Bankruptcy of the Gauteng Provincial Government (GPG) , R6 Billion Debt @KASIBCNEWS 

Background 

The Gauteng Provincial Treasury (GPT) has noted, with great concern, articles in the media making claims about the alleged imminent bankruptcy of the Gauteng Provincial Government (GPG) and a R6 Billion shortfall by June 2025. While these assertions are not new, and have previously been refuted, there is need to provide a comprehensive response in the public interest. 

These articles merit correction as they are grounded on an erroneous premise that will only serve to sow despondency among the residents and businesses in the province. 2024/25 GPG Expenditure Performance As at the end of November 2024, overall expenditure for GPG stood at R115.238 billion or 68 percent of the adjusted budget of R169 213 billion, leaving an amount of R53.9 billion available to be spent until end of March 2025. 

This expenditure is mainly driven by education and health departments, which account for 80 percent of the total expenditure. The Gauteng Department of Health expenditure is R46.1 billion or 69.8 percent against the adjusted appropriation of R66.017 billion. This is attributed to the main programmes: Central Hospital Services, District Health Services and Provincial Hospital Services. The department received additional R600 million during the recent adjusted budget to partially offset pressures in the Compensation of Employees. 

The Gauteng Department of Education expenditure is R45.9 billion or 69.5 percent against an adjusted budget of R66.142 billion, with high spending emanating from the Public Special Schools and Early Childhood Development programmes. Expenditure for Goods and Services at the end of November 2024 amounts to R5 billion of the adjusted allocation, on account of accruals from the previous financial year. Due to in-year pressure, the department received an additional R300 million during the adjustment budget to partially offset pressures in the Compensation of Employees. Overall GPG budget increased by R3.4 billion during the 2024/25 adjustment budget which comprises of function shifts, surrenders and suspensions (R92.9 million), rollovers (R1.2 billion) and provincial additional funding R2.1 billion. While the 2024/25 Adjustments Budget saw a net injection of R3.4 billion in the form of additional funding and approved rollovers, there is still pressure in a few other departments. This will necessitate further reprioritisation to avoid unauthorised expenditure at the end of the financial year. 

E-Toll debt and impact on provincial fiscus On the 11th of April 2024, gantries of the Gauteng Freeway Improvement Project, popularly known as e-tolls, were officially disconnected from the e-toll system across the province. Following the initial announcement by Finance Minister Enoch Godongwana during his 2022 mid-term budget policy statement (MTBPS) that e-tolls would be scrapped, the South African National Roads Agency SOC Limited (SANRAL), the National Department of Transport, the National Treasury and the Gauteng Provincial Government finalised a Memorandum of Agreement. To resolve the funding impasse, the Gauteng Provincial Government agreed to contribute 30 per cent to settling SANRAL’s debt and interest obligations, while the national government would cover 70 per cent. Congruent with this, in the Budget Speech in March 2024, the GPT announced that as part of the province’s arrangements to service the debt, a provision for honouring this commitment had been pencilled into the 2024 fiscal framework. 

The obligation to service this debt has necessitated the implementation of a host of reforms and measures to maintain a healthy fiscal environment that will be both sustainable and manageable in the long term. True to our commitment, in September 2024, we made the first instalment amounting to R3.8 billion. This amount consisted of R3.2 billion historical debt and the maintenance portion of R546 million. 

As the GPG, we have a full appreciation of the implications that repaying the e-toll debt will have on our financial position. The debt of R20.1 billion, inclusive of interest, is a substantial bite into our already stretched and limited resources. To meet our obligations to repay this debt, we have had to make very difficult decisions and re-orientate our budget priorities, which, necessarily, will have an impact on the fiscus. But we have remained steadfast in the commitment that service delivery priorities will not be negatively impacted. 

