GNU 100 | Economic cluster

SPECIAL REPORT

Trade, industry and competition minister Parks Tau set out to stabilise the department and its various entities. One of the immediate tasks of the new leadership was to fast-track the completion of the work started by the previous administration regarding unfilled critical vacancies.

“These roles had the potential to negatively affect the smooth and efficient provision of services needed for industrialisation, transformation and sustaining the existing jobs and creating new ones.

“Priority has been given to the filling of the DG (director-general) and DDG (deputy director-general) positions as well as CEOs and boards of various entities to bring about effective governance and accountability and faster implementation of DTIC’s policies and programmes,” Tau said.

He said the strengthening of the complement will bring about stability in the organisation and provide assurance to staff and broader social partners.

—  GNU 100 | Trade, industry and competition

“This is in line with the principles of the government of unity's State of Intent, which is working together to achieve rapid, inclusive and sustainable economic growth and job creation.”

In light of the GNU developments, the first task was to reassure the country's current and potential trading partners and global investors that South Africa remained open for business.

Tau had to reassure investors the government was working twice as hard to maintain its trade relations and attract foreign investment.

The department hailed its establishment of the national implementation committee of the African Continental Free Trade Agreement (AfCFTA), having conducted 13 engagements with the private sector to raise awareness of AfCFTA opportunities and provide support to exporters.

He highlighted the successful reset of the relationship with the US with no indication at this stage of the possible removal of South Africa from the Africa Growth and Opportunity Act (Agoa).

“There was bipartisan support to extend Agoa beyond 2025 to provide the required predictability and certainty to buyers, exporters, and investors, alongside recognition of the role of South Africa in the development of regional value chains in Africa and the implications of South Africa's removal to economic integration in Africa.”

In principle, the agreement is to ensure Agoa supports the AfCFTA, with possible consideration of the review of Agoa rules of origin that enable cumulation among AfCFTA countries, Tau said.

The ministry also travelled to Europe, seeking to strengthen its trade relations with the UK through the SA-UK Trade and Investment Review Committee Meeting which took place in preparation for the working visit by Deputy President Paul Mashatile.

In its first few days of office, the ministry was also asked to solicit a collaborative strategy from the country's South-South partners to tackle one of the potential threats to South Africa’s trade performance, the CBAM, which is effectively an import tariff on carbon-intensive goods entering the EU.

The ministry held a meeting with China during a business forum organised on the margins of the Forum on China Africa Co-operation on September 4.

Tau said the meeting focused on the three values of decarbonisation, digitalisation as well as transport and logistics.

We are putting the necessary resources towards this case to promote fair trade and ensure that non-tariff barriers are not used to prevent our products in certain markets. The minister will next month attend the AfCFTA ministers' meetings as they are critical in our industrial strategy

—  Trade, industry and competition department

As a firm believer in multilateral systems, the South African government had formally approached the World Trade Organisation (WTO) regarding the EU’s measures affecting the import of South African citrus fruit into the EU during the sixth administration.

Tau was pleased to account that in the first 100 days of office, the WTO panels launched with the EU under the WTO Dispute Settlement Understanding on Citrus Black Spot and False Codling Moth regulations of the EU affecting South African citrus producers after amicable solution could not be found during formal consultations.

“We are putting the necessary resources towards this case to promote fair trade and ensure that non-tariff barriers are not used to prevent our products in certain markets. The minister will next month attend the AfCFTA ministers' meetings as they are critical in our industrial strategy,” the department said.

The ministry has grand plans on the export promotion front, with the first task being to deepen bilateral co-operation with international partners.

The department announced it has entered into a co-operation agreement with the Swiss NPO Swisscontact and the Swiss Import Promotion Programme.

“The aim of the agreement is to strengthen trade and outward investment promotion capacity and thereby contribute towards South Africa’s export performance, export development growth, export competitiveness and export diversification.”

Tau also held business engagements on the margins of the UN General Assembly including with the Business Council for International Understanding Critical Minerals Roundtable, the New York Stock Exchange Business Roundtable and the Roundtable with the Corporate Council on Africa.

These deliberations are said to have mainly focused on a commitment to a conducive investment environment and identification of growth opportunities including green economy and just energy transition, ICT and digital economy, agribusiness, automotives and pharmaceuticals.

