Category: Government Opinion Pieces

Friday, December 8, 2023

The Department of Communications and Digital Technologies has welcomed the decision by the South African Post Office (SAPO) creditors to adopt the draft Business Rescue Plan.

 

“The timeous adoption of this Business Rescue Plan sets us on course in turning the tide in saving the South African Post Office in the interest of our developmental agenda as a country,” Minister of Communications and Digital Technologies Mondli Gungubele said on Thursday.

The draft Plan was published for comment on 23 November 2023.

“The post office remains an important institution in our postal services network nationally and in the Southern African Development Community (SADC) Region. Most importantly, we remain committed to ensuring that we build a post office of tomorrow which provides quality, affordable and accessible services to the people of South Africa, particularly in this digital era,” Gungubele said.

Business Rescue Practitioners, Anoosh Rooplal and Juanito Damons, appointed after SAPO was placed under Business Rescue in July 2023, were tasked with the responsibility of developing and submitting a Business Rescue Plan by 30 November 2023.

In July, then acting Minister of Communications and Digital Technologies, Enoch Godongwana, welcomed the Gauteng Division of the High Court of South Africa’s decision to place the SAPO under supervision and in business rescue which would commence with immediate effect.

According to the Ministry of Communications and Digital Technologies at the time, the decision of the court in support of the application brought by Minister Mondli Gungubele confirmed that indeed SAPO is a strategic government asset that provides vital services throughout the country. This is especially in remote areas where SAPO is often the main link between residents and the outside world.

It added that it further uses its countrywide footprint to render services such as the distribution of social grants at its branches and the distribution of medication to those in need. It also renders various national and international postal services.

Full details on the Business Rescue Plan can be accessed on: https://www.postoffice.co.za/BusinessRescue/index.html

Thursday, December 7, 2023

Health Minister, Dr Joe Phaahla, has described the adoption of the National Health Insurance (NHI) Bill by the National Council of Provinces (NCOP) as a historic and important milestone.

 

The NCOP passed the NHI Bill in Parliament in Cape Town on Wednesday with backing from all provinces, except the Western Cape.

“Today marks another important milestone on the journey by the country to realise Universal Health Coverage (UHC) to ensure universal access to quality and affordable healthcare for all South Africans, as enshrined in the Constitution,” Phaahla said on Wednesday.

Click here for “All you need to know” on the NHI.

Although there are still other processes to be followed before the Bill is signed into law, the Ministry of Health said it was pleased with the progress made so far.

“This is a landmark moment for our country and specifically for our health system as we move towards realising Universal Health Coverage through the phased-approached implementation of NHI as a mechanism to ensure equitable access to quality healthcare for all citizens,” the Minister said.

He said he is confident that with the support of all stakeholders, government will create a healthcare system that is fair, efficient and accessible to all.

Phaahla believes the provisions outlined in the NHI Bill represent a comprehensive and transformative approach to healthcare delivery in South Africa.

“It is founded on the principle that every South African, regardless of their socio-economic status, should have access to a comprehensive set of health services without facing any financial barriers.”

Reflecting on the positive outcome of the NCOP vote, Phaahla said it was crucial to remember the significant strides made in advancing the necessary policy and legislative frameworks to support the implementation of NHI.

“There have been positive and negative experiences in our taxing journey for us to reach this point. The journey in the process of the NHI Bill has not been without challenges,” he admitted.

These, he said, include financial considerations, workforce capacity, and the integration of existing, in some instances parallel, healthcare systems.

“These are issues that we must continue to collectively work together, to find the most practical solutions, to effectively and efficiently meet the health needs of our people.”

Meanwhile, he said the State remains committed to addressing these challenges through strategic planning, collaboration with stakeholders, and ongoing evaluation of the implementation processes.

“We recognise and appreciate the role that proactive stakeholder engagement plays in implementing such an important policy and legislative reform.”

According to Phaahla, the Ministry has since developed and adopted a comprehensive approach to stakeholder engagement to ensure diverse perspectives are considered as the country forges ahead with implementing NHI.

“Regarding the next key steps, we look forward to the Bill being forwarded to the President for consideration and promulgation. Once it receives Presidential assent, the Bill will become an Act of Parliament, creating a statutory mandate for the Minister and the National Department of Health.”

This will, the Minister said, enable key institutional and organisational structures, such as the NHI Fund, to be formally established in line with the provisions of the NHI Act.

“However, it is important for all stakeholders and the general public to note that this does not mean the provisions of the NHI Act, once promulgated, will all be implemented once-off without due consideration of the key requirements for transitional arrangements.

“Our intention has always been to have a rational, structured and phased approach to implementation. Without the accompanying regulations, directives, and operational procedures, the transformative impact of the Act cannot be realised,” he explained.

The Constitution empowers the President to set different dates for the effectiveness of various provisions within the Act.

According to the Minister, the department will prepare detailed regulations, covering all aspects of the process.

“Accordingly, the Minister will publish these regulations for public comment, encouraging transparency and inclusivity in shaping the governance of the NHI Fund and its enabling structures.

