Public Sector Leaders | May 2022

MAY | 2022

NATIONAL POLICE COMMISSIONER General Sehlahle Fannie Masemola

KZN FLOODS Pulling together to rebuild KZN

SARS SUCCESS STORY Commissioner Edward Kieswetter brings good news

DR. NOBUHLE NKABANE Reshaping the future of South Africa’s mineral resources

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Contents

MAY 2022 | ISSUE 15

Editorial 20 | Skills Development Tackling youth unemployment 24 | KZN Floods The public and private sector supporting flood victims 32 | Energy Month Looking to renewable energy for growth

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34 | COVID Update How new COVID regulations impact employers 36 | Tourism and Development FEDHASA lobbies for tourism growth 38 | SARS A 2022 success story 40 | Wealthiest Women The top 5 wealthiest women in Africa 46 | Labour Day 5 tips for how HR practitioners can build inclusive workplaces

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Features 10 | Addressing The Nation President Ramaphosa announces progress on Operation Vulindlela

30 | Women in Leadership Dr. Nobuhle Nkabane is reshaping the future of mineral resources

66 | Legal Matters CCMA: Not a swear word

14 | Cover Story Learn more about the new National Police Commissioner

42 | Regional Focus Building vibrant Gauteng township economies through bold legislation

68 | Upcoming Events May is all about sustainable development

26 | In Other News Building the foundations for the automotive sector’s future

44 | Financial Fitness Saving for the future with retirement funds

4 | Public Sector Leaders | May 2022

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34 CREDITS PUBLIC SECTOR LEADERS The Digimag For Leaders In The South African Public Sector

Contributors Jessie Taylor Silke Rathbone Tarren-Lee Habelgaarn

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EDITOR’S LETTER

BY FIONA WAKELIN

Letter from the Editor Welcome to the May edition of Public Sector Leaders (PSL)

In his letter to the country this week – From the Desk of the Presidency - our President focused on Operation Vulindlela and South African infrastructure, including electricity, water, transport and telecommunications. Inefficiencies in these areas have in the past impeded economic growth - and expensive network services are a handbrake to conducting business in South Africa.

“A factory can only operate effectively with a reliable and affordable supply of electricity. A farm with irrigated farmlands can only produce food if its application for a water use license is processed timeously. A mine can only transport its minerals for export if the railways are functioning properly. And a small business cannot thrive if it lacks access to the internet or if the cost of data is too expensive.

“To address and overcome these challenges, we set up Operation Vulindlela in October 2020,” – President Ramaphosa His Excellency recently attended the official opening of Corobrik’s Kwastina factory and delivered the keynote address at the opening in Driefontein, Gauteng. At the 8th Elective Conference of the Congress of Traditional Leaders of South Africa (Contralesa), President Ramaphosa delivered the keynote address and at the funeral service of former President Emilio Mwai Stanley Kibaki, he paid his last respects to the former Kenyan president. On a happier note, His Excellency led national celebrations of Freedom Day at the Kees Taljaard Stadium in Middelburg, Mpumalanga.

This May edition of PSL celebrates Energy Month and we take a look at South Africa’s journey towards green hydrogen energy, with all the opportunities this provides. SARS celebrated their 25th anniversary last month and in the article #YourTaxMatters we unpack the preliminary tax revenue collection outcome for 2021/2022 yielding fantastic results with the collection of just over R1.56-trillion a 25.1% increase from the previous tax year. Our Trailblazer this month is General Sehlahle Fannie Masemola, the new National Police Commissioner.

The first of May is Labour Day – and we zoom in on 5 tips for HR practitioners managing the hybrid workplace. In Other News we celebrate a massive injection into the South African motor industry and in Legal Matters we cover the 4 letter acronym - CCMA, while our Financial Fitness article takes a look at retirement annuities – what they offer, and what they don’t.

Whether you are in the public sector, the private sector, supply chain or an interested individual, PSL has something for you.

We hope you enjoy the read.

FIONA WAKELIN | GROUP EDITOR

Public Sector Leaders | May 2022 | 9

ADDRESSING THE NATION

BY FIONA WAKELIN

Operation Vulindlela Injecting growth into our economy and inspiring confidence

P

resident Ramaphosa’s letter to the nation on 9 May focused on Operation Vulindlela and South African infrastructure, including electricity, water, transport and telecommunications. Inefficiencies in these areas have in the past impeded economic growth - and expensive network services are a handbrake to conducting business in South Africa.

“A factory can only operate effectively with a reliable and affordable supply of electricity.

A farm with irrigated farmlands can only produce food if its application for a water use license is processed timeously.

A mine can only transport its minerals for export if the railways are functioning properly. And a small business cannot thrive if it lacks access to the internet or if the cost of data is too expensive.

“To address and overcome these challenges, we set up Operation Vulindlela in October 2020 as an initiative of the Presidency and National Treasury to accelerate structural reforms in these network industries. While the responsible government departments and entities drive these reforms, Operation Vulindlela monitors and identifies challenges and blockages. Where needed, it facilitates technical support to departments,” – President Ramaphosa.

10 | Public Sector Leaders | May 2022

May 9 saw the release of an updated progress report on the work done by Operation Vulindlela for Q1 2022. Sectors reported on include: •

•

•

•

•

• •

•

•

The release of new spectrum which will improve connectivity and bring down broadband costs.

The establishment of the National Ports Authority as a separate subsidiary of Transnet.

Reinstatement of the Blue Drop, Green Drop and No Drop system to ensure better monitoring of water and wastewater treatment quality.

The raising of the licensing threshold in the energy sector for new generation projects to 100MW, allowing them to connect to the grid and sell power to customers The revival of the Renewable Energy Independent Power Producer Procurement Programme through the opening of new bid windows.

The process of unbundling Eskom is on track.

In the transport sector, the White Paper on National Rail Policy outlines plans to revitalise rail infrastructure and enables third party access to the freight rail network.

To help energise tourism, a fully operational e-Visa system has been launched in 14 countries.

A comprehensive review of the work visa system is also underway.

and the respective departments in a relatively short space of time should demonstrate the commitment of government to implementing reforms that are necessary to inject growth into our economy and inspire confidence in the business and investor community.

“Together, let us build on this progress and translate economic reform into growth, opportunity and employment,” – President Ramaphosa. n

“We call on business and investors to take advantage of the changes that are underway and turn their pledges and commitments into tangible, job creating investments.

“The reform agenda is moving and its momentum is unstoppable.

“I would encourage those who continue to raise concerns about the slow pace of reform to read this latest report. What has been achieved by Operation Vulindlela

Public Sector Leaders | May 2022 | 11

12 | Public Sector Leaders | May 2022

Public Sector Leaders | May 2022 | 13

COVER STORY

BY THABISO M. MOHLABENG & KOKETSO MAMABOLO

T

rust in state institutions is integral to the government successfully carrying out its functions to the benefit of citizens.

As the most visible members of government, it is important that the public has confidence in civil service leaders such as the new National Police Commissioner, General Sehlahle Fannie Masemola, whose appointment received a warm welcome from both his colleagues and the nation. Public Sector Leaders asked the Commissioner about his top priorities while in office, his career in law enforcement and his vision for the future of the South African Police Service (SAPS).

WELCOME APPOINTMENT Gen. Masemola brings with him over 20 years of senior management experience in the South African Police Service, which is no wonder Members of Parliament have backed the new Commissioner, as the Police Minister noted.

“MPs have expressed their newfound confidence in the appointment of General Masemola who boasts an impressive policing and leadership record in the organisation,” said Honourable Bheki Cele.

The Minister emphasised the support that the Commissioner will receive during his tenure: "Many of the Parliamentarians have thrown their weight behind the Commissioner whose record speaks for itself. Commissioner, you are not on a lone crusade, the support of your team will be paramount in achieving your goals and overall vision for the organisation.”

14 | Public Sector Leaders | May 2022

A FAMILY IN THE LINE OF DUTY The Commissioner was born in Groblersdal but grew up in the Limpopo village of Greenside, and in some sense Gen. Masmola was destined for a career in law enforcement. “My father and uncles were all policemen. My first choice was to be a police officer and my second choice was to be a lawyer or magistrate,” said the Commissioner.

At first Gen. Masemola’s father did not support the decision for his son to go into law enforcement and had it not been for the Commissioner’s uncle, his father’s elder brother, he may have ended up in a different kind of civil service - such as teaching - instead of joining the police in 1987.

“My uncle is my role model,” says the Commissioner. From his uncle Gen. Masemola learned discipline and respect.

“He believed in my dream and vision of becoming a police officer.”

That inspiration and support continued as the Commissioner began blazing a trail in the SAPS. “As I rose through the ranks of the service, he always reminded me to remain humble.”

Those lessons have continued as the Commissioner has climbed through the ranks, to where he now finds himself in a position to influence the lives of all South Africans. After completing his training, Gen. Masemola was deployed to the Free State town of Harrismith, and then the KwaZulu-Natal province where he “served in various roles in the operational environment.”

Supervisory roles and senior positions followed, testament to his leadership abilities. “In my years of service, some of the key lessons that I have learnt is that opportunity meets preparedness. Find opportunity in every situation to demonstrate humility, hard work, and honesty.

These three qualities set the foundation for success in your career and beyond.”

