President Cyril Ramaphosa’s opening of parliament address strove to strike a balance between the interests of the ANC and those of its government of national unity (GNU) partners.
He confirmed the government will go ahead with the implementation of the National Health Insurance (NHI) plan, which until recently the DA had vowed to legally challenge.
He also confirmed that broad-based black economic empowerment was here to stay.
On the other hand, he softened the blow by announcing that policies that the DA had been calling for for many years would be implemented. They include a review of the fuel price formula and extending the basket of VAT-exempt foods.
Riding on the fact that he was delivering his address on the anniversary of Nelson Mandela’s birth, Ramaphosa spoke about how South Africans, as they strive to progress and to prosper, also have a responsibility to ensure no-one is left behind.
“We South Africans are a diverse nation, with different histories, beliefs, cultures and languages. Yet we are one people. And we share a common destiny,” he said. “It is this common destiny that the people of South Africa have charged this parliament and this government to consolidate and advance.”
Ramaphosa said South Africans, through their votes, determined that the leaders of the country should set aside political differences and come together to overcome the severe challenges that confront the nation.
“They sent a clear message that without unity, co-operation and partnership, our efforts to end poverty, unemployment and inequality will not succeed.
“Guided by this directive from the people, political parties from across the political spectrum have elected to establish a GNU.”
He said the 10 political parties that agreed to craft a common programme to build a better, more equal and more just South Africa came together, despite their differences, because they shared a commitment to a nation that is united, prosperous and inclusive.
“They have agreed on a minimum programme as the foundation of the work of the GNU.”
Ramaphosa said the priority actions that arise from this minimum programme received the full support of the recent cabinet lekgotla, which brought together newly appointed ministers, deputy ministers and premiers. Local government representatives, directors-general and other key officials were also in attendance.
We have decided to place inclusive economic growth at the centre of the work of the GNU and at the top of the national agenda. Our experience over the past 30 years has shown that when our economy grows, jobs are created. When our economy contracts there is no job creation and jobs are lost
— President Cyril Ramaphosa
These were the priority actions that he was outlining in his address, he said.
The cabinet will be convening a further strategy session to consider the medium-term development plan, which will translate these priorities into a detailed plan and interventions that government will implement over the next five years.
The plan will set out a well-defined vision and strategic plan that outlines clear goals and includes specific, measurable objectives and a road map for achieving them. These goals will be properly aligned with the budget, which will support the implementation of these objectives, he said.
Ramaphosa said the GNU has resolved to dedicate the next five years to actions that will advance three strategic priorities:
- Drive inclusive growth and job creation;
- Reduce poverty and tackle the high cost of living;
- Build a capable, ethical and developmental state.
“We have decided to place inclusive economic growth at the centre of the work of the GNU and at the top of the national agenda. Our experience over the past 30 years has shown that when our economy grows, jobs are created. When our economy contracts there is no job creation and jobs are lost.
“We are determined that growth must be inclusive. It must be transformational. Inclusive growth must drive the redistribution of wealth and opportunity. It must support the empowerment of black South Africans and women, and all those who in the past were relegated to the fringes of the economy.
“This is part of the constitutional imperative to redress the imbalances of the past and deal with the slow process of development,” he said to loud applause, and in clear contradiction of the DA's policies.
Through empowerment and transformation, the state will ensure that the skills, capabilities, resources and energies of all South Africans are used to the greatest effect, he said.
“We will continue to pursue programmes that encourage broad-based black economic empowerment, employment equity and support to small- and medium-sized enterprises. We will continue to protect and uphold the hard-won rights of workers, and continually strive to improve the conditions in which they work and live.”
To create more jobs for South Africans, the government will focus on processing minerals so that it exports finished products rather than raw commodities.
“We will pursue a smart industrial policy that focuses on the competitiveness of our economy, and that incentivises businesses to expand our exports and create jobs.”
Ramaphosa said the GNU’s second strategic priority is to tackle poverty and the high cost of living.
“An effective, integrated and comprehensive poverty-alleviation strategy is necessary to provide protection and support to the most vulnerable in society. Even at a time when many companies are making large profits, millions of South Africans are suffering as a result of rising prices.”
To this end, the GNU will look to expand the basket of essential food items exempt from VAT and undertake a comprehensive review of administered prices, including the fuel price formula, to identify areas where prices can be reduced. The DA has been calling for this for the past few years.
“Asset poverty is one of the underlying causes of abject poverty, which exacerbates the high cost of living among our people.
“An important task of the next five years is to ensure the reduction of the high cost of living through ensuring that everyone in South Africa has equal access to equitable, accessible and affordable quality healthcare,” he said. “As we implement the NHI, we will focus on strengthening healthcare infrastructure, improving training of healthcare personnel and using technology to improve healthcare management.
“While there is much contestation around the NHI, there is broad agreement that we must draw on the resources and capabilities of both the public and private sectors to meet the healthcare needs of all South Africans equally.
“In implementing the NHI, we are confident that we will be able to bring stakeholders together, and that we will be able to resolve differences and clarify misunderstandings.”
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