“Once regulations are finalised, the Minister and the department will proceed with the establishment of the NHI Fund, a process expected to take between six and 12 months post-proclamation of the Act, with subsequent phases involving additional regulations and implementation steps.”

Ideal Clinic programme

As part of preparations for the rollout of the NHI, government has, over the past years, undertaken the Ideal Clinic programme, amongst other initiatives.  An Ideal Clinic is defined as a clinic with good infrastructure, adequate staff, adequate medicine and supplies, good administrative processes, and sufficient adequate bulk supplies.

It uses applicable clinical policies, protocols and guidelines, and it harnesses partner and stakeholder support. An Ideal Clinic also collaborates with other government departments, the private sector and non-governmental organisations to address the social determinants of health.

Integrated Clinical Services Management are a key focus within an Ideal Clinic. The purpose of Integrated Clinical Services Management is to respond to the growing burden of chronic diseases in South Africa in an efficient and cost effective manner.

The Ideal Clinic programme was started by South Africa in July 2013 as a way of systematically improving the quality of care provided in Primary Health Care facilities.

According to the Health Department’s 2021/2022 Annual Report, there are 1 928 (55%) primary health care facilities that have attained ideal status.

Wednesday, July 5, 2023

On 12 June 2023, the National Assembly (NA) passed the National Health Insurance (NHI) Bill.

 

The NHI Bill seeks to provide universal access to health care services in the country in accordance with the National Health Insurance White Paper and the Constitution of South Africa.

The Bill envisages the establishment of a National Health Insurance Fund and sets out its powers, functions and governance structures. The fund will purchase health care services for all users who are registered with it.

The Bill will also create mechanisms for the equitable, effective and efficient utilisation of the resources of the fund to meet the health needs of users and preclude or limit undesirable, unethical and unlawful practices in relation to the fund. It further seeks to address barriers to access.

The NHI Bill was initially tabled in Parliament and introduced to the Portfolio Committee on Health on 8 August 2019 for processing.

Here are a few frequently asked questions about the NHI.

 

What is the NHI and how will it change the system?

• The NHI is a Fund, paid by our taxes, from which the government will buy health care services for all of us who live in the country from health care providers in the public sector and private sector.
• This means when you feel unwell, you can go to your nearest GP or clinic of your choice that has a contract with NHI and not worry about the cost of care.

Why do we need NHI? What are the benefits of NHI?

• Providing health care for all: South Africa is a member of the United Nations community and we have committed that we will implement universal health coverage for all. We believe access to healthcare is a fundamental right for all. The government has the legislative mandate to realize this right. And the government has the responsibility to implement universal health coverage to ensure that all people are able to access health care when and where they need it without suffering financial hardship.
• Improving quality of services: The public sector has constraint budgets that are not sufficient to provide health care services for the 84% of the population that relies on public sector for health care. This results in an overburdened public sector that is characterised by underservicing. The private sector, that serves 14% of the population, is characterised by rising costs of care and overservicing without demonstrating much improvement on health outcomes. Both sectors need a reform to ensure that quality of health is improved. The pooling of funds into one fund will improve quality of services and therefore improve health outcomes.
• Reducing burden of disease: Extending health coverage for all South Africans will improve access to care, quality of care and continuity of care. NHI reforms will contribute to the health system having a co-ordinated and well-structured response to burden of disease.
• Financial risk protection: The NHI Fund will protect individuals from financial hardship when they need to access healthcare services. Financial hardships take place when you need to pay out-of-pocket payments such as user fees at facilities and co-payments for individuals insured by medical schemes. Contribution to the Fund will be through prepayment methods such as taxes. Services will be paid for by the Fund and the patient will not have to pay at the point of care.
• Economic development and growth: A healthy population can work more effectively and efficiently and contributes to economic growth. A productive workforce contributes to the economy through growth of local business, attracting foreign investors and growing the domestic economy. An investment in health is an important safety net against poverty by providing financial protection for everyone.
• Integration of the healthcare system: The fragmented, two-tiered system undermines principles of equity and social solidarity and leads to a health system where resources are distributed unfairly. The NHI will promote equitable access to care, and this will be achieved by cross-subsidisation among the population. The NHI fosters social cohesion and contributes to developing a society that is compassionate across all socio-economic groups.

 

What is the significance of passing the Bill?

• Government considers the passing of the NHI Bill by the National Assembly as a key milestone to ensuring all people in SA have access to a clinic, a doctor or a hospital (public or private) closer to where they live or work without paying when they need the services. We will have paid in taxes already so the government will pay the provider of your care for you and your loved ones. There will be no gap cover for you to fund and no cash out of pocket payments.
• Government recognises the efforts by all stakeholders which exercised their constitutional rights to participate in legislative processes to influence decision-making process of the NHI Bill.
• The Department will remain available and accessible at all times to clarify any ambiguities and public concerns about the Bill and its objectives.

 

Who will be covered under the NHI Fund?

• The fund will purchase services on behalf of SA citizens, permanent residents, refugees, inmates and specific categories of foreign nationals.
• Asylum seekers and illegal foreigners will be covered for notifiable conditions and emergency medical services.
• All children will be covered for all benefits purchased by the fund regardless of nationality.
• Visiting foreign nationals will be covered by their mandatory travel insurance.