Public Sector Leaders | May 2022 | 15

• • • • • • •

National Head of Operations Deputy Provincial Commissioner for Visible Policing: Limpopo Provincial Commissioner: Limpopo Head of Protection Security Service (PSS) Division Divisional Commissioner: Crime Intelligence Deputy National Commissioner for Visible Policing Co-Chair of National Joint Operational Intelligence Structure (NATJOINTS)

TOP PRIORITIES The new National Police Commissioner has hit the ground running, having already shared his vision and priorities for his term in office. This comes at a time, he noted, where trust in the police is at its lowest. “I indeed assume this ultimate top position and leadership role during a challenging time where public trust and confidence in the police are very low.”

The relationship between the SAPS and community members is high on the Commissioner’s agenda, as are the “morale and integrity” of police officers.

The Commissioner mentioned a few other priorities, including concerns for the safety of police officers. Clearing the backlog in the Forensic Science Laboratories and Central Firearm Registry is another main focus which will have a big impact on addressing genderbased violence and femicide.

Gen. Masemola appreciates the importance of a good relationship between the public and police officers. “Communities need to embrace their role as active citizens in the fight against crime.

Our communities play a pivotal role as the eyes and ears of the police and as such fighting crime is a shared responsibility.”

SERVING THE PEOPLE Looking ahead to the end of the decade, the Commissioner is guided by the government’s strategy and vision for the country. “I envisage a functional and capable police service that is well capacitated with personnel and resources which is responsive to the needs of the people of South Africa. We are striving to achieve the National Development Plan (NDP) 2030

16 | Public Sector Leaders | May 2022

•

Gen. Masemola enjoys being active in his spare time. “When I’m free I go camping with family and friends and also do some hiking on the trip.

I often start my day off at the gym when I’m not engaged in early morning operations or meetings.”

vision where women can walk freely in the streets and children can play safely outside.” n Sources: www.defenceweb.co.za www.homelandsecurity.co.za www.saps.gov.za ​​www.702.co.za

INTERVIEW THOLOANA FOUNDATION

Tholoana Foundation Interview with Founder and Director, Julia Sefuthi

J

ulia Sefuthi is a firm believer in working with others to overcome the challenges faced by communities. The founder and director of the Tholoana Foundation has set her sights on making an impact in communities across the country, having already found success in the North West province.

For the Tholoana Foundation “our strength lies not only in the words we stand by, but most importantly through the actions of our initiatives”.

WHAT WAS THE INSPIRATION BEHIND THE THOLOANA FOUNDATION? I am the last-born child in my family. I grew up with everything any child could dream of. My parents loved people unconditionally. They did not want to see other people suffer. That spirit of helping out people lives in me. In 2018, I moved to Matlosana in North West. I could see people opening up dustbins to look for something to recycle. I would ask God many questions and one was why He brought me to this place to see people suffer. Matric students with good results would work odd jobs only because they lacked information about university and NSFAS applications systems.

Having witnessed all this, God pushed me out of my comfort zone and the Tholoana Foundation was born.

WHAT ARE SOME OF THE PROGRAMMES THAT THE THOLOANA FOUNDATION OFFERS? • Community development through agricultural projects

• • • •

Skills development training (basic plumbing, basic welding, aluminium making and sewing) Matriculants’ empowerment Learnerships and internships facilitation Job placements where possible

WHY IS IT IMPORTANT FOR THE PUBLIC AND PRIVATE SECTORS TO WORK TOGETHER WITH ORGANISATIONS LIKE THE THOLOANA FOUNDATION? We believe that if we are working together, we will be able to transform and improve the lives of many people in the country. Our programmes and activities are designed to be catalysts that help community members reach their goals and fulfil their potential. If the public and private sectors invest their resources in the Tholoana Foundation, they will learn about the positive impact we have in the community. If we join hands it is possible to bring about positive change.

PLEASE SHARE SOME OF YOUR ACHIEVEMENTS SINCE STARTING IN 2020.

• About 39 matric students were assisted and placed at different higher education institutions across the country, all of them with successful NSFAS bursaries • Engagement with more matric students in different high schools in North West, assisting them to prepare for university • Partnership with Bethel High School on an agricultural project as a means of finding more ways to be sustainable

18 | Public Sector Leaders | May 2022

•

About 50 food vouchers distributed with the help of other organisations serving the same purpose

WHAT ARE THE FOUNDATION'S PLANS FOR THE FUTURE? • To have an office in each province across the country • Build more partnerships with the higher education institutions, to increase chances of helping out more learners • Gain access to farms which are no longer in use; as this will see more people getting jobs • Develop a fully-operational soup kitchen, serving 3 meals per day; this will see people getting full-time jobs • Funding support (donations) from public and private sectors to enable the organisation to reach its objectives, we cannot do anything in a silo. Hence our slogan: “Together for a better tomorrow”. n

Address Stilfontein, North West, 2551 Tel 068 216 8782 E-mail: info@tholoanafoundation.co.za

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Public Sector Leaders | May 2022 | 19

SKILLS DEVELOPMENT

BY JESSIE TAYLOR

Tackling unemployment through skills development

W

ith South Africa’s unemployment rate sitting at alarming levels, the private and public sectors have come together to address the issue in a holistic approach. Both sectors recognise that the untapped workforce has the potential to drive economic recovery after the COVID-19 pandemic and global economic downturn, but it also has the potential to create a real difference in the lives of many living in poverty.

For those living in poverty, employment offers an opportunity to better access education, health facilities and proper sanitation, in turn reducing a cycle of inequality deeply entrenched in South Africa.

YOUTH AS A MAJOR CATALYST The persistently high youth unemployment rate has long been one of the most pressing socio-economic problems in South Africa.

One of the challenges facing young work seekers is a lack of sufficient skills and previous work experience. The economy demands skilled and experienced work-seekers, which reduces the chances of unqualified or inexperienced young people finding jobs.

Because of its importance, the National Development Plan (NDP) places a focus on youth development, by singling this group out as the major catalysts in boosting economic growth and putting youth empowerment at the epicentre of development strategies.

“It is important to note that the scourge of unemployment is not a government problem alone. It is a societal problem.

Youth development is therefore a matter of national importance. To ignore the plight of youth will be a major risk in the socio-economic condition of our country”, former Minister of the Presidency for Planning, Monitoring and Evaluation, Jeff Radebe said.

The NDP initially envisioned an unemployment rate of 14% for 2020, but the country’s unemployment rate now stands at record levels. According to the Quarterly Labour Force Survey, the unemployment rate increased to 35.3% in Q4.

20 | Public Sector Leaders | May 2022

In the last quarter of 2021, South Africa had around 20.6 million youth (aged between 15 and 34), of which almost 45% were not in employment, education or training.

This amount had increased by 2.9 percentage points compared to the same time in 2020.

GOVERNMENT INTERVENTION This focus on youth development has seen the government launch several interventions to increase employment among the youth.

In 2020, President Cyril Ramaphosa vowed to increase financial backing for initiatives to increase youth employment opportunities, by setting aside 1% of the budget to deal with high levels of youth unemployment. The plan included scaling up the Youth Employment Service and working with Technical and Vocational Education and Training (TVET) colleges and the private sector to ensure that more learners receive practical experience in the workplace to complete their training.

business support to 1 000 young entrepreneurs. While this was delayed with the onset of the pandemic, the target was reached

by August 2020.

whole of society approach.

Research has shown that youth employability programmes play an important role in increasing resilience in young work seekers, as well as providing them with technical and soft skills – both essential to support their entry into the labour market.

At the 2022 State of the Nation Address, President Ramaphosa announced that the Presidential Employment Stimulus has successfully supported over 850 000 job opportunities. More than 80% have been young people and 60% women. “The total number of direct beneficiaries will soon rise to over one million South Africans,” said the President.

By increasing vocational and skills-based training, employers could have access to a previously untapped talent pool. This could also significantly reduce the number of unemployed youth in the country.

Another avenue that could see numerous job opportunities created lies in small enterprises, as these are likely to be the largest source of new jobs in the future. This will necessitate the government, along with funders and philanthropic organisations, working in partnership to promote entrepreneurship and support small and medium businesses.

“The employment stimulus will also enable the Department of Home Affairs to recruit 10 000 unemployed young people for the digitisation of paper records, enhancing their skills and contributing to the modernisation of citizen services.

During his State of the Nation Address in 2021, President Ramaphosa elaborated on the success of this plan. The National Youth Development Agency and Department of Small Business Development were tasked with providing grant funding and

“The Social Employment Fund will create a further 50 000 work opportunities using the capability of organisations beyond government, in areas such as urban agriculture, early childhood development, public art and tackling gender-based violence.”

A HOLISTIC APPROACH While the government is measuring some success in reducing youth unemployment through such initiatives, reversing the high unemployment rate requires a

Reducing the country’s youth unemployment figures requires a comprehensive plan, with various role-players investing in creating a climate in which qualified youth can take up economy-driving posts. But the benefits of placing this potential talent into job opportunities are numerous – not only will it uplift families and communities out of poverty, but reducing unemployment will also help drive economic recovery following the pandemic.

