Productivity SA to receive R104m for job-saving programme
Employment and Labour Deputy Minister Boitumelo Moloi has announced that the Unemployment Insurance Fund (UIF) will provide R104 million to Productivity SA to support some 6 000 SMEs to improve productivity to preserve and create jobs.
Speaking at a media briefing held in Pretoria earlier on Wednesday, Deputy Minister Moloi said this is the time when jobs must be preserved.
“The launch of a massive program such as the Turnaround Solutions at a time like this one, where companies are shutting down, people are losing jobs, is an immediate response and true demonstration of a government at work.
“This program supports initiatives aimed at preventing job losses and implements turn-around strategies to support companies facing operational difficulties which may result in those companies contemplating the retrenchment of employees based on their operational requirements,” Moloi said.
Productivity SA is an entity of the Department of Employment and Labour and the Business Turnaround and Recovery Programme is aimed at preventing job losses and implements turnaround strategies to support companies facing operational difficulties which may result in the companies contemplating retrenchments.
Moloi said as part of fulfilling its mandate, Productivity SA has a duty to implement the Turnaround Solutions Programme which is funded by the UIF.
“I am reliably informed that the first tranche to the value of R23 million has already been disbursed to the Entity in response to this mandate. We are indeed proud to be part of unlocking a programme with a proven record, that has provided solutions for government over two decades,” Moloi said.
Moloi said interventions will include a review of company’s performance (both financially and operationally) and assist in turning the company’s performance towards an upward trajectory.
Productivity SA, which is established in terms of the Employment Services Act, No. 4 of 2014 as an entity of the Department of Employment and Labour (DEL) has reinstated the Business Turnaround and Recovery Programme (formerly known as the Turnaround Solutions Programme) with effect from the 15 June 2020.
The programme was suspended in 2018 due to the lack of funds.
The allocation of funds for implementing the turnaround strategies will go a long way to enabling Productivity SA to fulfill its mandate as outlined in section 32 of the Act, and objectives of the Presidential Jobs Summit Framework Agreement to save jobs and create conditions conducive for job retention and creation.
The Business Turnaround and Recovery Programme supports initiatives aimed at preventing job losses and implements turnaround strategies to support companies facing operational difficulties which may result in them contemplating the retrenchment of employees based on their operational requirements.
Productivity SA has run the programme for almost two decades and in the process facilitated the prevention of loss of thousands of jobs.
Productivity SA will also assist struggling companies that have applied for the Temporary Employers/Employee Relief Scheme (TERS) as well as those companies that have applied for Section s189 of the Labour Relations Act and are contemplating retrenchment of its employees.
By the end of April 2021, a report on the impact of the programme will be availed detailing the number of jobs saved by the Turnaround Solutions Programme.
Tourism recovery plan to be submitted to Cabinet next month
Tourism Minister Mmamokolo Kubayi-Ngubane says the department is finalizing the country’s tourism recovery plan with a view of submitting it to Cabinet next month.
She said this when she outlined the department’s priorities for the year ahead during a National Assembly virtual mini-plenary on Wednesday.
She said this as the tourism sector finds itself in a severe state due to the after-effects of lockdown.
“Working together with various stakeholders we have put together the tourism Recovery plan and we are in the final stages of consultation and we will within the month of August submit the plan for Cabinet for Approval.
“So far, the indications are that Tourism recovery will experience a number of phases, from hyper-local community attractions, through to broader domestic tourism, regional land and air markets, and resumption of world-wide international travel,” she said.
Kubayi-Ngubane said with regards to interventions, the department envisages that phase one of interventions will primarily focus on the protection of the domestic supply side of the sector. In phase two, the emphasis will be on managing the re-opening of the sector as tourism activities scale up.
Phase 3 will target factors that can drive long term growth in tourism supply and demand.
“One intervention that will drive demand in the recovery period is the MICE (Meetings, incentives, conferences and exhibitions) sector.
“We will aggressively bid to host large international events in anticipation of the opening of the borders so that upon opening, we can immediately drive up demand for our supply market and also build confidence that South Africa is safe and open for business,” she said.
