State of the nation address by President Cyril Ramaphosa
Speaker of the National Assembly, Ms Nosiviwe Mapisa-Nqakula,
Chairperson of the National Council of Provinces, Mr Amos Masondo,
Deputy President David Mabuza,
Former President Thabo Mbeki,
Former Deputy President Phumzile Mlambo-Ngcuka,
Former Deputy President Baleka Mbete,
Former Speaker of the National Assembly, Mr Max Sisulu,
Acting Chief Justice Raymond Zondo,
Mayor of the City of Cape Town, Mr Geordin Hill-Lewis,
Dean of the Diplomatic Corps, Mr Bene M’Poko,
Members of the Judiciary,
Heads of Institutions Supporting Democracy,
Members of Parliament,
Fellow South Africans,
This year, for the first time since the dawn of our democracy, the State of the Nation Address is not being delivered in the Chamber of the National Assembly. As we entered this new year, a huge fire engulfed the seat of our democracy.
We all watched in outrage and sadness as the flames devoured the buildings in which our democratic Constitution was born, in which laws of transformation and progress have been passed, in which the freely-chosen representatives of the people have shaped our young nation. For many, what happened in Parliament speaks to a broader devastation in our land.
For many, the fire was symbolic of the devastation caused by the COVID-19 pandemic, by rising unemployment and deepening poverty. It spoke to the devastation of a pandemic that over the past two years has taken the lives of tens of thousands of South Africans, put two million people out of work and
brought misery to families.
The fire in Parliament reminded us of the destruction, violence and looting that we witnessed in parts of the country in July last year, of the more than 300 lives lost and many more livelihoods ruined.
As we reflect on the past year, we recall the words of President Thabo Mbeki who reminded us that: “Trying times need courage and resilience. Our strength as a people is not tested during the best of times.”
That we are gathered together in the Cape Town City Hall instead of the National Assembly Chamber reflects the extraordinary circumstances of this time.
It reflects the determination of the Presiding Officers of Parliament and indeed all the members of our two Houses that the work of this democratic institution should continue without interruption.
There are moments in the life of a nation when old certainties are unsettled and new possibilities emerge.
In these moments, there is both the prospect of great progress and the risk of reversal.
Today, we are faced with such a moment.
The path we choose now will determine the course for future generations. That is why we are taking steps to strengthen our democracy and reaffirm our
commitment to a Constitution that protects us all.
We are working together to revitalise our economy and end the inequality and injustice that impedes our progress.
We are standing together against corruption and to ensure that those who are responsible for state capture are punished for their crimes.
We are rebuilding the state and restoring trust and pride in public institutions. If there is one thing we all agree on, it is that the present situation – of deep poverty, unemployment and inequality – is unacceptable and unsustainable.
There is agreement among a broad and diverse range of South Africans that fundamental reforms are needed to revive economic growth.
There is a need both to address the immediate crisis and to create conditions for long-lasting stability and development.
To achieve this, South Africa needs a new consensus. A consensus that is born out of a common understanding of our current challenging
situation and a recognition of the need to address the challenges of unemployment, poverty and inequality.
This should be a new consensus which recognises that the state must create an environment in which the private sector can invest and unleash the dynamism of the economy.
But equally an environment in which South Africans can live a better life and unleash the energy of their capabilities.
This should also be a new consensus which embraces our shared responsibility to one another, and acknowledges that we are all in this together.
As the social partners – government, labour, business and communities – we are working to determine the actions we will take together to build such a consensus.
We have begun discussions on what trade-offs are needed and what contribution we will each need to make.
We have given ourselves 100 days to finalise a comprehensive social compact to grow our economy, create jobs and combat hunger.
This work will build on the foundation of the Economic Reconstruction and Recovery Plan, which remains our common programme to rebuild the economy, We remain focused on the priorities we identified in the State of the Nation Address last year
overcoming the COVID-19 pandemic,
a massive rollout of infrastructure,
a substantial increase in local production,
an employment stimulus to create jobs and support livelihoods,
the rapid expansion of our energy generation capacity.
To be effective, this social compact needs to include every South African and every part of our society. No-one must be left behind.
Fellow South Africans, When I last addressed the state of our nation, we were deep in the throes of the worst pandemic in more than a century.
Since COVID-19 reached our shores, we have endured successive waves of infection, the emergence of new variants and the devastating cost of nearly 100,000 recorded COVID-19 deaths.
South Africans have responded to this grave threat with courage and resilience, with compassion and restraint.
Over the past two years, we have taken unprecedented actions to strengthen our health system, build laboratory capacity and prevent infections.
The nation owes a great debt of gratitude to the dedicated health care workers and other frontline staff who put their health and their lives at risk to care for the ill and vulnerable during this pandemic.
Within weeks of the first reported infection in our country, I announced the establishment of the Solidarity Fund, with the goal of uniting the country in the fight against the pandemic.
In a wave of generosity that swept the country, the Fund raised R3.4 billion from more than 300,000 individuals and 3,000 companies and foundations. More than 400 individuals and 100 companies volunteered their time and services. The Fund has played a pivotal role in supporting the national health response and alleviating the humanitarian crisis.
I would like to thank everyone who contributed to the Solidarity Fund and the great many who came together in countless other initiatives to support those affected by the pandemic.
As the trajectory of the pandemic has continued to change, we have had to adapt and evolve.
Our approach has been informed throughout by the best available scientific evidence, and we have stood out both for the quality of our scientists and for their involvement in every step of our response.
During the past year, we have focused on accelerating our vaccine rollout. So far, we have administered 30 million doses of COVID-19 vaccines.
Consequently, nearly 42% of all adults and 60% of everyone over 50 is fully vaccinated.