The 2025 Budget will see a conclusion of the national fiscal consolidation strategy, with debt‐stabilising primary surplus achieved in 2025/26, a reduction in the fiscal deficit to pre‐COVID levels and a stabilisation of debts service costs as a percentage of revenue. The GPT is therefore confident that through the measures and reforms mentioned above, the province will be able to service the e-toll debt, simultaneously providing much needed services to the citizens of Gauteng, whilst reaping the benefits of the spinoffs of economic infrastructure initiatives. It is in this context that the department would like to assure residents of Gauteng that we will not compromise our priorities on social services such as health and education which, as outlined, are receiving a significant share of the provincial budget as it is. Provincial Equitable Share Funding over the 2025 Medium-Term Expenditure Framework (MTEF) Budget In the Medium-Term Budget Policy Statement (MTPBS) speech, I provided an overview of the state of the South African and provincial economy and said the following: “While the national  macroeconomic and fiscal environment shows cause for cautious optimism, there are still concerns over elevated risks to the outlook in the short- to medium-term that cannot be ignored. These include lower revenue growth due to an unexpected global or domestic slowdown; a higher-than-anticipated public-service wage settlement; higher borrowing costs driven by a prolonged elevation of the risk premium and a slower-than-expected reduction in global interest rates; and persistent deficits and the accumulation of liabilities in other areas of the public sector, such as state-owned companies, potentially leading to increased demands for budgetary support. 

This will be particularly pronounced in the 2025 Medium-Term Expenditure Framework (MTEF) given developments in the Provincial Equitable Share formula which is recalibrated annually using data from Statistics South Africa and other administrative sources such as the national departments of Health and Basic Education. The formula ensures equitable resource allocation. Unfortunately, due to a decline in Gauteng’s share of the national population, the province faces further budgetary reductions. Key components such as education, health, and poverty alleviation, which collectively account for 91 percent of the PES formula, will be affected, creating additional fiscal pressure. The MTEF is a three-year rolling budget, which means that the budget in a particular year is tabled, and there are indicative allocations for the following two years. When there are revisions to the PES, then the indicative allocations are recalculated, and revised upwards or downwards. In the case of Gauteng, there has been a downward revision, phased-in from 2025/26 of 2025 MTEF. 

This will cumulatively amount to R6.236 billion. However, it must be emphasised that this is not money currently sitting with the GPG, as the 2025 MTEF Budget has yet to be appropriated. The issue of possible bankruptcy by June 2025 has no merit as the budgets for the 2025/26 financial year have not yet been finalised. The Roadmap to the Finalisation of the 2025 MTEF Budget The approach for finalising the budget builds on key events in the provincial planning and budgeting processes to work towards optimally funding government priorities. The guidelines specifically provide guidance to provincial departments on how to effectively prepare for the second round of Medium-Term Expenditure Committee (MTEC) engagements and outline the process toward finalising the 2025 MTEF Budget. 

The process involves two specific processes. The first round of MTEC technical engagements held in October 2024 focused on planning for the 7th administration. The 2024 GPG Budget Lekgotla was held on 12-13 November 2024 and was aptly themed Approach and Strategies to Respond to Fiscal Risks and Ensure the Sustainability of Public Finances. The outcome of the 2024 GPG Budget Lekgotla paved a way for the 2024/25 Provincial Adjustments Budget to achieve in-year fiscal sustainability and for the 2024 MTBPS that provided the framework for the formulation of the 2025 Budget.  

The second round of MTEC technical engagements are scheduled for January 2025. These engagements will focus on the response of the GPG to the reduced fiscal envelope and related pressures over the 2025 MTEF. The key objectives of these engagements include the: • stabilisation of provincial finances through the implementation of the Gauteng five-year budgeting approach for the 7th administration in the context of constrained fiscal environment. • funding of the three priorities of the Medium-Term Development Plan and the five nonnegotiable focus areas of the 7th administration given the reduced fiscal envelope. • evaluation and review of the sustainability of the Gauteng provincial budget while identifying risks and mitigating measures. 