Will unemployed people be able to access health care services?

• Yes. The NHI Fund will purchase services on behalf of all South Africans. All users will be able to access health care services without paying anything at the point of care, regardless of their socioeconomic status.

How much will it cost to receive services at a clinic, GP or hospital?

• The NHI Fund will pay the clinic, GP or hospital. You will not pay anything when receiving care.
• This is to make sure that everyone is able to receive health care services when they are sick, at a facility close to them (as long as the facility has a contract with the NHI Fund).

How can I register and what do I need for registration?

• You will register with the NHI Fund when you go to a clinic, GP or hospital that has a contract with the NHI for the first time. You will not need to register again when you go to any other clinic, GP or hospital because the NHI system will make sure that your records are available at every contracted health care provider.
• There is no fee payable for registration. This will be a similar process that you currently do each time to you go to a clinic, GP or hospital.
• You will need your ID book, passport, or other identity document to register. Your fingerprints will be taken and put on the NHI Fund system. This will make it easy when you visit the clinic, GP or hospital again, or when your ID is lost. Fingerprints are a way to prevent fraud and identity theft but mostly to be absolutely sure that the medicines that you are given are for you and not someone else.
• Each time you attend a clinic, GP or hospital you will need to present your proof of identity. If you are unconscious, then the provider can still find your records using your fingerprints.

Will individuals be able to use facilities of their choice?

• Yes. The NHI aims to make health care more accessible to all South Africans. Individuals will be able to access NHI-contracted GPs, clinics or hospitals closest to them, whether in the public or private sectors.

How will South Africans who do not have IDs be helped?

• Biometric identification will be used in facilities under the NHI reform. This is to ensure that all users have a portable health record that can be accessed under all circumstances anywhere in the country.
• The department of Health has a collaboration with Department of Home Affairs to address birth and death records.
• This collaboration helped many undocumented South Africans to access COVID-19 vaccinations during the COVID-19 pandemic.

What services will be provided under NHI?

• NHI will purchase comprehensive personal health service benefits from NHI-contracted public and private health facilities.
• The service benefits include services provided at primary, secondary, tertiary, specialized and quaternary levels.
• Once the NHI Fund covers a benefit the medical schemes may not cover the same benefits.
• The Benefits Advisory Committee will determine which benefits are medically necessary benefits and this will include:

• Primary Health Care services: visits to clinics, community health centres and accredited multi-disciplinary group practices and centres at a non-specialist level, community health care outreach workers, integrated school health services,
• Hospital services: outpatient and in-patient visits at all accredited hospital levels, using a referral system (requiring a letter from a PHC centre/ provider unless in case of emergency)
• Rehabilitation health services
• Palliative Care
• Mental health services
• Emergency medical services
• Transportation for patients who are referred to and from another health facility.

• Medicines and medical devices specified on the Essential Medicine List and Essential Equipment List.
• Diagnostic procedures specified in the Treatment Guidelines and protocols.

Will the NHI provide adequate cover compared to current medical scheme benefits?

• Yes, the NHI benefit package will be comprehensive. It is important to bear in mind that the NHI benefits are not confined like most current medical scheme benefits. In the present system of medical schemes, in a desperate attempt to contain the escalating prices, a lot of benefits have been reduced. Furthermore, the system is characterized by co-payments for costs which the medical scheme is not prepared to pay for because they are regarded as too expensive, and the cost is simply pushed back to the patient. Service providers like private hospitals and specialists then resort to sending individual patients legal letters of demand to pay what their medical schemes are refusing to pay.
• The Council of Medical Schemes (CMS), a Statutory Body established to regulate medical schemes, in trying to protect consumers, came up with a system of what is called prescribed minimum benefits (PMB’s). This is a group of 26 chronic conditions and 271 medical conditions which by instructions of CMS, medical aids need to pay for in full. Not all diseases are included in this group leaving their sufferers to pay out of pocket whilst contributing to a medical scheme.
• Under NHI, this problem will not exist since NHI has no intention to choose between diseases in order to remain sustainable. The range of cover of benefits will be much better than under the current system.

Where will the funding for NHI come from?

• National Treasury will determine the sources of funding for NHI and be approved by Cabinet. Treasury will also determine when any dedicated NHI contributions are introduced or changed in line with the fiscal and economic environment.

• NHI will be funded through a mandatory pre-payment system and other forms of taxes collected by SARS and allocated to the Fund by Parliament.
• Based on the NHI Bill, NHI will be predominantly funded through general revenue allocations, supplemented by: (1) a payroll tax payable by employers and employees and (2) a surcharge on individuals’ taxable income.
• The financial impact of the NHI taxation system must not create an increased burden on households compared to the current system. There will be no option for opting out of NHI for eligible people.
• Out-of-pocket payments such as co-payments and user fees will not be used to generate additional funding for comprehensive health care services to be covered under NHI. This ensures that healthcare services are delivered free of charge at the point of service and that the most vulnerable are not denied access.

