Speaker of the National Assembly,
Ministers and Deputy Ministers,
Honourable Members,
Fellow South Africans,
In two days from now, on Friday, 18 July, South Africans will join people across the world in celebrating Nelson Mandela Day.
Madiba helped us see that we can achieve progress by staying true to the vision of a better, more equal society and by working together to make that vision a reality.
Today, the world faces real and significant challenges. So do we as a country.
We face an increasingly volatile world, with disruptions to global trade and deepening conflicts causing reverberations across the globe.
We face high levels of unemployment and economic growth that is too low to create jobs and reduce poverty.
We face the corrosive effects of corruption and pervasive crime, to which the poorest are most vulnerable.
We face the daunting task of building a state that is capable of tackling these challenges and restoring the trust of the people.
It is with these challenges in mind that we formed a Government of National Unity to place our country on a path of growth and transformation, a path of peace and prosperity.
As we established the GNU, we understood that we were embarking on a new era in the life of our democracy. We understood that there would be complex dynamics and novel challenges that we would need to navigate.
We have together adopted the Medium Term Development Plan, which outlines clear actions that we will undertake over the next five years in pursuit of three strategic priorities:
- Firstly, driving inclusive growth and job creation.
- Secondly, tackling poverty and the high cost of living.
- Thirdly, building a capable, ethical and developmental state.
Across all ministries, all departments and all national entities, there is a commitment to implement the actions on which we have agreed and to move with urgency and purpose to address the needs of South Africans.
Most importantly, there is a shared understanding that we need to rise above our differences and to work together to make progress on our most important challenges.
The approach of the Government of National Unity is to enhance national cohesion and nation building and to build partnerships across society to advance the common interests of all South Africans.
The National Dialogue is being convened in response to calls from individuals and formations from across society. This initiative has received wide support and has been endorsed by the GNU as a significant national process to develop a social compact that will enable us to meet the aspirations of the National Development Plan.
At every important moment in the history of our country, we have come together to define a shared vision and forge a path into the future in dialogue with one another.
The National Dialogue is not just about talking.
Like CODESA, like the National Peace Accord, like the consultation process that led to our new Constitution, the National Dialogue is expected to produce real results that have a tangible impact on people’s lives.
We are all called upon to use this National Dialogue as an instrument of development, transformation, progress, national cohesion and nation building.
The National Dialogue does not displace the democratic processes mandated by our Constitution, nor the electoral mandates that parties carry into Parliament and the Executive.
As the National dialogue process continues, the Government of National Unity will continue to take action to address the immediate concerns that all South Africans share – to grow our economy, to create jobs, to tackle corruption and crime, and to fix local government.
The Medium Term Development Plan sets specific measurable targets for each of our programmes, and these budget votes quantify the resources that we will need to reach these targets. However, the true measure of success is the impact that we have on people’s lives.
Everything that this government does – from trade negotiations to economic reforms, from the professionalisation of the Public Service to support for farmers and small businesses – is directed towards meeting the needs of South Africa’s people and securing their future.
The role of The Presidency is to coordinate the work of Government towards this end, and to make sure that our commitments are translated into action.
Our most important priority is to grow the economy and create jobs.
We are working across government to boost infrastructure investment to ensure that infrastructure development becomes the true flywheel of economic growth.
We are using the Infrastructure Fund to invest in the roads that link communities to economic centres and the water projects that supply expanding cities and towns.
We have amended the regulations for Public Private Partnerships to make it easier for the private sector to invest in infrastructure ranging from renewable energy generation to housing.
This infrastructure has a direct impact on people’s lives, providing the services they need, reducing the cost of living, improving the business environment and encouraging economic activity.
We are following through on our commitment to invest more than R1 trillion in infrastructure over the next three years to renew our country’s roads, port, rail, energy and water systems.
South Africans benefit when the economy grows, when jobs are created, when established industries expand and new industries emerge.
To ensure that our industrial policy promotes local economic activity, we are repositioning it to look at opportunities in diversification, decarbonisation and digitalisation.
That is why we are redirecting our development finance institutions to be active investors in emerging industries and introducing tax incentives for new energy vehicles from next year.
We are pursuing the Critical Minerals and Metals Strategy recently approved by Cabinet to ensure that the country’s mineral wealth creates jobs and produces value here in South Africa.
Our National Policy on the Commercialisation of Hemp and Cannabis aims to improve the livelihoods of people living in rural areas, targeting 10 percent annual growth in this emerging industry.
