Ke go tlotlile, Motlatsamodulasetilo wa Ntlo.
English:
It's always an honour to be part of the discourse that is geared towards repositioning the House around the challenges that are facing our country and in this instance my emphasis will be on the theme of today, which is: Transforming our economic landscape through infrastructure, investment and development.
Hon Chairperson, the difficulties and challenges facing ourselves occurs in a specific context and the challenges that we are facing are not routine governance issues; but we are faced with huge effort to structurally transform the economy for our country, but also to put it and place on a sustainable growth path that is geared towards overcoming massive structural crisis we have inherited. But this, we will do it through one of the micro area of our economy which in this instance is infrastructure development.
Infrastructure development should be used, hon Deputy Chair, as a vector of change in addressing some of the most systemic development challenges such as social stability, rapid urbanisation, climate change adaptation and mitigation and natural disasters.
Many studies that have been conducted, including reports by development institutions and even our 20-year review of our government, have long recognised that infrastructure investment enable economic activities and thus support economic growth, job creation, poverty alleviation, and reduce inequality.
Deputy Chair, without infrastructure that supports green and inclusive growth it would be hard to close the gap to meet basic services and the needs of the people including the firms. Countries that are not prioritising infrastructure will struggle to improve competitiveness, and well-being of the people.
It was within this context that the ANC has mobilised the broad society to formulate and adopt the National Development Plan, NDP. This is the resolution that we took in 2007 in Polokwane that there is a need to have a National Development Plan that is geared towards mobilising and refocusing our country on a sustainable path of
development. Focus on infrastructure investment is one of the prominent policy themes featured in the National Development Plan.
The National Development Plan advocates that in order for the country to meet its developmental agenda, it would need to boost infrastructure investment by 30% as a percentage of Gross Domestic Product, GDP, by 2030. This is important, given the recent Stats SA release on the contraction of our basket of services which we call Gross Domestic Product.
In line with the National Development Plan, government prioritised infrastructure spending on social and economic infrastructure such as schools, health facilities, roads and transport, energy, and water and sanitation.
The President of the country has correctly captured in the 2020 state of the nation address that public spending needs to be moved away from the consumption to capital investment. This is geared towards changing the economic landscape of our country.
The 2020 budget recently delivered by the Minister of Finance placed budget strategy and action plans in line with the President's call
to rebalance the composition of public spending to enable inclusive economic growth.
The 2010 FIFA Soccer World Cup placed us as a country in greater heights, and indeed illustrating that as a country in Africa we can deliver and manage such a huge infrastructure undertaking. We did not fail! It demonstrated our technical capacity and capability to deliver. Let alone that there were number of corruption and collusion that was identified, particularly by big firms, but we are happy that the Competition Tribunal is ceased with the matter.
In South Africa, given the historical injustice of apartheid which marginalised and excluded the majority of South Africans from social, political and economic activity, socioeconomic transformation becomes a must. It is an integral part of the ANC broader transformative agenda. Government's fundamental aim is to transforming our economic landscape to eradicate poverty, inequality and unemployment.
The infrastructure investment agenda is linked to the trade and industry strategy which seeks to reindustrialised the economic market and government will soon release master plans that are
industry specific. The trade and industry strategy is framed to boost exports.
The Tripartite Free Trade Area, which will create an integrated market across 27 African countries, is a major opportunity for South Africa and the rest of the continent. It will lead to the creation of a single continental market of more than 1,3 billion people, with a combined annual output of 2,2 trillion. It is reported by the United Nations Conference on Trade and Development, UNCTAD, that the transition phase to the Continental Free Trade Area alone could generate welfare gains of E16,1 billion and boost intra-Africa trade by 33%.
In line with the NDP, government has prioritised infrastructure spending on social and economic infrastructure such as schools, health facilities, roads and transport, energy, and water and sanitation.
This is the commitment made by other countries in the continent that present opportunities for South African firms to further penetrate African markets and the reciprocal expectation for South Africa to open the markets.
South Africa has highly capable architecture, construction and engineering sectors in Africa. That could boost its foreign share in Africa. Thus, to create jobs.
There is a need for a co-ordinated effort by South African construction firms, banks, financial institutions, development finance institutions and government ministries in partnership with their counterparts in other African countries to boost growth in the continent for the benefit of our country and the rest of the continent.
Investment in special economic zones will boost, support economic growth and boost job creation. The announcement of further investment in the various special economic zones is a step in the right direction. Incentive schemes in the special economic zones should boost investment and jobs, particularly in labour intensive industries. South Africa has a surplus of unskilled labour which needs to be urgently absorbed to avoid social instability. We also take note of the commitment made by our government to also identify and strengthen the Upington special economic zones.
Chairperson, the recent reports by Stats SA including the National Treasury, about the performance of the construction industry needs
special attention. We need to jumpstart the economic activity in the construction industry. We do this through Infrastructure Fund project pipeline, which is valued at over R700 billion, announced by government; this would certainly support construction activity over the longer term.
Furthermore, our economy which is currently fractured, however, it still looks resilient. But we need to make sure that the implementation of the economic reforms, as announced by the State President during the state of the nation address, and which were given an economic value by the Minister of Finance, would definitely mend our economic growth trajectory. Given the fragmentation and fracturing that we made reference to earlier on.
I should report in this House that the governing party, the ANC, between 1998-99 and 2018-19, has deployed R3,2 trillion on infrastructure spending. Over the 2020 medium-term, the ANC-led government is anticipated to spend R815 billion.
State-owned companies continue to be the largest contributor to capital investment, spending a projected R314 billion over the next three years.
Spending on economic infrastructure, mainly by state-owned companies, accounts for 75,1% of the medium-term estimate. These funds are used to expand power-generation capacity, upgrade and expand the transport network and improve sanitation and water services.
Provinces are expected to spend R177 billion on infrastructure over the same period, while municipalities are forecast to spend R196,8 billion.
Metropolitan municipalities will play a key role in changing economic infrastructure outlook and thus contribute to the growth and development of the country.
Government plans to reprioritise funds from the integrated city development grant and neighbourhood development partnership grant to accelerate capital investment.
Provinces and municipalities need to step-up the pace of spending infrastructure budgets. Infrastructure spending has the potential to stimulate demand in the economy and boost future growth. But it must be spent very well.
Wasteful spending and corruption undermine efforts to attract investments and thus compromise inclusive growth agenda. Government's commitment to prioritise corruption would boost business confidence and attract both domestic and foreign investments.
Infrastructure investment initiatives will incorporate climate change in design and implementation. Government recognise that in firming the resilience of infrastructure and supporting low-carbon development of capital projects is a commitment that needs strong partnerships and new sources of capital. Furthermore, the role of the private sector needs no further emphasis.
Public housing and bulk infrastructure built through the human settlements development grant in provinces is expected to total R43,9 billion. Furthermore, government will also accelerate spending on social services infrastructure.
Furthermore, the urban settlements development grant has been allocated R26 billion to fund infrastructure provision for broader urban development in metropolitan municipalities.
The provincial roads maintenance grant has been allocated
R36 billion to maintain the provincial road network by resealing a targeted 16 226 lane kilometres, rehabilitating 6 199 lane kilometres and patching 3,7 million square kilometres of potholes.
Over the medium-term, Passenger Rail Agency of South Africa, Prasa, Eskom, Transnet and Rand Water are expected to accelerate capital spending.
The SA National Roads Agency Limited, Sanral, is expected to spend R64,6 billion over the medium term. This spending will cover R35,4 billion to improve and construct non-toll roads, and
R3,4 billion to construct the N2 Wild Coast highway, R2,5 billion to upgrade the R573 better known as the notorious Moloto Road.
Public transport remains a key priority as it offers socioeconomic benefits. Prasa needs to be fixed. People need to get to workplaces on time. Over the medium-term R32,4 billion will be used by Prasa to modernise the rail network.