Is NHI an affordable system?

• Yes. The World Health Organization has stated that countries must pursue universal health coverage with the current resources allocated for health and what countries are able to afford.
• As a nation we spend huge amounts of money for health care for very few people and very little on the majority. Our total spending on health care is far more than any country of similar size and economic activity to ours. We need to spend more efficiently.
• The NHI will redistribute money from the current multi-payer system of nine provincial health systems, tax rebates, levies, conditional grants and consolidate into one Fund. The pooling into one risk pool will ensure appropriate cross-subsidization between the young and old, rich and poor, healthy and unhealthy.
• The Fund as a single payer and strategic purchaser, will be able to negotiate prices for services and health products on behalf of the country.
• Through the elimination of waste and corruption in both sectors by simplifying the way we work and the use of all public and private health care provider capacity for everyone, health care can be delivered at a cost-effective price.

Who will run the Fund?

• The Fund will have a Board and various governance structures as required by the Public Finance Management Act (PFMA) and the principles contained in King IV’s Report on Corporate Governance. The Board will have the responsibility of ensuring that there are institutionalised systems, policies and procedures that proactively prevent, detect, investigate and correct incidents/acts of fraud and corruption.

What is being done to improve the infrastructure of public sector facilities?

There are initiatives underway to improve the conditions of public facilities. The Department of Health has allocated R7.2 billion over three years to facilitate maintenance, refurbishment, upgrades, replacements of infrastructure or new infrastructure.

Will the NHI destroy the private sector?

• No, the NHI will not destroy the private sector. The private sector has different role players, and they are: 1. health care providers (like GPs, specialists, pharmacies and hospitals); 2. suppliers of goods (heath products like medicines, devices and diagnostic devices); 3. funders (medical schemes) and 4. administrators. They have different roles to play in the NHI and they are described below.

What role do private health care providers play in the NHI?

• Private health care providers will continue to operate privately under the NHI dispensation. Contrary to some public narrative, the NHI is not going to abolish or do away with private health providers.
• NHI will not allow health care providers to set their own fees for NHI funded benefits. The Fund will set the fees that it will pay to private doctors, hospitals and others on your behalf.
• Private General Practitioners will be a part of multi-disciplinary networks in their communities and will be paid by the NHI Fund using a capitation model.
• The private health sector providers will benefit from the opportunity to contract with NHI to provide health services to the broader public, rather than the small proportion for which they currently provide services. They will be able to provide services to patients throughout the year not worried about depletion of funds of patients at any stage.
• Private hospitals will see patients referred by primary health care providers in both public and private sectors and the NHI Fund will settle the bill at the prescribed rates.

 

How will the NHI Fund procure health products?

• Suppliers of health products will remain private companies. The NHI Fund will determine the range of products (medicines, devices, etc) that are required to deliver the benefits that the Fund is paying for at any point in time and will set prices for those products that any contracted provider will pay to the suppliers. The large volumes create certainty for suppliers and help to reduce prices.

What role do medical schemes play in the NHI?

• The business models of private funders and their administrators will change over time. Once the NHI Fund covers a benefit, the medical schemes may not cover the same benefits. This means that their membership fees must be reduced, and some will be too small to survive so they will consolidate with others to maintain a viable risk pool for the benefits that they may still cover. Administrators of medical schemes will no longer manage over 250 options, meaning the complexity of their services will be greatly reduced.

Will NHI take the reserves of medical schemes?

• No, the Fund will not take the accumulated reserves of medical schemes since those belong to the members and not the schemes.

What if I want to contribute to a medical scheme?

• Once implemented, medical aid schemes won’t be able to offer any health services already offered by the NHI.
• Medical schemes will only offer you extra services not covered by the NHI.
• The NHI will offer comprehensive health care service cover – there will be no co-payments.
• Medical Aid schemes will remain a voluntary arrangement for those who choose to contribute to them, but they will only cover you for any additional benefits that the NHI Fund does not pay for, so they should be significantly cheaper.

How does the NHI affect those who are currently insured by medical schemes?

• The Fund will be implemented over phases and over many years. Regulations will be published to address the phased implementation of the NHI Fund and phased implementation of service benefits as the money is moved to the Fund. Medical schemes will be given notice on the type of services that they will no longer be able to cover.

How can I qualify to be an accredited health care provider under the NHI?

• Every health care provider may be contracted by the NHI Fund. This will be initiated by the provider and once the provider meets the accreditation requirements they will be contracted. There will be no tenders for services.
• Every health care provider (public and private) must be certified by the Office of Health Standards Compliance.
• It will take some time for all health care providers to obtain certification, so the law makes provision for a transitional period of conditional accreditation by the Fund. The tools for health care provider compliance have been developed but NHI Fund accreditation and contracting requirements are still being developed.
• The health care provider must agree to, and comply with, the requirements of the NHI Fund to be accredited and contracted with the Fund. This includes connection to the Fund digital systems and reporting.
• A primary health care provider will be assigned a designated population that will be under their care and will be paid on a capitation basis. The details are being developed and will include a performance-based portion.