Communities in our cities and rural areas alike will benefit from rapid growth in tourism.
More than 9 million international tourists visited our country in the past year, directly spending over R90 billion.
This is thanks in large part to reforms in our visa system, targeted tourism promotion in key markets and support to local companies.
To encourage the growth of micro, small, and medium enterprises, we are continuing the work to remove regulatory constraints and simplify business licensing.
We are refining our financing offerings to these businesses, recognising that different types of businesses have different needs at different stages of their development.
To accelerate economic growth and create jobs, we are moving ahead with the economic reform agenda through Operation Vulindlela, with The Presidency providing strong leadership and coordination to ensure that reforms are implemented.
In the energy sector, working together with all stakeholders, we have made outstanding progress in reducing the severity and frequency of load shedding.
There was a time when daily load shedding was the norm. Now, it is very much the exception.
We are putting in place the foundations for a competitive electricity market to unlock massive new investment in energy generation.
This will result in lower electricity costs for all South Africans and more renewable energy to power our economy.
We have also made significant progress towards enabling innovative public and private investment in our transmission network.
Implementation of the just energy transition continues to progress, coordinated by a dedicated JET Project Management Unit in The Presidency.
There is a growing pipeline of just energy transition projects in municipalities, skills development, electricity transmission and renewable energy generation.
Total international pledges to support South Africa’s just energy transition now amount to $12.8 billion, or around R230 billion.
This investment will go directly into renewable energy projects where the communities affected by the transition to clean energy sources will be at the centre of our focus.
Through this work, South Africa is leading the world in showing what a truly just energy transition looks like – one that enhances our energy security, protects workers and leaves communities better off.
We are also following through on our reform commitments in the logistics sector.
We have continued to make progress in reforming our visa system to attract skills and grow tourism.
An Electronic Travel Authorisation system will be launched later this year.
The Department of Home Affairs has made great progress in clearing the visa application backlog, which stood at over 306,000 applications in March 2024.
Through these reforms, we are steadily removing the obstacles to growth and paving the way for a new phase of investment and job creation.
The work of Operation Vulindlela shows the importance of a capable Presidency at the centre of Government, fulfilling a coordinating role in working closely with the departments and agencies responsible for implementation, and building a culture of delivery across the state.
The greatest challenge that faces our country today is youth unemployment.
Approximately 3.8 million out of 10.3 million young people aged 15 to 24 years are not in employment, education or training.
These are young people with energy, initiative and untapped potential.
As we pursue faster and more inclusive economic growth, as government we have undertaken programmes on a large scale to provide opportunities for young people to earn an income, develop skills and gain work experience.
Through innovative and targeted interventions, the Presidential Employment Stimulus has continued to demonstrate that when a society invests in its people, the dividends are measured in hope restored and futures rewritten.
In June this year, we began a new phase of the Basic Education Employment Initiative, with over 200,000 young people working as school assistants in over 20,000 schools.
This initiative has now created over 1 million posts for young people to serve as assistants in schools, supporting teachers in classrooms, school administration and school maintenance.
The programme has been designed to strengthen the learning environment and learning outcomes in schools.
In the process, participants gain work experience and skills vital to finding employment and starting their own businesses.
Young people face many barriers. Without established networks in the economy, without work experience, without money for data or transport, it is difficult for many young people even to look for work.
To address these challenges, we launched the SAYouth.mobi platform in 2020.
Since then, it has linked a growing number of young people to learning and earning opportunities.
There are now over 4.7 million young people registered on the SAYouth network.
Young people have been supported to access over 1.67 million earning opportunities.
A significant achievement of SA Youth is that the vast majority of earning opportunities have been accessed by the most excluded young people.
Seventy percent of opportunities have been accessed by young black African women.
Around 65 percent of the young people registered on the SA Youth platform reported that they live in households where at least one member receives a grant.
This means that we are reaching some of the people who have the greatest need.
With the support of Government, the Youth Employment Service – known as YES – has become the largest corporate funded youth jobs programme in the world.
The programme has to date provided over 190,000 young people with a year-long work experience opportunity.
Through all of these programmes coordinated by The Presidency, we are changing the way that Government works and scaling innovative solutions to our unemployment challenge.
Honourable Members,
Education is at the centre of our fight against poverty.
The foundational years are central to a child’s progress throughout their educational journey and even later in life. That is why our focus is on expanding access to quality early childhood development and early-grade literacy and numeracy.