“We call on companies to support this effort, take up the incentive and give young people a place in the world of work,” said the President in his 2022 State of the Nation Address. n Sources: www.statssa.gov.za www.businesstech.co.za www.theconversation.com www.businesslive.co.za www.gcis.gov.za www.gov.za www.news24.com www.sanews.gov.za www.sanews.gov.za www.uj.ac.za www.youtheconomicopportunities.org

Public Sector Leaders | May 2022 | 21

INTERVIEW SSACI

Swiss-South African Cooperation Initiative

Interview with CEO, Shanita Roopnarain

F

or the Swiss-South African Cooperation Initiative (SSACI), private-public partnerships are an integral part of closing the skills gap and reducing youth unemployment. The past two decades have seen the organisation bring in over R100million in skills development and training. SSACI partners with various stakeholders, including government departments, higher education institutions, the private sector and NGOs to implement its programmes. Here Chief Executive Officer Shanita Roopnarain tells us about SSACI’s work, the importance of public-private partnerships and what the Initiative's plans are for the future.

WHY IS IT IMPORTANT FOR THE PUBLIC AND PRIVATE SECTORS TO PARTNER TOGETHER FOR SKILLS DEVELOPMENT? Research has shown the supply of and demand for skills must be aligned if we are to solve our economy's skills gap and growing youth unemployment. This is difficult to achieve in reality since the world of work changes as quickly as technology advances, as do the necessary skill requirements.

Curricula therefore by default become outdated and difficult to respond to in an ever-changing work environment. SSACI believes that a good partnership with industry and business allows for such curricula gaps to be bridged.

SSACI’s work on Work Integrated Learning (WIL) has shown that in this context, when the commercial and public sectors interact, the

22 | Public Sector Leaders | May 2022

quality of skills improve, and firms may have access to rich talent. The private-public partnership can be well positioned to define training standards, give context for the development of technical and soft skills, and expose and train learners on new technologies. This results in an overall increase in skill quality and youth employability.

HOW HAVE YOU BROUGHT IN OVER R100-MILLION FOR SKILLS DEVELOPMENT AND TRAINING? Over a fifteen-year period, the Swiss Government and Swiss firms, with interests in South Africa, agreed to finance SSACI's skill development initiatives.

Over 6 million Swiss Francs were spent on unemployed youth in different development programmes.

SSACI began as a donor organisation, sponsoring several development programs around the country in agriculture, tourism, engineering, medical health, entrepreneurship, and technical vocational education and training.

In its second phase, it continued to fund a variety of programmes while becoming more involved in their implementation. Its third phase was characterised by a more active role in developing models based on Swiss best practices that would result in higher quality engineering proficiency.

WHAT ARE SOME OF THE ACTIVITIES THAT SSACI IS INVOLVED IN? • SSACI's strategic emphasis has been on improving Technical and Vocational Education, and Training (TVET) colleges through Work Integrated Learning (WIL).

•

It has supported artisan development by working with several public and private partners in creating the public sector's first dual system apprenticeship model, which led to the development of a draft national WIL policy. This influenced the establishment of The Centres of Specialisation (CoS) programme in thirteen trades across 19 TVET Colleges.

•

It has been the lead employer, managing the various stakeholders (corporates and SETAs) involved in the training of over 600 apprentices. The function of lead employer has taken away the administrative burden from employers, especially small employers that have limited capacity. This can be an effective role in the future that allows for of the expansion of CoS to smaller companies.

•

SSACI has embarked on a national initiative to better understand the impact of the National Curriculum (Vocational) on the labour market by tracking and tracing graduates across the country. Similarly, a study was undertaken to track and trace newly certified artisans on behalf of NAMB.

WHAT WAS THE INSPIRATION BEHIND SSACI? For Switzerland, South Africa has long been one of the continent's most important economic partners. It is considered that the country's economic development may be reached via education and development, and it is this element that is a key criterion for cooperation between Switzerland and South Africa. Over time, the Swiss have exhibited a highly effective model of training, which is supported by strong institutional and business relationships. The responsibility for the apprentices' development rests on three important stakeholders: the apprentice, the employer, and training institution. This crucial

collaboration lies at the heart of Switzerland's talent development culture and economic success.

This drives SSACI's purpose in South Africa which is to improve quality by developing and implementing programmes that embody elements of Swiss best practice.

WHAT ARE THE INITIATIVE’S PLANS FOR THE FUTURE? What we do know is that in the labour market, a combination of credentials, practical abilities, relevant practical job experience, and a wide range of soft skills is most important. What is essential to our people is an equally crucial question. The ability to make a living, whether via job or self employment is what weighs heavily on their minds. SSACI will continue to explore new opportunities and bring innovation to teaching and learning in TVET Colleges and in particular find ways to build an appetite for entrepreneurship. n

Tel: 011 642 2110 E-mail: shanita@ssaci.org.za info@ssaci.org.za Website: www.ssaci.org.za

Public Sector Leaders | May 2022 | 23

PUBLIC PRIVATE PARTNERSHIPS

BY TARREN-LEE HABELGAARN

Pulling together to help rebuild KZN

T

he floods that hit parts of KwaZulu-Natal on 11 and 12 April have been described as one of the worst natural disasters in the history of the country and claimed the lives of more than 440 people, leaving 40 000 people displaced, with more than 12 000 homes, 600 schools and hundreds of businesses destroyed.

It has been a trying time for businesses who have already been struggling to keep their doors open following the impact of COVID-19 and loadshedding, but one thing disasters have always highlighted is the resilience and strength of South Africans and our business sector.

One person praised for going beyond to help others bounce back after devastation is Gift of the Givers founder, Dr. Imtiaz Sooliman.

Following the recent flooding and rains in KwaZulu-Natal, Sooliman and his team have been on the ground helping flood-stricken areas to rebuild.

Whether it be locally or internationally, the organisation always finds a way to help get economies up and running to ensure that people have something to return to once the disaster has passed. Their response to disasters vary and depend on prevailing conditions in the identified disaster or war zones.

24 | Public Sector Leaders | May 2022

While their focus is humanitarian relief, this is vital to ensuring that people are safe and able to return to work, school and economic activity as soon as possible after a natural disaster has hit.

Their immediate relief includes temporary shelter, bedding and blankets, basic food provisions and generators for emergency power supply. They also undertake to assist with the rebuilding of infrastructure, such as homes, schools and medical facilities during crises.

are drawing together various stakeholders to be part of an oversight structure to ensure all funds disbursed to respond to this disaster are properly accounted for and that the state receives value for money. The Department of Small Business Development is mobilising funds to assist small businesses that have been affected by the floods. The Minister of Finance has said that R1-billion is available, and his Department will be approaching Parliament for additional resources.”

way to help businesses identify opportunities and ways in which they can assist.

Disasters, while never welcomed, can present opportunities that might not have been there before and while recently addressing the nation on this matter, His Excellency, Cyril Ramaphosa said extensive work is underway to restore basic services such as water, electricity, sanitation and waste removal.

While this may not speak directly to business needs, these play a vital role in assisting communities to ensure that people are ready to return to work as soon as possible.

eThekwini Municipality Mayor, Honourable Mxolisi Kaunda, highlighted the preliminary estimates of the more than R700million in operational losses – excluding the cost to repair damaged infrastructure and properties.

To assist with the initial need, Gift of the Givers have provided hot meals, blankets, bottled water, warm clothes, sanitary pads and diapers and will also now be looking to assist with building material and costs to help repair schools and medical facilities.

They have always been very clear on the stance that roads, bridges, drainage and public infrastructure are the government’s responsibility, though they will consider schools and health infrastructure. While they assist, they also believe that private homes and businesses should be covered by insurance.

This is a difficult situation as many businesses in KwaZulu-Natal don’t even qualify for insurance due to the risk of floods and are now having to scramble to rebuild.

But, luckily another gift Dr. Sooliman and his team have is getting people to care and come together. They also find a

“The economic impact of these floods has been severe as many industries had to cease operations.

Preliminary estimates indicate that the loss to the eThekwini GDP since 14 April 2022 is R737m,” Hon. Kaunda said.

“These efforts are being hampered by damage to main supply systems and the inaccessibility of some areas. To ensure an effective response to these tragic events, the National Disaster Management Centre last week classified the flooding as a provincial disaster,” said President Ramaphosa.

“Learning from the experience of the COVID-19 pandemic, we

While an event like this has a devastating impact on the economy, there will be a lot of opportunities to assist with rebuilding and positioning your business to grow and influence sectors. Perhaps you might even use this to reposition your place in the market. n

Sources: www.thepresidency.gov.za www.freightnews.co.za www.giftofthegivers.org www.news24.com

Public Sector Leaders | May 2022 | 25

IN OTHER NEWS

BY JESSIE TAYLOR

Motor

industry focus Building the foundations for the automotive sector’s future

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n investment of more than R1.2-billion has brought a welcome economic boost to Eastern Cape. The province is home to a large segment of South Africa’s automotive industry. The sector is expected to see significant changes over the next few years, as it adapts to accommodate the increasing demand for electric vehicles in Europe and the UK, as well as producing vehicles for export across the continent.

26 | Public Sector Leaders | May 2022

investment has the potential to create more than 2000 jobs, and the companies have already started operation from their new premises in the ELIDZ to supply MBSA with various automotive components.

Premier Oscar Mabuyane says the automotive sector is adding to skills development among the youth, as well the economic recovery of the province.

INVESTMENT INTO CURRENT PRODUCTION LINES The recent investment from Isuzu Motors South Africa will see the next generation Isuzu bakkie built on a production line at the company’s Gqeberha manufacturing plant. The new production line will produce the seventh generation of the Isuzu bakkie, the D-MAX. President Cyril Ramaphosa attended the launch of the new Isuzu D-Max bakkie, saying Isuzu Motors South Africa’s R1.2 billion investment would greatly assist efforts to expand local production.