Furthermore, R20,4 billion is expected to be spent to accelerate implementation of the integrated public transport networks in 10 cities across the country.
A hundred and fifty billion rand is anticipated to be spent on energy, with Eskom spending the bulk of the capital investment.
Through the Renewable Energy Development Programme, as we speak, Chairperson, the private sector investment in the programme amounts to R209,7 billion and R41,8 billion is from international investors and funders. Partnership initiatives need to be cemented so that the role of the private sector in development should be enhanced.
Government continue to prioritise Information and Communications Technology, ICT, infrastructure to make the economy more competitive and bridge digital divide between rural and urban economies. Furthermore, we need to increase the speed of conducting business and linking domestic businesses with global markets. Government will use current ICT policy reforms to leverage private capital to accelerate ICT infrastructure.
Chairperson, we are mindful of the challenges in spending of infrastructure budgets such as insufficient capacity and skills to build a sustainable development projects, infrastructure backlogs and the lack of business confidence.
Therefore, our country has a relatively well-developed and sophisticated financial sector. Studies show that the country's financial depth is in line with advanced economies. This presents an opportunity for government to deliver economic infrastructure in partnership with the private sector.
Institutional investment in infrastructure in successful Renewable Energy Independent Power Producer Programme presents a great case that need to be extended to other sectors.
Chairperson, the ANC took a deliberate effort to ensure that the public sector remain central to the delivery of infrastructure services as a provider and an enabler. More importantly, to become an infrastructure provider where there are clear market failures.
The current infrastructure gap in low and middle-income countries including South Africa need relations which are framed on developmental partnerships.
Therefore, the pressing needs need the private sector as well as the public sector to build and operate the essential infrastructure.
The state of the nation address emphasise the need for social compacts and partnerships. Government will leverage its capital by bringing more private sector financing into infrastructure as this would increase the financing envelope for infrastructure investment.
Fixing and restructuring of the SOEs is a critical factor for the success of the infrastructure investment. The balance sheet of our state entities needs to be addressed so that we are then able to ensure that the current platform created to review how in the past these SOEs were explored, it has to be rooted out. Our state entities have a critical role to play in the economic transformation agenda.
This House has a unique role to play to influence all stakeholders to combine their efforts to meet the needs of the people and our economy should be measured beyond GDP.
Deputy Chair, in conclusion, the well-being of society is of paramount importance and that should be the key indicator of our envisaged economic landscape. I thank you, Deputy Chair. [Applause.]
Before we proceed, the Chairperson already expressed his appreciation to the Ministers that
attended the debates this week. We just also want to welcome Minister De Lille as well as the other special delegates that have been gracing us with their presence. We will continue and call on the hon Boshoff to continue with the debate.
Hon Deputy Chairperson, hon members, fellow South Africans, the combination of the slow to stagnant growth and the staggering unemployment rate, especially of our youth is of great concern.
Only last week we woke up to the news that government has again sent South Africa into a recession with a gross domestic product, GDP, contracting by a whopping 1,4% in the last quarter of 2019.
The unemployment rate has increased to its highest ever, standing at 29,4% with the youth unemployment rate at 60%. That is unsustainable for future generations. This has seen more and more communities entrenched in poverty and inequality.
It is therefore imperative that government identifies and implement, not only though lip service reforms, but policies that will promote economic transformation to ensure the creation of global creative markets.
This government must abandon the paradigm of state control over our society and economy and stop just blaming state capture as the exclusive factor of the declining economy.
The primary aim of transforming the economic landscape must lead to the creation of open opportunities to enable all to live a productive, prosperous and dignified life, which the majority of South Africans have not experienced since the dawn of democracy.
South Africa has seen deterioration in investor confidence which has been compounded by political and policy uncertainty and unresolved regulatory conflicts.
Currently the subdued growth can be attributed to the stagnation in private investment and the declining mining, construction and manufacturing productivity mainly again due to the lack of implementing reforms.
The regulatory constraints, labour market rigidities and inefficient infrastructure have also played a major role.
Hon Deputy Chairperson, small, medium and macro enterprises, SMMEs, are being destroyed by harsh bargaining council rules. We see bigger
businesses and bigger unions reaching wage agreements which impact negatively on this sector.
Another aspect that is killing SMMEs are the minimum ware rules. Job seekers should be given the opportunity to bargain for his/her wage. Where is the freedom of choice?
Looking at economic institutions that support growth will require a capable state together with excellent relationships between the state and the private sector to ensure sustainable co-operation between the state, the private sector and any other partners is a prerequisite which will require the government to take the lead in strengthening the capability of the public sector.
Hon Deputy Chair, you must agree that the biggest stumbling blocks hampering economic growth are the state owned entities, SOEs. Eskom is the first that comes to mind. Their coal-fired power stations must be sold and allow Independent Power Producers, IPPs, access too the electricity grid.
Government must also look at renewable energy whereby tax rebates are provided to households and companies that install renewable
energy capacity combined with functional municipalities to procure their own energy.
The inherited spatial legacies can and should be addressed through inclusive transport systems as the majority of South Africa's workforce have to travel significant distances daily to get to and from their workplace.
Transport costs have increased by more than the annual inflation rate due to the weak foreign exchange rate as well as the excessive levies charged on the fuel prices. This has impacted negatively on the lowest wage earners who currently spend up to 40% of their wages on transport. It is therefore crucial that government focuses on sustainable transport infrastructure by improving the connectivity between key economic nodes.
Government must ensure that focused and flexible industrial and trade policies are in place to facilitate, in the long run, growth of the economy.
South Africa has a major potential in the tourism field, and it must be used to benefit the majority of South Africans. It is one of the sectors that can deliver inclusive growth through labour absorption
potential and can be improved through the reintroduction inter alia the Tourism Safety Initiative coupled with visible policing in tourist hotspots.
The above market is one that can only succeed, hon Chair, if government were able to provide a reliable electricity supply and less unplanned load- shedding. The lack of electricity is leading to excessive retrenchments - the shutting down of smaller establishment.
Hon Deputy Chair, in conclusion, we know and you know that the only way that South African economic landscape can change is through a government that is committed in the upliftment of its citizens by putting aforementioned programmes, which are but a drop in the ocean, in place which will assist the challenge currently facing South Africa, namely to break loose from its low growth trap without being caught up in an untenable debt trap.
We also need a clear vision and a process of implementation, so we all know which sectors can create jobs and which sectors have constrains. I thank you. [Applause.]
Hon Deputy Chair, hon Minister, hon Members of the NCOP and the honoured, guests allow me to bring you warm and heartfelt greetings from the people of the Eastern Cape, ikhaya lesithwalandwe [home of legends] Raymond Mhlaba, Vusiyile Mini, Robert Resha who together with Isithwalandwe Harry Gwala, we are celebrating their centenary year as they would have turned 100 years, this year, if they were still alive. We pay tribute to them for recognising the sacrifices they made, fighting for the total liberation of our people.
We owe it them and many other struggle icons to intensify the second more radical phase of socio-economic transformation. And as such we are glad that this year has been declared as the year of unity, socio-economic, renewal and nation building.
We are here to debate transforming our economy landscape through infrastructure investment and development. We are particularly pleased that the focus of this debate is on transforming the economic landscape. This is because in many instances, the concentration becomes on other aspects such as; growing the economy, which is important but not sufficient as we had seen during our decade of economic gloom.
It is in this period where we saw that the growth alone has not effectively addressed the interrelated and interdependent challenges of poverty, unemployment and inequality. If anything, this period has demonstrated that growing the economy without transforming it for the benefit of all, has led to an increase in the levels of inequality in the country.
Another aspect which is much focused on was identified buy South African Communist Party, SACP document titled: Going to the root. Which explained that, redistribution is and must continue to be a key pillar of national democratic revolution but the emphasis on the redistribution has tended to neglect the critical task of transforming the systematic features of South Africa's productive economy.
