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T HE July 2013 Lekgotla marked the beginning of the last lap in the fifth year of the fourth parliament. The value of the reports of the NEC subcommittees and the Monitoring and Evaluation report were aimed at empowering our NEC with information. We can now face the electorate with more confidence. The Lekgotla ushered in earnest the beginning of the election campaign. Most important was the boldness in the development of the ANC message. It enriched the concept of the movement telling the story of South Africa. We cannot be restricted to what others say, because we have a story to tell. Our story is positive. In telling our story, however, we must own up to mistakes committed. Most importantly, we should highlight the challenges. The report on the progress made over the last nineteen years and the last five years, in particular, must inform the plan for the next five years. In areas that are used to attack the movement we must provide society with facts. Education is one such an area, wherein progress made is seriously understated. The media does not report the systematic improvement in literacy and numeracy. We must, therefore, report it whenever we have an opportunity and when we have personal contact with our people. The increase in the number Bachelor passes in Matric explains the increasing demand for space in all our universities. The investment made in the FET Colleges and the doubling of enrolment over the last four years bodes well for the future. The number of engineering graduates from universities is growing despite limited capacity of our universities. As we report about this progress we must also highlight the concerns about quality and explain the plans in place for addressing those. The infrastructure report talks to both the present and the future. The leadership of the ANC has the responsibility of explaining this programme in simple terms. The built programme, directed at ensuring the security of supply in the long term, must be explained in simple terms. Challenges, including the delays in Medupi, must be explained. The water and sanitation projects must be reported in detail. Progress that is being made in transport is important for our people to appreciate that there is determination to ensure an efficient public transport into the future. These projects must be broken down, into province-by-province reports. This provincial breakdown talks directly to the people. People identify easily with projects in their neighbourhood as they visit them to verify facts. The provincial structures must disseminate information as wide as possible. Ideally, every branch leader must have detailed information about the work done by the ANC. It is this network of branch leaders that will empower the volunteers of the ANC in their work. We have a wealth of information for our elections campaign, and we need not spend time responding to our detractors. We must remain focused. We must report what we have done. We must outline our plans moving forward. We must tell our story. Enjoy your reading. We have a good story to tell Foreword by the SECRETARY GENERAL, GWEDE MANTASHE BULLETIN JULY 2013 African National Congress NEC LEKGOTLA

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July 2013NEC Lekgotla Bulletin

1

THE July 2013 Lekgotla marked the beginning of the last lap in the fifth year of the fourth parliament. The value of the reports of the NEC

subcommittees and the Monitoring and Evaluation report were aimed at empowering our NEC with information. We can now face the electorate with more confidence.

The Lekgotla ushered in earnest the beginning of the election campaign. Most important was the boldness in the development of the ANC message. It enriched the concept of the movement telling the story of South Africa. We cannot be restricted to what others say, because we have a story to tell.

Our story is positive.

In telling our story, however, we must own up to mistakes committed. Most importantly, we should highlight the challenges. The report on the progress made over the last nineteen years and the last five years, in particular, must inform the plan for the next five years.

In areas that are used to attack the movement we must provide society with facts. Education is one such an area, wherein progress made is seriously understated. The media does not report the systematic improvement in literacy and numeracy. We must, therefore, report it whenever we have an opportunity and when we have personal contact with our people. The increase in the number Bachelor passes in Matric explains the increasing demand for space in all our universities. The investment made in the FET Colleges and the doubling of enrolment over the last four years bodes well for the future. The number of engineering

graduates from universities is growing despite limited capacity of our universities. As we report about this progress we must also highlight the concerns about quality and explain the plans in place for addressing those.

The infrastructure report talks to both the present and the future. The leadership of the ANC has the responsibility of explaining this programme in simple terms. The built programme, directed at ensuring the security of supply in the long term, must be explained in simple terms. Challenges, including the delays in Medupi, must be explained. The water and sanitation projects must be reported in detail. Progress that is being made in transport is important for our people to appreciate that there is determination to ensure an efficient public transport into the future. These projects must be broken down, into province-by-province reports. This provincial breakdown talks directly to the people. People identify easily with projects in their neighbourhood as they visit them to verify facts.

The provincial structures must disseminate information as wide as possible. Ideally, every branch leader must have detailed information about the work done by the ANC. It is this network of branch leaders that will empower the volunteers of the ANC in their work. We have a wealth of information for our elections campaign, and we need not spend time responding to our detractors.

We must remain focused. We must report what we have done. We must outline our plans moving forward. We must tell our story.

Enjoy your reading.

We have a good story to tell

■ Foreword by the SECRETARY GENERAL, GWEDE MANTASHE

BULLETINJULY 2013

African National Congress NEC LEKGOTLA

July 2013NEC Lekgotla Bulletin

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Comrades, I greet you all.

I hope you all had a very fruitful Mandela Day yesterday. Since we have agreed to make everyday a Mandela Day, I sincerely hope that your energy levels remain high today as we start this Lekgotla which is also an important part of serving our people.

Let me also share with this Lekgotla that our 95 year old global icon, President Nelson Mandela continues to show sustained improvement, although he remains seriously ill. We continue to wish him well and are encouraged by the progress he is making.

The outpouring of love yesterday demonstrated clearly what he means to our people from all walks of life. More importantly it demonstrated that our people value the freedom and democracy gained in 1994 after decades of struggle led by the African National Congress.

What we need to do is to link those achievements with the ANC, for it is through the ANC that this country has scored the achievements that make it a successful and thriving democracy. More importantly, we must take the spirit displayed yesterday into the work we do on a day to day basis, and into serving communities better.

Mandela Day also demonstrated amazing unity of our people, which we should also find ways of taking forward. Madiba is teaching us yet again that it is possible for us to unite behind making our country a better place.

Comrades, we are meeting here to take stock of the progress made since our last Lekgotla in January and further deliberate on how best we can accelerate the pace of delivery towards the betterment of our people’s lives.

This is a very important Lekgotla because it is charged with the responsibility to determine how far we have come in the implementation of the five key priorities for

this term of office. The importance of this task cannot be overemphasized because it will form the basis for the development of our manifesto for the 2014 general elections.

When we emerge out of this Lekgotla, we must be able to answer a few basic questions, which are:❏ What promises or commitments did we make to our

people?❏ Have we fulfilled those promises or not?❏ What immediate action must we take to fulfil them?

And lastly,❏ What understandable explanation are we going to

give our people where we can’t or have not fulfilled our promises or undertakings?

This Lekgotla must empower all cadres of our movement to be able to answer these pertinent questions at any platform without fear of contradiction.

The confidence of our people in our movement lies in our ability to answer these questions in a satisfactory manner. We must attend diligently to matters of the economy, education, health, crime, infrastructure, rural development, housing, water, electricity and others, and come up with very practical implementable short- term targets which we can confidently communicate to our people after this Lekgotla.

In 2009 the ANC has identified five priority areas for the next five years, ending next year:❏ The creation of decent work and sustainable

livelihoods. ❏ Education ❏ Health ❏ Rural development, food security and land reform❏ The fight against crime and corruption.

The ANC makes SA a successful and thriving democracy

■ Political Overview by PRESIDENT JACOB ZUMA

July 2013NEC Lekgotla Bulletin

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It is important for us to keep the achievements we have

scored high up on the agenda. We will not move forward if we start believing the

propaganda that the ANC government has not achieved anything in 19 years or even

the past four years.

We said in the 2009 election manifesto:

“These priorities will be tackled with all our means at our disposal – the resources of government, the vision of the Freedom Charter and the energy and commitment of our people. Our priorities will specifically target the needs of the youth, women, workers, the rural poor, the elderly, and people with disabilities’’.

We mentioned a number of interventions that would help us achieve these goals.

We said would build and accelerate a sustainable, equitable and inclusive economic growth path to address these five priorities, and that our economic and social programmes will work together to ensure they support each other.

We added that the developmental state would play a central and strategic role in the economy, which is something we have to assess continuously.

We made an undertaking to ensure a more effective government and to improve the coordination and planning efforts of the developmental state by means of a planning entity to ensure faster change. In this regard, we went on to establish the National Planning Commission in government, which has produced the National Development Plan whose implementation framework we are busy developing.

Lastly, we said we needed to invest in public sector workers. The Manifesto states that:

“This means that the right and adequate numbers of personnel should be placed in the correct positions, and where this is not the case, government should have the capacity to implement corrective measures, either through training or redeployment where warranted’’.

The investment in public servants was to be done in order to improve the quality of services and the quality of the delivery of those services. We must review progress made thus far in improving the public service and in developing a progressive and committed cadre of public servants who put people first. This is a cadre who will not ignore the cries and needs of our people, who go out of their way to respond to requests and complaints timeously and in caring manner. This is also a cadre of public servants who know exactly what this ANC government wants to achieve, who can help us to build a caring developmental state that is in touch with the

needs of our people. Thus we must take seriously the need to improve the performance of our public service and we will automatically improve the performance of government. The National Development Plan outlines proposals in this regard.

Also important is to improve performance in all spheres of government and not only the national level. We must find ways to ensure that whatever we agree on here cascades down through our structures to our municipalities.

This is an important and essential task because

municipalities occupy a strategic place in the delivery chain of services meant to better the lives of all our people.

They are strategic because they constitute the first and immediate point of contact between our people and their government and therefore help shape our people’s opinions and attitudes about and towards the government.

The ANC, as a movement of the people, concerned about their wellbeing, cannot ignore the centrality of municipalities in the quest for fundamental social transformation.

We had also make a serious undertaking to make the creation of decent work opportunities and sustainable livelihoods, the primary focus of our economic policies. We said in the manifesto that we would make maximum use of all the means at the disposal of the ANC government, to achieve this. An assessment of the fulfilment of this undertaking is also important ahead of the drafting of the new manifesto.

It is important for us to keep the achievements we have scored high up on the agenda. We will not move forward if we start believing the propaganda that the ANC government has not achieved anything in 19 years or even the past four years.

A lot of good work has been done. Millions more people have water, electricity, sanitation, shelter, access to schools, clinics and other services. Granted thousands more are still waiting as 19 years is too short a time to reverse decades of deliberate underdevelopment.

Our task is to make a thorough 20 year review so that we can develop a Manifesto that will accurately respond to the gaps that remain.

July 2013NEC Lekgotla Bulletin

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In endorsing the NDP, the ANC is presenting a Plan that we can all unite

behind in order to tackle the challenges facing country,

informed at a broader level, by the vision espoused in the Freedom Charter and the

Constitution of the Republic.

This Lekgotla should also discuss seriously the implementation of the National Development Plan. Let me reiterate that the main reason why the ANC endorsed the National Development Plan is that it is hugely consistent with the ANC’s understanding of the National Democratic Revolution, in that it encourages a multi-class alliance to combat unemployment, poverty and inequality in South Africa.

Our view is that although the NDP is not a carbon copy of ANC policy, there is great resonance and similarity between the NDP and ANC policy both in formulation and content. As with the process of policy formulation in the ANC in the lead up to the national gatherings that formulate and adopt policy, the NDP was widely consulted on.

There were consultations and workshops with relevant experts, submissions from thousands of South Africans, meetings with a wide range of stakeholders and was discussed, debated and analysed extensively in the media. Within the ANC, there was extensive discussion down to the branch level ahead of the national conference.

At the same time, views that are aimed at improving the document should be welcomed as part of the country’s democratic process and free exchange of ideas.

As we work to implement the NDP, we should remember that the ANC’s endorsement of the NDP is based on the fact that we are committed to the following:❏ A broadly accepted, long term plan to tackle poverty

and inequality. ❏ Seeking the broadest possible unity of the people of

South Africa to meet these objectives.❏ A radical programme of economic transformation

aimed at growing the economy faster and in a more inclusive manner.

❏ Seeking collaboration with other social partners in pursuit of the ANC’s long term objectives.

❏ Adopting progressive approaches that use evidence and learn from practice in the governance of the country.

❏ Building a capable and developmental state and a professional bureaucracy willing and able to serve the Constitution and the poor.

❏ Ensuring effective implementation across all three

spheres of government and to work actively to align implementation across the state.

In endorsing the NDP, the ANC is presenting a Plan that we can all unite behind in order to tackle the challenges facing country, informed at a broader level, by the vision espoused in the Freedom Charter and the Constitution of the Republic.

While the Freedom Charter is explicit in saying that South Africa belongs to all who live in it which is true in the political sense, the country remains plagued by poverty, unemployment and inequality. The NDP is thus the blueprint that sets out how our plans and strategies should be formulated to eradicate these three enemies of our people.

Comrades also important to look at, is the need to reflect on the scourge of corruption which faces our society.

While we have done well in exposing and fighting corruption within the state, we are only just beginning to do the same in the private sector. The revelation of corruption in the construction industry, which is called “collusion’’, is a serious indictment of the private sector which tends to be vocal about corruption in government.

The ANC government has been criticised for being soft on private sector corruption so we have to look seriously at how to focus on this sector as well as

part of our broader anti-corruption campaign.