The Minister said the department would work with its sister departments and tourism stakeholders in implementing a set of interventions so that they can induce a quick recovery.
This will include readiness for the rollout of the e-visa system, resolving the challenges around the issuance of licenses for tour operators, and ensuring that all the marketing campaigns, globally and domestically and associated partnerships are in place and ready to be rolled out.
“We have also been engaging with global bodies so that we coordinate with our partners around the world, especially our source markets, in preparation for the sector recovery.”
9 000 tour guides apply for COVID-19 relief
Addressing the virtual plenary, she said 9 000 freelance tourist guides have applied for financial relief as the COVID-19 pandemic takes its toll on the sector.
This comes after she announced the establishment of a R30 million Tourist Guides Relief Fund just over a month ago aimed at helping freelance tour guides with financial relief for two to three months.
“The beneficiaries of this scheme must be registered in terms of the Tourism Act.
“So far we have received a list of 9 380 tourist guides from the provinces and we are finalising the verification process to start paying the eligible beneficiaries,” she said.
Programme to steer enterprises to clean energy, water resources
Kubayi-Ngubane said, meanwhile, that the department introduced the Green Tourism Incentive Programme (GTIP), administered by the IDC, to encourage private tourism enterprises to move towards more efficient utilisation of energy and water resources.
“The department is reviewing the implementation modalities of the GTIP to ensure that the much needed relief for businesses to retrofit is speedily disbursed, so that they can reduce operational costs.
“We have set aside R40 million for this programme. This will go a long way in providing the much need relief in this COVID-19 environment and beyond.
“With regards to grading, South African Tourism has resolved to support the sector with provision of an exemption for up to 12 months of the grading assessments and fees followed by a payment holiday of 100% grading discount, when the sector resumes operation to aid the recovery of the sector,” she said.
Tourism Relief Funds provides relief to 4 000 businesses
The Minister said when the Tourism Relief Fund was introduced, its implementation came under much scrutiny and led to a court challenge due to the use of the government adopted policy of BBBEE.
“For our part, we redirected R200 million which assisted 4 000 businesses through the Tourism Relief Fund.
“We ensured that the benefit is spread geographically across the country to cover even businesses in small dorpies and townships as per the discussions in the portfolio committee,” she said.
CSIR donates masks to disadvantaged communities
The Council for Scientific and Industrial Research (CSIR) has donated over 3 000 masks to disadvantaged schools, orphanages and old age homes in Hammanskraal, Tshwane.
The CSIR donated the masks on 21 and 22 July 2020, as part of the annual Nelson Mandela International Day celebration on 18 July.
The CSIR’s contribution follows government’s call to assist and protect vulnerable communities during this pandemic and is in line with the organisation’s mandate to improve the lives of South Africans.
The masks will be used to curb the spread of Coronavirus and support learners, frontline staff and essential workers in the schools, orphanages and old age homes, ensuring that education in disadvantaged communities continues and that the vulnerable are protected.
“During this pandemic, pupils and the elderly are most vulnerable. The CSIR wants to ensure that learners, especially in disadvantaged schools, are still able to attend school in a safe and enabling environment during this difficult time.
“The learners are potential science, engineering and technology based candidates, while the elderly are identified as vulnerable, as they are more at risk of contracting COVID-19, and have less chances of recovery. Therefore, they must be protected all the time,” said CSIR Acting Group Executive: Human Capital, Andile Mabindisa.
Among the institutions that will benefit from the donations are Masakhane Primary School, Sikhululekile High School, Phuthanang Primary School, Walmansdal High School, Ikatisong High School, Kutullo Disability and Day Care Centre, Tswaranang Orphanage, Luvuyo Orphanage Home, Grace of Help and; old age homes – Lerato la Bagolo Old Age Home and Ikwezi le Themba.
R554m to create 25 000 jobs through infrastructure projects
Cooperative Governance and Traditional Affairs Minister, Dr Nkosazana Dlamini-Zuma, says the department has set aside R554 million to create jobs through municipal infrastructure projects.