We are therefore delighted to see the institution such as NCOP including the transformation of the economy in the discourse that is dominated by extreme conservatism that wants to narrowly focus on growth on one hand and on the other hand, extreme opportunities to populism that wants us to narrowly focus on redistribution.
It is for this reason that the Eastern Cape ANC-led provincial government is determined to the urgent and pressing task in the
current phase of our national democratic struggle of growing and transforming the economy to serve the people.
In a province like ours, that still is largely characterised by the apartheid bimodal structure of development an underdevelopment. We have no option than to intensify infrastructure development and investment as part of transforming our economic landscape.
We have seen that massive investment in bulk infrastructure leads to increased investment and the creation of jobs as illustrated by our small town revitalization programmes in the Eastern Cape. However, transforming the economic landscape through infrastructure investment and development is a task that we are advancing under extremely difficult conditions, not of our choosing.
We have an ailing economy that is projected to grow at 0,9% in 2020, 1,3% in 2021 and 1,6% in 2022. Sadly, however these growth estimates may be revised as a result of the outbreak of the novel coronavirus disease 19 and the impact it will have on the economy.
We are advancing infrastructure investment in the context of extra budget pressures that is declining public finances. Our debit levels are not projected to stabilise over the mid-term and we have a
number of spending reduction, recently announced by the Minister of Finance. These are objective realities that we all need to understand as we make various proposals in the debate.
While we acknowledge that we are operating under tough material conditions, not of our choosing, our responsibility however, is to transform them. As the Eastern Cape, the province and home of legends, we a committed to transforming these objective realities through a set of interventions we are making.
As stated in the people's plan for a better life for all, the ANC manifesto, the ANC-led government has invested more than R2 trillion in infrastructure projects over the past ten years, to build more schools, clinic, roads and the freight logistic network. Through its manifesto, the national liberation movement committed to create a publicly-led infrastructure fund, to enhance investment in the infrastructure and development.
Just months into the Sixth Administration, the President announced that the infrastructure fund implementation team has finalised the list of shovel ready projects and has begun work to expand private investment in public infrastructure sectors with revenue streams.
In addition to this, the Minister of Finance announced that through the Development Bank, Southern Africa will package blended finance mega projects of at least R200 billion and that government has committed R10 billion over the next three years.
In the Eastern Cape, we have established a provincial economic stimulus fund that is being disbursed to key sectors of the provincial economy, including but not limited to the industrialisation. As announced by the premier, the province is rolling out enabling infrastructure network to grow the economy and create jobs through the consolidated investment of R41 billion from all three spheres of government. The premier further announced that the seven catalytic projects have been approved by the budget facility for infrastructure, which will inject R1,4 billion in the provincial economy.
Indeed, siyakhawuleza [we are hurrying up]. Much still needs to be done and we are committed to do more, with the little resources we have as the province, that continues to decline in our equitable share, due to outmigration of our population to the other provinces. We need to ensure an improvement in the spending of infrastructure grants by municipalities. We must intensify the fight against corruption; reduce fiscal leakages through amongst other developing
more efficient methods of delivering services and driving development.
Those who cannot provide sufficient resources for incomplete work and shoddy work done must be placed on the national list of tender defaulters. This will ensure that we are left with genuine business that wants to contribute to the development of this country.
The task of transforming the economy requires decisiveness and boldness but that which is purely based on the interest of the people. In the state of the province address, the Premier of the Eastern Cape, hon Lubabalo Oscar Mabuyane, stressed that we will not rest until we can all look at our province with proud, because we would have built the Eastern Cape we want, a province that is enterprising and connected where all citizens reach their full potential.
We are committed to achieve this goal that is also expressed in our provincial development plan. Thank you for inviting us to take part in this important debate and we hope that we can unite, as we have in-fight against the outbreak of the coronavirus to grow and transform the economy, by amongst other things investing in infrastructure and development. I thank you.
Deputy Chairperson, good morning everybody, I am very happy that I could bring a smile to you every morning when I come and stand here. I will be short today but, since I heard a remark from the floor I will be extra long.
Transforming the economic landscape, the infrastructure investment and in development is a precursor to economic growth and a key component of the 2030 Development Agenda. By transforming the economic landscape through the infrastructure investment and development, there will be an impact of infrastructure on poverty elevation. Equality, growth and specific development outcomes such as job creation, market access health and education.
Infrastructure directly affects human welfare and equity across community and income groups, urban-rural households in South African experienced widely different access to basic infrastructure services.
In line with the government's vision, to move South Africa to be an export- led economy, investment and network infrastructure which includes road and rail. The South African government adopted a National Infrastructure Plan in 2012, the plan aims to transform our economic landscape while simultaneously creates significant numbers
of new jobs. These investments which would improve access by South Africans to health care facilities, schools water, sanitation housing and electrification.
Investment in the construction of ports, roads railways systems, electricity plants, hospitals, schools and dams will contribute to the faster economic growth. Let us put the emphasis on the veins of this country which are the railway and roads. Without that being in a good, strong and constructive situation, we cannot keep this country running. It is like a man who needs a heart by pass and he is struggling, but the moment you go over the obstacles his heart pumps. The county's heart pumps and we will move forward. We can contribute and make sure that we can have a faster economic growth but relies on each and every one of us.
It is so easy to say it is the government's responsibility - where does our responsibility lies? To achieve this, a collaborative approach between the private sector and the government is essential. For institutional investors we have seen low returns on the traditional asset classes, investing in infrastructure has become more important to diversify and enhance returns for the government, this could provide a source of capital to be blended finance instruments. We cannot ignore that.
The economic importance of infrastructure investment has been analysed both at project and macro levels. At a project level the focus is on the social costs benefit of infrastructure project and the implied internal rate of return. The social cost benefit analyst often tries to account for negative externalities at a macro level. The impact of infrastructure investment is analysed using aggregate production function with the assumption that infrastructure is a complementary to other inputs in the production function.
The macro latitude shows that improvements in infrastructure could raise productivity, stimulate private investment and facilitate domestic and internal trade thereby promoting sustainable growth. I wanted a brick to bring along today but I was scared that it might be thrown at me so I left it. They need to build infrastructure with that brick.
Here are the few examples of how the Free State intends to transform the economic landscape through infrastructure investment and development. Grain Fields Chickens ... [Interjections.] Yes Sir. But if you have gone to visit it you will find that there is definitely an improvement. Can I continue with my speech please? Thank you.
Grain Fields Chickens is a large abattoir in Reitz and it is one of the company's biggest facility in the province. Industrial Development Corporation, IDC, which has 23% stake in the projects aims to help develop the Free State hub of South Africa. FBK'S headquarters and Reitz and the group have nine branches in sector such as fuel, grains, animal feed and foods. BBK has development programmes with 51 emerging commercial farmers in the province and data on a 140 developing farmers. Investors are being encouraged to look at baby vegetables, wholesale meat products and leather manufacturing.
With regard to oil and gas, the oversees Overseas Private Investment Corporation of the Unites States, US, government will land more than 600 million over twelve years to build a gas plant in the Free State this will happen around Virginia.
In conclusion, the mining sector makes up 11% of provincial GDP, minerals beneficiation strategy has been developed because this is a key area for potential growth. Thank you very much. God bless you.
Hon Deputy Chairperson, hon members, hon Minister, good afternoon. In his state of the nation address in February 2019, the President of the Republic of South Africa, metaphorically
compared infrastructure development to the fly wheel of the engine of our economy.
Let us for a moment; examine this metaphor by explaining the role of a fly wheel in an engine. A fly wheel is a rotating mechanical device that provides continuous energy when the primary energy source is not moving. We should all recall that in 2009, the South African economy went into recession and recorded two quarters of negative growth for the first time since our democratic breakthrough in 1994. Our economy suffered the impact of the great recession which began in the real estate and banking industries in the United States.
Fortunately, the ANC-led government had the foresight to invest public funds in infrastructure development, particularly the massive build project in all our provinces for the 2010 FIFA World Cup. The government pumped almost R100 billion into the construction industry. And these investments contributed to the branding of South Africa and created a favourable climate for foreign direct investment and tourism growth.
