Category: Government Opinion Pieces

The Department of Minerals and Petroleum Resources has expressed confidence that a suitable investor will come on board and “be able to monetise” gas discoveries off the south coast of South Africa.

This after international energy giant, TotalEnergies, announced its withdrawal from offshore Block 11B/12B and 5/6/7.

“The Department of Mineral Resources and Energy (DMRE) notes TotalEnergies’ announcement to exit from offshore blocks 11B/12B and 5/6/7. We are confident that a suitable investor will come on board and be able to monetise the gas discoveries.

“The department remains committed to the exploration of the country’s oil and gas resources and will intensify engagements with key role players to ensure the development and sustainability of the sector,” the department said in a statement.

Furthermore, the DMPR said it was pleased that the company is not totally withdrawing from South Africa.

“Additionally, we are pleased that TotalEnergies is not entirely leaving oil and gas opportunities in South Africa as they still hold exploration rights over Blocks Deep Water Orange Basin and Orange Basin Deep, Outeniqua South, and recent entry in Block 3B/4B east of Deep Water Orange Basin,” the department said.

President Cyril Ramaphosa has assented into law the Public Procurement Bill, which aims to create a single framework that regulates public procurement, including preferential procurement, by all organs of state, with the necessary efficiency, cost-effectiveness and integrity.

“The President has assented to the Public Procurement Bill which complies with the stipulation in Section 217 of the Constitution that [the] contracting of goods and services by organs of state in all spheres of government must occur in accordance with a system which is fair, equitable, transparent, competitive and cost-effective; and that national legislation must prescribe a framework within which a procurement policy must be implemented,” said the Presidency.

As enacted by the President, the Public Procurement Act addresses weaknesses in the procurement of goods and services by organs of state that have in the past enabled various degrees of corruption, including state capture.
The Act also responds to the acknowledgement that legislation regulating procurement by organs of state is fragmented and constrains justified advancement of persons or categories of persons who could provide goods or services.

The Act establishes a single framework that regulates public procurement, including preferential procurement, by all organs of state and promotes the use of technology for efficiency and effectiveness. The law seeks to enhance transparency and integrity, among others, to combat corruption, ensure efficient, effective and economic use of public resources and advance transformation and broadened economic participation.

It foresees that economic development will be stimulated through the procurement of goods that are produced and services that are provided in South Africa, as well as procurement that is developmental in nature.

The Public Procurement Act, which will be administered by the Minister of Finance, applies to departments, constitutional institutions, municipalities, municipal entities, and public entities.

There are also a limited number of clauses which apply to Parliament and provincial legislatures.

The Act applies to all procurement carried out by a procurement institution (including procurement through donor or grant funding) any person who submits a bid or has been awarded a bid and all procurement carried out by any person on behalf of a procuring institution.

Among its wide-ranging provisions, the Act lists persons who may not submit bids including a public office bearer, employees of Parliament or provincial legislatures, and officials or employees of, among others, public entities, constitutional institutions, municipalities and municipal entities.

The eThekwini Municipality has welcomed KwaZulu-Natal Premier Thami Ntuli’s commitment to youth-orientated initiatives and developmental programmes.

Ntuli, who led the Executive Council in a two-day Youth in Business Summit recently held in Durban, announced that youth-oriented programmes will be a priority throughout the tenure of his administration.

Hosted under the theme “Young people taking charge in leading economic development”, the summit provided a platform for engagement between the government and the youth.

The summit encouraged youth development, entrepreneurship and involvement in the mainstream economy throughout the province.

Speaking at the summit, Ntuli said the summit is a catalyst for change and a platform for dialogue.

The Premier said the Executive Council and provincial government have identified youth unemployment, youth development, and financial backing for youth-owned enterprises as some of the key priorities for the seventh administration.

As part of government’s interventions to fight the scourge of unemployment through the Premier’s Office, the provincial government has created a suite of funding schemes which include the Premier’s Youth Empowerment Fund which has been increased from R60 million to R100 million.