At the international level, the work of the African Union to promote peace and security in the continent continues and requires our support as the ANC.

We fully back the establishment of an African standby force that can respond faster in cases of upheaval in any part of the continent. The situation in the Central African Republic, Mali, Egypt and other countries remains of serious concern and the ANC needs to pronounce itself on the solutions. The Zimbabweans will go to the polls on the 31st of July. The view of SADC was that the time was insufficient to prepare but the decision of the Zimbabwean court must be respected as President Mugabe stated.

South Africa has deployed 130 observers who are part of the SADC mission. We will play our part to contribute to free and credible elections. Yesterday on Mandela Day we hosted the European Union for the 6th SA-European

July 2013NEC Lekgotla Bulletin

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Summit and had successful deliberations focusing on job creation and inward investment.

Amongst the highlights was the signing of the agreement on the peaceful use of nuclear energy. We agreed on a new 1.3 billion rand support programme to blend grants with loans from the Development Bank of Southern Africa and European Development Finance Institutions to support South Africa’s infrastructure programme.

We also agreed on a partnership in the area of rural electrification, with an initial target of 300,000 households in remote areas of South Africa. We also launched new cooperation in the areas of maritime security and human rights. We will also cooperate further on youth empowerment and development.

South Africa remains concerned about the trade deficit which is in favour of Europe and also the challenges relating to our agricultural and other exports to Europe. We believe that the meeting opened an opportunity to discuss these matters further and resolve them in order to strengthen this partnership further as Europe remains a strategic development partner.

Comrades, let me once again highlight that the issue of what and how we communicate to our people is very important. We have entered an election period and communication is very critical during this period. We cannot afford to be sending wrong and negative messages to our people.

This does not mean we cannot be self-critical. However, self-criticism should be done at appropriate platforms and should never be seen to be overshadowing our achievements as a government.

Cadres of our movement wherever they may be

deployed must guard what they say in public so as not to empower the forces opposed to our revolution in their continued onslaught against our movement. We must all communicate our achievements and prove to our people that we have not betrayed their mandate.

All deployed cadres must ensure that our people know that government achievements are ANC achievements when they communicate at whatever platform. This includes Ministers, Deputy Ministers, Premiers, MEC’s, Mayors, MMC’s and others. All these cadres must become spokespersons of the movement and give effect to the mantra “One Message, Many Voices”. This will go a long way in ensuring that the ANC is always with and amongst the people thereby dealing decisively with the real or perceived social distance.

Thus this Lekgotla must inculcate in us an attitude which suggests to all and sundry that government work is ANC work. We also expect those responsible for running our government departments at all levels to do everything possible to improve the quality of services to our people. This must be done with the understanding that we have no one on our side but ourselves.

Whilst we are confident that we will do very well in the elections next year and to gain a decisive majority, we must rise above the temptation to be complacent and work hard to convince our people in word and deed that we remain their true representatives, concerned with nothing else but improving their lives.

I wish this meeting all the success and hope that we will spare no effort in coming up with solutions to many of the challenges facing our people.

I thank you.

July 2013NEC Lekgotla Bulletin

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■ Address by SECRETARY GENERAL, GWEDE MANTASHE

Bringing about a National Democratic Society1. Introduction1.1 The 2013 Lekgotla is the fifth and last

one for our fourth parliament.

1.2 In the 2009 manifesto, the ANC committed to the people of South Africa that it will further remove barriers to our liberty and bring closer the ideal of a united, non racial, non sexist, democratic and prosperous South Africa by:❏ Creating more jobs, decent work and

sustainable livelihood,❏ Ensuring access to education,❏ Ensuring access to health and healthcare,❏ Ensuring rural development, land and agrarian

reform, and ❏ Fighting crime and corruption.

1.3 This Lekgotla must, in the first instance, take time to assess the work done in the last twelve months. It must also carry out a detailed assessment of the work done over the last four years. This exercise must be candid and honest about our successes and failures. We must bear in mind that our people will be assessing us against the commitments we made.

1.4 The reports presented should be in a manner that enables the leadership of the ANC to easily use the information contained in them, during our campaign.

2. StructureoftheReports2.1 All the sub-committees were directed to present their

reports in three parts:❏ The first part should be about progress made

over the last five years. This should highlight achievements, which our people must celebrate. This must also account for what seems to be obvious but that which our people need to be reminded of, as transformative development in the course of transforming our country. This section will constitute a contribution towards the finalisation of the twenty years assessment of the work of government.

❏ The second part should focus on what can be done over the next seven months. These are the low hanging fruits, which include projects whose completion will make a huge difference to the people. This requires that the provinces, working with municipalities, follow up on problems identified in both the general and local government elections.

❏ The third part should be forward looking. It should indicate what must be

done in the next term, by identifying specific projects – including those started in this term and will roll over to the next.

2.2 The decision to table all reports in the plenary is intended to ensure that NEC members have a deeper understanding of all the aspects of our work. We must avoid the commissions just repeating the exercise as we did in the last makgotla, or the policy conference or the National Conference. We must use this opportunity to develop elements of the manifesto.

3. BriefReportontheOutcomesofthe 2012Lekgotla3.1 Since the sub-committees will give detailed reports,

this section of the report only highlights areas that easily fall on blind spots of the departments and the sub-committees.

3.2 The last Lekgotla directed us to address:❏ The economic slowdown❏ Regional integration❏ Job creation❏ Tenders and procurement❏ Youth employment❏ Beneficiation ❏ Infrastructure Plan❏ Inequality❏ Agriculture

July 2013NEC Lekgotla Bulletin

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❏ Energy❏ Postbank❏ State capacity❏ Integrity❏ BRICS Development Bank.

3.3 We are hoping that the report will deal with the issue within the context of employment creation. The report of the ETC and the report on infrastructure plan and roll out will cover these issues. The issue of tenders and procurement should covered by two commissions, efficiency and capacity of the state and corruption. We cannot continue avoiding the debate on the violent nature of strikes, their impact on the actual performance of the economy and in informing international perceptions about South Africa.

3.4 This Lekgotla should also package the message to frame the debate in the public discourse. ❏ In education, we must shift the debate from the

Limpopo book debacle and the distortion about 30% pass mark to progressive improvement of the Matric results for three consecutive years. We must explain the requirements for university and university of technology entrance and what qualifies a learner to be accepted for College education. We must talk about how we are assessed in terms of international rankings.

Furthermore, can we affirm that the importation of Maths and Science teachers for a fixed period is an option? This should be coupled with a concrete plan on how to incentivise learners to take up teaching as a career option. This may include bursary for Maths and Science Teacher education. We should reaffirm education as an essential service.

❏ In the area of health there is a lot to be proud of and the report will highlight the progress being made. One thing that we cannot ignore is the need to come up with a concrete plan on how to take NHI beyond the pilot projects. We must also be concrete about infrastructure delivery, updating medical equipment, repair and maintenance of existing infrastructure.

❏ In Science and Technology, the Ketlaphela initiative should be supported and progress that is being made should be reported regularly. Agricultural research should elevated to the correct level as a priority. The report of the subcommittee will give us an updated progress report.

3.5 This Lekgotla must emerge with a concrete plan.

4. IssuesthatNeedUrgentAttentionandFocus4.1 We are now in the election period. The elections

report, and research, will cover many of the issues.

We only highlight what appears to be obvious, such as:❏ Decline in economic growth, ❏ The impact of energy and transport on the

economy in general and mining in particular.❏ The delay in the commissioning of the Medupi

power station (and possible Kusile), and its impact on the capacity of the economy and perception on South Africa,

❏ The impact of credit rating on the infrastructure programme,

❏ Education and skills development as a catalyst for economic growth,

❏ Need for research and innovation as the cutting edge of economic growth,

❏ Energy, transport and water infrastructure❏ Our response to the plight and perceptions of the

poor vis-a-vis perceptions of the investors.❏ Economic pressures versus our policy options,❏ Hegemony of the ANC in society: ability to

determine the framework for public debate or the battle of ideas?

❏ Are we making progress in transforming the state? Do we have capacity in the state?

❏ Are we making progress in transforming society?❏ How do we deal with the perception that political

offices are used for self-enrichment and that as “politicians we care about ourselves and those close to us?”

❏ The growing social distance between the ANC and its constituency should be narrowed and ultimately closed.

5. CONCLUSION5.1 The outcome of the lekgotla should reflect the

politically desired results. We should avoid an emphasis that tends to be narrowly governmental. We must develop an approach that empowers us in the face of a difficult election in 2014. It must enhance our ability to tell our story and not only react to accusations by our opponents.

5.2 This Lekgotla must empower us to face the electorate with confidence. Our confidence must derive from what we have factually and concretely achieved. We must attend to the temptation by leaders of the ANC of criticising the movement as if they were outsiders instead of participants.

5.3 We must disabuse our opponents of the myth that all problems are new. We should, instead, trace the work done since 1994 and own up for mistakes committed in the post-apartheid period – beginning with the negotiations process. At the same time we must be able to give cogent explanation for some of the problems that were a function of the balance of forces at any stage of the post-apartheid period.

July 2013NEC Lekgotla Bulletin

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■ Plenary Presentation Lekgotla, following the President’s political overview and the Secretary General’s presentation, received the following presentations in plenary: NEC Subcommittees of Economic Transformation and Education and Health; Governance: Treasury, Economic Development (PICC), and Moni-toring and Evaluation. After the plenary, Lekgotla broke into commissions.

INTRODUCTION❏ This exercise is about how far have we gone in

implementing the Polokwane Resolution.

❏ Our emphasis is on Jobs and Rural Development.

❏ In-between, we implemented a number of policy measures, chief amongst them: IPAP, NGP, and the National Infrastructure Plan.

❏ In Mangaung we also agreed to support the NDP as a living and dynamic document.

PillarsofPolokwane1. A democratic developmental state

2. Decent work

3. Accelerating shared economic growth

4. Transforming the structures of production and ownership❏ Industrial and trade policy❏ Broad based BEE❏ Anti-monopoly policy❏ Intervening for competitive pricing of natural

resources❏ Small business and micro enterprises

5. Rural development strategy

6. Reversing apartheid geography

7. Sustainable livelihoods

8. Absorbing the unemployed

9. Expanding the social wage

10. Investing in skills and education

Economic Transformation CommitteeUpdate on Jobs and Rural Development

■ Presentation by ENOCH GODONGWANA

11. Using natural resources for communities and the nation

12. Energy security and mix

13. Regional integration and world trade

14. Macroeconomic Policy

15. Enhance the capacity of the ANC to monitor and evaluate the implementation of economic policy.

Jobsgrowthandlosses❏ Between the first quarter of 2012 and the first quarte

of 2013 there has been an increase of 199 000 people.

❏ However, the employment levels were still 406 000 jobs lower than the levels observed in Q4:2008

❏ The good news is that since the lowest level of employment in Q3:2010 (12,9 million), the economy has created 646 000 jobs.

❏ The foundation for employment growth has been the public sector.

❏ The public sector accounted for 63% of jobs growth between October 2010, when total employment started to grow again after the recession, and April 2013.

July 2013NEC Lekgotla Bulletin

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July 2013NEC Lekgotla Bulletin

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Youthandjobs❏ In South Africa as in the rest of the world, the global

downturn fell particularly hard on young people, who typically lost their jobs first. Youth employment has not yet recovered from these job losses.

❏ From 1st quarter of 2009 to third quarter of 2010, there was a 7% decline in jobs for young people.

❏ From 1 October 2010 to April 2013, young people aged 15 to 34 gained 112 000 jobs, growing at a slow 2% over the period.

❏ The four provinces with the largest number of youth job losses over the past four years, were Gauteng (-138 000) , Western Cape (-126 000) , KZN (-75 000) and North West (-75 000).

❏ The provinces with the biggest percentage youth job losses were North West (20%), W Cape (14%) and Free State (11%).

❏ The provinces with jobs growth for youth were Limpopo (90 000), E Cape (17 000), Mpumalanga (6 000) and Northern Cape (2 000).

Manufacturingemployment❏ Employment levels in the manufacturing sector

have been in a structural decline since the mid-1990s, largely due to a gradual loss of international competitiveness and increased mechanisation.

❏ The deployment of a range of new procurement policy levers has included designations for local procurement, deepening of localization.

July 2013NEC Lekgotla Bulletin

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❏ As a result, rolling stock (rail), power pylons, bus bodies, canned/processed vegetables, textile, clothing, leather and footwear, pharmaceuticals, set-top boxes for digital television migration, and furniture products have been designated for local procurement.

Automotives❏ New investments and developments in the sector

include the Friedrich Boysen gmbh R180m investment in a new 10,000m2 plant

❏ BMW SA introducing a 3rd shift at its Rosslyn plant, and Mercedes Benz SA has begun the recruitment drive for 600 new positions in preparation for production of the new C-class.

❏ The incentive has had an almost immediate impact with Beijing Automotive Works (BAW) investing

R196m in a taxi assembly plant for the SA/sub-Saharan markets.

❏ Toyota SA opened a new Ses’fikile tax assembly line in Durban along with a new R363m investment in a parts distribution warehouse – the largest in Africa.

