Category: Government Opinion Pieces

Following three years of negotiation, Minister of Public Enterprises Pravin Gordhan has announced the termination of negotiations for the transaction to sell 51% of South African Airways (SAA) to the Takatso Consortium.

The collapse of the negotiations – which put an end to the sale to the equity partner – was announced during a media briefing by the Minister in Cape Town on Wednesday evening.

Gordhan explained that while three years ago, a valuation of SAA’s business and assets had been reached, circumstances have now changed – prompting a disagreement on the revised transaction structure.

Three years ago, the airline had undergone business rescue, battled through being grounded and was facing serious challenges following the COVID-19 pandemic.

“Late last year, clearly, we had a different market, we had a different economy, and we had a different flying public in terms of numbers of people that were flying and a new valuation was done.

“And the new valuation…the business came out now at a value of R1 billion and the property went up to about R5.5 billion which meant that any negotiations on this transaction would have to take into account the new valuations that have emerged,” he said.

The Minister revealed that negotiations continued “for the latter part of last year” and since this year began.

“However, we came to a point where whilst there was meeting of minds…on some of the issues, there were other issues on which there was no meeting of minds.

“So late last week, there was agreement that in terms of a clause in the old sale and purchase agreement, whereby mutual consent, this transaction could be terminated. That clause was put into action and both parties have agreed – after we enquired about the status of the negotiation – that there was no clear path forward as far as the transaction with Takatso is concerned.”

Gordhan insisted that because SAA remains a public entity:

• Cognisance must be placed on its growth over the past five years;
• Fair value must be placed on the sale of the 51% stake in the airline;
• and the process to sell the shares must ensure that SAA is left in a “more sustainable condition than it was in 2019”.

He added that despite the collapse of the deal, the future remains bright for the airline and dismissed any notions that it will rely on government bailouts going forward.

“We are convinced, in terms of the numbers available to us, that it can sustain itself for the next year to 18 months and there are various, other ways in which immediate financing can be obtained.

“But at no stage, in the course of the months that come, will SAA get money from the fiscus. It must run its operations as efficiently as it can and as profitably as it can and sustain itself,” he said.

READ | Strategic Equity Partnership for SAA aimed at saving airline: Gordhan

Moving forward

Gordhan assured employees of the state-owned airline that their jobs are currently not in danger as a result of the collapse of the deal.

“So the message to the SAA staff…is that you don’t worry about your jobs, you don’t worry about the future of your families, that we will ensure that we work with the board and management…to continue to support the sustainability of SAA and to ensure that the corporate plan that has been developed by SAA is further strengthened,” he said.

READ | SAA officially relaunched

The Minister added that the corporate plan is well fleshed out and projects a growth in the airline.

“That corporate plan actually entails the gradual growth in the number of routes that SAA will take up in the course of the next few years. Currently, it has about 19 routes and that will grow up to 40 routes in a five year period.

“Similarly, it will have the capacity to lease more aircraft, both for domestic use, use within the continent and for inter-continental flights as well.

“All of these plans will be rigorously examined with the necessary aviation expertise to ensure that jobs are secure, that the airline is secure and that there is a future for SAA and its flag to be seen continuously within the country, within the continent and across continents as well,” Gordhan said.

As government continues to fast track the pace of land reform, so far 2 345 547 individual beneficiaries, who are members of 460 952 households, have benefited from the Acceleration of Land Reform programme.

“Of these households, 177 504 are female-headed households and 1 266 are households headed by persons with disabilities,” Minister in The Presidency Khumbudzo Ntshavheni said on Thursday in Cape Town.

During its meeting on Wednesday, Cabinet was briefed on the implementation and progress of the Acceleration of Land Reform programme.

The Acceleration of Land Reform programme is an outcome of the accepted Recommendations of the Presidential Advisory Panel on Land Reform and Agriculture that presented its Report and Recommendations to Cabinet in 2019.

Through the provisions of the Transformation of Certain Rural Areas Act of 1998, a total of 593 167 hectares have been transferred, while the Rapid Release of State Land has been completed, with the release and allocation of 659 602 agricultural State land.