We continue our efforts to ensure that learners have a safe and conducive environment in which to learn. To date, we have completed 97 percent of the sanitation projects under the SAFE initiative aimed at getting rid of pit latrines in our schools.
The Department of Basic Education is undertaking the work needed to implement the Basic Education Laws Amendment Act – or BELA – to ensure that all children have access to quality education and well-run schools.
We continue efforts to expand and strengthen vocational training, to match the skills we develop with the needs of our economy.
Through NSFAS, we are expanding access for students from poor and working class families, and with the support of the National Skills Fund, we are expanding assistance to the ‘missing middle’.
This year, NSFAS is supporting over 800,000 university and TVET college students. This provides opportunities to young people today that will, in time, transform our economy and society.
In order for us to give access for all people to quality health care, we have determined that we will address the poor state our hospitals and clinics. We are investing in the construction, revitalisation and maintenance of facilities across the country.
To address the severe challenges in the health system and in preparation for the implementation of the NHI, we are directing resources towards the hiring of more doctors, nurses and health professionals, the permanent employment of community health workers, and the purchase of new equipment and supplies.
We are determined to meet our HIV testing and treatment targets, despite the withdrawal of US funding. The Minister of Health has reported on the progress made, working with stakeholders, to mobilise resources to fill some of the gaps in our response and research work.
The South African National AIDS Council, led by the Deputy President, remains at the centre of our HIV/AIDS response, mobilising all sectors and stakeholders to ensure that we end AIDS as a public health threat.
For us to effectively tackle any of these challenges, we need to build a capable state with institutions that are resistant to corruption or interference.
The recent adoption of the Public Service Commission Bill by the National Assembly marks a crucial milestone, enhancing the independence and effectiveness of the Public Service Commission in promoting ethical governance.
The Bill will allow the Commission to function as an impartial constitutional body and ensure that the executive is compelled to act on the Commission's recommendations, thereby reinforcing accountability across the public sector.
To make Government work more efficiently and bring it closer to the people, the Digital Transformation Roadmap was launched in April 2025.
The roadmap focuses on building digital public infrastructure including a digital identity for every South African citizen.
It includes a digital payments system to enable instant, low-cost payments, and interoperable data systems to ensure that citizens only have to provide their information to Government once.
The integrity and credibility of the criminal justice system is vital to our ongoing efforts to combat crime and corruption. Over the last few years, we have made significant progress in rebuilding and strengthening law enforcement agencies, security services and prosecutorial bodies.
These changes have been real and visible in the South African Police Service, the Hawks, National Prosecuting Authority, Asset Forfeiture Unit, Special Investigating Unit, State Security Agency and others.
We are determined to maintain this momentum. We must therefore be concerned when reports emerge and allegations are made that threaten to undermine the stability and effectiveness of these institutions.
I have recently established two commissions of inquiry that, in different ways, will interrogate aspects of our criminal justice system.
The first, chaired by Judge Sisi Khampepe, looks to the past. The commission will investigate allegations of undue interference in the investigation and prosecution of apartheid-era crimes.
Not only is the commission necessary to ensure justice for the victims of apartheid-era crimes and their families, but it will provide valuable lessons as we strengthen our efforts to ensure accountability now and into the future.
The second commission, which I announced on Sunday and which will be chaired by Acting Deputy Chief Justice Mbuyiseli Madlanga, will investigate allegations made by the SAPS Provincial Commissioner in KwaZulu-Natal, Lt Gen Nhlanhla Mkhwanazi.
Lt Gen Mkhwanazi alleged that the Minister of Police had interfered with sensitive police investigations and colluded with business people, including a murder accused, to disband the Political Killings Task Team based in KwaZulu-Natal.
These allegations are serious. They are also untested.
It is therefore necessary that we establish the facts through an independent, credible and thorough process so that we can ensure accountability and safeguard public confidence in the police service.
It is therefore strange that some people have voiced strong opposition to the establishment of this commission of inquiry.
Some have said that I should take immediate punitive steps against the Minister on the basis of untested allegations. Not only would this be unfair, but it would create a dangerous precedent.
The commission should be allowed to do its work.
Some people have resurrected the tired line that the commissions and panels that we have established have not produced any meaningful results.
This view is wrong. It is not borne out by evidence.
In 2018, we established a Commission on the South African Revenue Service, chaired by Judge Robert Nugent. The commission’s findings and recommendations resulted in a comprehensive overhaul of SARS’ leadership, governance structures and operational capacity.