"The automotive industry is one of our economy’s most important sectors. It is a significant source of employment and small business development in the Eastern Cape, particularly in Gqeberha.

local component manufacturers. It also resulted in improvements and upgrades of the plant.

The Eastern Cape is home to several key vehicle manufacturing plants, including Volkswagen and Mercedes Benz South Africa’s (MBSA).

Volkswagen recently celebrated producing its 100 000th unit of the current Polo Vivo in Kariega. The car has been under production at the manufacturing plant since 2010 and is built exclusively for the South African market.

Meawhile, 16 new companies linked to MBSA new C-Class project (W206) have invested around R3.3 billion in the East London Industrial Development Zone (ELIDZ). The

“The automotive sector is critical for our province. It continues to be the mainstay of our provincial economy.

It drives manufacturing activities and the larger economic vibrance of our metros and our province, and it is the biggest Gross Domestic Product (GDP) contributor in the province,” he stated.

PREPARING PRODUCTION TO MEET FUTURE MARKETS The national government has in place an automotive master plan, driven by the Department of Small Business Development, which aims to increase the local content among first and second-tier suppliers, and focuses on creating special economic zones – with many of those in the automotive sector operating in these zones.

Deputy Minister of Trade, Industry and Competition Nomalungelo Gina says: “Special Economic Zones seeks

I want to thank Isuzu Motors for supporting the localisation objectives contained in our Automotive Production Development Programme," President Ramaphosa said.

The project has unlocked around 1000 direct jobs at Isuzu Motors South Africa’s Gqeberha production plant and 235 new job opportunities at

Public Sector Leaders | May 2022 | 27

to create a sustainable environment for foreign and domestic direct investment, build sector-based industries, which will help the South African economy to develop its strategic industrial capabilities and industrial capabilities. The Special Economic Zone (SEZ) Programme serves as a key policy programme underpinning spatially integrated industrial development, particularly in the context of unlocking or optimizing South Africa’s comparative and competitive advantages.”

in South Africa are exported, meaning that South African based manufacturers could face decreased demand and job losses if they don’t adapt to the demand for electric vehicles. The automotive manufacturing industry accounts for 8% of South Africa’s GDP, and employs around 100 000 people.

The shift towards electric vehicles is essential to maintain the future of South Africa’s automotive industry, especially with the EU and UK aggressively phasing out internal combustion engine vehicles.

and the Eastern Cape, which is South Africa’s most prolific vehicle exporter, are highly vulnerable to changes in demand in these export markets –currently mostly Europe… Commitments by countries, including South Africa, to zero carbon emissions means that within a very short time-period (within three to five years) South Africa’s traditional markets will demand electric vehicles only which means we need to be making significant investments in innovation and electric vehicle technology.”

While Eastern Cape is central to today’s automotive sector, it is also poised to play a leading role in the future of vehicle manufacturing.

Recently, the Automotive Industry Development Centre Eastern Cape (AIDC EC) and the South African Bureau of Standards (SABS) entered a partnership to increase the innovation and technology in the South African automotive supply chain, particularly in electric vehicles.

Roughly 75% of all vehicles produced

The partnership between the AIDC EC and SABS will look to establish the Eastern Cape automotive manufacturing hub as a centre of excellence on the continent. This will become especially important as the global market moves towards reduced carbon emissions and embraces electric vehicles.

AIDC EC CEO Thabo Shenxane says: “As South Africa’s automotive volumes are driven by export demand predominantly, the country

Future investment in the sector will not only help in South Africa’s economic recovery but will also aid the growth of the sector to adapt to changing demand from export markets and consumers. n

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Sources: www.carmag.co.za www.citizen.co.za www.elidz.co.za www.engineeringnews.co.za www.esi-africa.com www.news24.com www.sabcnews.com

Public Sector Leaders | May 2022 | 29

WOMEN IN LEADERSHIP

BY JESSIE TAYLOR

Reshaping the future of South Africa's mineral resources Women in Leadership: Dr Nobuhle Nkabane

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he Department of Mineral Resources and Energy has published an exploration strategy, which is expected to increase exploration investment in South Africa significantly. The country has long been home to significant mineral deposits and has been a leading mining jurisdiction for years, but this status has been gradually waning.

The new strategy looks to reshape the sector – which accounts for more than half a million jobs – and focus on further mineral exploration that will increase the sector's economic potential.

A STRATEGY BUILT ON INCREASING INVESTMENT The strategy aims to attract $900-million in investment in the exploration of the country's mineral

wealth by removing bottlenecks, developing resource-mapping technology and diversifying the country's mining sector beyond precious metals.

The department will broaden its focus to include metals used in electric vehicles, battery storage, and minerals used in clean technologies.

This will grow South Africa's share of global exploration investment from less than 1% to 5% in the next five years.

Failure to welcome mineral exploration could put further pressure on the South African economy, Mineral Resources and Energy Deputy Minister Dr. Nobuhle Nkabane has cautioned.

Dr. Nkabane was appointed

30 | Public Sector Leaders | May 2022

as Deputy Minister of Mineral Resources and Energy on 5 August 2021. She has served as a member of parliament and has a strong background in public sector management. Dr. Nkabane has been a lobbyist for transformation in mining, hoping to reverse the exclusion and discrimination of women in the sector through empowerment strategies.

Dr. Nkabane added that geopolitical events have an impact on the importation of materials such as oil, often hitting the pocket of South Africans. Increasing mineral exploration in South Africa could see more local production of oil and gas, reducing South Africa's dependency on imports.

The department's exploration strategy looks equally at increasing opportunities while also attending

"to the comprehensive challenges that pertain to the preservation of the environment," Dr. Nkabane says.

She adds that exploration and environmental protection must be balanced, saying that the government's strategy does not focus on one at the expense of the other.

The mining sector is a key focus of the government's Economic Reconstruction and Recovery Plan. The strategy is essential in bolstering the mining sector's GDP contribution, in turn unlocking economic potential.

REIMAGINING THE FUTURE OF SOUTH AFRICAN MINING Repositioning South Africa's mining industry has become increasingly important as the country's share of the global exploration expenditure has declined consistently over the last two decades. This is despite the country boasting a prolific geologic environment and world-class mineral deposits.

attractiveness to mining investment. This was South Africa's lowest ranking ever. South Africa was for years the world's biggest producer of gold, but production has begun to decrease as deposits are now deeper and more difficult to access. The country also boasts the world's biggest deposits of platinum-group metals, battery metal vanadium, c hrome and manganese.

To account for declining gold reserves, the strategy instead focuses on "the minerals of the future". The strategy looks to position South Africa competitively against other mineral producing nations by reigniting mineral development and accelerating new mineral discoveries.

The strategy includes an Exploration Implementation Plan, which aims to help the government streamline requirements in the environment, water, mining, land use and other legislations to enable the quick turnaround of exploration authorisation.

The government hopes the strategy will be an adaptive framework, flexible to market sentiment and commodity interest, and including tailor-made technological and political changes to keep the South African mining sector competitive. n

In 2020, South Africa's mining industry recorded its lowest level of exploration investment since 1994.

Around R4-billion was spent in 1994, compared to R1-billion in 2020.

Last year, the country was ranked 75th out of 84 jurisdictions surveyed in the Fraser Institute Annual Survey of Mining Companies.

The survey is a benchmark of a country or region's

geoscience mapping over the long term. The country does not have an online cadastre system like many other mining hubs around the world.

A cadastre is a public portal which houses extensive geological data about mining jurisdictions. A transparent online system would allow potential investors and interested parties to understand what mining rights are held by whom. The system is designed to de-risk exploration. Along with the exploration strategy, a cadastre system remains under development.

Sources www.statssa.gov.za www.finance.yahoo.com www.sundayworld.co.za www.gov.za www.iol.co.za

There are a number of challenges the government hopes to address with the strategy – this includes red tape, energy instability, ageing infrastructure, industrial action and a lack of geo-scientific data.

To increase the amount of data, the state is investing in

www.linkedin.com www.miningweekly.com www.news24.com

Public Sector Leaders | May 2022 | 31

ENERGY MONTH

BY JESSIE TAYLOR

32 | Public Sector Leaders | May 2022

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s the country grapples with loadshedding and ageing electricity infrastructure, South Africa is moving toward greener energy solutions in the hope that it will transform the energy sector.

But this move will require a partnership between the government, state-owned enterprises and the private sector to unlock potential green energy sources.

MOVING AWAY FROM COAL PRODUCTION More than 80% of South Africa’s power comes from coal use and moving away from this as an energy source is essential if the county is to reduce its greenhouse gas emissions. South Africa is the 13th largest producer of greenhouse gases in the world.

At the international climate conference in Glasgow last November, South Africa struck a historic R131-billion deal with the European Union, France, Germany, United Kingdom and the United States.

This first-of-its-kind partnership will involve repurposing and repowering some of the coal plants that are reaching the end of their lives and creating new livelihoods for workers and communities most impacted by this change.

In his State of the Nation Address earlier this year, President Cyril Ramaphosa said South Africa faced a shortfall of around 4000 MW of electricity.

To address this shortfall, the government has opened several bid windows to encourage the construction of renewable energy resources. There is also a plan to open a request for proposals for gas power and battery storage later this year, which will result in 3 000 MW of gas power and 500 MW of battery storage.