The lessons learned include that if it done well, investment in infrastructure has the possibility to unlock the human potential for
all our people; reverse the historical and structural impediments that include the majority of our people from economic development opportunities; it can promote balanced economic development; address socio economic needs of our people; help to integrate our communities through integrated human settlement and importantly, promote job creation.
In the past decade alone, more than R1,3 trillion has been invested in the building of hundreds of schools and two new universities - Mpumalanga being one of the beneficiaries. I can attest to the fact that we appreciate, welcome it and it has changed our lives.
Government in partnership with the private sector has built hundreds of thousands of new houses. While much has been achieved in the first 26 year of our freedom, we all agree that more still needs to be done, just like the hon member Keleku have said, we all agree.
According to the Department of Cooperative Governance and Traditional Affairs, South Africa has a backlog of about R20 to R400 billion, in water, sanitation and electricity sectors in municipalities.
Current investment in capital renewals is around R600 to
R800 million per year. This is not even 10% of what is required. In order to deal with this challenge of infrastructure backlog, government has committed to contribute R100 billion into the infrastructure fund over a 10 year period and use these to leverage financing from the private sector and development finance institutions. The fund will be managed by the Development Bank of Southern Africa with the oversight of the Department of Public Works and Infrastructure.
As Parliament, we would like to have more oversights on these funds in order to ensure greater accountability and transparency. The ANC has learned in the 25 years of government that delivery is not efficient when infrastructure provision is fragmented between the different spheres of government. For instance, the national government, provinces and municipalities have not succeeded to integrate most of the new housing developments with economic opportunities and with the building of dams, water pipelines, schools and other amenities.
This fragmentation also turns to entrench apartheid spatial development patterns and it is extremely costly to maintain. We must ensure that government's new infrastructure implementation model
will address these challenges. When we think of the perils of infrastructure backlog in the rural areas, we cannot forget Michael Komape, a five year old Grade R pupil who drowned in a pit toilet at Mahlodumela Primary School in Limpopo in 2014; and Lumka Mkhethwa, another Grade R girl from Luna Junior Primary School in the Eastern Cape who lost her life in a similar accident in March 2018.
However, we commend the national government for acting with the necessary urgency by launching the SAFE Initiative in August 2018. This initiative has mobilised resources from government and the building industry to replace all unsafe toilets in public schools. An audit conducted in 2018 found out that about 4000 schools have inappropriate sanitation facilities. In the first year of the SAFE Initiative launch, nearly 2000 schools were either provided with safe and appropriate sanitation facilities or were in planning, design or construction stages.
His Excellency, President Ramaphosa, has consistently sought to reinvigorate the spirit of social partnerships in addressing all pertinent issues facing our people. Social partnerships are important vehicles as they enable the sharing of resources, knowledge and skills, and enjoin us behind one common goal, build
national consensus and harnesses our collective wisdom inside and appreciation of each other.
As a society, we lose many children in our predominantly rural provinces, who drown while trying to cross rivers seeking education in school of neighbouring villages. According to the annual report of the National Injury Mortality Surveillance Systems, on average, 43,2% of drowning in South Africa occur in children less than 15 years. What is frightening is that a number of drowning has been increasing from the period of 1995 to 2016.
The reality that we must face as a nation is that we need public sector structure to work differently in order to address the backlog in infrastructure development. In the current economic conditions, the only way to address the backlog is for government to build partnerships with social partners, business, labour and communities.
As a nation, we must build the spirit of fraternity, commitment, solidarity and a sense of national pride and duty amongst all social partners.
Our communities have a particularly important role in using locally available materials such as stones, sands and cements to build and
maintain their own infrastructure roads, water pumps and irrigation systems to help particularly farmers and food security gardens. Government also has internal capacity as envisaged by the Vaal River clean- up project where the South African National Defence Force intervened to address a sewage crisis.
In my conclusion, I started with the analogy of infrastructure development being the fly wheel in the engine of the economy. As we know, the global economy is currently in turmoil due to the threat of Covid-19, coronavirus. In such circumstances whilst government invest in building the national capital stock while maintaining consumption level, the Bible says in 2 Corinthians 9:6-15:
"Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously"
We call on government and all our social partners in business, organised labour and communities to work together to sow the good seed of infrastructure so that we may reap generously in future. Thank you very much. [Applause.]
Hon House Chair, hon Minister, hon members, people of South Africa, today's debate takes place barely a month since we
commemorated the 30th anniversary of the release of the late President Nelson Rolihlahla Mandela from Victor Verster prison on 11 February 2020.
The release of Nelson Mandela 30 years ago was a victory for the people of South Africa, especially the marginalised masses of our people. It ushered in an era of formidable change in South Africa's political dispensation. It also ushered in an era of rigorous efforts to redress the atrocious legacy of apartheid segregation and the disregard of the black majority.
Hon House Chair, in 1994, the ANC-led government inherited a racially and regionally biased but rapidly deteriorating and fractured infrastructure network. We inherited an infrastructure network that was not only inappropriate for the needs of the majority of the people of South Africa, but also unable to cater for the economy.
Access to social and domestic infrastructure was restricted mainly to urban areas where the majority of our white counter parts were located. Our people in rural areas and townships had few services and lived in areas that were characterised by poorly built end
maintained roads, no access to tap water in their homes, no houses, no clinics and often badly resourced schools.
In 1994 only 20% of rural dwellers had access to electricity, 35% to clean water and 5% to adequate sanitation. Since 1994, about 1 000 more people have gained access to clean water every day and over 1,4 million have benefited thus far. Over 780 000 housing subsidies were approved by February 1998 and about 500 000 houses are nearing completion.
In 1997 alone 424 000 houses were electrified, and Telkom connected
360 000 telephone lines in underserviced areas. The Coupled Model Intercomparison Project, CMIP, created some 250 000 employment opportunities through construction and maintenance of municipal infrastructure projects in its first year, 1997.
Hon House Chair, as the Gauteng province we have recognised that infrastructure, in all its forms, is a catalyst for development. It also enables the established businesses to expand their production levels, while encouraging small businesses to enter the market. It also promotes trade and supports economic concentration.
The Gauteng province is committed to promoting decisive interventions to working tirelessly to advance the lives of the people of Gauteng. We have done that as the Gauteng province, we take the view that development is about our people. It is for this reason that as the Gauteng province, we have made a conscious decision to ensure vigorous investments in infrastructure to eliminate service backlogs in underserviced areas, especially the black townships and rural areas, in order to meet our people's needs.
As Gauteng, we are aware that basic infrastructure services can also reduce poverty and contribute to job creation for our people, especially the youth, women and the majority of our people whose lives were interminably disrupted by the fight for liberation and political freedom.
Through the various public works programmes, the Gauteng province has, over the last few years, ensured that the provision of infrastructure takes place in a manner that ... [Sound recording unavailable]
... enhances job opportunities for the unemployed, especially women and the youth.
As the ANC in Gauteng, we have made it our key task to continue to ensure that labour intensive methods are used in infrastructure provision so that our people get employment.
Over the years, the Gauteng province has championed decisive interventions to advance the lives of our people. We recognise that infrastructure development is one of the key drivers of inclusive growth and sustainable development in today's modern world.
The ANC-led government, through the Department of in Infrastructure Development and various other government departments, is changing the infrastructure landscape one step at a time, and we have indeed seen the work done in different provinces.
Allow me, Chairperson, to demonstrate by using the example of Gauteng. In that province, the ANC-led government has come a long way in ensuring that we change the face of infrastructure. We understood that investing in infrastructure can unlock inclusive growth. As such, we have ensured significant investment in infrastructure development and we are proud to say that we have seen positive spin-offs. The key word here is inclusive growth because we want to build a province and a country where all our people develop and have equal opportunities.