This has enabled SARS to significantly increase revenue collection, improve compliance and recover substantial sums of unpaid tax.
The Commission of Inquiry into the Public Investment Corporation, chaired by Judge Lex Mpati, exposed serious governance failures and led to far reaching institutional reforms.
These commissions resulted in disciplinary actions and the cancellation of unlawful contracts.
The implementation of the recommendations of the High-Level Panel on the State Security Agency have contributed significantly to SSA’s stabilisation and recovery, improved oversight and accountability, and the structural reforms contained in the General Intelligence Laws Amendment Act.
Following the recommendations of the Expert Panel into the 2021 Civil Unrest, government has taken steps to ensure better intelligence coordination, capacitating public order policing, strengthening community policing forums and streamlining the functioning of the National Security Council.
In the three years since the final report of the State Capture Commission was presented to the President, Government has undertaken major reforms based on its recommendations.
Eight new laws have been enacted to strengthen our anti-corruption institutions, enhance the procurement system, reform the intelligence services, and improve corporate accountability and public administration.
The value of assets linked to State Capture that have been recovered by the state stood at nearly R11 billion by March 2025.
Another R10.6 billion is currently frozen, awaiting the outcome of cases in court.
There are criminal cases arising from the state capture commission that have been concluded, all with guilty verdicts. Other cases, involving 51 individuals and 27 companies, are currently enrolled in court.
Each of these commissions and panels unearthed information and made findings that were critical to understanding the events that took place. They were essential in ensuring accountability and providing recommendations on strengthening our institutions and processes.
These commissions and panels show a government that takes responsibility, that is committed to transparency and accountability, that does not fear independent scrutiny, and that is determined to take corrective action where lapses have taken place.
We continue to make progress in investigating and prosecuting corruption.
Since its establishment last year, the NPA’s Investigating Directorate against Corruption has authorised over 120 matters involving more than 215 of the most high profile state capture corruption accused.
Over 80 cases are currently under investigation and approximately 40 have already been enrolled.
The NPA is using new technology to conduct complex investigations through the rapid, efficient analysis and documentation of digital evidence.
South Africa has substantially completed all 22 action items that were contained in the Action Plan adopted when South Africa was greylisted in February 2023. This paves the way for an on-site visit, which is the final step before the FATF can delist South Africa.
We are at the mid-point of the implementation of the National Strategic Plan on Gender-Based Violence and Femicide. Yet, violence against women and children continues unabated. It remains a pandemic that shames the men of our nation.
While we can point to progress in responding to instances of gender-based violence – from clearing the historical DNA backlog to increasing conviction rates and improving victim services in police stations – our greatest challenge is to prevent such instances in the first place.
Our efforts to prevent gender-based violence need special focus. They need to be intensified, massively scaled-up and include all sectors of society. We need to give greater attention to the social factors – such as alcohol abuse – that fuel such violence.
The impact of weak governance is felt the most at the local level.
We recognise that many of our cities and towns are failing to deliver basic services, creating serious challenges for businesses and residents.
We have initiated a comprehensive reform of the local government system, underpinned by a review of the White Paper on Local Government and of the local government fiscal framework.
While this reform process is underway, The Presidency is providing targeted intervention and support in struggling municipalities, starting with eThekwini and Johannesburg.
Working groups established in both of these cities have brought together mayors, senior officials from local, provincial and national Government, business and civil society to tackle the most urgent problems.
The progress made since the establishment of the Presidential eThekwini Working Group shows that this model does work.
In the last year, the tourism sector in eThekwini has seen significant recovery, with a 33 percent growth in domestic trips in 2024 contributing over R17 billion to the local economy.
The Presidency is uniquely positioned to bring together the many stakeholders within and beyond Government who must work together to turn our cities around.
Honourable Members,
South Africa’s International standing has been greatly enhanced in recent years despite the increasingly challenging global circumstances in which we pursue our national goals.
Multilateralism is on the retreat. Global stability and development are being threatened by unilateral and coercive economic measures.
Conflicts in some parts of the world are having economic, political and social consequences far beyond the areas of conflict.
The erosion of rules-based multilateralism undermines efforts to achieve a level playing field in economic relations, and places emerging markets such as ours in a vulnerable position.
The economic uncertainty that arises from these developments dampens the growth prospects of economies around the world.