Is the function of accreditation by the NHI Fund substituting function of OHSC, HPCSA, SANC and other health professional regulatory bodies?

• No. The Office of Health Standards and Compliance (OHSC) primary responsibility is quality assurance. The role of the OHSC is to inspect and certify health establishments as compliant or non-compliant with prescribed norms and standards for a health establishment. All health facilities must be certified by the OHSC to be considered for accreditation by the NHI.
• The health professional regulatory bodies such as HPCSA and SANC are statutory bodies which regulate the registered professionals with the councils. All health professionals offering services in South Africa must be registered with the relevant professional bodies and comply with the rules and regulations and requirements of continuous professional development of the various bodies.
• The NHI will require both certification as part of the application for accreditation.

What are the requirements for accreditation with the NHI Fund?

• Accreditation with the NHI Fund will require that the provider must:

1. Be registered with a recognised statutory health professional council.
2. Be in possession of proof of certification by OHSC.
3. Meet the needs of users and ensure service provider compliance with the Fund’s prescribed specific performance criteria, accompanied by a budget impact analysis, including the: provision of the specified minimum required range of personal health services; allocation of the appropriate number and mix of health care professionals in accordance with guidelines; adherence to treatment protocols and guidelines, including prescribing medicines and procuring health products from the Formulary;  adherence to health care referral pathways; submission of information to the national health information system to ensure portability and continuity of health care services, and adherence to the national pricing regimen for services delivered.

Will private health care providers be forced to contract with NHI?

Not at all. Contracting with the NHI Fund gives the health care provider an opportunity to offer health care services to a designated population (significantly more patients than currently). The provider will not have to worry about the patients’ affordability as the Fund would have paid a capitation fee for the designated population. Patients who consult with providers who are not contracted with NHI will pay cash for the providers’ services. Patients will only be able to use their medical schemes to pay for benefits not covered by the Fund with non-NHI contracted providers.

What will happen in the first few years of NHI implementation?

The transitional arrangements for the NHI for the period 2023-2026 include:

• Continuing with the health system strengthening initiatives including human resource planning.
• Development of NHI legislation and amendments to other legislation.
• Establishing institutions that must be the foundation for a fully functional Fund.
• Purchasing of personal health care services for vulnerable groups such as children, women, people with disabilities and the elderly.
• Establishment of the Fund as a Schedule 3A entity as contemplated.

How will corruption be prevented?

• The Fund will have a Board and various governance structures as required by the PFMA and King IV that will have the responsibility of ensuring that there are institutionalised systems, policies and procedures that proactively prevent, detect, investigate and correct incidents/acts of fraud and corruption.
• The Fund is required by law to establish and operate units that focus on fraud prevention, detection, investigation and correction of fraud and corruption.
• All employees of the NHI Fund will be responsible for preventing and detecting fraud in the execution of their assigned roles and responsibilities.
• The department, in collaboration with the Health Sector Anti-Corruption Forum (HSACF) and the Special Investigating Unit (SIU), is currently engaged in a process of risk identification, analysis and mitigation of all fraud and corruption risks that may affect the Fund.
• Control measures and mitigating strategies are currently being implemented in the design and development process of the NHI Fund.
• The public will have opportunity to anonymously report corrupt activities to law enforcement agencies and the HSACF which has been established by the President.
• The design of the NHI is far less complicated than the present myriad of departments and medical schemes. Everything that the fund does, all the contracts with providers and suppliers, and the common set of funded benefits, will be fully transparent. Since every person will be entitled to the same benefits and treated the same way, there is far less incentive for fraud and corruption.

Tuesday, December 5, 2023

The Electoral Commission has welcomed Monday’s judgement by the Constitutional Court in relation to the challenges to the Electoral Amendment Act.

 

According to the Commission, the judgement provides the necessary certainty in relation to the preparations of the 2024 National and Provincial Elections.

This as the court handed down judgement on whether the current split of seats in parliament should remain as is or be changed to make it possible for independent candidates a better chance of getting elected.

“The Electoral Commission will immediately put in place the regulations necessary to give practical effect to revisions of the electoral system in the light of the judgement handed down today by the apex court,” the Electoral Commission said in a statement on Monday.

The Electoral Commission has always been of the view that the distribution of seats of the National Assembly between the compensatory tier and the regional tier was rational and satisfied the constitutional requirement for general proportionality.

“The important confirmation of the Constitutional Court is that the contestants in the regional tier of the elections are subject to the same number of votes per seat. Furthermore, that no votes of independents are to be transferred to political parties.

“Pertinently, the Electoral Commission will now finalise adjustments to the signature requirements portal, so that prospective independent candidates and unrepresented parties can start collecting and capturing. The signature portal, as well as the final regulations, will be launched soon.

“The Electoral Commission notes the three-way judgement on the One South Africa Movement twin challenges. This is indicative of the constitutional complexity related to the design of an electoral system,” the Commission said.

The elements of the findings in relation to the recalculation of formulae is a matter on which the soon to be established Electoral Reform Consultation Panel will have to be seized with going forward.