In addition, the department foresees the positioning of South Africa as a leading supplier of critical minerals to the US and global markets while promoting a just energy transition and fostering strategic partnerships for re-industrialisation.

Tau highlighted the ease of doing business as a strategic focus area, following the Companies Amendment Act and the Companies Second Amendment Act, which amend the Companies Act of 2008.

Agriculture minister John Steenhuisen described his first 100 days in office as exhilarating, saying it has provided a good platform to build on the gains his party has been able to achieve. 

“South Africa is in a lot more optimistic space than it has been for some time. There have been challenges but this is normal during a 'settling in' period. This is the first true coalition government at national level, where no one party has a majority, so we have had to find each other and make compromises to make things work.” 

Despite the outrage at his support team appointments which have favoured controversial YouTubers, Steenhuisen maintains he has set up a dedicated response team. Alongside his meetings with organised agriculture body representatives, he reported he has discussed partnerships to improve the production of food, regulatory barriers and ways to widen support of smaller farmers in the value chain.  

—  GNU 100 | Agriculture

“I also delivered a budget speech outlining key priorities of the department for the coming year, a clear focus set on biosecurity improvement, tailored and effective farmer support, greater local and international market access, a modern and progressive legislative and regulatory environment and advocacy for the agricultural sector.”

Steenhuisen said he met the office of the auditor-general to discuss “critical findings” in the department and development of a roadmap to find ways of tightening controls on spending and reporting patterns.  

“I have also met the Special Investigating Unit (SIU) to get progress on what was happening with their two-year 'investigation' into Onderstepoort Biological Products I was told had been under way. I was able to expose that there was no investigation, and the SIU had not been asked to investigate the corruption and maladministration relating to a R500m grant.” 

There have been challenges but this is normal during a “settling in” period. This is the first true coalition government at national level, where no one party has a majority, so we have had to find each other and make compromises to make things work.

—  Minister John Steenhuisen

His ministry also reported it has launched a National Food and Nutrition Security Survey to offer insights into the state of food and nutrition security in South Africa and generate baseline data government will use to provide evidence-led, targeted support interventions to households and improving food security. 

Steenhuisen said his department was dealing with the split from the department of rural development and land reform — which he said was a complex process. 

“This has led to uncertainty in the two departments, but we are managing the transition. 

“It has been a steep learning curve and has its challenges, but it is great to be able to implement ideas and plans rather than just talking about them. Government has allowed me the platform to make a difference and I'm relishing the challenge.” 

Steenhuisen outlined plans for his ministry, which include partnerships for growth, a modern and progressive legislative and regulatory environment, improving market access for South African agriculture, providing effective support for farmers to ensure inclusive, viable, sustainable and profitable farming operations, and improving food security. 

In the long run, the department will need to provide technological support to farmers who want to do value addition to whatever they farm. 

Minister of environment, forestry and fisheries Dion George is one high-ranking DA leader who has left an impression on ANC cabinet members.

In their first cabinet meeting, George was said to be one opposition minister who quickly took on the ANC, not shying away from expressing the DA's role as an integral member of the government of national unity. 

George describes his entry into office as one met with enthusiasm and commitment reaffirming that as a collective, his department is well positioned to achieve its “ambitious” goals. “From the onset we understood that it is crucial for our concerted efforts within the department to align seamlessly with the broader objectives of the government of national unity. By uniting our branches and entities under the big six priorities, we are directly contributing to this administration's goals of fostering economic growth and a more capable government. 

—  GNU 100 | Forestry, fisheries and environment

“Through initiatives that promote sustainable development and empower local communities, we will make tangible strides in tackling unemployment, poverty and inequality,” he said. 

The global environmental crisis caused by climate change makes George's portfolio key to South Africa's input in the global debate. This crisis has been felt harshly by South Africans in recent years with persistent flooding in parts of the country including KwaZulu-Natal and the Eastern Cape. 

George’s first task in office was to embark on a review of the department’s regulatory frameworks to identify bottlenecks and areas in need of improvement. 

He claims to have made substantial progress in simplifying procedures and reducing unnecessary red tape.

“We have also started to engage industry leaders, environmental organisations and community representatives to gather feedback on regulatory obstacles. By collaborating closely with these stakeholders we are developing practical solutions that reflect the realities on the ground. This approach ensures that our policies strike the right balance between environmental protection and economic development.” 