“The Land Claims Commission has settled 83 056 claims as at December 2023, a total of 3 889 701 hectares of land were acquired at a cost of R25 billion, and financial compensation of R23 billion was awarded to beneficiaries,” Ntshavheni said.

In addition, Cabinet received a progress report on the Development of the Cannabis and Hemp Sector and the Cannabis Master Plan as part of government’s strategy to industrialise the Cannabis Sector.

The aim is to provide a framework for the establishment, growth and development of the Cannabis and Hemp industry in South Africa in order to contribute to economic growth, poverty alleviation and job creation.

“In 2020, the Minister of Health approved changes to the scheduling of Cannabis plants under the Medicines and Related Substances Act and the Minister of Agriculture, Land Reform and Rural Development declared hemp as an agricultural crop in terms of the Plant Improvement Act of 1976.

“The Agricultural Research Council continues to develop hemp varieties, with the support of the Department of Agriculture, Land Reform and Rural Development (DALRRD), to make the seeds available for the 2025 planting season,” the Minister said.

The Department of Health through the South African Health Products Regulatory Authority is currently consulting on further changes to the Schedules of the Medicines and Related Substances Act.

The purpose of the consultation is to allow the Department of Health to regulate Cannabis for all medicinal uses, whilst the DALRRD will regulate the cultivation and processing of Cannabis and hemp for all other legitimate uses, such as industrial, cosmetic, human and food product applications.

A youth-led enterprise from Vrygrond in the Western Cape, is switching on lights, plugs and lives through its portable power stations solution.

Fuelled by a desire to make an impactful change, three young entrepreneurs, Vincent Mosebe, who is the founder and CEO of Mosebe Enterprise (ME); Leandro Antonio, Marketing Director; and Donovan Pedzai, Chief Operations Officer, set out to revolutionise the energy sector.

They used recycled materials to create the power stations for underserved and rural communities in the Western Cape and beyond.

Their pilot flagship power station “Tsepho – The Power of Hope” is an innovative 10Ah [amp-hour] solar charge energy solution that targets informal settlement households who would otherwise utilise unsafe power methods, including candles and illegal connections, that often lead to settlement fires – and those at the mercy of constant and pro-longed power outages and cable theft.

The trio are exhibiting alongside other start-ups, Small, Medium and Micro Enterprises (SMMEs), investors and policy makers at the Global Entrepreneurship Congress+Africa.

The congress is a gathering of entrepreneurs and leaders from 43 African countries, which is currently underway at the Cape Town International Convention Centre in the Western Cape.

Through the organisations funded to implement development entrepreneurial programmes for youth not-in-education-employment-or-training (NEET), the National Development Agency (NDA) extended the invitation to 23 entrepreneurs to afford them a linkage opportunity to showcase their businesses, network and participate as delegates at the conference.

The NDA is an agency of government that reports to the National Assembly. It was  formed in 1999 as government’s response to the challenge of poverty and its causes in South Africa.

Mosebe said their power stations address safety and electrification problems experienced by residents in informal settlements.

“Currently, statistics report that an average of 10 shacks catch fire per day in South Africa. We have first-hand experience and have lost personal belongings and community lives to shack fires, having grown up in Vrygrond.

“Tsepho offers a sustainable, affordable, reliable, and eco-friendly power solution that has features, including multiple USB ports, a powerful lithium-ion battery with solar compatibility and 1 12v LED light bulb. Tsepho is not just a device; it is a catalyst for change – a beacon of hope that will bring about a brighter sustainable future,” Mosebe said.

The entrepreneurs have leveraged personal funds to scale production and conduct on-the-ground research.

Mosebe said their immediate plans include expanding production capacity, extending reach to new communities, and fostering more collaborations for future social impact and export.

He said the power station range also includes a bigger version “2 Tsepho” with similar capabilities including an additional feature of a bug-repellent UV light that exterminates insects and bugs (pest control).