We are now ready to enter a new phase in our management of the pandemic. It is our intention to end the national state of disaster as soon as we have finalised other measures under the National Health Act and other legislation to contain the pandemic.
Nearly all restrictions on economic and social activity have already been lifted.
Vaccines have proven to be the best defence we have against illness and death from COVID-19.
If we all get vaccinated, continue to observe basic health measures and remain ever vigilant, we will be able to get on with our lives even with the virus in our midst.
The state of the nation is linked inextricably to the state of our economy.
In addition to the divides of race, geography and education, COVID-19 has exacerbated the divide between those who are employed and unemployed.
Last year, our unemployment rate reached its highest recorded level.
Unemployment has been caused by low growth, which has in turn resulted from a long-term decline in investment.
In the last year, we have benefited from a clear and stable macroeconomic framework, strong commodity prices and a better-than-expected recovery.
However, we have been held back by an unreliable electricity supply, inefficient network industries and the high cost of doing business.
We have been taking extraordinary measures to enable businesses to grow and create jobs alongside expanded public employment and social protection.
We all know that government does not create jobs. Business creates jobs.
Around 80 per cent of all the people employed in South Africa are employed in the private sector.
The key task of government is to create the conditions that will enable the private sector – both big and small – to emerge, to grow, to access new markets, to create new products, and to hire more employees.
The problems in the South African economy are deep and they are structural.
When electricity supply cannot be guaranteed, when railways and ports are inefficient, when innovation is held back by a scarcity of broadband spectrum, when water quality deterioriates, companies are reluctant to invest and the economy cannot function properly.
With a view to addressing these challenges we are accelerating the implementation of far-reaching structural reforms to modernise and transform these industries, unlock investment, reduce costs and increase competitiveness and growth.
The electricity crisis is one of the greatest threats to economic and social progress. In the last few days, we have once again been reminded of the fragility of our electricity system.
Load shedding continues to have a huge impact on the lives of all South Africans, disrupting business activities, and placing additional strains on families and communities.
Due to our aging power stations, poor maintenance, policy missteps and the ruinous effects of state capture, our country has a shortfall of around 4,000 MW of electricity.
During the past year, we have taken firm steps to bring additional generation capacity online as quickly as possible to close the shortfall.
As a result, several new energy generation projects will be coming online over the next few years.
This includes:
Over 500 MW from the remaining projects in Bid Window 4 of the renewable energy programme, which are at advanced stages of construction.
2,600 MW from Bid Window 5 of the renewable energy programme, for which the preferred bidders were announced last year,
up to 800 MW from those risk mitigation power projects that are ready to proceed,
2,600 MW from Bid Window 6 of the renewal energy programme, which will soon be opened,
3,000 MW of gas power and 500 MW of battery storage, for which requests for proposals will be released later this year,
an estimated 4,000 MW from embedded generation projects in the mining sector,
approximately 1,400 MW currently in the process of being secured by various municipalities.
In addition to closing the energy supply shortfall, we are implementing fundamental changes to the structure of the electricity sector.
Eskom has established a separate transmission subsidiary, and is on track to complete its unbundling by December 2022.
The utility has continued with its intensive maintenance programme, to reverse many years of neglected maintenance and underperformance of existing plants.
To regulate all of these reforms, Cabinet yesterday approved amendments to the Electricity Regulation Act for public comment.
These far-reaching amendments will enable a competitive market for electricity generation and the establishment of an independent state-owned transmission company. Our economy cannot grow without efficient ports and railways.
Over several years, the functioning of our ports has declined relative to ports in other parts of the world and on the African continent. This constrains economic activity.
The agricultural sector, for example, relies heavily on efficient, well-run ports to export their produce to overseas markets.
Fresh produce cannot wait for days and even weeks stuck in a terminal.
This hurts businesses and compromises our country’s reputation as an exporter of quality fresh produce.
Transnet is addressing these challenges and is currently focused on improving operational efficiencies at the ports through procuring additional equipment and implementing new systems to reduce congestion.
Transnet will ask for proposals from private partners for the Durban and Ngqura Container Terminals within the next few months, which will enable partnerships to be in place at both terminals by October 2022.
Transnet will start the process of providing third-party access to its freight rail network from April 2022 by making slots available on the container corridor between Durban and City Deep in Gauteng.
Transnet has developed partnerships with the private sector to address cable theft and vandalism on the freight rail network through advanced technologies and additional security personnel.
This collaborative effort is already showing results in reduced disruptions to rail operations.
The poor state of passenger rail in South Africa has a direct and detrimental impact on the lives of our people. We are therefore working hard to rehabilitate the passenger rail network in 10 priority corridors.
The Southern Line in Cape Town and the Mabopane Line in Pretoria have been reopened to be followed by the remaining lines in the next year.
One of the greatest constraints on the technological development of our economy has been the unacceptable delay in the migration of broadcasting from analogue to digital.
The switch-off of analogue transmission has been completed in a number of provinces.
As I announced in the State of the Nation Address last year, the other provinces will move to digital signal by the end of March 2022.
As part of this process, government will continue to subsidise low-income households so that they can access a set-top box and make the switch to digital TV.
Our communications regulator, ICASA, will commence with the auctioning of the high frequency communications spectrum in about three weeks from now.
This will unlock new spectrum for mobile telecommunications for the first time in over a decade. In addition, we will facilitate the rapid deployment of broadband infrastructure across all municipalities by establishing a standard model for the granting of municipal permissions.
These reforms will revolutionise the country’s technological development, making faster broadband accesible to more people and reducing the costs of digital communications.
The world over, the ability to attract skilled immigrants is the hallmark of a modern, thriving economy.
We are therefore streamlining and modernising the visa application process to make it easier to travel to South Africa for tourism, business and wor