“In addition to closing the energy supply shortfall, we are implementing fundamental

changes to the structure of the electricity sector,” said President Ramaphosa.

This includes the unbundling of Eskom and a robust maintenance programme, to reverse many years of neglected maintenance and underperformance of existing plants.

“These far-reaching amendments will enable a competitive market for electricity generation and the establishment of an independent state-owned transmission company,” added President Ramaphosa.

Eskom is currently in the process of establishing a ‘Clean Energy Unit’ as a separate entity within the power group. The unit will focus on the development and establishment of renewable and alternative energy.

The power utility has a proposed pipeline of almost R200-billion ($13.3-billion) of renewable energy, gas and battery storage projects.

PROCURING CLEAN ENERGY FROM INDEPENDENT PRODUCERS South Africa has a programme in place that procures clean energy from independent power producers (IPPs) to feed into the national grid under the Renewable Energy Independent Power Producer Procurement Programme.

This programme has attracted more than R200-billion to construct and run 77 solar and wind facilities. The IPP plants have added 6 000 megawatts of power to the national grid.

The Department of Mineral Resources and Energy recently opened bid window six of its Renewable Energy Independent Power Producers Procurement Programme (REIPPPP). The programme is part of the government’s commitment to develop renewable energy resources such as solar and wind as it reduces its reliance on coal. The window is expected

to procure a further 2600 MW of renewable energy from Independent Power Producers (IPPs).

The bid window has been welcomed by the South African Wind Energy Association. The Association says the new bid window is another step stimulating the wind sector.

The sector is set to produce around half of local power by 2030. The targets set by the Department are currently 40% local content, and the wind energy industry has achieved 47%, the SAWEA said.

But the private sector is also coming on board to find cleaner energy solutions. Sasol, which converts coal into fuel and other products, is now focusing on green hydrogen – made by machines called electrolyzers that are powered by the wind and sun. The company has embarked on a feasibility study to explore this clearer power source, and this plan could see it obtaining as much as 3 000 megawatts of renewable power to make 100 000 tons of green hydrogen for export.

“Renewable energy production will make electricity cheaper and more dependable and will allow our industries to remain globally competitive. Investments in electric vehicles and hydrogen will equip South Africa to meet the global clean energy future.

We will be able to expand our mining industry in strategic minerals that are crucial for clean energy, like platinum, vanadium, cobalt, copper, manganese and lithium. We also have a unique opportunity in green hydrogen, given our world-class solar and wind resources and local technology and expertise,” says President Ramaphosa.

All of these measures will drive a turnaround in economic growth, he added. n Sources

www.businesstech.co.za www.news24.com

www.engineeringnews.co.za www.gov.za

Public Sector Leaders | May 2022 | 33

COVID UPDATE

BY JESSIE TAYLOR

New COVID-19 regulations to impact on how employers manage occupational health

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OVID-19 cases have seen a resurgence across the country, with Gauteng, KwaZulu-Natal and Western Cape all recording higher numbers.

The increase in cases comes as the South African government works to finalise regulations to replace the National State of Disaster. While a number of rules remain in place, the lifting of the State of Disaster has brought some changes to how COVID-19 is managed in the workplace.

BEYOND THE STATE OF DISASTER President Cyril Ramaphosa said the introduction of the State of Disaster and associated lockdown restrictions had been essential tools in managing the pandemic and had allowed for the establishment of social relief schemes and other necessary regulations. The State of Disaster and its powers were always intended to be temporary and limited, and once the number of hospitalisation and deaths had reduced, the regulations were lifted in favour of new legislation to be promulgated under the National Health Act. The State of Disaster was lifted on 5 April, with the regulations left in place for 30 days to allow the National Health Department to submit alternative regulations under the National Health Act, which would manage any future COVID-19 restrictions.

In a recent media briefing, Health Minister Dr. Joe Phaahla said more than 300 000 comments were received on the department’s proposed regulations.

These are being addressed and will be processed for adoption in May. Some of the regulations that have been dropped in the scrapping of the National State of Disaster include workplace specific rules.

In the workplace, masks are still mandatory in all indoor spaces for anyone older than six years. This is also applicable to any forms of mass transport supplied to employees, as no public transport may be used without a mask.

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However, under the COVID Code, employers could implement an admission policy that would require employees to produce a vaccination certificate or a negative COVID test at their own expense to enter their office.

Employers are obliged to enforce this rule among employees on their premises. Gatherings for work purposes must adhere to all health protocols and social distancing measures.

In addition, directions around mandatory vaccination schemes have been promulgated.

These directions cover the administration of the scheme, the vaccines applicable to the scheme, the eligibility of claims and the process by which a person may lodge a claim with the scheme.

The Code of Good Practice: Managing exposure to SARSCOV-2 in the Workplace, published by the Department of Employment and Labour in March, has also now come into effect.

This code is intended to guide employers on how to fulfil their obligations to keep the workplace safe after the end of the National State of Disaster, including limiting and mitigating the risk of COVID-19.

The COVID Code gives employers the right to implement a vaccine mandate and ascertain their employees’ vaccination status.

It also maps out the grounds on which employees can refuse the vaccine.

A CONTINUED NEED FOR PROTECTION There have been other changes that employers need to be aware of. With the ending of the State of Disaster, employers are no longer obligated to screen employees on a daily basis for COVID-19 symptoms.

Employees will only be obliged to inform employers when they have COVID-19 symptoms, and employers are entitled to request a negative COVID-19 test to allow the employee to return to the office after they have been diagnosed as positive.

The new rules also mean that employees no longer have to limit their refusal to vaccinate on Constitutional or medical grounds.

Should an employee base their refusal to vaccinate on a contraindication to the vaccine, they are obliged to produce a medical certificate as confirmation. Their employer may also request that the employee be medically assessed to confirm this and will be obliged to cover the cost.

“There continues to be a need for all of us to protect ourselves through the nonpharmaceutical means and through vaccine (sic) as the only weapon against COVID. He assured the parliamentarians and the public at large that the government continues to have good intentions in the execution of its Constitutional mandate to protect the lives of South Africans, and the introduction of the amendments to the existing Health Regulations is to ensure this is done logically and rationale,” says Minister Phaahla.

Broadly, the new regulations include provisions for compulsory medical examinations, screening, vaccination and quarantine, among others. Minster Phaahla has said the new regulations would be based on legislation from 2017 that deals with the surveillance and control of notifiable health conditions.

“These health regulations are not new; they were promulgated in 2017. However, [they] do not make provisions for the management of the notifiable medical conditions of COVID-19 pandemic magnitude, which has never been experienced before,” says Minister Phaahla. n

Sources: www.businesstech.co.za/ www.sacoronavirus.co.za www.businesslive.co.za www.citizen.co.za www.dailymaverick.co.za

Public Sector Leaders | May 2022 | 35

TOURISM AND DEVELOPMENT

BY JESSIE TAYLOR

Restriction free travel FEDHASA lobbies for tourism growth

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ew regulations have made it easier for travellers to visit South Africa – a welcome relief to the tourism and hospitality sectors. The sectors suffered significant losses due to the pandemic.

The relaxed restrictions have been welcomed by the Federated Hospitality Association of South Africa (FEDHASA), an organisation that represents the interests of the sector by lobbying the government and influencing policy decisions.

However, there is still work to be done to get the industry back on its feet.

IMPACTED BY THE GLOBAL PANDEMIC The measures imposed by the South African government to reduce the spread of the coronavirus included closing borders, in line with international practice, and issuing a travel ban on several high-risk countries. South Africa did not receive visitors for a period of six months from April to September 2020.

This had a significant impact on the South African tourism industry: The tourism sector’s direct contribution to GDP dropped from 6.9% in 2019 to 3.7% in 2020 and the travel restrictions saw tourist arrivals sharply decline. According to a report by Statistics South Africa, foreign arrivals dropped by 71% between 2019 and 2020. The World Travel and Tourism Council found that domestic tourism dropped by 43%.

However, the industry has shown signs of recovery. Statistics South Africa recorded a year-on-year increase of more than 150% between July 2020 and July 2021. But this recovery will only be sustained if travel regulations continue to be sustained.

Rosemary Anderson, National Chairperson of FEDHASA, says: “Government also needs to realise that hospitality and tourism are being stymied by government policies, inefficiencies and red tape such as the slow

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processing of licences which directly impacts our ability to create jobs. The biggest obstacle to tourism creating new jobs is this.”

A CALL FOR THE FURTHER EASING OF RESTRICTIONS One policy that is currently hindering the tourism sector, FEDHASA says, is the testing of international travellers visiting South Africa.

The National State of Disaster recently came to end, after being implemented for 750 days.

The State of Disaster allowed the government to take extraordinary measures to reduce the spread and impact of COVID-19 and saw several laws promulgated, including mandatory maskwearing, prohibiting sales and implementing curfews.

The latest regulations, which will stay in place under the National Health Act, include wearing a facemask in indoor public spaces

and limits on the numbers allowed at social gatherings.

Some travel regulations remain in place, although these have been significantly relaxed.

Travellers entering South Africa are now required to provide proof of vaccination or a negative PCR test not older than 72 hours.

Ms. Anderson says: “We are delighted that the State of Disaster has finally been lifted after 750 days of being in place, bringing an end to many of the rules that have burdened the hospitality sector, such as temperature checking and contact tracing, which have proven largely unscientific to stemming the spread of COVID-19.”

