in the Oceans Economy is a critical pillar of the Nine-Point Plan, informed by the untapped potential of our oceans, which can contribute to economic growth. The oceans economy and tourism provide tremendous opportunities for economic growth and job creation.
4.7. In commemoration of Workers’ Day on 1 May 2016, Cabinet reiterates the country’s commitment to protect worker rights through our progressive labour legislation.
Since 1994 government has through legislation such as the Labour Relations Act, the Basic Conditions of Employment Act, Employment Equity Act and Occupational Health and Safety advanced workers’ rights.
4.8. Cabinet urges Grade 12 learners to start downloading application forms or apply online to institutions of higher learning as part of the Apply Now/ Khetha Career Guidance Campaign.
The Campaign undertaken annually by the Department of Higher Education and Training, will run nationally until September 2016 and assists learners in making informed choices when applying to institutions of higher learning.
Learners are encouraged to contact the Career Development Services Centre through SMS or a “please call me” on 072 204 5056 or 086 999 0123, email firstname.lastname@example.org, on Facebook at www.facebook.com/careerhelp or on Twitter at http://twitter.com/rsacareerhelp.
5. Cabinet’s position on key issues in the environment
5.1. Cabinet encourages relevant stakeholders to comment on the draft reviewed Broad-Based Black Economic Empowerment Charter for the South African Mining and Minerals Industry, 2016 which was published in the Government Gazette.
The draft reviewed Mining Charter further integrates government’s transformation policies and legislation to enhance the ease of doing business, create regulatory clarity, predictability and certainty. It is also aligned to the provisions of the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003) and the Codes of Good Practice (DTI Codes).
5.2. Cabinet notes that approval of the proposed acquisition of SAB Miller by AB InBev is under consideration by the competition authorities. Cabinet welcomes the agreed approach by the Minister of Economic Development and AB InBev to the competition authorities on a range of public interest issues. The commitment by the company serves as a guide, on public interest issues, to other companies in merger and acquisitions in similar circumstances.
This includes an agreed commitment by the company to spend R1 billion over the next five years to promote small-scale farming and local supplier development, new enterprises, energy and water efficiency technologies and youth development. The commitment on jobs including an undertaking to avoid involuntarily retrenchment of workers as a result of the merger and to maintain employment levels at the company for the next five years, are part of a ground-breaking agreement between the company and government to support industrialisation, small business development and job creation.
5.3. In a separate development, Cabinet notes the coming into effect of provisions of the Competition Amendment Act that makes it a criminal offence for directors and management to collude in the fixing of prices, tenders or markets. These provisions are part of the measures to step up the fight against cartels that damage the economy and impose high prices on consumers.
We call on businesses in South Africa to compete based on lower prices, more innovation, improved quality of goods offered or superior service to customers rather than on collusion.
5.4. Cabinet noted how highly regulated the banking sector is in South Africa - and globally, and the need for South Africa to comply with international standards like Basel III and Anti-money laundering regulations of the Financial Action Task Force (FATF), which have been previously approved by Cabinet, and supported by underlying legislation approved by Government. The Twin Peaks system will also regulate market conduct in the banking and broader financial sector."
5.5. Cabinet welcomes the outcomes from the 2016 International Monetary Fund and World Bank Groups Spring Meeting which took place under the theme “Global Challenges, Global Solutions”. A three-pronged approach to ignite growth at a global level was proposed, encouraging countries to use all policy levers to spur growth, i.e. monetary, fiscal and structural reforms. Countries with monetary and fiscal space were encouraged to do more to boost demand; however, implementation of structural reforms was critical for all. For many this includes investment in infrastructure, innovation and improving the regulatory environment, amongst others.
5.6. Cabinet reminds all those eligible voters who have not yet registered and verified their details that they can still do so by visiting their local Independent Electoral Commission (IEC) Office. This is needed to secure your name on the voters’ roll which will enable eligible voters to exercise their democratic right on 3 August 2016.