“This programme seeks to afford the youth of this province with an opportunity to interact with strategic business leaders and to also share their views and ideas on how they would want this province of KwaZulu-Natal to aid their initiatives and programmes,” Ntuli said.

eThekwini Municipality Deputy Mayor Zandile Myeni commended the Premier-led initiative.
“When we give business access to young entrepreneurs, we will be ensuring that we transform the economy,” Myeni said.

The Woodyglen community in Hammarsdale in KwaZulu-Natal will now enjoy cost savings and reduced energy consumption as the area goes green following the installation of new solar geysers in their households.

In a move towards embracing green energy, the eThekwini Municipality in KwaZulu-Natal has completed the installation of solar geysers in 700 homes in Woodyglen.

The project aims to significantly reduce electricity consumption and costs for residents.

Ward 6 councillor, Bless Majola, commended the project’s completion and announced plans for expansion of the project into other areas of the ward.

Majola said the municipality has ensured the transfer of skills during the installation process.

“Young people from the community have been trained to install and maintain the geysers, creating around 30 temporary jobs. We expect to employ more young people as the project progresses,” Majola said.

Project Manager of Gemmed Services, Lungelo Ngcobo, emphasised the geysers’ durability, with a lifespan of up to 15 years and a one-year warranty.

“Our work adheres to the Department of Mineral Resources and Energy standards. Beyond installation, we prioritise skills transfer to empower the community for future maintenance needs,” Ngcobo said.

Minister of Forestry, Fisheries and the Environment, Dr Dion George, has extended his condolences to the families of the three people who tragically lost their lives in a fire at the Garden Route National Park in Knysna.

The fire broke out at the Tree Top Chalet on 18 July 2024 where two South African National Parks (SANParks) staff and one non-SANParks person died.

Ranger Services was notified of smoke permeating near the forest and upon investigation found the chalet ablaze. Emergency services were dispatched from the Bitou Municipality Fire Department and the South African Police Service (SAPS) were called.

“Our hearts are heavy with sorrow following the devastating fire at Garden Route National Park that claimed three precious lives. We extend our deepest condolences to the families and loved ones affected by this tragedy. We are committed to providing all necessary support during this difficult time,” the Minister said on Thursday.

During the process of managing and containing the fire, three bodies which were burnt beyond recognition, were discovered. An inquest has been opened with the police and the process of identifying the bodies through DNA testing is underway.

The names of the deceased will be disclosed once the identification process has been finalised.

“SANParks is in regular contact with the SAPS and in close liaison with and providing support to the families during this most difficult time. With the matter still under investigation, I appeal for space and respect to the family members,” George said.

The African Development Bank Group has approved a R18.85 billion ($1 billion) corporate loan to Transnet for its recovery and growth plans.

Transnet has faced operational challenges mainly in the critical rail and port businesses resulting from underinvestment in infrastructure and equipment, theft and vandalism, and external shocks such as floods and the effects of the COVID-19 pandemic.

“We appreciate the support demonstrated by the African Development Bank. The loan extended by the bank will make a significant contribution to Transnet’s capital investment plan to stabilise and improve the rail network and to contribute to the broader South African economy.

“The accompanying grant funding to the loan will also greatly assist Transnet with its energy efficiency efforts and with Infrastructure Project Preparation initiatives,” Group Chief Executive of Transnet Michelle Phillips said.

The 25-year loan, which was approved by the African Development Bank Group’s Board of Directors on 12 July 2024 is fully guaranteed by the government of South Africa.

It will facilitate the first phase of the company’s R152.8  billion ($8. 1 billion) five-year capital investment plan to improve its existing capacity ahead of expansion for the priority segments throughout the transport value chain.

“The company is committed to addressing past challenges, fostering integrity, and enhancing efficiency within the organization. It has made progress in some key areas, including reforms in governance procurement and financial management,” a joint statement by Transnet and the African Development Bank said.

Recovery Plan

In October 2023, Transnet launched its recovery plan, which seeks to rehabilitate infrastructure and accelerate the relaunch of operations over 18 months, focusing on restoring operational performance and freight volumes to meet customer demands.