George also addressed the litigation in the sector, prioritising the finalisation of appeals. 

“In my first 100 days I have considered 65 appeals, ensuring that outstanding matters are addressed promptly and fairly as the appeal authority over decisions taken by the officials in the department of forestry fisheries and the environment in terms of the National Environmental Management Act, the Marine Living Resources Act, the Integrated Coastal Management Act and the Promotion of Access to Information Act.

By diversifying our funding sources, we are enhancing our capacity to implement impactful initiatives without placing additional strain on the national budget

—  Minister Dion George

He cited budget cuts as a concern, revealing the department’s coffers have been reduced by nearly R2bn. 

However, recognising that effective conservation and environmental initiatives require substantial resources, his department has been working to attract donor income and ensure financial efficiency within the department and its entities. 

“By diversifying our funding sources, we are enhancing our capacity to implement impactful initiatives without placing additional strain on the national budget.” 

George is optimistic about a future where environmental stewardship and socioeconomic development are harmoniously integrated.

Despite the considerate complexities faced, the minister believed opportunities lay ahead. 

“We have the power to create lasting, positive change that will benefit current and future generations. I have had the privilege of meeting and engaging many of the dedicated professionals who form the backbone of our department and who often do not receive the recognition they deserve.” 

Communications and digital technologies minister Solly Malatsi set out a target at the beginning of his tenure — to bridge the digital divide by ensuring access to affordable, reliable connectivity for all South Africans.  “By focusing on market competitiveness and shaping global development, I am determined to connect South Africans and particularly the poor to opportunities for work, life and play.” 

He described his first 100 days in office as “a high-speed car chase”, but concedes it was humbling. “We have a huge responsibility to make the government of national unity work and restore the public’s confidence in government to function well, deliver services on time and account openly. Our focus has been on creating real opportunities — whether through improving digital access or fostering skills development — so that everyone, no matter where they live, can benefit from the digital economy and improve their lives.” 

—  GNU 100 | Communications and digital technologies

Malatsi reported his ministry has drafted a policy direction to introduce equity equivalent programmes in the ITC sector, which operators have long called for. 

“Unlocking internet access for poor South Africans and remote areas: Only 13% of households in South Africa are connected to the internet and only 20% of schools are connected for teaching and learning. Prohibitive ownership requirements have blocked solutions, including in satellite, that will significantly accelerate connectivity in the country.”

He commended the intervention by his office to keep three-million South Africans connected to news and entertainment after the SABC’s inability to fully pay its Sentech bill, which risked viewers being switched off from the public broadcaster’s TV channels and radio stations. 

Malatsi highlighted the importance of decisive action and engagement in addressing issues that affect the effectiveness of boards.

“Stabilising the governance of SOEs is essential for their effective functioning and alignment with our mandates. For example, reinstating original board members to the State Information Technology Agency reflects a commitment to revitalising its mission of digitising government services and making them more accessible to citizens. Likewise, removing board members from the Universal Service and Access Agency of South Africa due to legal noncompliance demonstrates the need to uphold the rule of law and ethical standards in governance.” 

We have a huge responsibility to make the government of national unity work and restore the public’s confidence in government to function well, deliver services on time and account openly.

—  Communications and digital technologies minister Solly Malatsi

Malatsi reported the availability of affordable data and devices as a challenge, which he says he will tackle with National Treasury by potentially reviewing the classification of smart devices as luxury goods. 

“They carry additional taxes which makes them unaffordable for many poor South Africans. The reality is in this day and age smart devices are an essential tool of communication and not a luxury.” 

On the financial front, the minister cited cash-strapped entities as an area of concern. 

“We need to ensure key entities become financially independent. These services are essential and we’re working to make them sustainable and ready to meet future needs without relying on taxpayer funds.” 

Looking ahead, Malatsi says his focus will be to expand digital infrastructure, lowering costs, building digital skills and fostering digital trade.  

“I want to work to empower South Africans so in our country everyone has access to the digital economy and the opportunities to improve their lives.”

One of Malatsi's entities is the SABC whose funding model has been a headache for government since the dawn of democracy. Part of the reason is that the public does not value the SABC's offerings as worthy of the licence fees it charges, on the one hand, and the SABC being required by law to flight programmes that are not commercially viable yet crucial for our democracy. How Malatsi and his team navigate this maelstrom in the coming months will be key.