The Premier’s Budget Committee will convene early in February 2025 to consider the outcome of the second round of MTEC engagements and other provincial strategies and plans to finalise the allocation of the 2025 Budget. This will culminate into the tabling of a credible and technically sound 2025 Budget scheduled for March 2025. Conclusion The matter of possible bankruptcy, even in the current financial year, should be refuted. Gauteng’s budget of R169 billion is substantial, but its impact depends on how wisely it is spent. Departments and entities must adopt a disciplined approach to spending, ensuring every rand translates into meaningful progress. Efforts to improve spending efficiency are already underway. This includes standardising pricing for frequently procured items, and the introduction of a comprehensive raft of practice notes that reinforce fiscal discipline, eliminate wastage, improve accountability, and enhance the province’s ability to meet its development goals. 

I wish to once more reiterate that while the GPG is operating under a strained fiscus environment, the province is not facing imminent bankruptcy. Members of the media have an obligation to report the truth, and to do so with an appreciation of the impact that untrue and subjective reporting can do to the provincial and national economy. Beyond the panic that such reports can cause to residents of Gauteng, they have the potential to also impact businesses and diminish investor confidence at a time when the provincial government is working hard to strengthen the provincial revenue. We look forward to more engagements with the media on the work of the GPG and the GPT, in particular. 

This is very important as we draw closer to the 2025 Budget that will articulate the financial and economic future of a Gauteng that is the nerve-centre of the regional and national economy. 

DOD ( Department of Defence  ) Myriad Crises @KASIBCNEWS

The DA congratulates Major General Lancelot Mathebula on his appointment as Deputy Chief of the South African Air Force (SAAF), effective 1 January 2025. Maj Genl Mathebula is currently the project leader of the South African National Defence Force (SANDF) Space Command and has 24 years’ service in the Force. His experience, coupled with that of the SAAF Chief, will bring a valuable balance to the Force leadership.

The Department of Defence (DoD) is in a state of crisis and strong leadership is required across the board to address it. Over the past years the Department has consistently been one of the Auditor-General’s biggest financial offenders. Its report for 2023/24 highlighted rampant unauthorised expenditure in the Department to the sum of R3,4 billion. Irregular expenditure amounted to R338 million and fruitless and wasteful expenditure increased drastically from R2,569 million in 2022/23 to R51 million in 2023/24. Whilst a large chunk of the expenses relate to personnel costs, more worrying items are, for example, the fruitless and wasteful expenses incurred in respect of Project Thusano, also known as the Cuban training programme.

The DA calls on Major General Mathebula to focus his attention on increasing the operational capacity of the South African Air Force by practicing austerity, directing all available funds towards increasing aircraft availability and ensuring that the SAAF executes its primary mandate to ensure the safety and security of the South African airspace, which includes enabling more flying hours for air force officers and procuring proper weapons for combat. This can only be done when persons in leadership positions show true leadership by respecting the severity of the SANDF crisis.

Despite recent improvements, the SAAF's fighter capacity maintains a very limited capability. The Rooivalk fleet is in urgent need of attention, including the recommissioning of the aircraft that recently returned from the DRC. Similarly, the SAAF lacks a proper medium airlift capability with the current C-130BZ Hercules fleet largely grounded and only ad hoc aircraft availability.

Yet, despite the SAAF’s incapability to defending South Africa’s skies, it was reported in September that Air Force Chief Lt General Wiseman Mbambo acquired two Audi Q7 vehicles – complete with blue lights – at a cost of nearly R3 million. The vehicles were purchased for Lt Genl Mbambo’s exclusive use, the second one supposedly for security reasons. Government’s handbook for executive officials – including ministers – prescribes that an official vehicle should not cost more than R700 000.00. It was further reported that Major General David Nyangasya, Mbambo’s junior in seniority and rank, has also recently acquired a second Audi Q7 to compliment his official vehicle – an Audi Q7. Until the end of August, he was the general officer commanding the works formation.