“With this power station, we are targeting campers and the caravan community who need extended power. Our next goal is to extend the products further into African countries that struggle with Malaria cases. Additionally, there are two more ranges with extended power capabilities to power up a single power socket that can power up a fridge or microwave.

“The largest, ‘version 3’, packs up a 20.8Ah battery and a 300W inverter offering increased power capacity. This would be a useful tool for students – they can charge laptops and keep WIFI going during outages, promoting a consistent learning experience.

“The starter pack retails from R1 500 without the solar panel. We also offer warranty up to a year for any technical faults,” Mosebe said.

The Social Relief of Distress (SRD) grant – popularly known as the R350 grant – is expected to be raised to R370 from April this year.

This was announced by Finance Minister Enoch Godongwana in the National Assembly on Wednesday.

“His Excellency, the President, in his State of the Nation Address, said that the [SRD grant] is going to continue, and the R350 will be improved. My colleague, the Minister of Social Development, is going to publish for comments a comprehensive social security programme and that… will define a better platform and a future for the social security net in South Africa.

“I am pleased to say that we have found consensus that in between, subject to the finalisation of the comprehensive social security [programme], we’ll increase the R350 to R370 by the 1st of April this year. That is part of the progressive realisation of the basic rights of our people,” he said.

In the Budget Speech delivered in February, Godongwana had announced that social grants across the board are set to increase over the course of 2024.

The increases to be implemented during this year are as follows:

• An increase of R100 to the old age, war veterans, disability and care dependency grants. This amount will be divided into R90 effective from April, and R10 effective October;
• A R50 increase to the foster care grant; and
• A R20 increase to the child support grant.

“We are sensitive to the increase in the cost of living for the nearly 19 million South Africans who rely on these grants to make ends meet. In this regard, we have done as much as the fiscal envelope allows,” Godongwana said at the time.

Cabinet has expressed concern about the safety of children following recent cases of child kidnappings in different parts of the country.

“Parents and caregivers must be extra vigilant regarding the safety and whereabouts of children in their care and should educate children on general safety precautions. In the spirit of Ubuntu, communities are urged to assist with taking care of children,” Minister in The Presidency Khumbudzo Ntshavheni said on Thursday.

Cabinet applauded police and the community of Saldanha Bay in the Western Cape for the arrest of suspects in connection with the missing six-year-old Joslin Smith.

According to reports, Smith disappeared outside her home in Saldanha Bay last month.

“Cabinet joins the nation in prayer and efforts for the safe return of many other children who have gone missing in the recent past. Cabinet calls on persons with any information on all missing children to contact their nearest police station or call Crime Stop at 08600 10111 immediately.

“It simply cannot be the norm that 30 years into our democracy women and children live in fear of being the next victim. This damning situation goes against the founding values of our constitutional democracy, which is built on human rights, human dignity and equality for all,” the Minister said.

READ | Four suspects implicated in Joslin Smith disappearance appear in court

As the world commemorated International Women’s Day on Friday, 8 March 2024, Cabinet reiterated its call on South African men to stand up and fight the scourge of Gender-Based Violence and Femicide (GBVF).

“We call on men to take part in the 365 Days of No Violence against Women and Children Campaign,” she said.

The Minister made these remarks in Cape Town during a media briefing on the outcomes of the Cabinet meeting that was held on Wednesday.

Cabinet has welcomed all the parties involved in reaching consensus on the positioning of the Shangoni Gate in the northern part of the Kruger National Park.

This follows a long-standing dispute on the positioning of the Shangoni Gate amongst communities around and adjacent to the Shangoni Gate on the northern part of the Kruger National Park (KNP).

“The Shangoni Gate will provide a major boost to tourism development and growth. It will also catalyse local economic development for both the Vhembe and Mopani district municipalities by providing job and business opportunities for the local communities,” Minister in The Presidency Khumbudzo Ntshavheni said on Thursday.

The Minister made these remarks in Cape Town during a media briefing on the outcomes of the Cabinet meeting that was held on Wednesday.