❏ In addition, Chinese automotive company First Automobile Works (FAW) has commenced with the construction of a truck plant at the Coega IDZ in the Eastern Cape Province.

Metalsfabrication,capital&railtransportequipment

❏ This sector is the bedrock of industrial capacity.

❏ For example, PRASA awarded a 10-year contract to build 3 600 coaches to Gibela Rail Consortium in December 2012 and this is set to achieve 69% local

July 2013NEC Lekgotla Bulletin

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content over the duration of the contract.

❏ Transnet Freight Rail issued a Request for Proposals (RFP) for procurement of 1 064 locomotives (599 dual-voltage electric and 465 diesel) as part of its R300 billion, seven-year capital investment programme with a local content requirement of 55% (diesel) and 60% (electric).

❏ The Eskom amorphous transformers tender was awarded to local manufacturers with an 80% local content requirement.

❏ The scale of these contracts and the local content requirements are having a profound impact on the investment outlook.

Clothing,Textiles,LeatherandFootwear(CTLF)❏ The CTLF sectors have endured a difficult decade

of high imports, low growth, low investment and increasing job losses.

❏ The CTCP has over just 2 years, precipitated a remarkable turnaround in the sector with production stabilised, and the job losses, which had become a common feature of the sector, comprehensively reversed.

❏ Approximately 12 205 new, decent permanent jobs have been created in the sector as a direct result of the CTCP.

MiningEmployment❏ In the short-term, mining employment has risen from

491 000 in the first quarter of 2010 to 514 000 in the first quarter of 2013.

❏ This represents and increase of about 23 000 people.

❏ However, the mining sector continues to face significant headwinds including, among others, slowing global demand for mining commodities, marked declines in a range of commodity prices, as well as rapidly rising input costs.

AgriculturalEmployment❏ Growth in agricultural employment has been

particularly impressive in the last two years.

❏ In the year to the first quarter of 2013, agricultural employment climbed more than in any other year in the past three decades.

❏ The number of people employed in overall sector reached 740 000 in April 2013, compared to 640 000 in October 2010.

❏ Virtually all of the employment gains appear to have taken place amongst farmworkers on commercial farms.

❏ Growth was fairly evenly spread across crops, cattle and forestry. Figures are given for the first quarter in order to avoid seasonal differences.

July 2013NEC Lekgotla Bulletin

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PublicEmploymentSchemes❏ The Expanded Public Works Programme (EPWP)

created 209 000 full-time equivalents in 2010, rising to 251 000 in 2011.

❏ Most work opportunities last two to three months, however, and links to longer-term opportunities in training and careers are not sufficiently developed.

❏ The Community Work Programme (CWP) started in 2010 and now has 90 000 participants

❏ Rapid CWP growth has however brought organisational challenges. It is important to sustain the decentralised, community-based model while expanding the payments systems.

❏ The Jobs Fund set aside R10 billion over three years from 2011 for partnerships with private and public programmes to create jobs and improvement placements for young people.

❏ By the end of 2012, it had approved R3 billion and disbursed R116,3 million. Contracts with partners include commitments to create 65 000 jobs.

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SOE’sandSkillsFormation

ESKOM❏ Eskom has also leverage

significant skills development commitments from suppliers. They have achieved over 7000 skills committed by their suppliers.

❏ With Eskom. Since inception of the respective contracts till end of December 2011 there were 5151 people who had completed their training at various training site throughout the country against a commitment to train 7214 people.

❏ The skills types include:■ Engineers■ Artisans■ Technicians■ Quality Control Inspectors■ Safety Officers■ Construction Managers■ etc.

WayForward❏ IDC and SEFA ring-fenced R1,7 billion

over the next five years to support young entrepreneurs.

❏ National Treasury is developing a wider incentive that will also cover youth and special economic zones.

❏ The National Infrastructure Plan foresees substantial progress across the build programme, with gains anticipated in particular in improving rural productive and service infrastructure; green energy; education and health facilities; the long-haul transport corridors; and the African North-South Corridor.

❏ The localisation programme will continue to encourage new investment in productive capacity, especially for trains.

❏ The IPAP planning approach is being expanded to agriculture, which is developing an Agricultural Policy Action Plan, and to minerals beneficiation.

❏ The public employment schemes expect to grow to around two million participants by mid-2014.

❏ Deal with issues of security of supply in electricity, coal and petrochemicals.

❏ SMME and Co-op support: The state should have a one-stop small business agency, covering all three spheres of government, and both funding and support, coordinated through the IDC. Greater incentives for collective ownership and support for SMMEs through BBBEE Codes.

❏ Rural livelihoods improved based on improved infrastructure to open new opportunities with more budget and other support for employment in agriculture, including a new subsidy scheme for rural employment

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■ Presentation by NHLANHLA NENE

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Education and HealthEmployment, economic growth, youth development and infrastructure – NDP 2030

■ Presentation by NALEDI PANDOR

INTRODUCTIONA detailed report has been submitted to Lekgotla. It provides:1. A review of and progress reports on the

implementation of resolutions of the 52nd and 53rd National Conference plus decisions of the 2013 January NEC Lekgotla.

2. A general report of the Subcommittee on Education and Health.

3. A report of sectors on the implementation and review of resolutions of the 52nd and 53rd National Conference plus decisions of the 2013 January NEC Lekgotla. These sectors are:3.1 Basic Education.3.2 Higher Education and Training.3.3 Health3.4 Science and Technology.

4. Detailed sectoral reports on staffing, jobs, economic growth, youth development and infrastructure delivery plus maintenance.

The focus of this presentation is:❏ Progress on work done in completing the mandate of

2009.

❏ Plans for the next nine (9) months.

❏ Proposals for the 2014 Election Manifesto.

PROGRESSREPORTBYSUB-COMMITTEE❏ The Subcommittee carried out its mandate to

ensure that relevant ANC resolutions that emanated from the 52nd and 53rd National Conferences are implemented.

❏ The Subcommittee provided and continues to provide leadership to its constituent sectors in the translation, formulation and implementation of ANC policy.

❏ The Subcommittee continues to monitor and evaluate the work of its sectors.

❏ Communication has been sent to PECs to ensure the existence and active involvement of PEC Subcommittees on Education and Health in the work of the ANC.

❏ Limited work has been done to activate branch subcommittees and to engage plus evaluate the work of ANC Study Groups in Local Government Councils, Provincial Legislatures and Parliament.

Plansforthenext9months:SUBCOMMITEE❏ The Subcommittee awaits reports from provinces

on the establishment of PEC Subcommittees on Education and Health.

❏ Plans are in place to facilitate sectoral workshops and key campaigns on education, health, science, technology and innovation by the ANC and its leagues.

❏ The Subcommittee plans to improve communication between subcommittees and the membership of the ANC.

Progressreport:BASICEDUCATION❏ In improving access to education, government is

serving 12 428 069 million learners in 25 826 schools has 425 167 teachers countrywide, a considerable increase from 1994 and 2009.

❏ The attainment of greater equity, public spending on Early Childhood Development (ECD)..

❏ An increase in attendance at schools,

❏ The establishment of the National Education Evaluation and Development Unit (NEEDU),

❏ The refinement and expansion of the Mathematics, Science and Technology strategy.

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❏ The implementation of the revised curriculum, the Curriculum and Assessment Policy Statement (CAPS).

❏ Re-introduction and regular publication of Annual National Assessments (ANAs).

❏ Improvement in results of Trends in International Mathematics and Science Study (TIMSS) 2011 and the International Reading Literacy Study (PIRLS).

❏ Provision of workbooks to all learners in Grades 1 to 9, plus supplementation of this with workbooks for life skills and language in Grade 1 to 3.

❏ Stabilising the National Senior Certificate Examination and progressive improvement of pass rates to 73,9% in 2012.

❏ Improvements in the qualification levels of teachers from 53% in 1990 to over 96% in 2012;

❏ Improvements in LTSM coverage estimate of 45% in 2007 to 80% in 2012;

❏ Improvement of learner well-being through the National School Nutrition Program (NSNP);

❏ Improvement of numeracy and literacy.

❏ The approval of Norms and Standards for Basic School Functionality.

❏ The launch of the Education Collaboration Framework (ECF) and the Education Collaboration Trust (ECT) on 16 July 2013 to align and implement the NDP 2030 imperatives in the education sector.

Plansforthenext9months:BASICEDUCATIONPresent an analysis of progress or lack thereof in improving the state of education quality and infrastructure of rural village schools and township schools.

The sector has prioritized the following:❏ Align DBE plans to the NDP 2030.

❏ Improve the low Matric pass rate in the Eastern Cape.

❏ Improve budgeting and expenditure management.

❏ Ensure compliance with policies and procedures plus delivery plans.

❏ Improve the provision of Learners and Teachers Support Material (LTSM).

❏ Implement the Accelerated Schools Infrastructure Delivery Initiative (ASIDI) and the adopted comprehensive infrastructure plan as a Special Infrastructure Program (SIP) in the Presidential Infrastructure Coordinating Committee (PICC).

❏ Intensify the implementation of the national process to monitor policy compliance in respect of teachers, text and time (TTT) in collaboration with various stakeholders and communities.

❏ Implement Post Provisioning Norms (PPNs) in all provinces.

❏ Develop a multi-year perspective on the improvement of teachers’ conditions of service.

Ensure credible teacher development and develop teacher development curricula centrally.❏ Improve accountability at all levels of the education

system.

❏ Adequately resource schools for learners with special needs.

❏ Implement programs to encourage greater involvement of parents in the education of their children.

❏ Propose to the NEC a policy change to return to the practice of grading and central allocation of posts of members of the Senior Management Service.

❏ Table a proposal to make history compulsory.

❏ Submit a detailed policy proposal on free basic education.

❏ Design policy and legal framework that will result in

the centralization of textbook procurement and provision.

❏ Implement effective long-term planning.

❏ Embark on campaigns to get ANC branch participation and to mobilize communities to support the ANC and government in their efforts to improve the quality of education.

Progressreport:HIGHEREDUCATION&TRAINING❏ The sector has made great strides towards fulfilling

the mandate of the sector is to establish a single, integrated, coherent and well-articulated post-school system and the expansion of post-schooling provision to improve access.

❏ Further Education and Training (FET) student headcount enrolments increased by 90% from 345 566 in 2010 to 657 690 in 2012.

❏ Student headcount enrolments at universities increased by 12% from 837 779 in 2010 to 938 200 in 2011.

❏ NSFAS student bursary funding at FET Colleges and universities increased from R2.518 billion in 2010 benefitting 210 090 students to R5.681 billion in 2013 targeting 432 817 students.

❏ The expansion and strengthening of teacher

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education resulted in an increase from approximately 6 000 new teacher graduates in 2008 to 10 361 in 2011.

❏ Work is being done to strengthen institutions to improve quality:

❏ Work towards the establishment of two new Universities is progressing well. Interim Councils for both universities have been appointed. The target date of commencement of construction remains September 2013.

❏ The College Improvement Project in the Eastern Cape and Limpopo.

❏ Continuous student leadership capacity development initiatives are underway.

❏ Programs are being implemented in FET Colleges to improve student performance.

❏ Student accommodation: R1.652 billion is earmarked for student housing over the period from 2012/13 to 2014/15 with R1.413 billion ring-fenced for historically disadvantaged institutions or campuses.

❏ Further Education and Training Colleges: 12 FET campuses have been prioritized for refurbishment or building of new structures, including student residences. R2.5 billion is committed for this intervention.

❏ All government departments must creatively use FET colleges for infrastructure maintenance and skills development.

❏ Priority is being given to Historically Disadvantaged Institutions

❏ The Public Sector Education and Training Authority (PSETA) is being strengthened and repositioned to play a more effective role in skills training for public service.

❏ Community Service for Graduates: The implementation of Community Service for all graduates will, if managed well, contribute to higher employment rate for graduates from the post-schooling system.

❏ Internships and Work-Integrated Learning: will be expanded through the intake of interns and students into the public service, municipalities and SOEs.

❏ The ANC should support a campaign to make “Every working place a training space!”.

Plansforthenext9months:HIGHEREDUCATION&TRAINING❏ New Universities: Construction is set to start in

September 2013.

❏ Unbundling of MEDUNSA from the University of Limpopo and the building of a medical school in

Limpopo: The unbundling is proceeding and the first intake of students for the UL is scheduled for January 2015.

❏ Alleged irregularities in the awarding of professorships by some HEIs: A report will be submitted to the NEC on corrective measures taken to stop the practice.

❏ Extending the provision of free education: The Subcommittee will submit the final report to the NEC for adoption before the end of 2013.

❏ Promoting research and development: S&T and HET are developing a final policy document on the Policy and Procedures for Measurement of Research Output of Public Higher Education Institutions. This will be finalized in 2013.

❏ A process to ensure that Skills Development Levies are paid by all Government departments is under consideration by the DHET.

❏ Intensifying the Campaign against Corruption.

❏ Internship: The DHET will propose a central coordination of internship that must be monitored or controlled in all departments throughout all levels of government.