Apart from the wasteful expense of luxury vehicles, the Air Force band participated in the Spasskaya International Military Music Festival in Russia for a week at the end of August at a cost of almost R15 million.

The DA has raised its concern about the state of the SANDF with Minister Angie Motshekga on several occasions over the past months since President Cyril Ramaphosa moved her from the Basic Education portfolio to lead the Department of Defence. Whilst the Minister recently confirmed in writing that the South African Navy is in crisis, several parliamentary questions posed to her remain unanswered. The DA will write to the Chairperson of the National Council of Provinces to request her intervention in the matter once the new Parliamentary term starts.

One of the questions which remain unanswered was submitted on 10 October 2024 and requested the Minister to provide the exact information relating to the cost of Lt Genl Mbambo’s official vehicles; the cost of the modification thereof; the procurement process and information regarding the authorisers in the procurement process.

POSITIVE SOLUTIONS CWP ( COMMUNITY WORK PROGRAMME ) @KASIBCNEWS 

The African National Congress (ANC) notes the government’s decision to terminate the contracts of Community Work Programme (CWP) participants aged 55 and older by 31 January 2025. While this decision forms part of efforts to reimagine the programme in alignment with the priorities of the 7th Administration, the ANC recognizes the potential socio-economic challenges it may create for those affected. 

The CWP has long been a cornerstone of government’s efforts to address unemployment and poverty by providing a vital safety net for unemployed South Africans of working age. It has offered a bridge to opportunity, enabling participants to sustain their livelihoods while actively seeking permanent employment. 

The ANC emphasizes the importance of ensuring that no beneficiary is left without meaningful support during this transition. The party welcomes government’s commitment to reimagine and enhance the programme but stresses the need for a solution that safeguards the livelihoods of current participants, particularly those aged 55 and older. 

The government should find a solution that will not disadvantage over 65000 beneficiaries of the programme. The ANC is encouraged by government’s willingness to engage further with stakeholders and communities to develop sustainable solutions. This reimagination process must prioritize efforts to reduce poverty, unemployment, and inequality, ensuring that the CWP remains an effective instrument for socio-economic upliftment. 

The ANC calls for a strengthened approach to the programme that aligns with emerging economic sectors while maintaining its critical focus on community development. We urge the government to explore reskilling and upskilling opportunities for affected participants, providing them with access to alternative avenues for economic inclusion. 

The ANC remains unwavering in its commitment to initiatives that uplift communities and protect the most vulnerable. 

We urge all stakeholders to continue working together to ensure that the CWP continues to serve as a beacon of empowerment and hope for millions of South Africans. 

THE PASSING OF EXPECTANT MOTHER AT WESTBURY CLINIC @KASIBCNEWS

 In the wake of an incident that ended with the passing of a 32-year-old expectant mother, Miriam Singh, within an hour of being admitted at the Westbury Clinic Midwifery Obstetric Unit (MOU) on Sunday, 29 December 2024, early in the morning,    the Gauteng Department of Health (GDoH) instituted an investigation on Monday, 30 December to establish facts around this case. 

The Department has since received the outcome of the internal investigation which was also subjected to expert review by leading specialists in obstetrics/gynaecology and surgery from Charlotte Maxeke Johannesburg Academic Hospital. 

The internal report found that the correct protocols were followed by the healthcare workers in attendance. The postmortem report has revealed that the patient had a serious underlying condition which contributed to the deterioration of their condition within a short space of time after presenting at our health facility. Given the doctor patient confidentiality the department is unable to expatiate further the actual medical condition of the patient. 

 The investigating officer from the South African Police Service earlier today handed over the postmortem report to the Singh family. Having said this, the GDoH has noted with disappointment the malicious allegations which were prematurely made  on public platforms by various interested parties which were not based on any    clinical fact but hearsay. 

This is not only irresponsible behaviour it is also unethical and unfortunately compounds the pain experienced by the grieving family as they now have to contend with misinformation from about the condition     of their loved one which can make it even harder to accept clinical facts. 