We want to achieve our goal of building a non-racial, non-sexist and prosperous democratic South Africa. We want to fulfil the ideals of the National Development Plan Vision 2030 - of a decent standard of living through the reduction of poverty and inequality using infrastructure development as a key enabler of socio-economic growth.
Between 2013 and 2016, Gauteng infrastructure investment amounted to
...
... R30 billion and this impacted positively on the economy and households fighting poverty through creation of jobs, improved access to social services including primary health care, education, contributing to government revenue, generating additional economic activity growth, increasing household income and advancing economic empowerment and inclusion.
Our awareness on the role of infrastructure in transforming the economic landscape is evident through the conscious decisions and actions we continue to undertake. The Gauteng Broadband Network project is one of the projects that became a major boost for the economy.
The ANC-led provincial government also invested in industrial infrastructure as part of the efforts to re-industrialise townships, refurbishing and constructing township industrial parks, agriparks, township automotive hubs, township incubation, innovation centres as well as technology, agro processing and manufacturing hubs that are powering the next generation.
We have been able to build the state of the art school, schools of specialisation, the Gautrain, smart cities in Menlyn, Rea Vaya, you name them all.
In the sixth administration we have ensured that economy jobs and infrastructure is one of our key seven priorities, and the province has committed to improve the ease of doing business in each sector, develop the skilled workforce for each industry and build enabling infrastructure, including special economic zones and industrial parks.
While we count our achievements and tell our story of success with a great sense of pride, we also feel a great sense of pain - pain that stems from the knowledge that despite all our efforts and our achievements as this government, some of our people are still
struggling to make ends meet. They are still ravaged by the triple challenge of poverty, unemployment and inequality.
Without any doubt in our minds, as the ANC-led government, we know that while we have invested work to change the apartheid spatial planning and better the lives of our people through ensuring that they have access to infrastructure...
Thank you hon member, your time is finished.
As I conclude, hon Chairperson, the late President Nelson Mandela once said: "Overcoming poverty is not a gesture of charity. It is an act of justice." [Time expired.]
Hon Chairperson of the NCOP, hon Minister, hon members, we wish to extend our revolutionary greetings to all of you. This debate is essentially about economic transformation and how infrastructure investment could be used as an economic transformation driver. In this instance, we must be able to do justice to the debate. Doing justice to this significant debate requires us to be historical a bit, to lay a foundation for our input.
It is a known historical fact that since the arrival of white settlers in South Africa we witnessed a brutal and violent programme by settlers aimed at removing the indigenous people from their land. Racism was to be used to justify the exclusion of Africans in general and black people in particular from their land. This therefore mean that ... [Applause.] racism was not an end itself but rather a means to an end and the end being the exclusion of black people from the South African economy. To illustrate the above opening lines, let us refer to the book by Hennie Van Vuuren entitled Apartheid Guns and Money: A tale of profit. Van Vuuren correctly argues that:
The country has, for much of its past, been beholden to the interests of corporations that sought to extract its abundance to the detriment of most of its people. The fight for political control of South African has therefore inevitably involved powerful private interests. The first European settler community in the Cape did not serve a king but the Dutch East India Company, the world's first multinational corporation and one of the wealthiest corporations in human history, which made its fortune off the spice trade.
The relevance of this book forms part of background information for our input, hence we would quote least we are accused of plagiarism, which is a serious academic offense:
After the discovery of the largest deposits of gold on earth, shareholders in South African and British mining companies aimed their sights on controlling these areas, too, under the British.
This was part of a broader plan by settlers to accumulate capital through dispossession, as Professor Harvey noted.
It is partially against the aforementioned background that we indicate that the economic vision of the ANC captured in the Freedom Charter categorically states that, "the people shall share in a country's wealth." To this end, the ANC has scored a number of victories since 1994 to date. However, the unfortunate reality is that the legacy of colonial apartheid remains deeply embedded both in the society and in the South African economic structures.
This manifests itself through the legacy of racialised patterns of poverty, unemployment and inequality. Emanating from the above background, we would like to argue that investment on the infrastructure also did take place pre- 1994 especially before
sanctions however the most intended beneficiaries were the minority groups with a specific reference to whites usually males.
As Oliver Tambo once said that sometimes we can use the relevant enemy points hence the above therefore means that the democratic government should also use investment on infrastructure to drive economic growth to address the historical injustices of the past that were inherited from colonial apartheid South Africa.
The centrality of infrastructure, both physical and social, in development cannot be overemphasized. Adequate infrastructure in the form of road and railway transport system, ports, power, airports and their efficient working is needed to integrate the South African economy with other economies of the world. Real infrastructure is, therefore, essential to modern living, whether that's transportation, water, sewage, housing, electricity and communication. At the same time soft infrastructure in the form of education and health systems, law enforcement, and emergency services promote a better quality of life.
IsiZulu:
Zikhona izinselelo KwaZulu-Natal. Sihlalo kubalulekile ukuthi sisho ukuthi siwubonile uHulumeni waKwaZulu-Natal wakha izikole
ezisezingeni lomhlaba ezindaweni zasemakhaya, isibonelo iMandla Mthethwa, ekwaMhlabuyalingana. [Ihlombe.] Siqhubeke sizibonile izibhedlela zikhandwa uHulumeni waKwaZulu-Natal, isibonelo i-Pixley kaIsaka Seme esiKwaMashu.
English:
In a world where there is cut-throat competition for investment attraction, cities or regions with good real and soft infrastructure stand a higher likelihood of landing the coveted investment. Conscious of the role of infrastructure investment as an enabler for improved economic wellbeing, the government programmes of action as encapsulated in the state of the nation address elevated infrastructure investment as a key tenet for economic transformation. Beyond the above, the provision of reliable, clean, and cost-competitive energy has taken centre stage following the challenges facing the national utility Eskom which contributed to the fall in 1,4% drop in GDP as reported in the last quarter. In KwaZulu-Natal, the government has prioritised a number of infrastructural projects as enablers to improve the overall health of the provincial economy. Our two Special Economic Zones, SEZs, in KwaZulu-Natal continue to be at the forefront of rolling out bulky infrastructure to help attract investors into the province. The
reduced costs of logistics deriving from the improved infrastructure saw a number of investors opting to set up operations from our SEZs.
In the previous year we saw the launch of the Mara Group, the first cellphone manufacturing company, which invested more than R1 billion and created a number of permanent jobs.
IsiZulu:
KwaZulu-Natal sizimisele ukukhulisa izingqalasizinda ngokwakha inxanxathela yamahhovisi kaHulumeni lapho iminyango izotholakala endaweni eyodwa lokhu kuyowukhulisa umnotho kwehlisa izinga lemali yokuqasha ekhokhwa kongxiwa.
English:
As part of the Durban Aerotropolis, an initiative entailing the development of a 21st century smart city utilising the King Shaka International airport as the anchor of development, a number of infrastructural projects have been prioritised.
IsiZulu:
Undunankulu waKwaZulu Natal, ubaba uSihle Zikalala, ethula inkulumo yakhe i- State of the Province wabalula izinhlelo eziningi eziqhubekayo, ezinye zalezo zinhlelo wakhuluma nge-King Shaka
Airport lapho izohlanganiswa khona izokwazi ukuthi ikwazi ukuxhumana namanye amadolobha njengeTheku, noMgungundlovu nakoMhlathuze. Ukwakhiwa kwemigwaqo lapho kuxhumana khona i-Mozambique neKwaZulu- Natal kungenye yezizingqalasizinda ezizoyisiza kakhulu iKwaZulu- Natal ukuthi yenyuse umnotho. [Ihlombe.]
English:
Before I conclude, it's clear that any development process must entail a commitment to investment in infrastructure. Infrastructure forms the backbone, the base upon which most programmatic interventions can succeed. Infrastructure, in all its forms, is a catalyst for development. Well- planned and managed infrastructure can reduce the costs of logistics, improving competitiveness of the local business environment.
