President Cyril Ramaphosa says government is implementing the Medium-Term Development Plan (MTDP) to address structural challenges in the economy and place South Africa back on a path toward achieving the goals of the National Development Plan (NDP).
The President was responding to oral questions in the National Assembly on Thursday following a question on whether the NDP’s targets of reducing unemployment to 6%, achieving 5% economic growth and building a capable state by 2030 are still attainable.
The President said a Ten-Year Review of the NDP released by the National Planning Commission in September 2023 found that the targets relating to the elimination of poverty and the reduction of inequality and unemployment will not be met by 2030.
However, he noted that progress has been made in several areas.
“While progress has been made on other NDP targets – such as access to education, health, water, electricity and social assistance, South Africa remains highly unequal, marked by wealth disparities that span generations,” the President said.
He explained that several internal and external factors had slowed progress in achieving the NDP goals.
Among these were the lingering effects of the global financial crisis between 2007 and 2009, the economic impact of the COVID-19 pandemic, and the period of state capture during which billions of rands were siphoned from the state and investor confidence declined.
President Ramaphosa also cited the weakening of key State-owned enterprises such as Eskom and Transnet, years of unreliable electricity supply and declining performance in ports and rail infrastructure as additional constraints on economic growth.
Other challenges include declining state capacity, particularly at local government level, reduced fixed investment and poor coordination across government.
To address these challenges, the President said the MTDP has been developed to accelerate inclusive economic growth and job creation.
The MTDP aims to drive inclusive growth and job creation through structural reform and large-scale investment in energy, logistics and water infrastructure.
“It is focused on encouraging investment and creating employment in sectors like mining, agriculture, tourism and the green economy, while providing support for small and informal enterprises,” he said.
Government is also working to reduce poverty and the high cost of living through expanded social protection, improved healthcare, stronger foundational education and targeted skills development.
The President said the MTDP also prioritises building a capable and ethical state by professionalising the public service, strengthening law enforcement, improving local government performance and tackling corruption.
The plan includes a results framework that sets measurable targets, strategic interventions and indicators to be achieved over the five-year period.
These targets inform the Medium-Term Expenditure Framework and are reflected in departmental annual performance plans and budgets.
President Ramaphosa added that performance agreements concluded with ministers include key priorities and measurable indicators derived from the MTDP.
“Through the implementation of the MTDP and the work that has been underway over the last five years, we are steadily rebuilding our economy and restoring the capability of the state so that we can accelerate progress towards the achievement of the goals of the National Development Plan,” he said.
Government strengthens role of traditional leaders in governance
Meanwhile, responding to another question, the President outlined steps taken to strengthen the participation of traditional leaders in governance and service delivery.
The President said traditional and Khoi-San leaders are recognised as key governance partners under the District Development Model.
He said the legal framework supporting their participation includes the Traditional and Khoi-San Leadership Act, which enables traditional councils to support municipalities in identifying community needs.
In addition, the Municipal Systems Act requires municipalities to consult traditional leaders when developing Integrated Development Plans, while the Municipal Structures Act allows recognised senior traditional and Khoi-San leaders to participate in municipal councils as ex officio advisory members.
These provisions allow traditional leaders to attend council meetings, address councils on issues affecting their communities and contribute to discussions on policy, by-laws and service delivery.
“While the framework is robust, implementation across municipalities remains uneven. To address this, the Medium-Term Development Plan now includes a specific indicator for the participation of Traditional and Khoi-San leadership in planning, implementing and monitoring government programmes,” the President said.
He said the Department of Cooperative Governance and Traditional Affairs has begun capacity-building workshops in district and metropolitan municipalities to improve compliance with the legislation.
The review of the White Paper on Local Government currently underway is also expected to propose stronger cooperation between municipalities and traditional leadership institutions.
“The Government remains firmly committed to ensuring that the institution of Traditional and Khoi San Leadership is fully recognised, empowered and integrated into our governance system. Their wisdom, legitimacy and proximity to communities are indispensable to building a capable state and improving service delivery for our people,” President Ramaphosa said. – SAnews.gov.za