The Department extends the deepest condolences to the Singh family for the sudden loss and will continue to avail counselling services and redress as and  when the family is available. 

ESKOM LOADSHEDDING SUSPENDED @KASIBCNEWS 

Loadshedding remains suspended for over nine months, resulting in year-on-year diesel savings of R16.20 billion

Eskom has reached a significant milestone in its commitment to providing reliable electricity to South Africa. As of today, Eskom has successfully completed over nine months (275 consecutive days) without implementing loadshedding since 26 March 2024. This achievement underscores Eskom’s dedication to addressing the country’s energy challenges through its investment in the Generation Recovery Plan and enhanced maintenance protocols.

Eskom continues to utilise the December summer break to increase planned maintenance activities to further improve the reliability of its generation fleet as many industries have shut down for this period, with maintenance averaging at ~8 000MW.

The recovery plan significantly improved operational performance, particularly by reducing unplanned outages by ~8.1% compared to the same period last year. Additionally, there was a year-on-year diesel savings of R16.20 billion, which is about 65.1% less than the R24.89 billion spent during the same period last year. Diesel usage remains below the year-to-date budget.

In August, Eskom shared its summer outlook for the period from 01 September 2024 to 31 March 2025, predicting a likely scenario of a loadshedding-free summer, including the festive season, due to structural generation improvements. This outlook remains unchanged. Our year-to-date unplanned outages average is 11 900MW, which is 1 100MW less than our 2024 summer base case of 13 000MW.

Over the past week, the average total unplanned outages have been at 11 438MW, an improvement from the 13 980MW recorded during the same period last year, representing a reduction of 2 542MW. Today’s unplanned outages are at 11 154MW, which is 1 846MW lower than the summer 2024 base case.

Eskom’s Energy Availability Factor (EAF) averaged 56.23% over the past week due to increased planned maintenance, with top-performing stations — including all peaking stations — achieving an average EAF of 70% and above. Five other power stations recorded EAFs above 60%. The year-to-date EAF is at 62.37%.

With an available generation capacity of 26 906MW and a peak demand forecast of 22 474MW for tonight, Eskom remains on track to meet electricity demand. Four units with a combined capacity of 1 735MW are on cold reserve. By Monday evening, an additional 2 950MW is expected to return online.

Key Performance Highlights:

Reduction in unplanned outages:

• The Unplanned Capacity Loss Factor (UCLF) is at 24.92% for the financial year-to-date (01 April 2024 to 26 December 2024), improving from 32.97% in the corresponding period last year.

• This reduction in UCLF represents a ~8.1% improvement compared to the same period last year.

Ongoing Planned Maintenance:

Ongoing planned maintenance at 7 979MW, is aligned with our summer maintenance strategy to further improve the reliability of the stations in preparation for winter 2025 and beyond.

Sustained Energy Availability Factor (EAF) improvement:

• The year-to-date (01 April 2024 to 26 December 2024) EAF is at 62.37%, a significant improvement of ~7.0% compared to the same period last year (55.35%).

• The weekly EAF slightly reduced from 57.0% at the beginning of the financial year to 56.27% from 23 to 26 December 2024, mainly due to an increase in planned maintenance.

Continued strategic utilisation of Open-Cycle Gas Turbines (OCGTs):

Our strategic use of peaking stations, including pumped storage and OCGTs, remains key in managing electricity demand during peak times, particularly during evening peaks (17:00 to 22:00).

• Eskom’s expenditure on OCGTs between 01 April and 26 December 2024 was about R8.69 billion having generated 1 379.03GWh, approximately 65.1% (R16.20 billion) less than the R24.89 billion spent last year over the same period for 3 981.89GWh.

• The OCGT load factor for 01 April to 26 December 2024 stabilised at 6.23%, compared to last year’s figure of 18.00%.

• The OCGT load factor for 01 December to 26 December 2024 was 15.51%, significantly higher than the 4.84% for the same period last year but this is seen as temporary given the current improvement.