In conclusion, we must say that as a revolutionary organisation we have learnt a lot from our yesterday revolutionaries such as Harry Gwala, the Lion of the Midlands who amongst other things taught us that when you are convinced about an idea and you have proved its worth in action, you must defend it with your life.
Hence, we conclude by saying that we indeed believe in the idea that the ANC must continue to advance the National Democratic Revolution
because it has a proven record of accomplishment to can usher the people of South Africa into a national democratic society, which is the ANC's ultimate destination. Thank you. [Applause.]
Hon House Chairperson, let us begin with the obvious. The question for debate before the Council is a wrong answer to the poorly crafted question. It takes away our focus from crocodiles, that is, unemployment, collapsing local government, poverty, inequality and now we must focus on lease ups. You give us such poor quality of questions of debate.
Firstly, you cannot transform an economy which you do not own. There is no control there. The reality is that, the post 1994 government is a group of people who do nothing but manages the common affairs of the white minority who are racists to our people; hate black people and hate black businessmen. How do you transform the economy which you do not own and control? It is not possible and has never been done anywhere in the history of economic transformation neither by the investment into infrastructure nor fast-tracking economic growth.
What is the economic landscape we seek to transform House Chair? What are we dealing with here? The dependable and trusted Statistics
SA told us that in the last quarter of 2019 more than 10,3 million people are unemployed and 9,3 million of them are black majority. These are young people who are professionals full of energy, willing and ready to work any day. Even those that have looked for a job and have given up on looking if there is an opportunity today, they will work but there are no opportunities.
There are 8,1 million young people between the ages of 15 and 34- year olds. These people are supposed to be transitioning from dependency stage to a stage of independence, productive members of society supposed to be adding value to the country's GDP but are not in education or in any training or employment. The economy is not growing at all under the ANC-led government instead it is going in the opposite direction. This has been the case for many years now. There are those who are in denial about this and we all know them.
According to the Statistics SA's figures released on Tuesday, we are on recession and not technical recession; just recession. This is the third recession since 1994 and we have had two of these recessions under the "New Dawn" of President Cyril Ramaphosa with the investment envoys, investment summits and investment pledges. Instead of economic growth, we are forever listening to slogans of Ntate Hugh Masekela time and time and again; may his soul rest in
peace, quoting from his songs. We are seeing absolutely nothing from your government.
More specific to infrastructure, 25 years into democracy we still have mud schools in Engcobo, Tsomo, Tsolo and many other areas in the Eastern Cape. We have our children dying because they fall into pit toilets in the Limpopo province. We have hospitals like Tsilidzini Hospital in Limpopo province with more than 60% of equipment not working.
House Chair, we have aging water infrastructure in Qwaqwa and many other areas in the Free State province collapsing due to poor maintenance. There is water but because of the poor infrastructure people cannot access water. We still have roads in Mtubatuba, Mkhanyakude District Municipality, Emnambithi-Ladysmith Local Municipality and places like Vryheid with roads that are killing our people on a daily because of a poor maintenance. We have government buildings, including here in Parliament just are filthy, dilapidated and not suitable for any human occupation, yet the ANC says there is a good story to tell.
We still have people who have waited for RDP houses for more than 15 years and some even die without living in decent homes. That is
under the ANC-led government. This is a situation of infrastructure in South Africa. You may not be aware or know about this because you take your car to the airport and fly to your suburbs and go to clean and well maintained public facilities. Your kids go to private schools and Ministers send their kids overseas these days for furthering their studies whilst poor black kids need to stay in these public schools.
The reality for many South Africans is that they do not have the best minimum infrastructure to live decent lives. What is to be done? First and foremost, we need to transform the economy through investment and infrastructure. You need land to do so. Government does not have land and that is the reality. Our people do not have land and it is only white minority with land. If you are going to build infrastructure on their land and not state-owned and controlled land on behalf of our people for common good, you will never transform this economy.
So, let us expropriate land without compensation. Once we have expropriated land without compensation we must agree that, first and foremost, the infrastructure that we need to build will improve the lives of ordinary people. We will build schools, roads and public transport. This important task cannot be left on the hands of the
white owned capital. If it is left to them, they will continue to build malls and they will just make them unnecessarily big even when the economy is doing badly. No one will go the malls to buy anything as they do not have the money because they are unemployed. They will build unnecessary big houses in Camps Bay whilst our people are staying in shacks because we were made to believe that shacks are for the black majority.
We must build state capacity to deliver social infrastructure and do away with tenders. We need to establish state construction companies, including provincial and municipal construction companies. These are companies that must build our schools, hospitals, roads and water and sanitation infrastructure. These construction companies must also build houses for our people because they will understand what type of houses our people need. We need to establish a state cement company.
We can transform the economy through investment into infrastructure but it has to be the state land. We need a committed government, ANC; committed president. Currently the ANC-led government led by President Ramaphosa is not committed at all to the plight of the black majority in South Africa. All these will immediately create some economic activities because local people will wake up and go to
the construction sites. At the construction sites someone must sell food; workers must wear work wear everyday and someone has to produce that.
There is a lot of material which involves investment in infrastructure that we are capable of producing locally and should start to work on it. These are the likes of tiles, paint, aluminium doors and all things that go with infrastructure. Chair, we cannot do anything if we have a Minister who is hell-bent on a misguided policy and Treasury that has failed to manage our public finances. Because their policies favour banks and financial sector, we are never told that they are failing. The Minister of Finance is cutting a budget for houses and infrastructure in local government. How will we transform our economy when the Minister is cutting the budget for infrastructure? This is extremely misguided.
The ruling party has no capacity and political will at all. Even sophistication to reimaging our society; transform the economy and build much needed infrastructure will have to be led from the opposition benches. We will give you advice because we specialise from such advices. Listen to the advices of the EFF and you will prosper in this coming remaining term of office. Indeed come next elections, we are taking over government because in 2021 communities
are going to entrust us with municipalities. It is then that the EFF will give our people services that they need. Thank you, hon Chairperson.
Hon Deputy Chairperson, hon Minister, Ministers, hon MEC, hon members and fellow South Africans, development can be defined as improving the welfare of a society through appropriate social, political and economic conditions. The expected outcomes are quantitative and qualitative improvements in human capital such as income and education, as well as physical capital such as infrastructure such as utilities, transport and telecommunications.
My colleague, hon Boshoff, referred to the importance of transport infrastructure and that indeed is the focus of my contribution here today. My contribution today is also focused on solutions and not the normal finger pointing. For any country, the transport infrastructure networks are some of the most important assets it can have. Modern life is increasingly characterised by the ability to travel, transport assets and goods, and remain connected with other players in the economy.
So, what are the challenges to realise the full potential of our current transport network and to plan properly for the future? First of all it's co- ordination. A major concern is the lack of co-
ordination between authorities that control primary, large-scale transport infrastructure, and those that manage the secondary and tertiary related transport infrastructure. The control of these functions often spans multiple government departments and entities.
In the Durban harbour for example, everything floating on the water falls under the Department of Transport, but the moment you step on land, Transnet is the relevant authority. The level of disorganisation that exists there is testament to lack of co- operation and the effect that has on transport beneficiaries. Indeed, the road and rail network that transports goods and people out of Durban spans SA National Roads Agency, SANRAL, Passenger Rail Agency of SA, the Road Traffic Management Corporation and the Durban Metro Police.
All these functions should reside under the Department of Transport to ensure better functionality. The DA solution to this is a Public Infrastructure Inspectorate, which will independently regulate and control all roads, highways, railways, platforms, bridges, steps, etc. The second issue that we must face with road infrastructure is quality. The fundamental issue we have is that the main concern of construction companies is completion of a project and the delivery
of that project. However, we all know that projects are delivered and within months, we see them falling apart.