Dlamini-Zuma said this when she outlined the department’s budget and spending priorities during a virtual mini-plenary of the National Assembly on Wednesday.
“…R554million has been allocated to the Department of Cooperative Governance as part of the government-wide R19.6 billion of the Presidential Economic Stimulus and job creation programme.
“We will use these resources to create 25 000 jobs through building and maintaining infrastructure using labour intensive methods.”
Addressing members of Parliament, Dlamini-Zuma said for communities and ordinary citizens to be able to participate in the opportunities and in their own development, government must urgently implement the skills revolution.
She said there was a need for targeted skills development in agriculture, construction, infrastructure, artisans and many other skills in order to break the cycle of intergenerational poverty, whilst building the resilience of communities.
“To complement this, we are also remodeling the Community Works Programme. We intend to use the programme to promote active citizenry through the employ of cooperatives and community based organisations.”
COVID-19 an opportunity to reset the country’s outlook
Dlamini-Zuma said in response to the global Coronavirus pandemic, government has relied on the District Development Model, which has been rolled out with urgency since it is a central feature in the response to COVID-19.
The recently-launched district-based coordination model, dubbed ‘Khawuleza’ (hurry up), was introduced with an aim of addressing service delivery and economic development challenges through the synchronisation of planning across all spheres of government.
“We need not fear the pandemic, because it also offers us an opportunity to reset our outlook. Through our responses, we can [see the] possibility of a more equal, sustainable and just society, where leaders are active facilitators in development.”
The Minister said that to this end, the President has deployed Ministers and Deputy Ministers as district champions.
“We have profiled all 52 District and Metro spaces, so that we can facilitate for the participation of our people in a decentralised economic system, as envisaged by the Reconstruction and Development Programme.
“The champions will contribute to vertical and horizontal integration of government planning and implementation.”
Dlamini-Zuma also said that the deployment of champions will be complemented by a shared services model at a district level, which will avail Local Economic Development, planning, engineering, planners, ICT, financial and other capacities and capabilities to our municipalities.
“Through the transparent One Plan and One Budget, every citizen will know of the status of plans, budgets and implementation, thus lessening the potential of corruption and maladministration.”
MEC Khoza condemns killing of KZN mom
KwaZulu-Natal Social Development MEC, Nonhlanhla Khoza, has condemned the brutal murder of a 19-year-old woman allegedly at the hands of her boyfriend.
Akhona Mncube from Sweetwaters in Umsunduzi Local Municipality, Pietermaritzburg, was allegedly assaulted.
She died on Monday evening, after sustaining internal injuries following the assault by her partner with whom she shared a child.
Khoza said the circumstances leading to Akhona’s death was cruel, and maintained that there is no justification for the assault and murder of women and children.
“Gender-Based Violence (GBV) has absolutely no place in our society. We have witnessed a number of cases where women die in the hands of those who are supposed to protect them,” said the MEC.
She called on the police too leave no stone unturned in their investigation and ensure that the suspect does not get bail.
“The investigation should lead to the conviction and a lengthy jail sentence. All those who continue to violate the rights of women and children have no place in our society and therefore must be kept in prison for longer periods,” Khoza said.
The circumstances around Mncube’s death is being investigated by the Plessislaer SAPS.
The MEC has conveyed her condolences to the Mncube family.
“No parent should have to bury their child. We will monitor the case closely. It is more painful that Akhona left her one-year-old child who will now grow without a mother and father,” she said.
Khoza has since dispatched a team of social workers to provide psycho-social support services to the family.
Meanwhile, the MEC has applauded Umzansi Youth in Business (UYB) for its role which led to the arrest of the suspect before he fled the area.
Khoza recently launched uMzansi Youth Development Centre in Sweetwaters. The centre is the brainchild of UYB, which aims to eradicating poverty, inequality and unemployment.
The area of Sweetwaters is faced by a spike of incidents of crime, substance and drug abuse, which are regarded as contributing factors to all social ills affecting the community.