A statement from the Department of Tourism said that the department committed financial assistance to the South African National Parks (SANParks) in 2016 for the development of the Shangoni Gate.

The project was supported as it would catalyse local economic development for both the Vhembe and Mopani District Municipalities in Limpopo by providing job and business opportunities for the local communities through improved access to the KNP especially from the northern side.

In a statement last week, Tourism Deputy Minister Fish Mahlalela said a stakeholder meeting took place at Mopani Camp in the northern part of the KNP and a final resolution was reached in which all parties agreed on the position of the gate on 5 March 2024.

The Deputy Minister also said that the meeting had agreed that a sub-committee would be set up with representatives from all concerned parties to ensure that the surrounding communities reap the benefits of the opening of this new gate.

“Cabinet was [also] appraised about the working progress to increase the volume and value of domestic and international tourism. The recent official release by Stats SA [Statistics of South Africa] of international arrival figures from January to December 2023 underscores the rising momentum of [the] South African tourism sector as the international tourists’ arrivals for this period totalled 8.5 million – a remarkable increase of 48.9% compared to 2022,” Minister Ntshavheni said.

Furthermore, Cabinet received a progress report on measures to address the backlogs on tour operator licenses.

“The Department of Tourism will partner with relevant institutions and structures, including the Department of Transport Interim National Public Transport Regulator Committee, to ensure improvement and more quicker turn-around times in the processing of tour operator licenses,” she said.

The plans also include establishing a call centre to handle tour operator queries.

Employment and Labour Minister Thulas Nxesi has reiterated South Africa’s unequivocal call for an immediate ceasefire and humanitarian aid in Gaza, calling upon the international community to act swiftly to alleviate the suffering of the Palestinian people.

Nxesi was delivering a country statement on Wednesday at the 350th Session of the Governing Body of the International Labour Organisation (ILO) concerning the urgent crisis in the Occupied Palestinian Territory, particularly the Gaza Strip.

The Minister expressed deep concern over the dire situation, highlighting the significant impact of the Israeli military operation on the economy and welfare of the people in Gaza.

“The Republic of South Africa concurs with the Director-General’s report that the people of Palestine continue to suffer at the hands of the Israeli military, with their fundamental human rights, including labour rights, trampled upon and their very existence threatened.

“There is an [urgent] need for basic services and humanitarian assistance to address famine and starvation, and the dire conditions of life faced by Palestinians in Gaza,” the Minister said.

The Minister also urged ILO Member States, who have announced that they will defund humanitarian work by some UN agencies in Gaza, to reconsider their decision.

The alarming statistics from the ILO Director-General’s report revealed that over two-thirds of jobs in Gaza have vanished, equivalent to 192 000 jobs, and that the fundamental human rights, including labour rights, of Palestinians are being trampled upon.

Nxesi underscored South Africa’s concern regarding Israel’s excessive use of force in the Occupied Palestine Territory, which potentially violates international labour conventions.

Consequently, he condemned Israel’s actions for their detrimental effects on the livelihoods, economy, workers and businesses in Gaza. He drew attention to the alarming unemployment rates and the displacement of Palestinian workers.

Nxesi also raised concerns about the complicity of certain ILO Member States and entities in perpetuating injustice in Gaza through their actions and support.

He called for a re-evaluation of the bilateral labour agreements that Israel had signed with some governments. He further urged decisive action to hold Israel accountable for its violations of labour conventions and international law.

“We are concerned that Israel’s bilateral labour agreements with fellow ILO Member States will displace and replace Palestinian workers.  The DG’s report points to a mere 10 000 of the 171 000 workers from the West Bank, formerly employed in Israel and the settlements, currently are able to work there.

“We appeal to the ILO and the affected Member States to review these bilateral labour agreements, which go against the principles and conventions that underpin this organisation.

“We believe we have sufficient grounds to initiate action against Israel under Article 26 of the ILO Constitution and other international human rights treaties,” the Minister said.