Therefore, quality and maintenance but should be imbedded in the tender specifications. All of these functions would be part of the proposed inspectorate work. Thirdly, and most importantly, we have to place people first in our transport infrastructure. We must find solutions that place people first in our transport plans. While the movement of goods and services remains critical to unlocking many businesses, trade and growth corridors, we can no longer afford to regard the mobility of people as an afterthought.
The bigger picture must involve the integration of major transportation infrastructure projects with provincial and municipal development. It must also consider planning for and the development of the critical mass of support infrastructure that feeds into the primary infrastructure. The Bus rapid transit, BRT, systems, that we have in 13 cities across South Africa and Gautrain, have already meaningfully contributed to Gross Domestic Product, GDP, growth, in South Africa since they were constructed and has significantly opened transport opportunities for South Africans on Pretoria, Johannesburg corridor and in many other corridors around the country.
However, the challenge for many people, and I am sure you would agree, is that access to those BRT services and access to the Gautrain via tertiary and secondary transport infrastructure is problematic. One of the major reasons for that is that, a recent analysis has shown that half of the 13 BRT cities have only spent 40% of the funds allocated to them. That means that these cities are spending more on consultants and less on buses, and new routes to neglected communities.
We must fix this, colleagues, and we must fix it urgently. Once we can get this right, it will open opportunities to introduce universal travel and transfer rates, with a universal payment system. Not to mention secondary industry such as wifi hotspots at bus and train stops or transport nodes, internet and cloud-enabled communications, to share information and updates with commuters about routes. We must also plan technological infrastructure to regulate driver behaviour.
I would like to quote the former president, John F Kennedy, who summed up the importance of transport infrastructure perfectly. He said, "We don't have good roads because of our economy, we have a great economy because of our good roads." South Africa has certainly got a lot right in its infrastructure to date, but our true
potential will only be realised when we plan, construct and maintain our infrastructure with the vision to support the economy of future generations.
The DA has many good ideas and many good solutions. Therefore, we would like to contribute to resolutions of these problems, We can do it colleagues. Let's do it together. Siyabangena! [We are showing them!] [Laughter.]
House Chairperson, Chairperson and Deputy Chairperson of the NCOP, fellow delegates, infrastructure, investment and development should be an instrument to transform the economic landscape of our country. For too long has the shadow of the apartheid era plagued and distorted development of the country in social, spatial and economic terms. Economic development was and still is concentrated in pockets throughout the country.
While the ANC majority and the government has made much progress in reversing the historical structural injustices of the past, more infrastructure investment is required and more development is necessary to accelerate inclusive economic growth. All this effort is geared towards eliminating poverty, inequality and unemployment.
However, the country faces a number of challenges in terms of infrastructure that it will have to resolve. The bulk of these challenges is the inheritance of the apartheid past and some are related to poor service delivery at a local government level. These challenges will have to be confronted to ensure that ordinary South Africans start experiencing a better life for all through infrastructure development.
Resolving the challenge of fragmentation of infrastructure development between the different spheres of government, the harmonisation of infrastructure development between national, provincial and local government is a key priority as this will raise the level of infrastructure development to serve the economic needs of communities. This means that housing development ought to occur near commercial development of enterprises and industrial parks or vice versa. This provides economic opportunities for communities, hospitals, schools, sporting facilities that must be integrated with housing developments to provide for the social and cultural needs in communities. The new town issue is not a new thing. The new town development was developed in the United Kingdom, UK, after the war and I think it needs to be investigated.
The provincial and local government will have to implement integrated infrastructure development. The District Development model as outlined by the President in the state of the nation address, sona, address of 2020 will facilitate the integration of infrastructure development as this is based on the various sectors of an area coming together to chart out development.
Local government has to ensure that basic service delivery occurs in communities and will also have to facilitate land usage in urban and rural areas to ensure inclusive economic growth and transformation. There is a need to deliver what we are tasked as government to deliver, a new culture of payment for service - I know I come from South African National Civic Organisation, SANCO, in the past and we advocated for the boycott of payment of funds, bonds and other services but those days are over now. We now have a democratic government. People should now pay for the service they are receiving.
In the past there have been weaknesses, in the planning of infrastructure development as this was little integration for example of new housing developments with economic opportunities.
The rail, bus and taxi network transport millions of people to and from work on a daily basis throughout the country. It serves the need of the young who attend school, and colleges, universities, public transportation needs to be developed as a part of the integration of the infrastructure development.
The modernisation of the rail network and road transportation will ease the burden on the roads. Over the next year government intends spending more than R1, 4billion to revamp the rail network and possible the Western Cape can look at building a speed train because it takes us almost an hour and half to travel 13 kilometres. I think we can do that jointly.
Energy security through the reliable supply of electricity and transport fuels as part of the critical infrastructure development required for economic transformation and inclusive economic growth. The restructuring of Eskom will enable green, renewable energy to close the demand gap and increase supply. Local service delivery has been found wanting and 40 municipalities required intervention to strengthen their ability for efficient service delivery. The government has embarked upon corrective actions to ensure that service delivery occurs in these municipalities. The President in his sona, address of 2020 gave the concrete example of this
corrective action in nonperforming areas, namely, Mamusa Local Municipality. In this municipality the District Development Model was successfully utilised to clear illegal dump sites and refurbish pump stations.
The communities have in various parts of the country embarked on protest to highlight to national government the unsatisfactory of the state of affairs regarding service delivery in some areas. Protest is a legitimate part of a vibrant democracy. However, what is not legitimate is protesting a democracy that is a [Inaudible.] a destruction of private and public property. This should not be the protest action as this is not legal and not within the framework of normal democratic protest. Community facilities need to be protected and developed as they are part of the infrastructure to create a better life for all.
Public property should be the object to preservation for future generations, the destruction thereof requires that we have to rebuild. That means taking money from another part of the budget.
I want to divert from my speech and respond to the remarks that I heard here today. Hon Boshoff spoke of investor confidence, I was outside the country trying to get investor confidence for people to
invest in this country. But every time a politician stands up and make a negative statement, those investors turn away because it is based upon perception and not upon reality. I think that is where we need to say that we are in this country together, all of us. If we knock holes in to the ship all of us sink. We need to rekindle a spirit of being together and a spirit of being South Africans to move this country forward together.
As I said earlier, the new town concept should be looked at because the President spoke about it in the sona, the Premier of Gauteng David Makhura spoke about new cities in Gauteng. The one that joins the North West province around Lanseria and another that joins the Free State around the Vaal. But we need to create a vision of hope. We need to look at social compacts as mentioned by the President. What are those social compacts? Somebody spoke about finance, we need to bring about banks, the trade unions, faith-based organization and business South Africa into one unit to say we can do this collaborately in a social compact and that must be social cohesion. And those new cities should be non-racial, non-sexist and ensure that it is green and that there are different forms of subsidies so that we can bring everybody into that new city. You can have the rich and the poor people and different forms of subsidies to support that kind of housing and development.
Importantly, Minister, the shared facilities in that kind of a city becomes important, the schools, the hospitals, the trading areas, the libraries so that people become integrated. They may be living in a differently subsidised house but they use the same social social faculties and take that forward.
I recall Minister once you and I had a vision together with Azapo when we were sitting in a committee to take South Africa forward together in unity, you were then a member of the PAC.
We need to recognise the challenges of the past. But we also need to also support a vision of hope for the future. How can investment infrastructure create conditions to kick start and develop the economy? It was Jan van Riebeck in his diary that said:
What these natives do not recognise that that which we have taken by the sod is rightfully ours.
I think that perception needs to be changed because rightfully ours is also ours and not that of van Riebeck and his children only. The EFF spoke about poor quality and deployable schools, section 25 of the Constitution. I want to say to them that jointly, we will amend section 25 of the Constitution, including the DA hopefully.
I want to cite another issue on what people do on the ground. At one point, we wanted to build a Cosmo City, for 10years it was held up because of the residence associations we had taken the state to court in order not build that. We employed some people on the ground to ensure that that would not have happened. But 10years holding costs pushed up the price of Cosmo City to another level. But it is another development today and it is a good development. People are living much better there than where they lived in the past.