Last week, we received notification that exports from South Africa to the United States will attract tariffs of up to 30 percent from 1 August 2025.
This could have a substantial impact on the products we export to the United States.
We welcome the commitment by the US government that the 30 percent tariff is subject to modification pending the conclusion of negotiations between our two countries.
At the same time, we continue the work to diversify our export markets and build a more resilient domestic economy.
We continue with our efforts to strengthen relations with the United States, which remains a strong investment and trading partner.
Our successful working visit to the US in May reaffirmed the importance of keeping the channels of dialogue open and established a basis for greater engagement and cooperation.
Organisations that seek to use South Africa’s relations with other countries to advance their own domestic agenda undermine these efforts.
We are now at the halfway mark of our G20 Presidency.
So far, nearly 70 of the 130 planned official meetings have taken place, and we are making progress in engagement with fellow G20 countries on the central themes that we have identified for our Presidency.
Through our participation in other fora, such as the recent BRICS Summit in Brazil and the G7 Summit in Canada, we have reinforced our position on critical issues of concern to all G20 countries.
These issues include debt sustainability and financing for development and climate action. We are seeking agreement on a sustainable approach to critical and rare minerals that benefits the communities and countries where these resources are found.
Throughout our participation in G20 meetings over the last half year, we have sought to advance shared solutions to common problems, promote the African Agenda and place the interests of the Global South firmly on the Global Agenda.
As we reflect on our place in the world, we express our horror and dismay at the genocide taking place in Gaza.
More and more Palestinian civilians are being killed every day, millions face starvation, homes, hospitals and other essential infrastructure are being destroyed.
The fact that these atrocities are taking place in plain sight of the international community – with no concerted effort to end them – is a damning indictment of world leaders.
The stance that South Africa has taken on the genocide in Gaza, including the application we have made to the International Court of Justice, is founded on our commitment to peace and justice.
We are equally concerned at the grave humanitarian situation in Sudan.
The conflict is taking a severe human toll. It is estimated that over 30 million people need aid and some 12 million people are displaced.
The international community has a responsibility to support regional and other efforts to end the conflict and provide the assistance that the people of Sudan desperately need.
As the situation in the eastern DRC enters a new phase, the SADC mission has ended and our personnel are being withdrawn in a phased manner.
As we welcome the return of our soldiers, we remember with great sorrow the 14 SANDF soldiers who lost their lives, alongside soldiers from other Southern African countries, to bring peace and security to the region.
We are hopeful that the parties to the conflict will now engage in the envisaged dialogue and cessation of hostilities culminating in an all-inclusive political process that leads to a lasting solution.
South Africa remains part of initiatives to end the Russia-Ukraine conflict and achieve a just and lasting peace.
While many of these conflicts are far from our shores, we have an interest in seeing them resolved.
Our history places upon us a moral responsibility to strive for an end to suffering and oppression around the world. We also have obligations under international law to prevent genocide and ensure accountability for atrocities.
It is in our interests as a country to ensure that international law is upheld and consistently applied and that global bodies like the UN Security Council are effective in ensuring peace and security.
We will intensify efforts to reform these global institutions to ensure that they are representative and inclusive.
It is unacceptable that 1.4 billion Africans have no permanent representation on the UN Security Council.
It is these laws and these institutions that we will look to for protection and support as we confront the uncertainty of a changing world.
Honourable Members,
Fellow South Africans,
A tree survives strong winds by its deep and extensive roots, anchoring itself in the soil.
Its flexible branches can bend and sway with the wind, enabling it to adjust to changing circumstances.
A forest of trees works together to withstand a storm, the closeness of their canopies breaking the wind’s force.
Like a baobab of Limpopo or a yellowwood of the Eastern Cape, our roots have been made firm by experience. As the winds pick up around us, they will hold us to the ground.
The formation of the Government of National Unity has inspired new hope in South Africans that we can make progress in addressing our most urgent challenges.
Our task is clear. We must grow our economy, create jobs, reduce poverty, tackle corruption and crime, and build a state that works with institutions that will stand the test of time.
While we will always have differences and disagreements, we are all committed to staying the course and seeing these reforms through to the end.
We must combine the strength of our principles and convictions with an openness and willingness to listen and adapt.
The Presidency will continue to lead Government in ensuring that we do so, and that we deliver a better life for all South Africans.
I hereby commend this Budget Vote of The Presidency to the National Assembly and look forward to a constructive debate.
I thank you.
.png)
.png)
.png)