The launch of the Youth Development Centre coincided with the anti-social ills campaign.
Work is also being done to encourage young men to lead from the front in all campaigns against violence directed at vulnerable groups, especially women, children and old people, during the month of July, which is Men’s Month.
The MEC said more young people should take a leaf from UYB in leading campaigns against GBV in their communities.
“We need more young people in our communities to play their part in all programmes to fight GBV. We all have a responsibility and right to equality and dignity. Equally, it’s our duty to stand up to fight GBV,” Khoza said.
She said the department is establishing a number of programmes to create awareness and address the prevalence of GBV in communities.
SA’s Coronavirus cases rises by 8170
South Africa has 381 798 confirmed COVID-19 cases, after 8 170 new cases were identified on Tuesday.
“Regrettably, we report 195 new COVID-19-related deaths. This brings the cumulative number of deaths to 5 368.
“We convey our condolences to the loved ones of the departed and thank the health care workers who treated the deceased,” said the Minister of Health Zweli Mkhize.
The total number of tests conducted to date is 2 536 921 with 31 275 new tests conducted since the last report.
The number of recoveries currently stands at 208 144 which translates to a recovery rate of 54%.
Recovery plan for mining and energy sectors
Government has a recovery plan aimed at restoring business confidence, stimulating investments as well as safeguarding and creating jobs in the mining and energy sector.
According to Stats South Africa, at the end of June, the mining sector was the most significant contributor to the economy’s poor performance in the first quarter. Mining activity slowed by 21.5% – this was the biggest slump in six years.
“The Mining and Energy Recovery Plan intends to restore and restructure the industry within the context of a renewed, sustainable minerals and energy complex, pivotal in the reindustrialization of the country, while transforming the mining and energy industry,” Tourism Minister Mmamoloko Kubayi-Ngubane said.
The Minister was on Tuesday delivering the Budget Vote Speech of the Minister of Mineral Resources and Energy, Gwede Mantashe, who is recovering from COVID-19.
The mining sector’s economic recovery plan will focus on the implementation of the Small Scale Mining (SSM) Framework; forming partnerships with aligned departments and entities to leverage on their resources and experiences for maximum impact.
The plan also widens reach by providing technical, social regulatory support for community based projects; as well as developing an artisanal and SSM policy.
Artisanal, small-scale mining policy
The Department of Mineral Resources and Energy intends to develop an artisanal and small-scale mining policy.
“Currently the Mineral and Petroleum Resources Development Act (MPRDA) does not define artisanal and small-scale mining (ASM) concepts and does not sufficiently cater for the artisanal mining industry. Small scale miners are virtually treated the same as large scale miners in terms of environmental, water use, health and safety and financial provisioning requirements,” the Minister said.
Small scale projects
She said as of 1 April 2020, the department has approved R38 million towards rehabilitation costs, exploration and capitalization of small scale projects.
The department has already drafted a paper on a set of interventions to revive and increase the competitiveness and sustainability of the ferrochrome sector.
“This paper will soon be presented to Cabinet for approval. These interventions will ensure that we derive maximum benefit from the comparative advantage of our mineral wealth, save jobs and place this sector on a new growth path,” the Minister said.
Assessment of Molteno-Indwe coalfield, Ga-Ramokoka Carbonatite Complex completed
Kubayi-Ngubane said a reconnaissance assessment of the Molteno-Indwe coalfield in the Eastern Cape and the Ga-Ramokoka Carbonatite Complex in the North West Provinces has been concluded.
“Preliminary results in the Molteno-Indwe coalfields show an estimated economically exploitable coal tonnage of 320 million tonnes, with a value beneath the ground of R122 billion, using a conservative estimate of R350 per ton.
“The Ga-Ramokoka Carbonatite Complex hosts numerous minerals that span an estimated tonnage of Rare Earth Elements at 470 thousand tonnes, phosphates at 300 thousand tonnes and copper 30 thousand tonnes. The potential value of a suite of minerals in the carbonatite is estimated at R1.4 billion,” the Minister said.