Friday, December 1, 2023

Ports and freight rail company Transnet has been issued an immediate R47 billion guarantee facility by National Treasury in support of the company’s recovery plan and to meet the state-owned entity’s immediate debt obligations.

 

This was announced in a joint statement by National Treasury and the Department of Public Enterprises.

“The financial support package provided for the entity is a R47 billion guarantee facility against which Transnet will drawdown an initial amount of R22.8 billion to deal with immediate liquidity matters such as settling maturity debt.

“Government has not considered an equity injection given that the budget for 2023/24 is closed and is confident that this guarantee facility alongside swift implementation of the Transnet Recovery Plan will be sufficient to resolve Transnet’s challenges.

“A Guarantee Framework Agreement between the National Treasury, Department of Public Enterprises, and Transnet will include strict guarantee conditions that will be continuously reviewed and amended when deemed necessary. Any further drawdowns will be subject to Transnet meeting these conditions,” the statement read.

The guarantee framework agreement must be concluded between the three parties within 14 days to “ensure that any fiscal risks are mitigated and that the conditions of the facility are fully agreed to by all parties”.

“In addition, National Treasury will continue to work with Transnet to pursue other initiatives to revive its operations and financial viability.

“Transnet [is] to explore further the divestment of non-core assets, reduction of the current cost structure, alternative funding models for infrastructure and maintenance requirements. The latter includes but is not limited to project finance, third party access, concessions, and joint ventures,” the statement said.

The two departments highlighted that the freight and logistics company plays a central role in the South African economy and the government’s goal of inclusive growth but has been facing obstacles over the last few years.

“[The] entity has suffered significant operational, financial and governance challenges in recent times and is struggling to fulfil this strategic role. In recognition of the seriousness of these challenges, the [departments] have been working with Transnet to find a solution to the company’s immediate and longer-term problems, and the decision to grant the guarantee facility is a result of these discussions.

“Government continues to pursue deep-running, broader reforms of the company and the logistics sector as a whole. Without a comprehensive reform of the sector, rather than that of single entity, we risk being faced with similar challenges in the future,” the statement said.

According to the statement, Ministers Pravin Gordhan and Enoch Godongwana expressed optimism that the guarantee will assist the entity.

“Minister Godongwana is positive that the necessary reforms needed to put Transnet back on track can be achieved if the entity commits to meeting the strict conditionalities attached to the guarantee and quickly implementing the reforms informed by the National Logistics Crisis Committee.

“Minister Pravin Gordhan highlighted the fact that Transnet is critical to the South African economy. A well-functioning logistics company is particularly important given the geographical distribution of economic activity in the country, our reliance on commodity and other exports, as well as our distance from key export markets,” the statement said.

Friday, December 1, 2023

Cabinet has approved the publication of the final Next Generation Radio Frequency Spectrum Policy.

 

The policy intends to support the spectrum allocation and licensing for fixed mobile; broadcasting; aeronautical and marine; research and development; community access, and other relevant industries.

The policy also seeks to promote equity and fair allocation to contribute towards the transformation of the sector and accessibility of digital connectivity even in outlying parts of the country.

The purpose of the policy is to address gaps and limitations that were identified in the 2016 National Information and Communications Technology White Paper and prepares for the amendment of relevant sections of the Electronic Communications Act, 2005 (Act 36 of 2005), which include:
• unclear roles and responsibilities between Minister and the authority (ICASA) which contributed to inefficiencies;
• gaps in the spectrum management regime;
• an exclusive spectrum regime that benefit a few and bigger player; and
• inefficiencies towards extending broadband access to rural, remote and underserved areas.

Draft White Paper on Electric Vehicles (EVs)

Cabinet has also approved the White Paper on Electric Vehicles (EVs) that aims to ensure South Africa becomes part of the global shift from internal combustion engines to new technology vehicles (electric vehicles).

“The policy supports investments in the development and expansion of new and existing manufacturing plants to support the production of electric vehicles in the country,” Cabinet said.

South Africa’s automobile industry plays a critical role in economic growth and supports thousands of jobs, and the country is also endowed with mineral resources that position it to become a key and strategic player in EV value chains.

Comprehensive Student Funding Model for post-school education and training

Cabinet has approved the Comprehensive Student Funding Model for post-school education and training that seeks to provide funding to children, commonly known as the missing middle.

“The funding model will cater for students whose families do not qualify for the National Student Financial Aid Scheme funding, by up to the maximum of R600 000 per year.

“The funding will focus on promoting the acquisition of skills and qualifications for the future, with 70% of eligible applicants funded for critical skills and 30% for humanities,” Cabinet said.

Draft Human Settlements White Paper

Cabinet has further approved the publication of the draft Human Settlements White Paper for public comments.

It is intended to strengthen the department’s approach of providing sustainable human settlements. The White Paper informs the government approach to use tailor-made subsidy instruments that target poor households and vulnerable groups such as persons with disabilities.

The policy promotes coordination between the three spheres of government for effective and efficient delivery of human settlements. It will enhance the realisation of the rights for South Africans to adequate housing and sustainable spaces, including supporting economic opportunities and social cohesion.