❏ Student accommodation in the post-school system is going to be addressed. Funding will be sourced through the normal government processes, as well as through other funding agencies.

❏ Transformation of Higher Education Institutions (HEIs): Councils and governance structures of these institutions will be evaluated against transformation targets. Other models of training will be explored to make the system agile and flexible.

❏ Quality Assurance in Colleges: Focus will be on Quality Assurance in colleges, especially as it relates to curricula and training.

❏ Many other initiatives are underway, such as the revitalization of the academic profession, and supporting the training of veterinary science graduates.

Progressreport:HEALTH❏ Fight against HIV, AIDS and TB: The most profound

achievement is an increase in life expectancy from 56,5 years in 2009 to 60 years in 2011.

❏ The number of people dying from AIDS decreased .

❏ There is a 50% decline in the number of children aged 0-4 years who acquired HIV infection between 2006 and 2011.

❏ A 50% decrease in the number of people acquiring HIV infection, from 700,000 in the 90s to 350,000 in 2011.

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❏ Successes of prevention efforts were attained through the national HIV Counselling and Testing (HCT) Campaign. The cost of treatment has been reduced .

❏ Tuberculosis (TB): The department embarked on the largest rollout of GeneXpert technology to deal with TB and the challenge of the co-morbidity of HIV & AIDS and TB with more than 1.3 million tests were conducted between March 2011 and March 2013. The TB cure rate in South Africa has increased to 73, 1% in 2011/12 and the TB defaulter rate has continued to decrease.

❏ Malaria interventions: South Africa’s anti-Malaria program is an example of excellence. It reduced cases of Malaria infections and deaths.

❏ Non-Communicable Diseases: South Africa introduced the most progressive laws on tobacco, salt and trans fatty acids. Prevalence of smoking among adults and the youth has declined.

❏ Substance abuse: This is major impediment to development, with significant health impacts on all four of South Africa’s quadruple burden of disease areas. A range of interventions have been agreed upon for implementation in 2013/14.

❏ Mental health: The department prioritized mental health, convened a stakeholders’ summit and developed an action plan, which is being implemented.

❏ Improving Quality of Care: The National Health Amendment Bill, which provides the legal framework for the establishment of an independent Office of Health Standards and Compliance, was approved by Parliament. It is awaiting the President’s signature to become law. In preparation for the establishment of the Office of the Inspectorate, a total of 27 inspectors were trained. A total of 263 public health facilities and district offices have been inspected to date.

❏ Health improvement plans have been developed for facilities.

Plansforthenext9months:HEALTH❏ In NHI Pilot sites and districts, use the results

of assessments conducted to improve human resources, the range of services rendered against the PHC package, improve physical infrastructure and services, improve system and process elements; and ensure the availability of essential equipment, medicines and supplies.

❏ Implementation of the NHI Hospital Management Improvement Strategy.

❏ Empowering CEO’s through providing a contingency

budget for emergency procurement within the AO System regulatory framework to ensure rapid procurement and delivery of non-negotiable items on an urgent basis.

❏ Increase direct procurement and delivery from suppliers to the Central, Tertiary, Regional and Specialised Hospitals.

❏ Free up the Pharmaceutical Depots to deliver more effectively to District Hospitals and Primary Health Facilities.

❏ Establish permanent management structures to ensure continuous monitoring and management of availability of non-negotiable consumables and equipment.

❏ Building partnerships with communities and users of services.

❏ Achieving quick and building partnerships with NGOs and CBOs around the delivery of chronic medicine and other programs to improve service delivery.

❏ Use mass media proactively to influence people towards positive healthy behaviour.

❏ Promoting effective communication to the members of the public through local structures including Hospital Boards and Clinic Committees.

Progressreport:SCIENCE&TECHNOLOGY❏ Creation of a Unitary Research and Innovation

Budget. The DST is of the view that a robust NSI requires that

DST have legislative powers for the management of the state-funded portion of the NSI to enhance coordination. The DST supports the implementation of a Unitary Research and Innovation Budget linked to the MTEF to serve as a critical tool for Ministers with STI activities to assess relative spending priorities on a multi-year basis across the full spectrum of government’s activities in support of innovation; and to provide Parliament with a better overview of the range of government allocations in support of STI activities.

❏ Investment on Research and Development South Africa needs an increase in gross expenditure

on research and development (GERD) to address the challenges facing the SA national system of innovation (NSI), such as science and technology (S&T) advances requiring high-level human capital and research infrastructure; maintaining and strengthening South African public science research institutions that focus on priority areas; and to consolidate and exploit the gains made in recent years in, e.g., nuclear research, biotechnology, advanced

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materials, defence technologies, aerospace and Information and Communication Technologies (ICT).

❏ State-owned pharmaceutical company The growth and development of the South African

pharmaceutical industry would result in this sector contributing significantly to the country’s GDP. The DST led the process of establishment of Ketlaphela in February 2012 to work towards the creation of a fully local pharmaceutical manufacturing entity focusing mainly on the manufacture of Active Pharmaceutical Ingredients (API’s) for Anti-Retroviral Medicines (ARVs) in South Africa. With Ketlaphela, the country will establish local manufacturing capacities including necessary skills development for the most needed drugs and to support the critical requirement of having national in-house production and security of supply.

❏ The Square Kilometre Array (SKA) The most significant development in the SKA

South Africa programme has been winning the bid to host the SKA by being awarded 70% of the radio telescope. The SKA now forms part of the Strategic infrastructure Project s as SIP 16 in the PICC. Construction of the MeerKAT foundations will commence shortly.

❏ Technical and scientific assistance to the African VLBI Network (AVN)

The AVN received R120m from the ARF (DIRCO) to develop radio telescopes and associated human capital in our African partner countries.

❏ Governance of Science Councils Recommendations on the appropriate model for

financing, governance of the Science, Technology and Innovation will be processed and be tabled to the Subcommittee on Education and Health.

Plansforthenext9months:SCIENCE&TECHNOLOGY❏ The DST Infrastructure Program

❏ Square Kilometre Array and the MeerKAT

❏ Science and Technology will implement infrastructure programs related to the Square Kilometre Array (SKA),

❏ Southern African Large Telescope (SALT) and South African National Research Network (SANReN) which are classified as the DST infrastructure mega projects. The South African SKA Project will also pursue the “Youth into Science and Engineering Programme” to develop highly skilled young scientists and engineers

❏ Ketlaphela: Approximately 3800 jobs will be created during the construction phase of Ketlaphela.

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REPORT ON INFRASTUCTURE ROLL-OUT■ Presentation by EBRAHIM PATEL

INTRODUCTIONInfrastructure implementation, planning and coordination has become a major focus of the ANC administration, particularly from 2011 with the launch of the Presidential Infrastructure Coordinating Commission led by President Zuma. It provides a platform to support all the existing ANC government’s priorities on jobs, education, healthcare and rural development.

There a number of key achievements that can be celebrated. These include:❏ Projects that have been completed and where we

can measure the impact directly in the water, energy, roads kilometres, number of schools, etc., that have been completed. Citizens and the economy can access these services. This will be covered in Part 1.

❏ Projects that have commenced construction where the immediate fruits are in the jobs created but the projects will be completed in the next administration. This will be covered in Part 2, focussing on areas where we can make announcements in the next seven months as well as key decisions that need to be taken.

❏ The development of a 30 year project pipeline that now lay the foundation for the next six administrations and assist with longer range planning and coordination between infrastructure, skills, funding and industrialisation. From this pipeline, we will extract what is capable of being put forward as the programme of the next administration.

Part 1: What we can celebrate as our achievementsThis section covers only part of our achievements, focussed mainly on areas where projects have been brought to conclusion. However, infrastructure projects in many cases only reach full completion over many years, stretching beyond one, sometimes two administrations. Part 2 will identify a number of projects under construction that can be reported back to our people positively.

Implementation and spendingWe have made great strides in developing stronger implementation capacity, though big challenges remain to be addressed. Through the PICC, the bulk of the state’s infrastructure programme is now being monitored on a

quarterly basis, looking at spending levels, construction activity, jobs and localisation. Over the five year period of this administration, we expect that total infrastructure spending would have risen to R1 trillion, compared with R451 billion in the previous five years.

Energy provision for our people and for workplacesUnder this administration, 1 693 megawatts of new energy were brought onto the grid, through the taking Power Plants out of mothballs and refurbishing them. These include the Camden, Grootvlei, Arnot, Komati power stations and enhancement at Koeberg nuclear power station. Significant progress has been made with the largest new power station build in South African history, with the simultaneous construction of three major power stations that will bring a vast increase to the country’s energy supply.

Medupi Power Station in Limpopo, comprising 6 units, will generate 4 764 MW of energy. The 1st unit of 794MW of energy will added to the grid during 2014, which will provide a big boost to the country’s energy supply.

Kusile Power Station in Mpumalanga, comprising 6 units, will generate 4 800MW and is currently under construction and has now crossed the 14 000 employment level on site near Witbank.

Ingula Power Station on the border between KZN and Free State, comprising 4 units, is 70% complete and will provide 1 352MW of hydro-based energy when it comes on the electricity grid.

We have initiated Africa’s largest green energy programme during this administration, with approval of green energy plants that will generate solar and wind energy roughly double that of Joburg, sub-Sahara’s single largest user of electricity.

In order to take the energy to South African homes and workplaces, we have laid more than 3 500 kilometres of new transmission lines, built new sub-stations and transformers.

Over the five years, we will have connected just over one million new households to electricity, with benefits to more than four million South Africans and bringing the number of new electricity connections over the past 20 years to more than 5,6 million households.

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In less than five years, we have installed (by March 2014) half a million solar water heaters on rooftops of South African homes, mainly for people who previously had no access to running hot water. This is one of the most ambitious programmes in the world.

Water and sanitation Two new large dam projects were completed in the past five years, bringing 126 million cubic meters of new water into our water systems.

This was done through the building of a new dam at De Hoop on the Oliphants River in Limpopo and expanding the wall of the Spring Grove Dam off the Mooi/Mgeni rivers in KZN.

To ensure we can shift water to industrial developments so that energy can be supplied and jobs created, two large new water pipelines were completed.

From the Vaal Dam, a 121 km pipeline was laid to Knoppiesfontein near Secunda for use by Eskom and Sasol.

From the Rietfontein weir, a 68 km pipeline was laid to provide water to the Duhva and Matla power stations.

[Current information shows that 1.3 million new households will have been connected to decent sanitation systems in the past five years.

Transport – road and rail – construction and modernisation of the train fleetOver the past five years, more than 2 000 kms of new road capacity has been built, in many cases through widening the main highways used by motorists. More than 12 000 kms of roads have been strengthened and improved. Basic maintenance such as fixing potholes, has been done on more than 25 000 kms of roads.

Construction has started on the first large new rail lines since the 1980s, in Mpumalanga to help to shift transport of coal from roads to rail in order to protect the road network.

Over the past four years (to March 2014), we have bought more than 3 400 new train coaches or wagons and more than 140 locomotives, many which are now being manufactured locally to create jobs and expand industrial capacity.

Urban integration to make the lives of workingpeopleeasierA major programme of construction is under way to integrate urban centre through an integrated public

transport system, with nationally provide funding and implementation at metro level.

Joburg has launched the first phase of the Rea Vaya system.

Cape Town has introduced the MyCiti system which will be completed over the next few years.

Construction has started with new transport systems for Tshwane, Rustenburg and Nelson Mandela Bay.

Ports and airports to connect SA to the rest of the worldUnder this ANC administration, the country’s harbours and ports have been improved.

The Port of Ngqura was completed and its container terminal opened.

The expansion of the Durban harbour entrance channel was completed and work is now continuing in other parts of the harbour.

The Cape Town harbour terminal was expanded.

The PE manganese terminal was refurbished.

Our airports have become world-class, with the completion of the new airport in Durban (King Shaka International), expansion of terminals in Joburg (OR Tambo International) and Cape Town, as well as a new runway at the Mthatha Airport. The Gautrain link with the country’s largest airport was opened two years ago.

Pipeline to secure the supply of fuel A major new fuel pipeline is under construction from eThekwini to Gauteng to move petrol, diesel, light gas oil, kerosene and aviation fuels to the industrial heartland of the country.

Over the past three years, the pipeline has achieved a capacity of 4,3 billion litres a year.

Broadband for information and communication technologiesWhile much more needs to be done, in the past five years, more than 30 000 kms of fibre-optic cable was laid.

This has provided the basis for a massive expansion in the ICT sector in SA and provides the basis for significantly greater access to the Internet by millions of South Africans, through fixed-line and mobile connections.

Education – schools and universitiesThis administration has built more than 350 new schools, many of these in rural areas where they are replacing mud schools.

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The first new universities will be constructed from 2013, bringing such higher education facilities to Mpumalanga and Northern Cape for the first time.

Many FET colleges have expanded their facilities, though much needs to be done to catch up with a vast increase in student enrolment over this period.