Cabinet urges eligible voters to ensure that they meet the requirement of providing their address to their local Independent Electoral Commission (IEC) office. Election queries can be directed to the IEC contact centre on 0800 11 8000, which is open Monday to Friday, from 7am to 9pm.
5.7. Cabinet congratulates Transnet, National Prosecuting Authority, SABC and the Departments of Higher Education and Training, International Relations and Cooperation, and Justice and Constitutional Development for being ranked “Most Attractive Employers” in South Africa by employer branding company, UNIVERSUM.
5.8. Cabinet commends Minister of Science and Technology, Naledi Pandor, who received an Order of Merit from the Federal Republic of Germany for her contribution to the development of science globally. The merit has been awarded to people from around the world for their achievements in political, social or intellectual spheres.
5.9. Cabinet congratulates the Environmental Affairs Director-General Nosipho Ngcaba for receiving the 2015/16 Lifetime Achievement Eco-Logic Award from environment publication, The Enviropaedia.
5.10. Cabinet applauds artist Kemang Wa Lehulere for becoming "Artist of the Year" for 2017 which is supported by Deutsche Bank. Wa Lehulere, who explores the relevance of the artistic gesture in post-Apartheid South Africa, will present his first institutional solo exhibition in Germany at the Deutsche Bank KunstHalle in Berlin next year.
5.11. Cabinet congratulates the Department of Tourism for winning the Best Public Policy/Support prize in the 2016 African Responsible Tourism Awards. This accolade is awarded to a public sector department, authority or entity that has made a clear commitment and contribution to advancing responsible tourism.
5.12. Cabinet congratulates golfer Branden Grace for winning his first PGA Tour at the RBC Heritage in Hilton Head, US.
5.13. Cabinet is saddened by the death of Bertie Lubner who made significant contributions to the development of South Africa as a business leader, philanthropist and honorary life chairman of the SA Jewish Board of Deputies.
5.14. Cabinet extends its deepest condolences to the friends and families of the ten victims (Tiisetso Tselo, Sesi Mtshali, Sana Sibeko, Mphikeleli Malindi, Gugulethu Sithole, Vusi Nkabinde, Daphney Linda, Sicelo Kheswa, Sphamandla Gedle and Simphiwe Nhlapo) of a tragic bus crash while they were returning from the ANC Manifesto Rally in Port Elizabeth. Cabinet also wished a speedy recovery to those who were injured.
5.15. Cabinet conveyed its condolences to the family and friends of Dr Herman Nditsheni Netshidzivhani, South Africa’s first black fertility specialist. As a founder of the fertility clinic in the Park Lane Hospital in Johannesburg, Netshidzivhani helped many South Africans start their own families.
5.16. Cabinet conveyed condolences to the family and friends of Dene Smuts, former Democratic Alliance Member of Parliament. Cabinet salutes her sterling contribution to the development of our constitutional democracy.
5.17. Cabinet joins President Jacob Zuma in wishing Mama Winnie Madikizela-Mandela a speedy recovery and urges that the privacy of the family be respected during this time. Winnie Mandela is widely respected for her role in our struggle for freedom which contributed to ending oppressive policies and bringing democracy to South Africa.
All appointments are subject to the verification of qualifications and the relevant clearance.
6.1. Paul Steenkamp to the National Advisory Council on Innovation.
6.2. Clarinda Elizabeth Simpson as the Chief Financial Officer of SENTECH.
6.3. Lumko Caesario Mtimde as the Chief Executive Officer of the Universal Services and Access Agency of South Africa.
6.4. Re-appointment of Adv. Rory Wayne Voller as the Deputy Commissioner of the Companies and Intellectual Property Commission.
6.5. Extension of the contract for Lungisa Fuzile as the Director General of the National Treasury.
6.6. Extension of the contract for Nosipho Ngcaba as the Director General of the Department of Environmental Affairs.
6.7. N Mafu as the Deputy Director-General: Empowerment and Stakeholder Management in the Department of Military Veterans.
6.8. TLM Makotoko as the Chief Operations Officer for the Department of Environmental Affairs.
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29 April 2016