Revised White Paper on Families (WPF)

Cabinet has also approved the Revised WPF for implementation. The policy seeks to foster well-functioning families which are loving, peaceful, safe, stable and economically self-sustaining.

“The policy views the family as a key development imperative and seeks to mainstream family issues into government-wide, policy-making initiatives to foster positive family well-being and overall socio-economic development in the country,” Cabinet said.

The WPF emphasises the point that healthy families are the foundation of strong communities and societies. It notes that families are best placed to fulfill their role in society when they function in an enabling and supportive environment.

Government will implement the WPF in collaboration with civil society, non-governmental organisations, research institutions and other social partners. Then policy is available on www.gov.za.

Friday, December 1, 2023

Cabinet on Thursday said it will back the Competition Commission’s rand manipulation investigation.

 

This comes after the competition authorities announced that the British multinational Standard Chartered Bank (SCB) admitted liability in the currency manipulation case and agreed to pay a R42 million fine.

The SCB is one of 28 banks, locally and overseas, currently being investigated for allegations of manipulating the value of the rand exchange rate between 2007 and 2013.

The probe includes fixing bids, bid-offer spreads, the spot exchange rate, and the exchange rate.

Citibank, according to the Commission, already settled the same conduct in 2017.

“Cabinet received a briefing from the Competition Commission and National Treasury on the case of the ZAR/USD currency exchange rate collusion.

“In particular, the Competition Commission provided an update on the cases currently before courts, as well as concluded settlements with Citibank and Standard Chartered Bank,” the Minister in the Presidency, Khumbudzo Ntshavheni, said on Thursday.

Ntshavheni was addressing media on the outcomes of the Cabinet meeting held the previous day.

“Cabinet supports the important work the Competition Commission is doing in this case. Noting actions in other jurisdictions on the cases involving the ZAR/USD currency trading collusion, Cabinet urges respondent banks currently facing prosecution in our courts to cooperate with local authorities as they did with our foreign counterparts.”

International crime

Meanwhile, the Executive has commended the Directorate for Priority Crime Investigation (Hawks) for spearheading an operation that arrested five suspects at the OR Tambo International Airport on 15 November 2023.

The Hawks, according to the Minister were cooperating with the Airports Company South Africa (ACSA),
The suspects were arrested on allegations of drug trafficking, contravention of the Civil Aviation Act, 2009 (Act 13 of 2009) and contravention of the Customs and Excise Act, 1964 (Act 91 of 1964).

“These arrests are linked to a consignment of drugs recently seized in Australia.

“The drug seizure abroad was positively linked to suspects in South Africa, resulting in the arrests of two suspects employed by ACSA, two suspects from Menzies Aviation and one from Swissport.”

Thursday, November 30, 2023

Newlyn Investments’ R4 billion pledge made at the fifth South African Investment Conference (SAIC) held in Johannesburg in April this year, is set to be a significant contributor to the national economy, as well as that of the Eastern Cape.

 

Newlyn Investment is 100% black-owned and a leading South African developer of strategically located and operationally efficient storage infrastructure in close proximity to both coastal and inland logistics hubs.

The company, through its affiliate Unitainer, pledged an investment of R4 billion for the development of a state-of-the-art manganese storage and handling facility at the Coega Special Economic Zone, in Ngqura, in the Eastern Cape.

The investment was announced as one of the pledges worth billions of rands that were made during SAIC this year.

The six-million ton per annum back of port manganese storage export facility has been designed in partnership with leading global materials handling technology suppliers to be operationally efficient and the world’s first near zero dust emission bulk mineral handling facility.

Newlyn’s Chief Executive Officer, Rajendra Balmakhun, said the investment further underscored the company’s long term belief and commitment in the South African economy, forged over the last 27 years since the company’s incorporation.

Furthermore, the investment is a response to government’s call for private sector participation in critical infrastructure delivery, which is key to economic activity, especially in the current economic climate.

Given the growth of the South African manganese industry, this new terminal has been designed as common user infrastructure to enable further access to the global export markets for both established and emerging manganese miners.

“This national interest project will be the world’s first near zero dust emission facility for the storage and handling of manganese ore from the time it arrives at the back of port location in Coega from the mines in the Northern Cape,” Balmakhun said.

“The operational efficiency achieved through rapid train unloading and rapid ship loading speeds will potentially unlock significant incremental rail capacity of some four million tons per annum on the manganese heavy haul rail line without further investment in rolling stock,” he said.

Additionally, Balmakhun said the project will serve to accelerate the long-awaited relocation of the manganese export terminal from Gqeberha to Ngqura, thereby significantly alleviating public health issues arising from open stockpiles of manganese in the city and enabling the redevelopment of the Gqeberha waterfront precinct.

With regards to job creation and skills development, Balmakhun said the independent socio- economic report on the project estimates that approximately 3 300 direct construction workers will be deployed during the peak of construction with a further 11 700 indirect and induced jobs created during the anticipated 30 month construction period.

At full operational levels, an estimated 200 full time and multiple spin-off jobs will be created by the facility.