HealthOver the past five years, 300 new health facilities have been built. These include 160 new clinics that have been built. Ten new hospitals have been built, in Ladybrand, Germiston, Mamelodi, Natalspruit, eThekwini (King Dinizulu), Zola (GP), Bojanala (Moses Kotane), Vryburg District, Swart Ruggens Old Hospital, Khayelitsha and Mitchell’s Plain.

Additional medical facilities and community health centres have been completed.

Jobs and industrialisationThe infrastructure programme of government is a large creator of new jobs. The two largest power station build programmes in the country employ more than 14 000 workers each, at Medupi and Kusile.

In all, there are more than 170 000 jobs in the main infrastructure projects coordinated by the PICC.

Some successes have been made to produce infrastructure components locally. These include progress with the manufacture of busses, train coaches and locomotives, solar-water heaters, condenser units for power stations and other equipment.

Part 2: What do we need to do in the next seven months

CommunicationandannouncementsThere are a number of projects that are announcement ready, meaning that a decision has been made on a major new project, or work has started, or a phase of work has been completed or a project has been fully completed. Where possible, the President should lead the announcement through a set of provincial visits coordinated with community mobilisation.

An initial list of these is reported below and this will be regularly updated.

Mpumalanga❏ Start of the Majuba rail construction: this is ready

for announcement and workers are now doing site clearing.

❏ Camden Power Station return to service. This is ready for announcement.

❏ Grootvlei Power Station return to service. This is ready for announcement.

❏ Komati Units 1 and 2 return to service. This is ready for announcement

❏ Komati Water Augmentation system is completed. This is ready for announcement

❏ University construction in Nelspruit: will commence October 2013

❏ Kusile Power Station: celebrate the employment of the 14 000th worker on site. This is ready for announcement.

❏ Bloemendal bulk water project in Delmas: ready to be launched

❏ Opening of soya crushing plant where bulk infrastructure has been provided October/November 2013.

Limpopo❏ Dam at De Hoop is complete and is ready for

impounding (collecting of water)

❏ Medupi Power Station: the leadership initiative to provide work for employees made redundant as parts of the project is completed

❏ New coal power plant: announcement to be made

❏ Mokolo Crocodile Water pipeline to Waterberg: announcement to be made of the project

❏ new Polokwane Smelter Interchange road (28-R37) completed in June 2013.

Northern Cape❏ Opening of world’s largest manganese sinter plant in

Hotazel: August 2013

❏ Construction of 50 MW solar plant in Upington with industrial production of mirrors: visit for towers and mirrors: October 2013 and January 2014

❏ University construction in Kimberley: will commence in September 2013

❏ SKA Project: first MeerKAT dish active: November 2013

❏ Expansion of rail for iron-ore mining: currently scheduled for April 2014, consider moving it forward.

Eastern Cape❏ Mandela Bridge, primary school, high school, clinic

and road in Mvezo ready for announcement, though school will open in January 2014

❏ Mthatha airport runway: ready

❏ 49 Asidi schools: most ready for announcement

❏ N2 Wildcoast highway: announcement of project is possible.

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❏ Mzimvubu Dam: announcement by January 2014

❏ Wind farms: visit to construction site

❏ Biofuel refinery: announce progress with Cradock project.

Gauteng❏ Joburg public transport: Rea Vaya Phase 1B from

Soweto to the city centre will be operational from mid-October 2013

❏ Announcement of first locally-manufactured buses for Rea Vaya

❏ Tshwane rapid transport: announcement of the start of the first phase with a letter to residents setting out the plan as a whole

❏ Aerotropolis plan around OR Tambo airport: announcement by the President of the consultants phase to complete a Business Plan

❏ Solar water heaters installed on house roof tops: 120 000th solar water heater installed in Gauteng by the end of 2013. (This may increase significantly if the Joburg rollout takes place as planned).

❏ Acid Mine Drainage: Construction of the pump station and neutralisation plant for the Central Basin completion by January 2014

❏ City Deep terminal: visit to construction site

❏ Sedibeng Sanitation Scheme: launch of the implementation plan by Rand Water

❏ Opening of Zola Hospital: December 2013/January 2014

❏ Opening of Natalspruit Hospital: September/October 2013.

Western Cape❏ Clanwilliam Dam construction: launch of the start of

construction to extend the wall of the Dam on the West Coast.

❏ Saldanha IDZ and back-of-port development and rail upgrade (Phase 2 rail & port): subject to Cabinet approval of IDZ

❏ MyCiti BRT rollout of Phase 1A by December 2013

❏ Solar water heaters installed on house roof tops: 55 000th solar water heater installed in W Cape by November 2013. This number may be increased to 60 000.

❏ First locally-produced bus for the MyCiti BRT: President to launch new buses produced in partnership with the IDC

❏ Broadband Initiative: possible announcement of broadband rollout date by City of Cape Town by November 2013.

❏ Handover of one of the 26 new schools in the build-programme during 2013

North West❏ Solar water heaters installed on house roof tops: 11

000th solar water heater installed in North West by November 2013

❏ Household electrification: launch of 660 000th household connected with electricity in N West since 1994. Provisional date September/October 2013.

❏ Launch of R54 to East Driefontein Road: August 2013

❏ Launch of Reconstruction of 38km road from Delareyville to Sannieshof by February 2014.

❏ Maintenance of N14 (Section 9 to 13): expected completion April 2014

❏ Rustenburg housing programme: announcement of house building programme.

Free State❏ Opening of new Ladybrand Hospital: 1 October 2013

❏ School Hostels & 20 ASIDI Schools

❏ Household electrification: launch of 370 000th household connected with electricity in Free State since 1994. Provisional date January 2014.

❏ Solar water heaters installed on house roof tops: 35 000th solar water heater installed in Free State by November 2013. (Possibly work to achieve 40 000 through fast-tracking)

❏ N8 Airport Development Node Project: symbolic national activity to coincide with sod-turning that took place in April 2013

KwaZulu Natal❏ Durban Pier 2 construction: Construction commence

April 2014

❏ Mooi Mgeni Dam: Water delivery April 2013: ready for announcement

❏ Ingula Power Station: 70% Construction mark expected October 2013

❏ Cornubia: Announcement of completion of 450th house

❏ Durban Dig-out Port: Announcement of 1st of 3 phases of feasibility outcome September 2013

❏ Mthonjaneni Pipeline: Launch 16 August 2013.

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Decisions and areas of focus over the next seven months

In addition to these announcables, there are also key decisions and focus areas that will be required in the next 7 months. These include:

1. Mzimvubu Dam: accelerate the planning process to ensure that initial site clearing works commence by January 2014 and construction commences in June 2014. This will require detailed work to ensure that such accelerated deadlines are viable.

2. Water and sanitation: finalise decision on a single agency to drive implementation of water and sanitation programmes, using an existing agency as the platform.

3. Sanitation: complete work on targets for sanitation for the next five years.

4. Water pipeline in Waterberg: issue directive to TCTA to implement phase 2 of the Mokolo Crocodile Water Augmentation Project, which will deliver 110 million cubic metres of water per annum.

5. Energy generation: a decision should be announced within the next two months on approval of a new coal-fired power station to allow Eskom to begin planning for the project.

6. Energy build programme: introduce tight management of the Medupi and Kusile Power Station build programmes with immediate effect, with monthly reports to the PICC and a special capacity in Eskom to manage challenges and difficulties.

7. Electricity household connections: expand household connections from the current annual average of 200,000 to 270,000 in the current financial year, using the additional monies made available in the Budget.

8. Solar water heaters: the current programme should be scaled up substantially during the next seven months, with monthly monitoring, and the initial target of one million SWH must be adhered to and then expanded to the second million SWHs.

9. Road maintenance programme: the current arrangement for SANRAL to be the implementing agency for provincial roads which applies in E Cape, Gauteng and North West should now be extended to Limpopo, Free State, N Cape and Mpumalanga.

10. Roads: finalise approval of R2 billion to commence construction of two main bridges for the start of the new N2 Wildcoast Highway.

11. Hospitals: to rapidly progress the building of the six mega hospitals, finalise the MoUs between the DoH and Gauteng, E Cape, KZN, Limpopo and Mpumalanga to ensure centralised implementation of the hospital build programme AND finalise the funding mechanisms through the PICC and Cabinet.

12. Schools: intervene decisively to reduce delays in the school build programme, including the ASIDI schools, with water, sanitation and electricity, in order to reach the minimum targets for this year of at least 128 schools and introduce innovative building technologies to speed up the pace of delivery.

13. University accommodation: commence a partnership with the private sector for the building of an initial 10 000 beds for students through residences at a rural and an urban university, using innovative building technologies in whole or in part.

14. Skills Plan: Finalise a partnership agreement with universities and FET colleges and develop skills targets (artisans and engineers) for all new build programmes by State Owned Companies and their contractors. Finalise work on a new subsidy and bursary programme for scarce skills needed.

15. Funding: finalise a new system for multi-year budgeting for infrastructure at local, provincial and national levels, and introduce it from February 2014

16. Maintenance: finalise a maintenance framework for the entire infrastructure programme by February 2014, identifying the policy requirements (e.g. ring-fenced monies), reporting arrangements and backlogs.

17. Construction cartel: coordinate at national level a claim against the construction companies implicated in corrupt activities through the cartel

18. Fast-tracking implementation: address industrial relations challenges on the infrastructure build programme through discussions at Alliance level and a compact with unions, contractors and the state.

19. Regulatory issues: finalise the Infrastructure Development Bill and the changes in money bills to ensure a coordinated, streamlined and effective system for infrastructure development.

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Performance Monitoring and Evaluation■ Presentation by COLLINS CHABANE

Introduction❏ DPME produces a range of M&E reports:

■ Reports on progress against the 12 outcomes■ Mid-term review of progress against the

outcomes■ Development indicators■ Reports on the quality of management practices

in national and provincial departments and municipalities

■ Reports on the results of monitoring of front-line service delivery

■ Evaluation reports■ Currently working on the 20 year review

❏ This presentation focuses on progress against the five priorities of education and skills, health, crime,

jobs, and rural development; plus local government and basic services.

❏ Presentation focuses on a limited number of key targets per priority■ How we are doing■ Whether or not government’s 2014 targets will be

achieved■ Analysis of progress or lack thereof

❏ Targets are from the delivery agreements which were signed in 2010, between the departments who need to work together to achieve an outcome

❏ Presentation is based on administrative data from departments and from national statistics (this is how it should be to avoid duplication of monitoring and reporting).

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Curriculum Coverage

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Contact and trio crimes

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Court cases finalised with a conviction or acquittal

Fighting corruption

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REPORTS FROM THE COMMISSIONS ■ EDUCATION AND HEALTH

1. Introduction:Politicalimperativesofthesector1.1 The Commission noted the political overview by

President Cde Jacob Zuma and the address by Secretary General Cde Gwede Mantashe. Contents of all other presentations made at Lekgotla were also noted.

1.2 The ANC resolved in 2007 that education and health must be prioritised as core elements of social transformation. The overarching vision that informs ANC education policy is People’s Education for People’s Power, and that includes the mandate of the ANC to establish and sustain a single, coherent post-school education and training system, which is integrated, differentiated, articulated and responsive to the needs of the country. The ANC has also prioritized science, technology and innovation. In addition, our country needs a healthy population for productive and sustainable development.

1.3 The education, health, science and technology sectors have aligned their programs to the 2009-2014 Ten Point Program and Plan of the ANC and the NDP 2030.

1.4 This report reflects on most of the issues raised in the commission and the report back to plenary. Other aspects are dealt with comprehensively and in detail in the introductory presentation made at plenary and the written report that has been circulated to Lekgotla.

2. The Economic Recovery Commission:2.1 The Commission discussed the issue of the Economic

Recovery Commission with the view of advising the leadership on proposals of the content of the work of the commission and on complementing the work of the Presidential Infrastructure Commission (PICC). The commission also discussed the Quality of the Public Service.

2.2 The Commission supports the establishment of a committee or team that could be a made up of a few selected members. This committee or team should not be a replication of any existing structure, e.g. NEDLAC.

2.3 The committee must be in government. It must have the ability to consider issues and to move fast. The committee should serve as a think tank or task team that would advise the President.

2.4 The Commission is of the view that the choice of a name for the committee should be given serious thought, as the chosen name of the Economic Recovery Commission could send different signals to the public about the intentions of the ANC on its move to appoint such a commission. One of the names suggested for the committee is The Presidential Economic Intervention Team.

2.5 The Commission proposes that a meeting of the ANC NEC Officials and Ministers in the Economic Cluster should be convened to get synergy and uniformity in the sector.

2.6 The committee or team should be able to facilitate discussions and propose interventions in a variety of fields such as mining and labour.

2.7 The team should also be able to facilitate discussions on issues such as revolutionary trade unionism, which includes working together to take the country forward and combating anarchy; and subjects such as shaping the patriotic bourgeois. The committee must complement the work of existing structures such as the Presidential Infrastructure Coordinating Commission (PICC).