Mintek working with the industry to develop world class smelter complex
Mintek is working with industry and international researchers to develop a world class smelter complex to exploit the Bushveld Complex deposits, which constitute the world’s largest unexploited repository of iron, titanium and vanadium.
“This will entrench South Africa’s position as the leading supplier of vanadium and titanium, and funding of nearly R120 million has been secured for this initiative,” the Minister said.
She said the South African iron and steel sector has been struggling with uncompetitive costs.
“One of the drivers is that up to 50% of the iron ore that is mined is discarded as fine and waste material. Mintek has developed technology to beneficiate this low grade and fine material and is working with industry players to implement the solution and significantly impact the current uncompetitive cost structure,” the Minister said.
Mintek has also developed Fuel-cell catalysts and membranes which are currently being commercialised with the aim of supplying the global market.
Energy sector
South Africa has also embarked on the Liquefied Petroleum Gas (LPG) Expansion Initiative.
“LPG is the most efficient form of energy for cooking, space heating as well as water heating, yet its contribution is below par. We will set a target to double consumption of LPG in South Africa over the next 5 years.
“This will alleviate pressure on the Eskom power supply. To ensure orderly development, all role players in the value chain will have to be registered with the department,” the Minister said.
The department will work with the Department of Trade, Industry and Competition to localise the manufacturing of gas cylinders and appliances.
Following the announcement of the gas condensate discovery in February 2019, Total and its partners are continuing with their drilling programme and have since procured the services of the Stavanger rig.
“The Nowergian rig will hit South African shores next month and will drill up to 18 months with a total investment of R1.5 Billion. This investment could not come at a better time and it will have massive multipliers on other economic sectors like tourism, fuel supply and the hospitality sector,” the Minister said.
Council for Geoscience
A resolution has been taken to appoint the Council for Geoscience (CGS) as the implementing state agency of the Carbon Capture Utilisation Storage (CCUS) project, previously implemented by the South African National Energy Development Institute (SANEDI), a project co-funded by the South African government and the World Bank.
“Concerns around climate change and the just transition have necessitated a deliberate investment in research for clean coal technology that considers the carbon capture, sequestration and utilisation in order to reduce the nation’s carbon footprint, in accordance with our ratification of international climate change protocols,” the Minister said.
R4.6bn to upgrade informal settlements
Human Settlements, Water and Sanitation Minister Lindiwe Sisulu says R4.6 billion has been allocated to provinces and metro municipalities to upgrade over 300 informal settlements.
Sisulu said this when she outlined the spending priorities for the department during a virtual sitting of the National Assembly on Tuesday.
“Together with Provinces, we will work with communities and municipalities to incrementally upgrade over 300 informal settlements and improve living conditions of households.
“Our policy is clear that for those informal settlements on safe ground, the first choice is to upgrade in-situ. This means that an agreement is reached with the community on the development plan and clear priorities are then planned for.
“This includes consolidating the occupation rights into formal tenure, access roads, water reticulation as well as sanitation and electricity. R2.4 billion and R2.2 billion is allocated for Provinces and Metros respectively in the current budget towards upgrading of informal settlements,” she said.
Sisulu said the extent of the housing needs across the country have fallen into sharp focus in the wake of the Covid-19 pandemic.
This, she said, has made the need to improve living conditions in informal settlements even more pressing.
“The upgrading plans that were already agreed with communities and municipalities needed to be implemented instantly.
“I want to state categorically today, that our programme for the upgrading of informal settlements is strongly anchored in collaboration with resident communities.
“There can never be sustainable upgrading without the active participation and ownership of families who reside in informal settlements,” she said.
COVID-19 relief measures
Addressing the virtual sitting on Tuesday, Sisulu said the department would introduce COVID-19 Impact relief measures to enable the sector to survive the serious shocks and constraints brought about by the pandemic.