And while FEDHASA has welcomed the end of the National State of Disaster and the removal of prearrival testing for fully vaccinated travellers, the new rules still prove a challenge, said Ms. Anderson.

“We hope that our industry will receive certainty sooner rather than later with regards to hosting big events as the current restrictions of 50% mean that many of the international events we would host in South Africa would simply not be viable. For any mediumto long-term planning to take place and events business to be secured, we need certainty. This is an opportunity for us to position

South Africa as a leading meetings, incentives, conferencing and events destination,” Ms. Anderson says.

Another challenge centres around the vaccination of children. Many countries, South Africa included, do not vaccinate children younger than 12. This means that many children over the age of five require a PCR test to enter the country.

SEVEN DECADES OF HOSPITALITY LOBBYING

In 2019, FEDHASA celebrated its 70th anniversary. The organisation was established to champion change within the hospitality and tourism industry.

Established in 1949, the then Federated Hotel Association of Southern Africa was formed to represent the hospitality industry and lobby on its behalf with government.

In 1965, FEDHASA launched the Hotel Training Scheme to enable students to train at selected hotels, in the same year as the establishment of the first Department of Tourism, eight years before the first hotel school was established in 1972 in Johannesburg.

Over the years, the organisation has challenged liquor sales legislation, fought for transformation within the industry, and established regional offices to lobby local, provincial and national governments.

This means that if parents are fully vaccinated, a family with children would still be required to pay for PCR testing – which can be difficult to obtain and expensive.

The additional travel cost may dissuade travellers from visiting the country, FEDHASA fears.

“We require the urgent removal of the PCR test requirement for unvaccinated children between the age of five and 12 years as this is damaging inbound family travel to South Africa as well as hindering South African families from travelling.

As we enter a new post-pandemic era, we have learnt the importance of meaningful engagement and hope that the government sees the benefit thereof. We genuinely want to establish a partnership with the government to develop a plan on how to grow the tourism industry, market the destination and create thousands of new jobs – the tourism industry being a key potential driver of the economy and job creation,” Ms. Anderson concludes. n Sources: https://fedhasa.co.za https://www.businessinsider.co.za https://www.citizen.co.za https://www.hospitalitymarketplace.co.za https://www.statssa.gov.za https://www.tourismupdate.co.za https://www.westerncape.gov.za

Public Sector Leaders | May 2022 | 37

SARS

BY ALEXANDRA KOTCHOUBEI

#YourTaxMatters

A 2022 SARS Success Story

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elebrating their 25th anniversary on Friday, 1 April 2022, SARS Commissioner Mr. Edward Kieswetter announced the preliminary tax revenue collection outcome for 2021/2022 yielding fantastic results as they reached a new record high.

Collecting just over R1.56-trillion during the 2021/22 financial year, this was a 25.1% increase from the previous tax year. This was slightly higher than the estimated budget and indicates that South Africa has not only recovered after COVID-19 but the growth was 15% higher than what was seen in the year preCOVID. The gross tax revenue totalled R1.885-trillion, and they have refunded R321.1-billion to

taxpayers, resulting in the net revenue outcome of R1.563-trillion.

In an interview with SABC News, Commissioner Kiewswetter praised the over 12 500 employees at SARS saying that although they still have a long way to go, these positive results come from them being more focused and diligent and it is encouraging to see the steady progress that they are making rebuilding the institution. This also shows their commitment to improving the professional behaviour of their own staff, even when it comes to rooting out any form of corruption within their own institution or otherwise that could defraud the system.

In Mr. Kieswetter's revenue announcement he reminded us of the SARS Vision 2024 that commenced in 2020 saying, “based on the clear strategic intent of voluntary compliance and progressing towards building a smart, modern SARS with unquestionable integrity that is trusted & admired.”

Many have formulated a negative relationship to taxes and so it’s important to be reminded of what our tax goes towards. Since its inception, more than R17.82-trillion has been collected by SARS. Over the past 25 years tax net revenue collections have grown considerably with more than a

38 | Public Sector Leaders | May 2022

10-fold increase from R147.3billion in 1996/97 to over R1.56trillion in 2020/21 growing at a compound annual growth rate (CAGR) of 9.9%. These collections enable significant safety nets for the most vulnerable in our society by laying the foundation for sustainable economic growth and the provision of social goods and services.

Although SARS’ revenue is improving, Edward Kieswetter told the Daily Maverick that there is still damage left by State Capture stating that they face underfunding of R9-billion over the next three years as they continue to rebuild the institution after State Capture.

“I think that we will still be significantly incomplete by the time I retire in two years’ time, so broken is the system, in such a state of disrepair is the system,” Kieswetter told the Daily Maverick.

In another interview with Timeslive, Kieswetter spoke about how SARS has managed to nail tax dodgers for billions. In

the past year tens of billions of tax dodging had been impeded that involved churches, luxury cars, counterfeit goods (such as drugs, clothing and textiles and cigarettes), wealthy individuals, personal protective equipment (PPE) and State Capture. During his announcement at the 25 anniversary, Kieswetter said that R25-billion was netted by 270 specialised auditors that probed a range of schemes to avoid paying tax.

Twenty-nine civil cases related to State Capture had been finalised, as well as 23 criminal investigations, and 20 matters had been handed over to the National Prosecuting Authority (NPA), said Kieswetter to Timeslive.

“Turning to the work we do as SARS the Tax Administration, our mandate is clear. We are to collect all revenues that are due, ensure optimal compliance, and facilitate legitimate trade. The efficacy of SARS administrative efforts results in the additional tax revenues being collected

and prevents revenue leakages from impermissible transactions,” stated Kiesewetter in his announcement.

Mr. Kieswetter told SABC News that in South Africa inclusive growth is explained as the growth of the economy that filters through to the ordinary man and woman on the ground - and ultimately with better tax revenue collections the government has more leeway in budget allocations.

HERE ARE 3 SUGGESTIONS FOR FURTHER READING ON HOW TAX WORKS: • Maya on Money • Stealthy Wealth • BankerX And so as SARS says and likes to assure us, REMEMBER #YourTaxMatters!

Happy Anniversary, SARS. Here’s to another 25 years of growing South Africa. n Sources: www.sars.gov.za www.timeslive.co.za www.dailymaverick.co.za

Public Sector Leaders | May 2022 | 39

WEALTHIEST WOMEN

BY FIONA WAKELIN

By Fiona Wakelin

Top to bottom: Folorunsho Alakija; Ngina Kenyatta; Hajia Bola Shagaya; Wendy Appelbaum; Wendy Ackerman Looking at the list of the richest women in Africa, what is striking is that acquiring billionaire status does not happen overnight. Everyone featured here has spent a lifetime investing in, and growing, their entrepreneurial empires.

Silver hair and gold in the bank!

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TOPPING THE LIST OF WEALTHY POWERHOUSES IN AFRICA IS: Folorunsho Alakija - a Nigerian billionaire Fifty years ago Folorunsho started out in the fashion industry and today her business interests include real estate, oil and gas and printing.

She is the owner of several groups of companies including Dayspring Property Development Company Limited, a real estate company which owns properties around the globe, as well as Rose of Sharon Prints and Promotions.

Folorunsho is also Executive Director of FAMFA Oil, her family-owned oil production company.

an auditor for the Central Bank of Nigeria and then her entrepreneurial verve kicked in! She started an empire by importing Konica photographic equipment for resale.

Nearly 40 years later she is CEO of Bolmus Group International with interests in oil, real estate, banking, and photography.

Hajia founded Practoil Limited, and in 2005 became its managing director. Today Practoil is one of the largest importer and distributors of base oil in Nigeria today.

4TH AND 5TH PLACES ARE HELD BY SOUTH AFRICAN POWERHOUSES:

THIRD PLACE GOES TO:

Wendy Appelbaum is the richest woman in South Africa and the 4th wealthiest on the continent Wendy Appelbaum is the daughter of Liberty Group founder Donald Gordon and the owner and Chair of De Morgenzon Wine Estate.

Previously, Wendy also served as the Deputy-Chairman of the Women’s Investment Portfolio Limited (Wiphold Limited), which is a renowned women’s investment holding company that is listed on JSE. Overall, Wendy is also a director of Sphere Holdings (Pty) Ltd, which is a black empowerment company addressing financial services in mining sectors. In 2015, she was awarded both the Forbes Woman Businesswoman of the Year, and the Forbes Africa Woman of the Year.

Hajia Bola Shagaya who also hails from Nigeria With a current net worth of almost a billion US, Hajia Bola started out as

Wendy Ackerman – FMCG powerhouse Wendy Ackerman is one of the founders and an Executive Director

NEXT IS: Ngina Kenyatta - the mother of current Kenyan president, Uhuru Kenyatta Nearing her ninth decade Ngina Kenyatta is a billionaire with a portfolio which includes investments, banking, media and the dairy industry. “Mama Kenyatta” has a 24.91% share in the Commercial Bank of Africa (CBA) – she also owns shares in Media Max, a media company that owns K24 TV, Kameme Radio, and The People newspaper.

of Pick ‘n Pay Stores. Along with her husband Raymond Ackerman, Wendy has been a tremendous force in building up one of South Africa’s leading FMCG retailers, which, to date, consists of over 450 stores, with the inclusion of 121 supermarkets and 14 hypermarkets.

The company extends its food and retail services across South Africa, southern Africa and even Australia, and has employed an estimated 49,000 people over the years.

Wendy received an Inyathelo Award for her family’s philanthropic efforts in 2007.