2.8 Main issues that were identified for attention are:2.8.1 Information and Communication Technology

(ICT) bandwidth and connectivity. 2.8.2 Redirecting resources to addressing

economic issues.2.8.3 Unlocking resources to invest in job creation

and infrastructure.2.8.4 Efficient use of money by government,

e.g. cost-effective procurement of books, uncontrolled public spending on non-essentials and efficient delivery of infrastructure, including cutting high costs of infrastructure projects.

2.8.5 Resources of the Growth Fund must be taken advantage of and bankable projects revisited.

2.8.6 The review the use of the tender system in government.

2.8.7 Enforcement of the “30-day payment rule”.2.8.8 Promotion of cooperatives to assist the ANC

and government build a developmental state.

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3. Evaluation of our sectors:The commission embarked on the evaluation of its sectors by focusing on issues that were left out in the report of Lekgotla. It also proposed concrete actions that are needed by sectors to move forward.

3.1 In evaluating progress using the 2009 mandate, the Commission was satisfied that most of the priorities referred to in the 2009 Manifesto have been attended to and plans implemented. All sectors focused on priorities as stated and implemented programs beyond the mandate. However, the main point that the ANC could not make progress on in Basic Education is that which reads as follows:“Teachers to be in-class, on time, teaching. Teachers to also be required to use textbooks in class.”

3.2 The ANC did not lift out the fact that we inherited fragmented education and health systems. The ANC-led government has put in place unitary and democratic education and health systems, which ensure greater access to services.

3.3 The Science and Technology sector has made great strides in its implementation of its mandate, including in areas of innovation, research and development and the SKA and MeerKAT.

3.4 Africans are now graduating in diverse fields of study which were inaccessible to them as a result of apartheid education policies and practice.

3.5 The Commission agreed that the Basic Education sector has been projected in a negative light. The ANC needs to disprove the myth that we have a poorer education system under the ANC-led democratic government.

3.6 Kha Ri Gude is one the programs that have performed well in improving literacy. However, it is not profiled.

3.7 Successes have been made on issues of the curriculum. We now have a credible uniform and un-fragmented curriculum.

3.8 A great deal of progress has been made with access to post-school education, including skills development in the FET sector and through the SETAs. Graduates to be given opportunities in infrastructure projects.

3.9 National Senior Certificate results improved significantly and consistently in the past four years.

3.10 The sector has made great strides in expanding theNSFASprogram by resourcing bursaries in excess of R5,2 billion rand for tertiary and FET students. These successes have resulted in greateraccess by students to post-school education.

3.11 The ANC has not communicated well successes in the improvement of the quality of health services. Good work that is being done in the health sector must be profiled. Issues of drug availability and steps that are being taken to deal with that must be given prominence. The ANC also needs to talk about issues related to management of facilities. Attitudes of managers also need to be referred to. The ANC develops good policies and intervention and must improve its capacity to monitor and evaluate implementation. Monitoring cannot be seen as the work of the Presidency alone.

3.12 All sectors will revisit their sectoral plans and mandate of 2009 to identify areas that might have not been covered in the evaluation, to provide correct figures of progress and to use the information to design future plans.

■ LOCAL GOVERNMENT

The Presidential Economic Recovery Commission1. How big should that Commission be?

i. The commission small be small, manageable and allow flexibility and effectiveness

ii. The commission members should be a handpicked objective commissioners

iii. The commissioners should be available and able to act fast and decisively on the mandate

2. How should it be constituted? The commission must comprise various skills and expertise drawn from economic sectors and strategic institutions playing a leading role in the economy. The commission must also include representatives of cabinet. The composition of the commission must reflect the following categories:❏ Organised Labour❏ A representative of economic cluster ministry❏ Organised business (Financial Services, Mining

sector)❏ International Marketing Council❏ Organised Local government❏ Professionals, academics and economic experts

The commission must work closely and regularly interface with the Reserve Bank. A mechanism to ensure the contribution of the SARB must be devised.

In appointing the Commission the President should take into consideration other skills and expertise outside the

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economic sector that is to provide expedient advice to the President.

3. Mandate and PowersThe Primary powers of the commission must be an ADVISORY body to the President.

The core mandate is to provide concrete advice and proposals on various mechanisms and tools for the economic recovery and required interventions.

In executing their advisory mandate the commission must take into consideration the following: ❏ The Commission should not reinvent the wheel❏ Due consideration must be given to the existing

policies and strategies including the NDP, NGP, IPAP the work of the PICC etc.

❏ Take into account the Mangaung resolutions ;❏ It should review the proposals that were made in the

first round of engagements with the recovery team/group and review progress;

❏ Based on the review identify any other projects/programs that need to be urgently undertaken in order to ensure economic recovery

❏ Find ways and strategies to strengthen the work of the PICC including finding funding mechanisms for the current infrastructure programs

Local Government 1. ContextThe local government commission noted the presentations made in the plenary session. The commission also noted the Political context of the NEC Lekgotla as outlined at the plenary by the President, the Secretary General and other presentations made. The commission further noted the following; i. That 2014 is an election year andtherefore poses

various political imperatives that they ANC must attend to. Therefore the recommendations of the commission must give impetus to the ANC’s election campaign and manifesto.

ii. This Lekgotla comes at a time when we are preparing to give a feedback to the electorates on the 2009 Manifesto commitments.

iii. The outcomes of the Lekgotla must be implemented to impact positively on the ANC’sperformance in the upcoming elections.

iv. Local government is the bedrock for the access to basic services as a sphere close to the communities.

v. There are ANC led municipalities that continue to face performance challenges and need stabilization. There are 44 municipalities that are worst performing

in the country. There is also 23 ANC led municipalities which requires attention and intervention.

2. CoreMessageThe Commission’s deliberations are informed by the need to communicate two key messages namely:i. The ANC firmly believes the pivotal role local

government plays in ensuring delivery on the election mandate and the building of a capable and developmental state;

ii. The need to ensure visibility and restore confidence in the ANC as a driver of political, social and economic transformation;

3. Progressinthelast5fiveyearsThe Commission reflected on the progress made in the last 5 years and noted the progress made and this includes:i. A comprehensive review of local government

resulting in the production of the State of Local Government Report in 2009;

ii. The introduction of the Local Government Turnaround Strategy (LGTAs) in 2010 as a collective agenda for making municipalities to work;

iii. The establishment of the Traditional Affairs Department to reaffirm and support the role of Traditional Leadership Institutionto better the lives of the people especially in rural areas. The amendment of the relevant statutes in order to create an enabling legislative and regulatory environment for the institution. The system also caters for the integration of the Khoisan community in the Traditional Leadership Institution.

iv. Made significant progress in the provision of basic services, such as water and sanitation, electricity and refuse removal, Since 1996 as acknowledged by the census report of 2011. However, more work is still to be done with regard sanitation, especially the eradication of bucket system, refuse removal.

v. (The percentage of household using electricity for lighting increased from 58.2% in 1996 to 84.7% in 2011. Percentage of households with refuse removal increased from 52.1% in 1996 to 62.1% in 2011. Percentage of households with access to piped water inside dwelling/yard increased for 60.7% in 1996 to 73.4% in 2011. Percentage of households without toilet facilities declined significantly to 5.2% in 2011 from 13.3% in 2001. The percentage of access to sanitation (i.e. including VIP’s and pit latrines without ventilation) increased from 83% in 2001 to 91% in 2011.]

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4. HotspotMunicipalityANCinterventionThe NEC has noted and recognizes the challenge of 44 identified as worst performing municipalities and further 23 municipalities which require urgent political interventions to stabilize them.

The NEC further recognizes that utmost importance of stabilization in next three months to ensure that ANC Election campaign is not negatively impacted.

The NEC lekgotla resolved as follows:i. That the 23 critical municipalities that include

amongst them Nelson Mandela Metro, Madibeng, Tlokwe, Oudtshoorn and several other municipalities in the North West, Eastern Cape and Mpumalanga must be stabilized within the next nine months

ii. The NEC must ensure mechanism to curb the micromanagement of municipalities by the political structures of the ANC. The Micro-management that leads to dysfunctional municipal must immediately be stopped. All PEC’s must monitor the micromanagement of municipalities by REC’s. PEC must take necessary steps against comrades who are micromanaging and causing instability in the municipalities.

iii. The NEC recommits to strengthen the Rapid Response Team in dealing with Hotspots. The RRT must be strengthened at Political level with deputy ministers deployed in service delivery portfolios and Technical expertise of former DGs and municipal managers. The RRT must timeously deal with emerging sliding trends on the performance of municipalities and their recommendations must inform the political decisions of the L&G and SGO.

iv. The commission recommend the immediate political intervention plan for the 23 critical municipalities must include:a. The establishment of Political Management

Committees, in all affected municipalities. The political management committee must be convened by ANC Provincial and comprise, Convener of NEC deployees, REC chair & Secretary, troika of the municipality.

b. All affected municipalities must ensure compliance of procurement procedure and the appointment policies for employment of section 56/7.

c. A compulsory political strategy workshops for all ANC councillors in the 23 affected municipalities. These workshops will be run by the ANC national team.

d. The ANC national office must deploy required technical and political expertise that will help stabilize the affected municipalities.

e. The 23 municipalities must be placed under ANC special focus (“administration”).

■ ECONOMIC TRANSFORMATION

1. IntroductionThe July 2013 Lekgotla takes place at a time when the impact of the 2008 global economic downturn is still felt, despite various measures that governments have put in place. International financial institutions have been proposing a number of remedial actions, including austerity and restructuring measures to ensure that economies of countries recover and stabilise. These measures have resulted in reduced spending on social security by governments, and have impacted negatively on pensions and long-term financial security. Public and private sector investment have also been reduced due to amongst others, these austerity measures. Consequently, these circumstances have resulted in job losses and decline in job creation.

Despite the prevailing economic climate, some countries have managed to relatively endure the negative impact by prudently managing their economies. South Africa is amongst those that have managed their economies in a manner that has shielded them from experiencing major vulnerabilities. However, the country is experiencing challenges in certain economic sectors. Government should therefore strengthen and complement policies that will continue to protect the country against the current economic climate and create an enabling environment for economic growth and job creation, especially in productive sectors, namely agriculture, mining and manufacturing. To realize the full potential of these industries, downstream beneficiation and fabrication, as well as skills development should be prioritized. With regard to the mining, priority should also be extended to stabilising the sector and removing the infrastructure bottlenecks.

Consideration should be made to optimise financial instruments of the State by appropriately deploying them to avoid borrowing from international financial institutions such as the World Bank and International Monetary Fund (IMF). In addition, society should be mobilised to support policy instruments that can insulate the country from external shocks.

Accordingly, the National Development Plan and the infrastructure plan should be implemented to fast track the economic recovery process and creation of jobs.

It is therefore important to reflect on the Mangaung Conference Resolutions against this background.

2. Political Imperatives: Radical Economic Transformation

The 53rd National Conference (Mangaung) agreed on the

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2nd phase of our transition from Apartheid Colonialism of a Special Type to the National Democratic Society, and the paradigm shift towards the socio-economic transformation of South Africa.

This is meant to bring about a more prosperous South Africa and requires the radical transformation of our economy to address historically skewed patterns of ownership and production. There is a further imperative to enable more black South Africans and women to become active participants in our economy.

The Conference further endorsed the National Development Plan (NDP) as the long-term blueprint for our socio-economic transformation and we must unite our people behind the NDP. Within the context of the NDP, other programmes such as the New Growth Path and the Infrastructure Expansion Programme guide the attainment of our medium-term goals.

A crucial imperative for the ANC, in line with the NDP and our stated objective of selfless service to our people, is to improve state capacity and create a public service capable of delivering on our developmental objectives.

3. Measures to Respond to the Unfavourable Economic Outlook

The Commission agreed that the measures set out above on accelerating infrastructure in the next nine months as well as the specific measures on jobs will help to boost confidence in the economy and assist with addressing negative perceptions. In addition, a stronger focus on cutting wasteful spending in order to release resources for the developmental programmes contained in this report, reducing the vulnerability of the economy to external shocks and strengthening levels of public and private sector investment was necessary. Accordingly, the following was further agreed to:

TheBudgetOn budget matters the following was agreed upon: ❏ Billions are “leaking”, wasted or stolen from the

budget – this must be stopped.❏ The fight against corruption must be taken to a

higher level.❏ Increase the people’s confidence in us – spending

their money wisely and improving the quality of public services.

❏ Focus on priority programs – start cutting “nice to haves” and vanity adverts.

❏ Focus on investment, jobs, inclusive growth, policies that will grow and widen the tax base.

❏ Need a new culture of saving, value for money, stop wastage

❏ Much more efficient delivery of services – do more with less! Spend smarter!

AddressingvulnerabilitytoexternalshocksThe economy remains vulnerable to external shocks as long as we run large, unsustainable current account and budget deficits. In order to address this risk, we need to boost domestic savings, expand exports through greater regional trade and shift greater levels of public spending to investment in infrastructure and skills.

Investmentandconfidence-buildingEconomic Recovery requires scaled up long-term investment by the public and private sectors.

Confidence building means renewed effort to build national unity - this requires many voices but one message and effective implementation of the National Development Plan by all spheres of government within their planning cycles.