• Diesel usage remains below the year-to-date budget.

‘Save Your Transformers, Save Lives’ campaign

While loadshedding remains suspended, Eskom continues to face network overloading issues in certain local areas due to illegal connections, vandalism, meter tampering, unauthorised network operations, theft of network equipment, and purchasing electricity from unlicensed vendors.

To prevent public safety hazards and the risk of network overloading, which can lead to load reduction measures and extended unplanned power outages, Eskom strongly urges customers to avoid illegal connections. Such actions can negatively impact the entire local community and result in hefty remedial fines.

It is also essential for customers to purchase electricity only from authorised vendors. For a list of Eskom-accredited electricity vending outlets across the country, visit:

https://www.eskom.co.za/distribution/wp-content/uploads/2024/11/2024123Vending-outlets.xlsx

Eskom urges the public to help protect the integrity of the power network by reporting any illegal activities to the Eskom Crime Line at 0800 112 722 or via WhatsApp at 081 333 3323.

Eskom will provide an update on Friday, 03 January 2025, or promptly communicate any significant changes as soon as they occur.

Western Cape Fire Disaster at Informal Settlements @KASIBCNEWS 

Ministry of Human Settlements concludes a successful government intervention in the Western Cape fire disaster affected informal settlements

Minister of Human Settlements, Thembi Simelane, Deputy Minister Tandi Mahambehlala, joined by the Deputy Minister in Presidency Nonceba Mhlauli and the Western Cape Provincial Government, the City of Cape Town and relevant stakeholders, concluded a successful government intervention programme in ensuring that the families of the Siyahlala, Zulwini and Ekuphumuleni in the Du Noon informal settlement, City of Cape Town who were displaced by the recent fire disasters on 18 December 2024 and Christmas Eve received the necessary government interventions to assist them to rebuild their homes and reunite with their families before the new years.

In line with the National Department of Human Settlement’s Emergency Housing Guidelines, Minister Simelane deployed teams to the various informal settlements affected by the fires to do beneficiary verifications and provide detailed reports of affected households before sending in the materials for people to rebuild their structures.

Today, the teams working under the leadership of the Ministry of Human Settlements and the MMC responsible for Human Settlements in the City of Cape Town, and Emergency Housing Officials handed over more than 290 fire kits to affected households, with Du Noon receiving about 188 in the three different settlements, 59 by Wag 'n Bitjie informal settlement in Nomzamo, Strand, 44 in Kosovo and tomorrow morning the team will be in Masiphumelele to handover to the 87 households affected by the fire disasters recently.

Minister Simelane and Deputy Minister Mahambehlala have made a clarion call to communities to work together with government in ensuring that fire disasters are prevented and mitigated before they occur.

The team (Emergency Housing Officials), working together with the City of Cape Town, is currently concluding an assessment of over 500 reported shacks to have being affected by the recent fires in Langa township, a similar government intervention led by the Department of Human Settlements and its Stakeholders to assist the displaced communities will also take place in these affected areas.

“I want to urge our communities to work together with all spheres of government in line with the spirit of the District Development Model, and in its efforts of finding a suitable and habitable human settlements away from municipal servitudes, flood-prone and areas susceptible to fire disasters”, remarked Minister Simelane.

Media Enquiries: Tsekiso Machike, Spokesperson to the Minister 

Dear Fellow South African @KASIBCNEWS

By President Cyril Ramaphosa

We are nearing the end of another year, marked by both triumphs and struggles.  

We celebrated thirty years since the birth of our democratic nation. We reflected on the considerable progress we have made in building a constitutional order anchored on freedom, equality and human rights for all.  

We held our seventh successful, free and fair general elections since 1994. It was a landmark poll, with an unprecedented 70 political parties contesting. The election was a credit to the Independent Electoral Commission, which acquitted itself with distinction, the political parties who campaigned in a spirit of respect and tolerance, and to all South Africans who exercised their right to vote.  