A CAUTIONARY TALE For many years Isabel Dos Santos, daughter of Angolan President, José Eduardo dos Santos, topped the list as the richest woman in Africa.

Currently in self-imposed exile in Dubai she is embroiled in legal battles while watching her empire implode. n Sources Bloombergquint Gluesea Nigerian Finder Demzyportal AllAfrica

Public Sector Leaders | May 2022 | 41

REGIONAL FOCUS

BY JESSIE TAYLOR

Building vibrant Gauteng township economies through bold legislation A new bill is set to boost the township economy in Gauteng, giving millions access to economic opportunities.

The Gauteng Legislature passed the Township Economic Development Bill in March, providing the regulatory framework to make it possible for people living in townships to establish viable and thriving businesses where they live.

42 | Public Sector Leaders | May 2022

The Bill aims to bring townships closer to mainstream economic opportunities and close the gap between urban and peri-urban communities. The legislation will also look to bring the formal and informal economies closer.

HOME TO PROMISE AND POTENTIAL Creating opportunities in townships is vital for South Africa’s economy. There are more than 22 million

South Africans living in townships and informal settlements, and the population accounts for around 60% of the country’s unemployed.

Yet they are also thriving economic zones: the township economy produces 17% of South Africa’s total employment (around 2.5 million workers) and makes up about 6% of its GDP. With most people living in townships, it is essential to bring jobs and opportunities closer to them – and this is what the Bill sets out to do.

The Bill offers a unique opportunity to rebuild the economic geography of the country’s townships and disadvantaged communities, says Honourable Parks Tau, Gauteng MEC for Economic Development.

“It is an unprecedented and farreaching legislative instrument to affirm township citizens and communities who have been deprived across human generations of strategic benefits to affirm their fundamental human rights,” says Hon. Tau. Township and informal settlement residents are often excluded from meaningful participation in the formal and informal economies, which impacts entrepreneurship.

Research by the Gordon Institute of Business Science has shown that there is robust entrepreneurial activity in townships which is often driven by opportunity, skills, and desire to contribute to the community.

The researchers concluded that township entrepreneurs tended to be genuinely entrepreneurial rather than victims of circumstances.

But they also found that instead of simply sustaining business owners and creating employment, township entrepreneurship supported a complex small business ecosystem. Almost half

of the entrepreneurs surveyed indicated that other small businesses were key clients.

TRANSCENDING HISTORICAL WRONGS Yet entrepreneurs face many barriers in South Africa, which shows in South Africa’s global ranking. In the Global Entrepreneurial Monitor’s 202122 report, South Africa was rated as having the sixth-worst entrepreneurial ecosystem in the world. It is this dynamic the Bill seeks to change by focusing on the strong entrepreneurial spirit found in townships and informal settlements.

Hon. Tau described the Bill as a game-changer to progressively change the economic geography of townships and informal settlements.

into active economic geographies that are vibrant centres of and for inclusive self-employment creation, says Hon. Tau. “The urgency of implementing this act and resourcing it continuously, through publicprivate partnerships, is an avenue to transcend historical wrongs that deprived the black majority of gainful economic activity and participation. It is a gamechanger to empower, without discrimination, citizens and communities to partake in the economy, formal and informal so that the ideal of economic liberation envisioned in the Freedom Charter and Constitution becomes real and tangible,” he concluded. n

The by-laws enabled by the Bill also make it easier to incentivise broadband installation in townships.

The Bill enables the Township Economy Partnership Fund to become legally binding for all future Gauteng governments. The Fund is a tool to provide loans to small enterprises by combining government and private sector funds.

Linked to the Bill is the Gauteng Department of Economic Development’s Growing Gauteng Together 2030 plan-of-action.

This plan, which is enabled by the Bill, looks to link township investment facilitation to value-chain transformation and small, medium-sized and microenterprise empowerment through active enterprise development and supplier development.

These policy and legislative interventions have the measurable potential to change townships from labour dormitories

Sources: www.iol.co.za www.engineeringnews.co.za www.gep.co.za www.gpl.gov.za www.statssa.gov.za www.gibs.co.za www.businesslive.co.za www.dailymaverick.co.za

Public Sector Leaders | May 2022 | 43

FINANCIAL FITNESS

BY JESSIE TAYLOR

Saving for the future starts with retirement funds

N

early half of all South Africans don’t have a retirement plan, leaving them at risk of a reduced income once they exit the workplace. It’s essential to plan for retirement, and one of the best ways to do this is through investing in a financial product such as a retirement annuity.

A LACK OF RETIREMENT SAVINGS AMONG SOUTH AFRICANS In 2020, the 10X South African Retirement Reality Report found that 49% of South Africans do not have a retirement plan. Of those that did have a retirement plan, three quarters were worried they would not have enough funds to live on after they had retired.

What this lack of savings translates to is that, on average, someone with retirement savings can expect to receive around a quarter of their income after retirement.

Those forced to rely solely on the government’s older person’s grant (more than 3.6 million people) currently have an income of up to R2 000 every month.

The lack of retirement savings among South Africans is affected by many factors, among them a high unemployment rate and a strong culture of borrowing. And many South Africans simply do not have the extra income to set aside as savings, with at least 30% of the working population supporting family members in retirement.

This is not surprising, as around two-thirds of those contributing to a retirement fund have less than R50 000 in their funds.

This can have a shocking impact on the quality of life in your final years, leaving many retirees under financial pressure.

More than 55% of respondents in the 10X survey said they do not have enough money at the end of the month to save.

44 | Public Sector Leaders | May 2022

But with more and more people living longer, more retirees are likely to find themselves without sufficient income later in life.

Globally, the population aged 65 years or over is expected to increase from 9.3% in 2020 to around 16% in 2050, according to the UN’s 2020 World Population Ageing report.

times more likely to experience poverty than any other age group.

To support this group, the burden often falls on family members or the State.

When you don’t save enough for retirement, you not only are at higher risk for poverty later in life but also for adding a burden to your family members and relying on State support.

The only time you will be able to access your retirement funds early is if you retire early due to ill-health or disability.

To cover the burden of the State pension fund, the government recently proposed the creation of a new National Social Security Fund - a governmentmanaged fund which will provide retirement, disability benefits and unemployment benefits – which would require the average South African to contribute as much as 12% of their earnings towards it.

BUILDING A FUTURE INCOME While there are various financial products that can be used as an income during retirement, one of the most popular forms is a retirement annuity.

This is a type of insurance product that pays out an income after retirement, offering a steady stream of funding once you stop working.

Your retirement annuity’s growth will be influenced by how much you contribute to it, the interest that accumulates on your savings, and for how long you contribute to the fund.

Once you’ve reached retirement age (from 55), you can withdraw up to one-third of your savings as a cash lump sum. This withdrawal will be tax-free if it is below R500 000. The remaining amount must be transferred to a living annuity account and will be used as your monthly pension.

Retirement annuities differ from pension and provident funds in that they are not linked to an employer.

This means that a person can take out a retirement annuity to supplement their workplace pension fund and contribute as much as 27.5% of their taxable income to the annuity, up to R350 000. Retirement annuities are also exempt from tax on dividends and interest.

THE IMPACTS OF FAILING TO SAVE Failing to save for retirement can severely impact the individual, their family, and society. The number of retirees at risk of poverty is steadily increasing, and they are three

And the impact on the family can be just as significant. Estimates say for every rand not saved in a retirement fund, the person’s children will have to spend almost R7 at a later date to cover the financial shortfall.

When you don’t save enough for retirement, you not only are at higher risk for poverty later in life but also for adding a burden to your family members and relying on State support.

Sources: www.treasury.gov.za www.businesstech.co.za www.mg.co.za www.money.cnn.com www.theconversation.com www.investopedia.com www.moneyweb.co.za

Public Sector Leaders | May 2022 | 45

LEGAL MATTERS MATTERS LEGAL

BY SILKE SILKE RATHBONE RATHBONE BY

CCMA

Not a swear word CCMA – these four little letters have caused hives to break out on many business owners. But, when understood, they can become your best friend. Let’s take a step back.

WHAT IS THE CCMA? The Commission for Conciliation, Mediation and Arbitration. A mouthful, yes, but this apolitical dispute resolution body has a very specific purpose, and it isn’t all about the employee. Employers also have a say.

The primary purpose of the CCMA is to resolve labour disputes in the workplace in an amicable manner.

Both employer and employee alike can submit a dispute covering a variety of reasons, such as discrimination, dismissal, unfair labour practice, wages, workplace changes and working conditions.

If you are ever uncertain about the do’s and don’ts refer to the Rules for the Conduct of Proceedings before the CCMA. Let’s break the above down further.

CONCILIATION When a dispute arises, the CCMA will set down a date for the parties to meet to see if the matter can be settled. The Commissioner can only make recommendations, but cannot make a ruling during the Conciliation process.

If the matter is not settled, then the employee has the option to refer the matter to Arbitration or the Labour Court (depending on the type of matter).

ARBITRATION Arbitration is similar to a Court process (just much more informal).

During this process both parties are given a chance to submit evidence and call witnesses. The Commissioner then normally has 14 days to issue a ruling after the Arbitration has been concluded.