4. On the Proposed Presidential Economic Recovery Commission

The view of the commission was that focused implementation of the existing POA must be the priority of the state, complemented by new interventions to strengthen economic performance and counter-act the global slowdown. Whilst this may include an appropriately structured Commission, any announcement must be measured and not feed into the climate of panic that some forces in society may wish to create. The PICC offers valuable lessons and it was recognized that there was a need to have a similar coordinating structure that can now fast-track interventions on jobs, investment and growth for the other jobs drivers in the productive sectors of the economy such as the recovery of mining, strengthening of manufacturing and expansion of agriculture, the green economy and other relevant sectors. It was further noted that the structure should be able to draw in expertise to enhance its capacity.

The Commission recommended that the President should appoint a Task Team to make recommendations on the short- and long- term interventions required.

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■ INTERNATIONAL RELATIONS

IntroductionThe ANC’s international relations policy is informed by the Freedom Charter: “there shall be peace and friendship”. The ANC’s International relations further moves from the premise that its foreign policy is an expression of domestic interests.

To ensure that international relations work is focused, the ANC International Relations Programme of Action (POA) is based on six pillars namely:1. Building a better Africa and World inclusive of

peace building, post-conflict reconstruction and development

2. Continental and International Solidarity 3. Party-to-Party, Intra-party and Multiparty Relations4. Transformation of Global Governance5. Policy Development Issues6. Campaigns

It should be noted that in international relations many of issues are not necessarily achievable in a short space of time but rather through actions and campaigns that require long-term solutions and the influence of the balance of forces in the world.

Evaluationof2009–2014❏ South Africa must agree on a common minimum

programme that will unite our people around National Interest and the vision as articulated in the NDP to guide all sectors of society in the country.

❏ The expansion of Embassies in Africa, Latin America, Middle East and East Africa has resulted in the growth markets that have grown in trillions and increase tourism. SA has good standing in the global community. And therefore the process of redeployment and re-allocation of resources must continue to leverage our competitive edge.

❏ We need to train cadres and other to become career and economic diplomats to leverage on our influence and standing in the world in pursuant of our national interest and that of the continent.

❏ The trade deficit is as a result of our reduced export products in order to close this deficit we must continue to build the South African Manufacturing capability so as to ensure that we stand ready to supply products to the existing and new markets.

❏ In pursuit of our national interest the value chain of our goods must directed towards creating jobs in the domestic packaging and marketing sectors, e.g.

Wine’s and other products, to moving away from internationally outsourcing these areas.

❏ In order to realize the above, South Africa should expand and cover the Incentive scheme to cover all sectors in economy particularly the agriculture and manufacturing as it is happening in automotive industry.

❏ South Africa is a member of Group of 20 (G20) and Brazil-Russia-India-China-South Africa (BRICS) and has to be aggressive in maximizing our economic interest in these institutions, particularly, BRICS business forum.

❏ Africa is the next growth point. South Africa should continuously take advantage of the opportunities this presents to the country. It therefore needs to expedite the Free Trade Agreement (FTA) between Common Market for Eastern Africa (COMESA), East Africa Community (EAC) and Southern Africa Development Community (SADC) to promote intra-trade in Africa.

❏ This growth is hampered by lack of infrastructure on the continent. The acceleration of the implementation of the AU resolution which establishes the North-South and the East-West Corridor Infrastructure Commission connecting Africa Rail, Communication networks, Ports and Roads for easy access of goods and services needs to be fast-tracked.

❏ We call upon all Africa countries to commit the necessary resources to fulfill the AU resolution on Infrastructure Development.

❏ South Africa should continue to seek markets and invest in economies outside our traditional trading countries which are All EU, USA/Canada, Japan and SADC to consolidate our growth in Africa which is in over 35 countries, Latin America, Middle East and Eastern Europe.

The Presidential Commission and Economic RecoveryWe are endorsing the establishment of Economic Recovery Commission and agreed that:❏ There should be stakeholders from government,

labour and the business sector.❏ Included from business should be, particularly, is a

representative from the mining sector, agro sector and Small and Medium Enterprise sector.

❏ Inclusive from the government sector should be Transport, Public enterprises, the head of security cluster, social cluster, and finance and tax specialist on board.

❏ It is also important to include representation on behalf of Provinces, Local authorities and Rural Development.

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❏ The size of the Commission should be medium but representative.

The things that should be done immediately to change the direction of the economy upwards are:

❏ Economic Transformation and Recovery should be based on the implementation of the Polokwane and recent Mangaung resolutions.

❏ Localisation of Procurement to about 70% that spread across big, medium and small business.

❏ Re-evaluate our tariffs and duties to increase it to 15% to protect our agricultural industry within the World Trade Organisation (WTO) bands as it exist.

❏ Devise a strategy and campaign to deal with illicit and counterfeit goods on the South African markets.

❏ Review service industry to ensure that employment is directed at South Africans and only allow about 15% of employment to Foreign Nationals across the sector.

❏ Land restitution and rural development: Re-examine the agricultural industry and provide support for small farmers (to ensure food security) as part of the Presidential Infrastructure Coordination Commission.

On Government leakages and wastage it was agreed to the following:

❏ Government need to stop the wastage of billions and identify areas where leakages exist. Government must ensure implementation of the Auditor-Generals recommendations rectifying and eradicating areas identified where leakages and wastage at National, Provincial and Municipal levels exist. In addition, Treasury’s recommendations in the Budget to cut expenditure through mechanisms such as the downgrading of class travelling, the reduction of unnecessary catering must be implemented. It is recommended that a team under Monitoring and Evaluation should be put in place to monitor the implementation of both the recommendation of the Auditor General and Treasury recommendations and that this team should report to the President on an annual basis on progress of implementation in latter mentioned areas.

❏ Government should further identify other areas of wastages and find remedies to resolve speedily this to create savings on the budget. Amongst steps is to ensure that the meeting of the DG’s and CFOs the next two weeks to address some of these areas happens and that they should report to the President on the measures they have identified that can be implemented to deal with this.

❏ Other wastages is resultant of old infrastructure that has not been maintained and replaced such is the case of water leakages that results in millions of Rand being loss because of rotting pipes and old taps, etc. The way government responds to infrastructure replacement is important to ensure that this is dealt with timeously which currently is not the case and results in huge wastages financially. The Government on all levels should ensure that there is a maintenance budget in place to ensure that the latter mentioned is not a case in point again.

❏ Government on all levels must improve payment systems and collection systems to enable it to collect all unpaid license fees, electricity fees and general outstanding payments of the public as this could further assist in supporting the fiscal budget. The non-payment culture in society should be addressed to make the public aware that there payments contribute to the better functioning of the country.

❏ Government on all levels must improve its mechanisms on claiming from the Insurance companies on insured goods. As a result of non-claiming on insured goods billions of Rand are sitting in the Insurance Industry that could have contributed to ensuring better service delivery. It is imperative that government have more efficiency and financial prudency in this area as this would allow for more money to be available to address other areas of service delivery.

❏ FET colleges should be relevant to the areas where people reside and industries should be created in areas where the people reside to absorb the trainees.

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■ PEACE AND STABILITY

IntroductionThe fight against crime and corruption remains pivotal in realising the goals of the National Democratic Revolution. It is imperative that all South Africans are able to feel safe in their homes, places work and in their communities, wherever they reside. Advancing a developmental state that is active in fighting crime and corruption creates the ideal foundation for promoting socio-economic development and for creating job opportunities.

2. Economy The peace and stability subcommittee noted that:The current state of the South African economy has not radically shifted in the last 20 years. It is still dominated by white males in particular. The majority of companies listed on the Johannesburg Stock Exchange remain in the hands of white male control, with only a few Black Economic Empowerment companies. This situation has to change.

Further notes that:The ANC Strategy and Tactics document, endorsed at the 53rdNational Conference, identifies monopoly capital as the enemy of economic transformation.

The subcommittee recommends that:❏ Our procurement policies in government should

promote Small and Medium enterprises and black entrepreneurs so as to balance the current inequalities in the economy, black businesses that are merely “middle men” are unsustainable.

❏ Coal is a strategic mineral for South Africa as it provides for our energy needs and the supply of electricity and promotes our exports. Government needs to intervene in the export of this limited commodity, due its importance in stimulating the economy.

❏ There is a huge potential to lower our energy use through ensuring that all buildings, and houses are properly insulated. This speaks directly to creating jobs in the green economy and the issue of our carbon footprint.

❏ We need to consider whether the implementation of the carbon tax can be afforded at this stage or whether it will lead to further job losses.

❏ We must promote programs of developing co-operatives for our people to generate incomes for themselves.

❏ We need to ensure that there is adequate food security for South Africans. Failure to address this challenge has a potential to lead to social unrest.

❏ All these proposals should be driven in the context of the ANC resolutions taken at the 53rd conference National conference in Mangaung.

3. BudgetThe subcommittee notes that:Much of the state coffers are being wasted and being stolen and this practice must not be allowed as it undermines delivery of services to the people, and contradicts the whole notion of a developmental state. A culture of austerity on state resources needs to be promoted.

The sub committee recommends that: ❏ Unnecessary expenditure such luxury travel

(business class tickets), catering. etc., should be curbed drastically.

❏ The use of middleman contractors should be reviewed, as this practice tends to inflate prices of goods that are being procured by government. Government should endeavour to optimize the use of its own resources. Some examples of areas of capacity are:a) The Council for Scientific and Industrial

Research (CSIR) for state’s technology solutions and Working for Water Projects for the state’s furniture needs including school desks and even the state’s housing timber requirements. These projects also create skilling opportunities for the young.

❏ We need to make use of the expertise within the Defence force such as engineers to assist with infrastructure programmes driven from the Department of Public Works.

❏ The Armaments industry should be reinvigorated through DENEL and cater for South Africa and Africa’s needs.

❏ In the long term, we need to train civil servants who will be patriotic and loyal in serving our people.

❏ The vetting system needs to be tightly regulated and in the long term be compulsory. Directors General need to play a more active role in enforcing this process in their respective departments and must be made more accountable.

❏ In the long term, we have to assess whether we can afford the cost of running government from two capital cities (Cape Town and Pretoria)

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4. Creation of a Presidential Economic Recovery Commission

The commission notes that:

Slow economic growth and changing global conditions have placed South Africa in a very challenging situation. This situation calls for pragmatic intervention to remedy the challenge facing South Africa.

The commission recommends that:❏ There is a need for the creation of a presidential

economic recovery commission to address the current challenge of slow growth. The proposed Commission should not duplicate the work of existing structures in the economic cluster of government.

5. Achievements 2009 to 2014The Security Cluster has, on the whole, done well in meeting the targets set in 2009 till the present time. The following is a summary of the milestones that have been achieved:

❏ There has been a decrease in the incidents of serious crimes due to more police visibility. There has been a steady rise of the number of police since 2009. There has been a significant reduction of trio crimes.

❏ In June 2013, the JCPS Cluster demonstrated its commitment to deal with corruption by releasing a list containing 42 names of people who have been convicted of fraud and corruption. This action is evidence that Government has adopted a zero tolerance approach to the fight against all corrupt activities either in the public or private sector.

❏ High conviction rates have been maintained in all courts with an overall conviction rate of 89.9% during the past financial year (High Courts: 87.5% – an increase from the 84.6% in 2011/12; Regional courts: 75.1% - an increase from the 74.3.6%

❏ The Anti-Corruption Task Team (ACTT) has further indicated that in addition a total of 778 persons are currently under investigation for corrupt activities and, in total, freezing orders to the value of R1.07 billion have been obtained.

❏ A draft cyber security policy framework was developed, presented to and approved by the JCPS Cluster and Cabinet in 2012.The governance and operational leadership of work regarding cyber security have been strengthened and the implementation plan is being rolled out by the SSA.

❏ SAPS have developed a policy framework regarding cybercrime. The police have also put operational measures in place to deal with incident management in this regard. in 2011/12

❏ Due to the better management of asylum seekers by the Department of Home Affairs, there has been a drastic reduction in the number of applications for asylum status, this number has dropped from approximately 200 000 in 2009 to approximately 85000 in the last year.

■ SOCIAL TRANSFORMATION COMMITTEE

IntroductionWhile progress has been made in implementing strategies for social transformation that seek to empower people to lift themselves out of poverty while creating adequate social nets to protect the most vulnerable in our society, we still face challenges of poverty, inequality and underdevelopment which results in many excluded from the mainstream economy. The social transformation agenda seeks to achieve a national democratic society that is non-racial, non-sexist and socially inclusive and advances the principles of the National Democratic Revolution.

Evaluation 2009–2014

OnsocialcohesionandnationbuildingThrough Heritage, Arts and Culture, Sports and Recreation we have:❏ Integrated Ubuntu principles into public policy

through the draft White Paper on Arts, Culture and Heritage as well as the Bill of Positive Values

❏ Renamed our geographic places such as streets, towns and public facilities in memory of those who made immense contribution to the liberation struggle.