South Africa further urged the Workers’ Group and Employers’ Group to break their silence and actively address the plight of Palestinian workers and businesses. Nxesi stressed the critical role of tripartism in advocating for social justice for the most vulnerable.

“We believe in the critical role of tripartism in upholding decent work principles and advocating for social justice, and we appeal to the Workers’ Group and Employers’ Group to call on Israel to implement the provisional measures ordered by the principal legal organ of the United Nations,” Nxesi said.

The Minister reminded the international community of the recent interim measures issued by the International Court of Justice, directing Israel to prevent acts of genocide, ensure humanitarian aid reaches Gaza promptly, and submit a compliance report.

He expressed dismay at Israel’s disregard for the ruling and urged the international community to add its voice to condemn Israel’s flagrant disregard for international law.

Trade, Industry and Competition Deputy Minister Nomalungelo Gina will on Friday join the National Consumer Commission (NCC) in commemorating World Consumer Rights Day (WCRD) at the University of the Free State.

The theme for this year’s WCRD, ‘Safe Products, Safe Consumers: Fostering Accountability and Compliance’, sheds light on the critical issue of product safety within the South African consumer market.

It emphasises the imperative for suppliers to adhere to the regulations enforced by various consumer protection bodies in the country.

A series of consumer education and business compliance initiatives are already underway ahead of WCRD, led by various regulators in the consumer space, under the umbrella of the Consumer Protection Forum (CPF).

These efforts are geared towards empowering consumers on their rights and ensuring compliance among suppliers.

As part of these activities, the University of the Free State will also host a symposium tomorrow, focusing on food safety and the roles of relevant stakeholders in guaranteeing that consumers purchase and consume goods meeting the required safety standards.

During WCRD celebrations on 15 March, Gina will deliver a keynote address highlighting the significance of consumer rights and government’s commitment to ensuring consumer safety.

“WCRD serves as a crucial reminder of the responsibilities we hold as custodians of consumer interests. It is imperative that we continue to foster accountability and compliance among suppliers to safeguard the well-being of consumers.

“This year’s theme underscores the importance of ensuring that products entering the market meet the highest safety standards, thereby instilling confidence among consumers.

“Through collaborative efforts with stakeholders and rigorous enforcement of consumer protection regulations, we can create an environment where consumers can make informed choices and trust in the safety and quality of the products they purchase.

“I look forward to engaging with fellow advocates and stakeholders during the celebrations as we reaffirm our commitment to protecting consumer rights,” she said.

Deputy Minister of Finance, Dr David Masondo, has reiterated to his counterparts in the United States of America (USA) that government is working hard to get South Africa out of the grey list.

“[We] are working together with [the] Financial Action Task Force (FATF) and the United States as our important partner to combat illicit and terror finance, manage risks associated with that, and generate the necessary investor confidence in our country,” Masondo said.

South Africa was grey listed by the FATF in February 2023 for not complying with international standards that relate to money laundering and addressing illicit financial flows.

The FATF is the international standard-setting body that oversees global compliance with anti-money laundering rules.

The FATF grey list refers to the FATF’s practice of publicly identifying countries with strategic AML/CFT deficiencies. The FATF maintains two such lists with one being jurisdictions under “increased monitoring” that are actively working with the FATF to address strategic deficiencies in their regimes” and secondly “high-risk jurisdictions subject to a call for action” that are not actively engaging with the FATF to address these deficiencies.

The Deputy Minister and the United States Deputy Secretary of Treasury, Wally Adeyemo, as well as officials, recently held a bilateral meeting as part of measures to strengthen cooperation between the two Treasuries and associated entities.

“Investment is critical for economic growth, which is a necessary condition for addressing unemployment and poverty in our country. But if our country is infested with corruption, illicit and terror finance, we cannot attract investment. Hence, we are working hard to get out of the greylist,” said Masondo.

Deputy Secretary Adeyemo said the US shared a “deep and broad” relationship with South Africa and that South Africa can continue to take steps that will ensure that it attracts more capital from the US and other parts of the world.