REPRESENTATION AT THE CCMA At the outset, representation depends on the type of matter. If the dispute being arbitrated is referred in terms of section 69(5), 73 or 73A of the BCEA or is about the fairness of the dismissal and a party has alleged that the reason for the dismissal relates to the employee’s conduct or capacity, a party is not entitled to be represented by a legal representative or candidate attorney except if both parties consent or if the Commissioner concludes that it is unreasonable for a party to deal with a dispute without legal representation after considering – • The nature of the questions of law; • The complexity of the dispute; • The public interest; • The comparative ability of the opposing parties or their representatives.

It is also important to remember that if an employee is a member of a registered trade union or if an employer is a party of a registered trade union, that they will automatically be able to represent both the employee or the employer during Conciliation and Arbitration.

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HOW MANY DAYS DOES AN EMPLOYEE HAVE TO REFER A MATTER TO THE CCMA? • An employee has 30 days from the date of dismissal to refer an alleged unfair dismissal case to the CCMA; • An employee has 60 days to refer an alleged unfair disclination case to the CCMA. • An employee has 90 days to refer an unfair labour practice case after the unfair labour practice took place or after the employee became aware of the practice.

LabourExcel specialises in offering a variety of Labour Law and HR Solutions. Silke Rathbone, one of the Principal Partners, has crafted and honed her skillset and assists corporates and individuals along the Labour journey to ensure they understand what is required of them at all levels. n

Public Sector Leaders | May 2022 | 47

LABOUR DAY

BY JESSIE TAYLOR

Hybrid working: 5 tips for how HR practitioners can build inclusive workplaces

A

s we emerge from the disruption of the global pandemic, many workplaces are moving towards hybrid working models, with employees working both from home and from the office during their workweek.

While this shift brings increased opportunities to explore alternative communication modes and a more flexible work environment, it can also leave employees feeling isolated or at a disadvantage for careerbuilding opportunities. Managing these challenges requires a fresh strategy from HR professionals.

Before the pandemic, less than a third of all employees worked remotely. Business leaders expected this to rise to half, but employees hoping to work remotely, at least part-time, sit closer to 80%. This is

evidence of a growing demand for flexible working arrangements.

Hybrid working environments allow employees to find their own rhythm when working and often allow for the streamlining of operations.

It also allows for improved communication between all levels of a company, as virtual calls have made communication between business leaders and employees much easier.

Some of the challenges that remote and hybrid working brings to workplaces include introducing new hires to the organisation, as they could potentially miss out on relationship building the same level of training. HR professionals surveyed also said they were worried about employees developing

48 | Public Sector Leaders | May 2022

together through brainstorming sessions, town halls, and informal gatherings. Technology gives business leaders insights into how work takes place and the networks involved, and it can also be used to equip employees to manage their time.

and maintaining personal relationships, as well as lower personal interactions. But while 30% of employees prefer a hybrid work environment, more than 40% believe in-person work is better for career advancement. And data suggests hybrid work environments can be more demanding than working in person, as employees shift between their home office and corporate spaces and between in-person meetings and video calls.

But building a successful hybrid working environment requires the involvement of HR, especially as companies rework their strategies to accommodate in-office and remote workers.

Now the challenge HR professionals face is creating an engaged workforce that is effectively and efficiently able to work in this new model while prioritising employee wellbeing.

HERE ARE SOME OF THE WAYS HR PROFESSIONALS CAN FACILITATE THE MOVE TO HYBRID WORKING: • Employee wellbeing Remote work makes it easier for employees to work longer hours or deal with work items after hours because they aren't physically

leaving an office. This can lead to burnout. To combat this, HR departments can establish clear rules about when remote workers should log off to ensure they have a balanced work and home life.

• Inclusivity Hybrid working can create a disparity between those working in the office and those working remotely. To prevent this, HR can compile strategies and policies to promote inclusivity, such as ensuring that managers evaluate remote and in-person employees' work the same way. TO ensure that remote workers don't feel like they miss out on career and relationship building moments, HR should also encourage managers to use regular check-ins with their teams and avoid "proximity bias." Adopting equitable meeting practices, including having the whole team log into a virtual call regardless of location, can also foster inclusion.

• Tech first Implementing technological advances has enabled our workforce to weather the pandemic, and it can also make hybrid working easier. Online employee interactions can boost morale and prevent employee isolation. As part of this, companies can bring people

• Drive engagement Although virtual social gatherings have benefits, they are likely not enough to create the levels of connection needed by employees.

This can be created through buddy systems and mentorship programmes, along with celebrating team accomplishments and milestones together. Managers can also have dedicated training and tools to drive engagement, supported by HR. • Set clear guidelines Hybrid work shifts our mentality on how work gets done and impacts an organisation's HR practices, technology investments and approach to how the workspace is used when employees return to the office—so companies need to create a framework that defines how to lead and how employees can be successful. Research has shown that 88% of employees at organisations with clear hybrid working guidelines feel connected to their job and their team. However, among those with such guidelines, only 64% felt a sense of connection.

It's essential for HR professionals to map out when teams will be working in the office, how remote working will be managed, and the hours for remote workers. These guidelines should be tailored to suit the team's needs.

Sources:

www.techtarget.com www.hrexecutive.com www.hrdconnect.com

Public Sector Leaders | May 2022 | 49

UPCOMING EVENTS

BY KOKETSO MAMABOLO

15

17

18

International Day of Families

World Telecommunication and Information Society Day

International Museum Day

Each year the world recognises the importance of the family unit. The UN’s initiatives relating to families began in the 1980s, with the General Assembly adopting a resolution in 1993 marking the 15th of May as International Day of Families.

In 2015, the UN decided on the Sustainable Development Goals, some of which apply to families.

“This year’s theme ‘Families and Urbanisation’ aims to raise awareness on the importance of sustainable, family-friendly urban policies,” says the UN. The world body recognises how urbanisation is “shaping our world and the life and wellbeing of families worldwide.”

The intention behind observing World Telecommunication and Information Society Day is to recognise how the information and communication technologies can help develop “societies and economies”. The theme for 2022 is ‘Digital technologies for older persons and healthy ageing’. “The ageing of the global population will be the defining demographic trend of the 21st Century - yet our societies struggle to see the opportunities that this trend can unfold,” says the UN. “This year’s theme raises awareness of the important rule of telecommunications/ ICTs in supporting people to stay healthy, connected and independent - physically, emotionally and financially.”

50 | Public Sector Leaders | May 2022

‘The Power of Museums’ is the theme for this year’s International Museum Day. Beginning in 1977, each year the International Council of Museums highlights the importance of museums.

“Museums have the power to transform the world around us. As incomparable places of discovery, they teach us about our past and open our minds to new ideas - two essential steps in building a future,” says the council.

This comes after 2021 saw the council reaching 89 million people through various online mediums.

This year the council is focusing on sustainability, digitalisation, accessibility and “community building through education”.

May is all about

sustainable development 21 World Day for Cultural Diversity for Dialogue and Development The story of the World Day for Cultural Diversity for Dialogue and Development begins in 2001, when UNESCO adopted the Universal Declaration on Cultural Diversity.

In 2002 a resolution on Culture and Sustainable Development was unanimously adopted by the Second Committee of the UN General Assembly. “Three-quarters of the world’s major conflicts have a cultural dimension. Bridging the gap between cultures is urgent and necessary for peace, stability and development,” says the UN. “Cultural diversity is a driving force of development, not only with respect to economic growth, but also as a means of leading a more fulfilling intellectual, emotional, moral and spiritual life.”

22 International Day for Biological Diversity The year 2021 marked the beginning of the UN’s Decade of Restoration.

The 2022 theme is ‘building a shared future for all life’. The UN Decade of Restoration “highlights that biodiversity is the answer to several sustainable development challenges”. While the UN notes the “growing recognition that biological diversity is a global asset of tremendous value to future generations”, they have emphasised the continued importance of educating and raising awareness about biodiversity as we work towards the Sustainable Development Goals.

25 Africa Day In 1963 the Organisation of African Unity, forerunner to the African Union, was established. Each year the continent commemorates this important step in uniting African states. The day is an opportunity for Africa to reflect on how far it has come in dealing with various challenges facing the union’s member states. The AU declared 2022 the ‘Year of Nutrition’ for “strengthening resilience in nutrition & food security on the African continent”, in line with Agenda 2063. The union seeks to tackle malnutrition and improve food security and the health of the growing African population.

Sources: www.icomos.org | www.un.org | www.worldvet.org

Public Sector Leaders | May 2022 | 51

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APRIL | 2022 FEBRUARY | 2022

MARCH | 2022

Celebrating Freedom Day CHIEF JUSTICE

Honourable Raymond Zondo appointed as South Africa’s new Chief Justice

TRAILBLAZER HEADING HERE Leading the fight Oditala imperim against corruption is omneque moenatum Ismail Momoniat

INFRASTRUCTURE PLAN HEADING HERE Africa's ExBuilding sedi, conSouth iam int economic future ficibuteris through infrastructure

UNEMPLOYMENT HEADING HERE Thelos topCaterib 4 programmes Go tus utuisu etimunlocking ceraciamyouth aurnultod potential int ficibuteris

BUDGET SPEECH Interesting figures from the budget speech

PROVINCIAL FOCUS Billions of rands to be invested in KZN

HUMAN RIGHTS MONTH Minister Nathi Mthethwa launches Human Rights Month

APRIL | 2022

MARCH | 2022

FEBRUARY | 2022

DEC•JAN | 2022

NOVEMBER | 2021

OCTOBER | 2021

SEPTEMBER | 2021

AUGUST | 2021

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