❏ Successfully hosted the 2010 FIFA World Cup which left a lasting legacy for our country especially in creating a sense national pride and social cohesion. It also served as a catalyst for fast-tracking key infrastructure development in South Africa as well as promotion of SA as a tourist destination.

❏ Developed the first National Sport and Recreation Plan and adopted one National Emblem, the King Protea, for all national teams.

❏ Prioritised the policies of inclusivity in sport and promotion of women sport. We will be launching the Netball Premier League in December 2013.

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❏ Convened a National Social Cohesion Summit in Kliptown, the birth place of the Freedom Charter, where delegates recommitted themselves to building a South Africa that truly belongs to all who live in it, black and white, united in their diversity.

Implemented 29 heritage projects. These include:❏ opening of the //hapo museum at Freedom Park;

❏ completion of the iconic Steve Biko Center in Ginsberg;

❏ building of Reconciliation Road linking the Voortrekker Monument and Freedom Park.

Anti-substance and drug abuse campaign, Ke moja : I’m fine without drugs, was rolled out in all provinces targeting youth.

❏ Established a high level National Council Against Gender Based Violence.

❏ Developed a National Drug Master Plan 2013-2017 which was approved by Cabinet.

Challenges❏ Sports, Arts, Culture and Recreation facilities

especially in rural communities are still very limited.

❏ Substance and drug abuse is still very high especially among the youth.

❏ Anti-substance abuse coordination mechanisms within government and between government and community structures remains a challenge.

Onhumansettlementsandsustainabledevelopment❏ The ANC successfully moved away from the

concept of provision of houses only to the creation of integrated human settlements.

❏ In the quest to stimulate the property market: ■ the Mortgage Default Insurance (MDI) has

been introduced;■ the Finance Linked subsidy for those earning

between R6000 to R15 000 pm was introduced to facilitate access to Housing Finance

■ Released sale of serviced sites for household earning between R3502 to R7500

■ Recapitalised Rural Housing Loan Fund■ Strengthened the regulatory framework and

governance structures ■ Accelerated land acquisition through the

Housing Development Agency■ Fast tracked rental stock rollout. 33 209

government owned rental units and 9 234 privately owned units were delivered mainly in KZN, Gauteng, W.Cape and E.Cape

Challenges❏ Backlogs in the delivery of houses and sanitation

remains a challenge

❏ Access to financial markets for low income earners is still limited

❏ Construction of high quality houses remains a challenges in certain instances

OnSocialWage❏ Equalised the pensionable age for men and women

at 60 yrs.

❏ Completed the Consolidated Government Paper, that targets, coverage of social assistance and social insurance.

❏ We have more than 16 million people benefiting from social grants which allows the care-givers of children, the aged and those with disabilities to fulfil their basic needs and sustain their households

❏ 94,2 % of people have access to water, 84% have access to sanitation, 81 % of our people have electricity 71% of South Africans have refuse removal from their homes.

Challenges❏ Comprehensive social security has not yet been

realised.

❏ Still experiencing service delivery backlogs in the provision of sanitation and housing

❏ 48% of those living in rural areas still require real access to water (i.e. non-functionality of infrastructure e.g. leakages, disrepair; Unavailability of services; non-connection to available resources)

❏ Absence of a coordinated plan on SIP18 that integrates human settlements with water provision.

❏ Water allocation reform policy.

Solutions❏ A special grant of R4,3 billion in response to water

provision challenges to do refurbishment of existing infrastructure

❏ Government must expedite the consultation process on the consolidated document on comprehensive social security reforms

❏ Water allocation reform being implemented (policy have been changed, legislative reforms being finalised and implementation will happen soon)

❏ Intergrated master-plan for human settlements and water provision is being finalized;

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OnJobcreationandskillsdevelopment❏ More than 50 000 job opportunities have been

created through the implementation of MGE (Mzansi Golden Economy) Programme since 2012

❏ The film sector contributes R 3.5 billion annually to our GDP and provides employment to more than 25 000 people

❏ Books and Publishing sector is estimated to be worth more than R5 billion and employs an estimated 17 000 people

❏ Since the inception of the community library conditional grant, starting with an initial capital injection of R200 million, more than 900 persons have been employed

❏ 867 bursaries have been provided for students in the fields of Language Studies and Heritage studies since 2009

❏ About 50 bursaries will also be provided this year for youth that is in high schools and in Community Art Centres

❏ The National Academy for the Cultural Industries in SA (NACISA) will be launched later this year

❏ 674 730 Work Opportunities were created through the EPWP Social Cluster between April 2009 to March 2013

❏ The number of Social Work Graduates produced through the scholarship since 2007 is 6182 of which 5 764 were absorbed within government and the rest in NPO sector.

Challenges❏ Mismatch of available skills from the requirements

of the labour market;

Solutions❏ Continue producing the skills that we require and

fast track the professional accreditation of trained people;

❏ Ensure alignment of the labour market and the skills being produced.

OnChildren❏ Developed a comprehensive strategy on Early

Childhood Development

❏ By end of 2012, 984 524 children were accessing ECD services in the country.

❏ There has been an increase in spending on ECD per child and spending is currently standing at R1.3 billion.

❏ Spending increased from R8 per child per day for

264 days per year to R15 per child per day for 264 days a year

❏ The number of children receiving subsidy increased by 100% from 230 000 children in 1995 to more then 484 429 in 2012

❏ The number of registered ECD sites has grown from 4 612 in 2004/5 to 19 971 by end of 2012/13

❏ The extension of the Child Support Grant (CSG) to all children under the age of 18 years was approved by Cabinet during October 2009 (fully implemented).

❏ Currently there are 11 341 988 children in receipt of Child Support Grant.

❏ A National Plan of Action for Children approved by Cabinet.

Challenges❏ Effectiveness of the ECD programme

❏ Limited access of ECD by children in the 0-2 age cohort.

Solutions❏ Improve on co-ordination across departments and

improving the monitoring of the grant;

❏ Universal access of ECD.

OnWomenEmpowerment❏ A Ministry focusing on Women, Children and People

with Disabilities established

❏ Progress made in ensuring that women are now actively involved in the decision making structures in society and in government (48% in Parliament, 42% in Cabinet and more than 50% in local government). This includes progress towards achieving the 50/50 parity.

❏ Adoption of National Policy for Women’s Empowerment and Gender Equality by Cabinet as well as development of the Women’s Empowerment and Gender Equality Bill and will be tabled in Parliament soon.

❏ Enforcement of SADC Protocol on Women Empowerment and Gender Equality which ensures 50/50 women placement in senior management positions.

Challenges ❏ We still have not achieved socio-economic

empowerment of many women in the country, particularly in rural areas, in the private sector, etc;

❏ Women abuse and gender based violence still prevalent;

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Solutions ❏ Passing and the implementation of the Women’s

Empowerment and Gender Equality legislation;

❏ Implement the National Action Plan on GBV as endorsed by the IMC and the National Council as soon as Cabinet approval has been obtained

❏ Need to increase the resource allocation in support of women’s programmes on prevention, intervention and after care

❏ Support women cooperatives and other women economic empowerment programmes such as small business enterprises and job creation initiatives.

OnPersonswithDisability❏ Framework for the National Disability Rights Agenda

developed

❏ Specific sections dedicated to people with disability developed in the National Strategic Plan for HIV and Aids

❏ Partnership with Higher Education on skills development of people with disabilities and an allocation of R77 million has been granted.

Challenges ❏ Whilst there is progress on addressing challenges

facing the disabled in society, there has been a lack of facilities to support the disabled in society, development of braille, sign language

❏ Only 0,5% achieved of the targeted 2% representation of persons with disability in the workplace.

Solutions❏ Continue working with people with disabilities on

soci-economic development programmes that empower them

OnEconomicRecoveryEnsuring inclusive growth and enhancing the culture of saving

❏ Inculcate a culture of savings – need for a campaign of promoting a culture of saving, even on little incomes;

❏ Use and strengthen cooperatives to develop projects, as well as promote government procurement from co-ops;

❏ Reduce reliance on consultants and external service providers, rather focus on employment of our own expertise;

❏ Invest in training and building the capacity of our public servants.

Addressing the vulnerability of the economy to external shocks❏ Need to promote domestic production especially in

the agricultural and manufacturing sector to boost our exports thus addressing our current account deficits

Improving the capacity of the state and ensuring our ability to deliver❏ There is a need to rethink our procurement systems,

e.g., SA companies are running online procurement for overseas companies. We need to use these examples to rethink procurement systems;

❏ We need to undertake a skills audit of the public service and redeploy officials who are in jobs that do not match their skills;

❏ Separate the State and Government – the state needs to be there and continue despite changes in government. And professionalize the state. In this regard, there is a need to reconsider the rigid nature of the public service departments. Departments need to be structured to respond to their specific mandates

Creation of an economic recovery commissionWe agree with the establishment of the Commission, but caution on the following:❏ The role of this commission needs to be well

articulated but all effort should be made not to fragment and duplicate with other state institutions, like NEDLAC, PICC, Reserve Bank, Treasury, etc;

❏ The Commission should comprise both political and technical capacity (academia, business, labour, etc); It should not be a policy negotiation forum, but rather to unblock implementation blockages on key growth projects; It must also have a specific life span.

Things to do in order to change the direction of the economy❏ We need to address issues that undermine

confidence in our economy. These include bickering on policy matters between the alliance partners. We need to address negative public perceptions about policy uncertainty;

❏ We need to focus on doing a fewer, well planned things;

❏ The role of grading agencies - once they downgrade us, well sounding statements will not address the problems, they require real action. E.g, have a major catalytic project and implement it, this will change the perception;

❏ 2 potential game changers in the economy:

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❏ Given the long coastline that we have, we need to establish a marine industry, including the acceleration of the rail capacity between Shisen to Saldanah Bay and from Sishen to Coega, through the PICC. We also need to accelerate the ship building in Saldanah bay;

❏ Shale gas from the Karoo can become a powerful source of energy, and drive a new economy. We should support DMR in actualizing this in the shortest time possible. This could have the same impact that natural gas is having in the USA.

THANK you comrade Chair, we need not say much because most of the things were said in the deliberations over these past two days.

Like all other countries, we are facing challenges as a result of the economic meltdown. The EU has had to confront serious problems for a while throughout this period. In the past year, in our interactions with the EU, they admitted that it has been difficult and there are no quick fixes and immediate remedies to the crisis and its consequences. The meeting of the G20, soon after the economic challenges in Greece and before Italy, was difficult. However, in recent times, the EU says they are relatively confident.

By suggesting that we face a serious situation we do not mean that the country does not feel it. We are supposed to correct and meet the challenges. We should think seriously about how to avoid borrowing from the IMF. We have always ensured that we are self sufficient so as to ensure that we do not borrow from others, and thereby be indebted to them and their agendas. This leadership has a responsibility to suggest how we should come out of the current difficult period.

Therefore the issues you proposed on assisting with the economic recovery need to be looked at. Some work has been done to deal with the issues and, while commissions are not saying the same thing they point to the direction that should be taken. We will still have to do a lot more detailed work on these proposals in order action that should be implemented. In the process, we might still need to consult with comrades, because the reports reflect that there were interesting debates.

The ruling party has spoken – government must implement■ Closing Address by PRESIDENT JACOB ZUMA

This is an indication of a serious attempt to address the challenge before us.

Overall, we seem to be improving in managing our makgotla. There was an attempt to ensure the reports are focused. The interventions made help us to know where we are and what we need to do. We were sensitised on the challenges.

This lekgotla has helped shape our thinking on the elections and in developing our manifesto. This lekgotla will also help those deployed in government.

We have tried to do what needs to be done. We identified the weaknesses we have, and those things we need to deal with. We had an extensive discussion on all these issues, because that is the democratic character of our movement. However, any discussion that is without clear and concrete conclusion is not productive. We should always feel better when, at the end, our discussion makes us confident to act. We should avoid returning to decisions already made. We should find a mechanism to enable us not to run around in circles.

I have discussed with comrades in the monitoring and evaluation department to consider enlarging their team so that they are able to track decisions made and the implementation thereof. A lot has been done, even in provinces. But we have to perfect things. This is one area we need to monitor very closely. Performance monitoring measurement should be sharpened.

We should ensure greater coordination of our work. This is what the SG was referring to.

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I hope all the information presented here; including the election research, voter registration and voter participation, will help us as a movement. The volunteer corpse needs to help us, ensure that everyone votes. Voting is a serious matter.

Comrades have done well, and I hope the next lekgotla will even do more.

I hope this lekgotla informs the government lekgotla. Government should concretise and put things in programmes, understanding that the ruling party has given a directive.

Let me conclude with the words of Madiba. The first is

in his letter to Adelaide Tambo and the second derives from his thoughts in what is entitled Whither the Black Consciousness Movement?

“Significant progress is always possible if we ourselves try to plan every detail of our lives and action, and allow the intervention of fate only on our terms.”

“Preparing a master plan and applying it are two different things.”

Thank you.

Issued by the African National CongressP.O. Box 61884, Marshalltown 2107.

Tel: 011 376 1000.