In addition, Newlyn has negotiated a three-year post commissioning skills transfer and skills development commitment from its global technology partners to ensure there is local capacity building for operating and maintaining the facility.

The global original equipment manufacturers have also undertaken to manufacture the bulk of the facility’s equipment and machinery under license in South Africa.

“Newlyn prides itself on its speed of infrastructure delivery, deploying the best available technology, designing operationally efficient and environmentally compliant infrastructure and building communities.

“We are committed to building on our relationship with key stakeholders and our host community to ensure the company is a catalyst in the socio-economic development of the Coega SEZ, Ngqura and to the Eastern Cape region in particular.

“The project is poised to be a significant contributor to the national and Eastern Cape economy in the years to come,” Balmakhun said.

Newlyn’s 2023 investment pledge was the company’s second, following the pledge it made at the 2018 investment conference, during which the company pledged an investment of R2 billion in the redevelopment of the Bayhead Rail terminal near the Port of Durban.

Monday, November 27, 2023

As the country marks the start of the 16 Days of Activism for No Violence against Women and Children campaign, President Cyril Ramaphosa believes that men and boys can break the cycle of violence.

 

In his weekly newsletter to the nation, the President said the country marks the start of this campaign in the shadow of a terrible crime.

The President recalled that earlier this month images were circulated on social media of a young male student stabbing his partner, also a student, on the campus of the Peninsula University of Technology.

“The fact that the attack happened in broad daylight and in full view of the public, shows that some perpetrators of gender-based violence seemingly do not even care if there are witnesses to their crimes, nor do they fear apprehension.

“I commend the students who tried to intervene even as they were threatened, as well as those who stepped in as the alleged perpetrator was being attacked by a crowd. It is significant that other male students attempted to ward off the attacker of the young female student,” the President said.

President Ramaphosa said that one of the reasons gender-based violence continues is that there is a culture of ambivalence among men who see crimes against women and children as a ‘private matter’ or a ‘family matter’.

He added that in most cases of gender-based violence, including domestic abuse and sexual violence, the attacker is known to the victim.

3rd Men’s Conference on Positive Masculinity

The President said it is fitting that the African Union (AU) will convene the 3rd Men’s Conference on Positive Masculinity in Pretoria this week, which will call on men to reject toxic displays of masculinity.

South Africa is co-hosting the conference with the AU Chair and President of the Comoros, Azali Assoumani. The inaugural conference was held in Kinshasa in the Democratic Republic of Congo in 2021 and the second one was held in Dakar, Senegal, in 2022.

“For the AU, as it is for our own country, ending gender-based violence is a priority. Discussions are currently underway on the content of an African Convention to End Violence Against Women and Girls, executing a decision of the African Union Summit earlier this year.

“Once adopted, the convention will be the first continental legal instrument for the prevention and elimination of all forms of violence against women and girls,” he said.

South Africa is a part of the AU Circle of Champions which is an association of African Heads of State who have committed to implementing programmes at national and continental levels that promote positive masculinity and encourages more men and boys to be part of the fight against gender-based violence.

“We have long maintained that interventions aimed at eradicating gender-based violence in our society must focus on prevention.

“If we are to raise a nation of men who are positive role models, who take care of their families, who exhibit positive masculinity and who would not countenance hurting a woman or a girl, we must work with young men,” he said.

South Africa adopted a national strategy to combat gender-based violence. One of the pillars of the National Strategic Plan to Combat Gender-Based Violence and Femicide deals with prevention.

Government, he said, has been engaging with civil society, academia and researchers, traditional leaders, youth organisations, the faith community and the private sector on the issue of prevention.

He further highlighted that a number of initiatives are underway across a range of sectors that are providing space for young and older men to discuss notions of masculinity.

“Men are called on to critically consider their own prejudices, preconceptions and chauvinisms that abet gender-based violence,” he said.

A number of government departments have interventions in place that are focused on promoting positive masculinity through dialogues, workshops, awareness-raising campaigns, psychosocial support and behavioural change programmes.

In August this year, the President was part of the Presidential Young Men and Boys’ Indaba in Soweto where he had the opportunity to talk with a group of young men as part of the ‘What about the Boys’ initiative.

The aim of this programme is to get young men to open up in a safe space about their own experiences with masculinity and how this impacts their own attitudes to gender-based violence.

“Speaking to them, I acknowledged that young men in South Africa today face a lot of pressures that affect their attitudes to women and girls. These include the lack of positive male role models, absentee fathers, vulnerability to recruitment by criminals, pressure to drop out of school and earn a living, and pressure to become sexually active before they are ready to,” he said.

The President said the AU Men’s Conference aims to advocate for more initiatives and dialogues where young men and boys can talk about these issues among their peers.

“We need to inculcate a mindset that sees young men as part of the solution, and not just the problem. While men are the main perpetrators of violence against women and children, men must also be at the forefront of bringing about a new society that respects the equal rights of women and girls, where gender-based violence has no place,”  the President said.

President Ramaphosa said he is confident that the conference will raise the profile of prevention efforts in South Africa and in Africa, and that its outcomes will galvanise men and boys to play a greater role in breaking the cycle of violence.