“Transnet, the custodian of South Africa’s critical transport and logistics infrastructure, plays an indispensable role in the economy of the country, ensuring a competitive freight system and serving as a gateway to the Southern African Development Community (SADC) region.

“Our partnership will enable Transnet to execute a comprehensive Recovery Plan (RP), addressing operational inefficiencies, particularly in rail and port sectors. It is aligned with South Africa’s strategic ‘Roadmap for Freight Logistics System,’ and overseen by the National Logistics Crisis Committee, chaired at the Presidency level.

“This initiative signifies our commitment to enhancing national logistics capabilities and driving sustainable economic growth,” African Development Bank’s Vice President for Private Sector, Infrastructure and Industrialisation Solomon Quaynor said.

Transnet has been a client of the African Development Bank since 2010. The company employs more than 50 000 people and plays a critical role in integrating and connecting South Africa with the global economy.

The company’s freight system’s activities contribute significantly to South Africa’s economy.

Its operations serve as key gateways for trade within South Africa and with landlocked countries in the region, such as Botswana, Zambia, Zimbabwe, and the Democratic Republic of Congo through the Port of Durban.

The Department of Trade, Industry and Competition (dtic) will this week host the 3rd South African Conference on Essential and Vegetable Oils, bringing together 200 oil producers and stakeholders from across South Africa and Southern Africa.

The event aims to share innovative trends in the global marketplace, including various applications for essential and vegetable oils, and to address critical issues faced by this industry.

According to the department, attendees will gain valuable insights from proven experts on the most pressing challenges, equipping them with the knowledge needed to thrive in the dynamic essential and vegetable oils sector.

Acting Deputy Director-General of Sectors at the dtic, Thandi Phele, said the upcoming conference will be a significant step in strengthening the quality of essential and vegetable oil exports from South Africa.

Phele said the conference will highlight the “technical competence and the sustainability of the National Quality Infrastructure system and the conformity assessment services that serve the selected value chains in this industry”.

SADC compliance with international standards, technical regulations and culture for quality will be addressed.

“This conference will serve as a pivotal platform for knowledge sharing and networking among key industry players. Our collaboration with SECO, UNIDO, and SAEOPA underscores our commitment to fostering growth and innovation within the essential and vegetable oils industry,” she said.

The conference will feature a series of presentations, panel discussions, and interactive sessions, focusing on:
• Innovative trends shaping the global essential and vegetable oils market
• Addressing critical challenges faced by producers and stakeholders
• Strategies for expanding market reach from local to global

Head of SECO in South Africa,  Daniel Lauchenauer, says the gathering presents an unparalleled opportunity for stakeholders to engage with industry leaders, share best practices, and forge partnerships that will drive the industry forward.

According to SAEOPA, the global essential oils market size was valued at $11 billion in 2023. It is projected to grow to $12,47 billion in 2024 and $27,82 billion by 2032.

South African exports of essential oils, perfumes, cosmetics and toiletries was $679 million during 2023, according to the United Nations Commodity Trade Statistics database on international trade.

The department will host the conference at the South African National Botanical Gardens in Pretoria from 25-26 July 2024, in partnership with the Swiss State Secretariat for Economic Affairs SECO, the United Nations Industrial Development Organisation (UNIDO) and the Southern African Essential Oils Producers Association (SAEOPA),

The theme for the conference is “Local to Global: East West, Home is Best”.

President Cyril Ramaphosa has assented to the National Small Enterprise Amendment Bill, which streamlines the support services government provided to small and medium businesses as part of broadening participation in the economy by a greater number of South Africans.

“The National Small Enterprise Amendment Act signed by the President amends the National Small Enterprise Act of 1996 to establish a new entity, the Small Enterprise Development Finance Agency, which will incorporate the Small Enterprise Development Finance Agency (SEFA), the Small Enterprise Development Agency (SEDA) and the Cooperative Banks Development Agency (SEDFA),” the Presidency said on Tuesday.