This includes:
– Zero penalties for the estate agencies for late submission of audited statements until 31 October 2020. Furthermore, fees payable for mandatory training will be waved for the current financial year. The Estate Agencies Affairs Board will publish the relevant details before end of July 2020;
– Friendly and developmental rearrangements for loan repayment for affordable housing lenders who are indebted to the National Housing Finance Corporation (NHFC). This includes penalty-free capital loan repayment holidays for up to six months. The NHFC will publish the details of these measures by 31 July 2020;
– Rental relief to tenants in affordable rental housing who face financial distress due to COVID-19 pandemic. The rental relief is solely aimed at assisting tenants in formal affordable rental housing to meet their monthly rent obligations. R600 million is allocated for this purpose and the details of this Rent Relief for Tenants in Affordable Rental Housing will be published in the next 30 days.
Border Management Authority Bill signed into law
President Cyril Ramaphosa has signed the Border Management Authority Bill of 2020 into law.
The new legislation came into effect on Tuesday 21 July 2020.
The legislation addresses a need identified by government and diverse stakeholders in the economy for an integrated and well-coordinated border management service.
This is to secure travel and legitimate trade in accordance with the Constitution, and international and domestic law.
Presidential spokesperson, Khusela Diko said the new Border Management Authority bill, as an objective of the Act, replaces the current challenge of different agencies and organs of government all playing different roles in managing aspects of border control.
“The new law provides for the establishment, organisation, regulation, functions and control of the Border Management Authority, the appointment of its Commissioner and Deputy Commissioners and officials. The law also provides for their terms of office, conditions of service and functions and powers,” she said on Tuesday.
Diko said the integrated Authority will contribute to the socio-economic development of the Republic and ensure effective and efficient border law enforcement functions at ports of entry and borders.
“Furthermore, the law provides for the establishment of an Inter-Ministerial Consultative Committee, Border Technical Committee and advisory committees; for the review or appeal of decisions of officers, and the definition of certain things offences and the levying of penalties,” Diko said in a statement.
The legislation therefore contributes to the security of the country and the integrity and ease of trade and the general movement of persons and goods in and out of the country, she added.
COVID-19 UIF benefit extended to August
Employment and Labour Deputy Minister Boitumelo Booi says the COVID-19 Temporary Employers/ Employee Relief Fund, set up to help those who found themselves out of work due to lockdown, will be extended to August.
This comes after President Cyril Ramaphosa extended the national state of disaster to August as the COVID-19 pandemic spurs national efforts to mitigate the spread of infections.
“I must say, Honourable Members, that it gives me great pleasure to also announce that following due diligence and consultation with the UIF actuaries and in line with the President’s decision to extend the life of the Disaster Management Act until the 15th of August 2020, we have taken a decision to similarly extend the COVID-19 TERS benefit until the 15th of August 2020,” she said.
Booi said this when she led a debate on the department’s budget vote via a virtual National Assembly mini-plenary on Tuesday in place of Minister Thulas Nxesi, who could not make the plenary due to ill health.
Nxesi was admitted to hospital for better medical care on the advice of his medical doctors last night after testing positive for COVID-19 over a week ago.
Addressing the plenary, Booi said the benefit structure and existing criteria would remain the same and applications for April and May will be closed by the end of July although applications already received for these two months will be processed – this is the guarantee that the department gave to the people.
To date, some R34 billion in benefits has been distributed through employers in 7.4 million payments to recipients and this was in line with a commitment to provide income support for three months.
During the same period, a further R4 billion was disbursed in normal UIF benefits in 677 000 payments to beneficiaries.
“The provision of the COVID-19 TERS benefit also required strict financial controls and I am reassured, Honourable Chairperson and Honourable Members, that it was the UIF itself that detected recent attempted fraudulent activities and I am also encouraged by the speedy response of our law enforcement agencies in bringing the culprits to book,” she said.
UIF call centre improves call answer rate
Booi said, meanwhile, that the UIF is revamping its call centre to better respond to the client’s queries.
“In the last week, I can report reliably that the call answer rate has improved from 88% to 97%, reflecting an improved average speed to answer calls to 26 seconds.
“So your calls will not necessarily be ringing unanswered for a very long time but there will be a response within a few seconds,” she said.