The Deputy Minister said the capacity of agencies such as the South African Revenue Service (SARS) and the National Prosecuting Authority (NPA) has been improved upon in order for them to combat issues such as money laundering.

The US authorities also offered further technical assistance to assist South Africa to exit the grey listing, and rebuild the capability of institutions combatting money laundering, terror financing and wildlife trafficking.

Masondo said South Africa has made significant progress since being grey listed, including passing two Acts in Parliament aimed at addressing money laundering and terror financing.

Finance Minister Enoch Godongwana tabled in Parliament the Anti-Money Laundering and Combating Terrorism Financing Amendment Bill in August 2022. The tabling followed Cabinet’s approval of the bill at its meeting on 17 August 2022.

In a statement at the time, the National Treasury said the approval was a demonstration of government’s commitment to the fight against corruption, money laundering and terror financing.

READ | SA works on exiting FATF grey list

The country has also addressed 15 of the 20 legislative deficiencies identified by the Financial Action Task Force.

The US Deputy Secretary of the Treasury is visiting South Africa from 10th – 15th March 2024.

South Africa has no regrets about becoming the first country to file a lawsuit against Israel at the International Court of Justice (ICJ) to end its “deadly and relentless genocidal bombardment” of Gaza.

This is according to Deputy President Paul Mashatile who attended a question and answer session in the National Council of Provinces on Tuesday.

Speaking in Parliament, Deputy President Mashatile said the United Nations estimates that more than 30 000 Palestinians, including over 10 000 children, have been killed.

“Over 70 000 have been injured while 10 000 are missing under rubble. This brings the number of civilian casualties to about 110 000, amounting to roughly 5% of Gaza’s 2.3 million population. We will not condone genocide,” he told Members of Parliament.

Last year, South Africa led a case against Israel at the ICJ in The Hague, under the Genocide Convention, for acts committed by Israel in the context of its attacks on Gaza on 7 October 2023.

This is after members of the Hamas military and political organisation massacred at least 1 200 people and abducted 240 others during surprise attacks on its territory.

In January 2024, the ICJ ordered Israel to, among others, take all measures within its power “to prevent and punish the direct and public incitement to commit genocide” and to immediately ensure that Palestinians have access to basic services and humanitarian assistance.

While South Africa had called for the suspension of Israeli military operations in Gaza, the court did not grant this provisional measure.

READ | President calls for an end to Palestinian suffering

“Similarly, I must reiterate South Africa’s condemnation of Hamas for the indiscriminate and wanton violence meted against Israeli civilians,” the country’s second-in-command added.

“We are mindful that not every citizen supports our government’s decision to refer the Gaza bombardment to the ICJ.

“We are also aware that some, here at home and abroad, started by opposing our position. However, they have revised their view, taking into consideration the number of deaths and sheer scale of human suffering.”

READ | SA requests ICJ to act to prevent famine in Gaza

In addition, he acknowledged those who support Israel for ideological reasons, including religious.

“They will never be swayed no matter the facts and however persuasive the argument. There are, frankly speaking, some whose idea of human pain is informed by the pigmentation of the perpetrator and the victim.

“Others do not so much as care about anything that happens beyond our borders and would rather that we become an insular society even as the world shrinks into a village.”

However, he vowed that government would continue to engage every sector of society, especially on matters contentious.

On the other hand, he said South Africa was committed to the promotion of social cohesion, which he believes does not mean the absence of difference, but the promotion of consensus and evolution of a practical programme of action for progressive social change.

“It is in the context of Ubuntu and the building of a better Africa and the world that we remain committed to promoting the Bill of Rights, which enshrines the rights of all people in our country and affirms the democratic values of human dignity, equality and freedom.”

Meanwhile, he said the country would continue to pledge solidarity with the people of Palestine in their struggle to end all acts of the apartheid system by the Israeli government, and the genocide emanating from that evil system and support their collective right to self-determination.

“As President Nelson Mandela emphasised: ‘Our freedom is incomplete without the freedom of the Palestinians’,” he concluded.