The SEDA and SEFA are currently located within the Department of Small Business Development.

The new Small Enterprise Development Finance Agency will function as a one-stop-shop for aspiring entrepreneurs and promote the development of the Co-operative Banking Institutions (CBIs).

“The Act also establishes the Office of the Small Enterprise Ombud Service, which may, as part of dealing with complaints, recommend that the Minister of Small Business Development declare certain practices in relation to small enterprises to be prohibited unfair trading.

“Under the new law, the Minister may make regulations setting the criteria to determine the classification of micro, small and medium enterprises as well as any legislation affecting small enterprises,” the Presidency said.

The Gauteng Provincial Government says it fully accepts the judgment in the Life Esidimeni inquest handed down by the Pretoria High Court on Wednesday.

The inquest, which was established in July 2021, sought to investigate the criminal liability for the deaths of 141 mental healthcare users from Life Esidimeni.

Pretoria High Court Judge Mmonoa Teffo has determined that former Gauteng Health MEC Qedani Mahlangu and the then Mental Health Director, Dr Makgabo Manamela, can be held accountable for the deaths of some Life Esidimeni patients.

In 2016, the Gauteng Department of Health moved the deceased from Life Esidimeni – a long-term psychiatric care hospital, which provided highly specialised chronic care to mental healthcare users to NGOs, which Teffo described as “ill-equipped” and “inexperienced” to give proper and adequate care.

This conduct, the judge said, led to “regrettable and unfortunate deaths, some of which could have been avoided”.

Gauteng Premier Panyaza Lesufi said: “We are pleased this process that brought so much pain and suffering to those who lost their loved ones, as well as the survivors whose human rights were grossly violated by this tragedy is nearing its end.

“This judgement closes a painful chapter, not only for the affected families but for us as the Gauteng Provincial Government.”

The judgement follows an arbitration process led by retired Deputy Chief Justice Dikgang Moseneke that was established in 2018 and culminated in an arbitration award for the victims of the tragedy.

Moseneke gave the provincial government a list of 134 people after he concluded that families should each receive payments of R1 million in constitutional damages from government.

According to the provincial government, all claimants were paid R159 460 000 within the time that was stipulated by Justice Moseneke in his report.

“The only payments that are still outstanding are for the survivors who were not part of the initial arbitration process.”

The provincial government said it was currently administering these claims.

However, the claimants will only receive 50% of the claims upon successful verification. The other half will be held in trust on behalf of the mental healthcare user, which aligns with the Mental Healthcare Act 17 of 2002.

“As the Gauteng Provincial Government, we are confident that the National Prosecuting Authority will take this judgement forward and we await the conclusion of this matter,” the Premier said.

Way forward

Lesufi added that following the Life Esidimeni tragedy, the provincial government has made concerted efforts to ensure that the rights of mental healthcare users are promoted and safeguarded.

“As part of ongoing measures to strengthen mental health care in Gauteng, the provincial government undertook to ensure that the five district Mental Health Review Boards (MHRB) are functional and effective.”

The MHRBs are made up of 27 people with diverse expertise which include legal practitioners, mental healthcare practitioners, and community members with a proven record of community development and involvement.

In response to the growing need for mental health services, the provincial government said it has prioritised the refurbishments and repurposing of some of its healthcare facilities to improve mental healthcare infrastructure and services across the province.

According to the provincial government, several facilities have since been refurbished and opened to ensure enough acute mental health beds in hospitals and to increase mental health resources, including specialised professionals and rehabilitation services.

These facilities include Bertha Gxowa, South Rand, Tshwane District, Tembisa, Edenvale, Dr George Mukhari and Chris Hani Baragwanath Academic Hospitals.

The newly opened Kopanong Gateway Specialised Mental Health Day Clinic offers a basket of free services for mental health patients ranging from counselling, social work services, dual diagnosis services as well as psychotherapy for adults, children, and adolescents.

“The provincial government sympathises with the bereaved and affected families and understands that the Life Esidimeni inquest was incredibly important for families to find closure and for accountability,” the Premier said.