January 20, 2022


"We say it like it is"


3 min read

The president of South Africa, Cyril Ramaphosa has delivered State Nation Address #SONA2021 last night 11 February 2021 at 19:00

Since the launch of the plan, we have focused on four priority interventions.

: – a massive rollout of infrastructure throughout the country,

– a massive increase in local production,

– an employment stimulus to create jobs and support livelihoods,

– the rapid expansion of our energy generation capacity.

V11 10 We announced that we would be embarking on a massive rollout of infrastructure throughout the country. We knew that to achieve this objective we would need to steadily rebuild technical skills within government to prepare and manage large infrastructure projects. We have now developed an infrastructure investment project pipeline worth R340 billion in network industries such as energy, water, transport, and telecommunications.

Construction has started and progress is being made on several projects.

Since the announcement of the Reconstruction and Recovery Plan, we have launched two major human settlements projects that will provide homes to almost 68,000 households in the Gauteng province. Similar human settlements projects are planned in other provinces. Two years ago, I spoke about the dream of building new cities that will enable us to make a break with apartheid’s spatial development. New post-apartheid cities are being conceptualized in several places in our country. The Lanseria Smart City, the first new city to be built in a democratic South Africa, is now a reality in the making.

The draft masterplan for this smart city – which will become home to between 350,000 to 500,000 people within the next decade – was completed in November 2020 and is now out for public comment. Progress is being made on several major water infrastructure projects. V11 11 These include Phase 2A of the Mokolo and Crocodile River project, and the uMkhomazi Water Project.

The Infrastructure Investment Plan identifies roads projects worth R19 billion covering the spine of the South African road network. Work is underway to finalise project finance structuring for these projects. Resources have been committed from the fiscus to support the construction and rehabilitation of the major N1, N2, and N3 highways.

These infrastructure projects will lead to the revival of the construction industry and the creation of much-needed jobs. The R100 billion Infrastructure Fund is now in full operation.

This Fund will blend resources from the fiscus with financing from the private sector and development institutions. Its approved project pipeline for 2021 is varied and includes the Student Housing Infrastructure Programme, which aims to provide 300,000 student beds. Another approved project is SA Connect, a programme to roll out broadband to schools, hospitals, police stations and other government facilities.

The second priority intervention of the Recovery Plan is to support a massive increase in local production and to make South African exports globally competitive. This will encourage greater investment by the private sector in productive activity. V11 12 Key to this plan is a renewed commitment from government, business, and organised labour to buy local.

This commitment should lead to increased local production, which will lead to the revival of our manufacturing industry. All social partners who participated in the development of the Economic Reconstruction and Recovery Plan as part of our social compact have agreed to work together to reduce our reliance on imports by 20% over the next five years.

They have identified 42 products – ranging from edible oils to furniture, fruit concentrates, personal protective equipment, steel products and green economy inputs – that can be sourced locally. If we achieve our target, we will significantly expand our productive economy, potentially returning more than R200 billion to the country’s annual output.

Last year, we undertook to create a larger market for small businesses and designate 1,000 locally produced products that must be procured from SMMEs. As the COVID-19 pandemic forced the closure of global value chains, we have been able to speed up this initiative as the local supply chains became open for locally manufactured products.

To this end, Cabinet approved the SMME Focused Localisation Policy Framework which identified the 1,000 products. Furthermore, the departments of Small Business Development and Trade, Industry and Competition are supporting SMMEs to access larger domestic and international markets. These efforts are supported by robust manufacturing support programmes.



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