Our democracy has evolved and matured. We have a Government of National Unity comprised of 10 political parties from across the political spectrum. They have agreed on three strategic priorities for this administration.

The first strategic priority is to grow our economy and create jobs.

The structural reforms initiated under the sixth administration are continuing to create conditions for our economy to grow and to create jobs.

The country has had over 250 days with no loadshedding. This is due to a combination of increased maintenance and generation recovery by Eskom, the addition of more capacity to the grid including from renewables, and the large-scale uptake of solar and battery energy solutions by households and businesses. The work of the National Energy Crisis Committee continues. It is working to get more power onto the grid, to expand our electricity infrastructure, to diversify the market for the benefit of consumers, and to lay the groundwork for an energy-secure future.

There has been a significant recovery of commuter rail since theft and vandalism during the Covid pandemic nearly destroyed the network. Stations have been refurbished, new state-of-the-art trains are on the tracks, and 31 out of 40 key passenger corridors are now operational. There were 40 million commuter rail passengers in the last financial year, up from 15 million passengers the previous year.

We are making progress in the recovery of freight rail and dealing with longstanding operational challenges in our ports. We are seeing improvements at the container terminals in Durban and Cape Town, as well as with infrastructure upgrades.

While unemployment levels remain extremely high, more South Africans are finding jobs.

The second strategic priority of this administration is to reduce poverty and tackle the high cost of living.

Consumer inflation is at a four-year low, making essential goods like fuel and most food staples more affordable. Over the past twelve months, fuel prices have come down.

Around 60% of the national budget is dedicated towards the ‘social wage’. These are the measures that reduce poverty and directly improve people’s lives. In addition to the provision of grants to vulnerable groups and unemployed people, this social wage includes subsidised housing, free basic services, no-fee schools and school nutrition. Government has been able to sustain these measures even as public finances are under severe pressure.

The third strategic priority of this administration is to strengthen the capacity of the state to deliver on its mandate.

Our efforts to improve the capacity and capability of the state to deliver on basic services continue.  

We have experienced moments of great national pride this year. Our sportsmen and women did us proud, including at the Olympics and Paralympics. Our nation’s artists hoisted our flag high on the global stage, proving themselves to be among our most valuable exports.

The momentum we have achieved this year was marred by tragedy. The deaths of a number children from eating contaminated foodstuffs was a great sorrow and caused deep concern. We have put a number of stringent measures in place to prevent such tragedies.

While we are making progress, we have a long way to go. The pace of economic growth is still too slow and not enough jobs are being created. Families still struggle with the high cost of living.

While there has been some improvement in the crime statistics and there have been breakthroughs in tackling crime syndicates, crime and violence is still widespread in many communities.

Disruptions in the supply of electricity and clean water is a major problem in many municipalities. Many local councils are plagued by poor governance, limited capacity and severe financial constraints. This is affecting service delivery to our people. Strengthening local government is our key priority.

These are the challenges we are grappling with. We have identified local government as a major focus in this administration. Through initiatives like the Presidential eThekwini Working Group, we are bringing all stakeholders together to solve local problems

The progress we have made this past year and during the course of the previous administration shows that we can overcome the difficulties our country faces.

As government, business, labour and civil society, we are able to achieve a great deal when work in unison to overcome our common challenges. In the new year, we will embark on a National Dialogue that will draw together all South Africans in crafting a common vision for the country.

As the host of the G20 next year, South Africa will play an important role in addressing the challenges that many countries across the world experience. We will seek common solutions that improve the lives of all our people.

Overcoming poverty and underdevelopment, creating more jobs, and addressing societal ills like gender-based violence requires that we must all play our part, where we can.

On many fronts, this year has been better than the last. We will build on these achievements in 2025.

Wherever you may be this festive season, I wish you well.

With best regards,

Cyril Ramaphosa is President of South Africa.

M@KEK@SiGRE@T©®™