With that I want to appeal, we are in South Africa together whether we are the ANC, DA, EFF, all of us are together. We need to have a vision of creating a society that is free of want, non-racial, non tribal and successful thank you very much.
Hon Chairperson of this House, our Ministers present here, hon members of this esteemed House, colleagues from provincial legislatures, comrades, friends and compatriots, let me start by expressing our appreciation for this platform of the NCOP which allows us to engage on the important subject of the relationship between infrastructure delivery and transformation and development of our economy.
Let me also recognise the colleagues who have already shared with us some of the rich perspectives on this important subject, especially those colleagues from the glorious movement of our people the ANC. [Applause.]
However Chair, after listening to the previous hon member who has just left, some misconceptions as alluded earlier. I felt hon Mokause I perhaps should start with this quote which is very, very important.
I must introduce this by the judicious word of the late revered and highly decorated Indian economist Dr V K R V Rao, who said and I quote:
The link between infrastructure and development is not a once for all affair. It is a continuous process and progress in development has to be preceded accompanied and followed by progress in infrastructure, if we are to fulfil our declared objectives of self-accelerating process of economic development.
House Chair, I dare say that infrastructure delivery is to any economy, what oxygen is to the human body. [Applause.]
Infrastructure is a magnetic force that attracts investments to towns and cities, whilst at the same time providing competitive edge to local economies.
Infrastructure hon Mokause, you must understand, is an axis upon which any functioning economy revolves. For us to breathe life to our ailing economy, we need to focus and deliberate investment in infrastructure projects.
We can only win the war against sluggish economic and the increasing phenomena of unemployment by investing more in the building of quality roads, rail networks, water infrastructure, effective and reliable public transport systems, energy infrastructure, airports, telecommunications, broadband infrastructure network and urban development.
Hence we want to say Chair; we find this question that we are debating today very, very relevant unlike others. We want to say, it will be very difficult to lead this country in the next coming five years if we cannot comprehend these basics that we have just said now. [Applause.]
This Chair is the only effective way through which we can support our industrialisation agenda while at the same time helping to improve the quality of life of our people.
We in this regard Chair; must commend the Presidential Infrastructure Co- ordinating Commission for its work in this regard and commend President Ramaphosa in being the champion of the work of the Presidential Infrastructure Co-ordinating Commission.
Hon Chair, I must agree with the hon Frazer from the beautiful province of KwaZulu-Natal that we as people and as a nation we come from a history where infrastructure development was meant to service the minority, the selected few and predominantly the white previlleged males of South Africa. [Applause.]
The vast majority of our people were deliberately excluded from benefiting from the roll out of infrastructure developments, particularly the economic infrastructure. As a young person, growing up in the remote villages of Senwabarwana in the beautiful province of Limpopo, the only time I could see a tarred road was when I visited a beautiful city of Polokwane. The only time you will see a telephone line it would be probably passing through a chain of
villages to connect to some isolated farm stead, serving a particular white male farmer.
Hon members who are not allergic to facts would then agree that over the past 25 years the ANC government has invested significantly in various infrastructure projects along the length and breadth of our country. This infrastructure roll out has been in a form of state facility has been in the form of state-of-art health facilities quality road networks, higher education infrastructure, bulk water infrastructure supply, energy infrastructure bulk water infrastructure supply, energy infrastructure and innovative project such as the Square Kilometre Array.
Chair, we are the first to accept that there have been challenges in the implementation of some of these projects. We also accept that corruption and inefficiency have also contributed in undermining some of the efforts of our government in this regard.
The energy supply challenges we are experiencing which also undermine the growth and development of our economy are partly as a result of some of these manmade problems we alluded to. Our choices in this regard are well- defined. We can either choose to lament
about past mistakes or we can choose the other ways of fixing these mistakes.
We in the ANC have already made the choice. As part of the Project Grow South Africa, we have chosen to fix the mistakes of the past. [Applause.]
There is no better place to start fixing our challenges than fixing our public power utility Eskom. The challenges of Eskom are our national challenges and we need to confront these challenges as a nation and as people.
We need solutions that are effective and durable. Self-amputation cannot be a solution to our challenges. It is only when you reach intellectual cal-de- sac that amputation becomes a solution to everything.
I know that other colleagues in this august House always lament about the use of public resources in breathing life to Eskom. However the point is that we are in a process of rebuilding. Rebuilding is a naturally painful process that require particular sacrifice.
Lest we be misunderstood, that we are canvassing for an exercise to throw public monies into dark bottomless pit of mismanagement and corruption. What we are saying is that we cannot abdicate our responsibilities to help build these entities to get back on their feet.
Hon Chair, let me also say we have noted a tendency both inside and outside this House, a tendency of people correctly lamenting against what has gone wrong in the country.
However the strangest thing is that these are always the first people who lament on top of their tables opposing what becomes the proposed solution to the challenges that we face as a country when we want to resolve them. [Applause.]
Chair, I honestly cannot imagine any successful effort to rebuild our entities, particularly Eskom which effort, is not supported and accompanied by necessary resources. We cannot shout the challenges of Eskom away. We need to reinvest in their resuscitation and we must commend Minister Mboweni and his team for their relentless effort in trying to find everlasting solution to these challenges.
Over the years there has been an unsustainable pattern of investing more of our infrastructure budget in areas that are already well off when it comes to infrastructure. The essence of this pattern and approach to development is that developed areas become more developed while underdeveloped areas become even more desperate for development.
We must make deliberate effort to invest more of our national resources in those areas like the Limpopo province which so desperately yearns for these resources. We must take a conscious decision to work with the provincial government to fully commercialise the Hoedspruit Airport. We must support efforts such as the expansion of the Polokwane Gateway Airport.
The national government should invest resources in supporting projects such as the Leeto La Polokwane which is the city's Integrated Rapid Public Transport Network. We can only succeed if we are willing to be brave and break new ground.
One of the biggest projects currently taking places in Limpopo is the Musina-Makhado Special Economic Zone. There is already a huge investor appetite in this project.
As we conclude Chair, we want to say indeed through an oversight responsibility this House must play a critical role in ensuring that the executive continues to put infrastructure delivery at the centre of economic transformation of this country. Colleagues, ladies and gentlemen, let us continue our wining partnership to grow South Africa and build a better country not only for our self, but for our children and many generations to come. Let the ANC live and live for ever. Thank you very much. [Applause.]
Chair, Minister, the National Infrastructure Plan was adopted by the South African government in 2012. The government's aim with the plan was to transform our economic landscape, while simultaneously creating significant numbers of new jobs and strengthening the delivery of basic services.
It is supposed to be common knowledge that investment in infrastructure results in a growing economy. That is what we and the rest of the world thought, but the ANC managed to prove us wrong. The unemployment rate has deteriorated over the last 25 years and currently stands at 38%, including discouraged job seekers. Youth unemployment rose to an unacceptable 58,1% - the highest in the world.
The question now stands: Has no money been spent on infrastructure until now? Infrastructure investment and development is after all the backbone of and a prerequisite for economic growth and employment.
Statistics SA's September 2019 Quarterly Employment Statistics survey showed that an estimated 10 142 000 people were employed in the formal nonagricultural sector of the South African economy, which is down by 28 000, only for this quarter. SAA is talking about another 2 000 jobs that might be cut.
But, why? Why is this happening? Didn't government invest money in infrastructure since 1994? Didn't government and public entities invest more than R1 trillion in the National Infrastructure Plan between 2009 and 20l4? Didn't government and public entities invest another R300 billion in the same infrastructure plan between 2016 and 2017?
According to a Business Tech article, the e-toll project cost South Africa R20,6 billion. How many people are employed today as a result of the e-toll system?
Afrikaans:
Die huidige ekonomiese situasie, werkloosheid en vervalle infrastruktuur kan nie aan historiese skuld, misgunde geleenthede, die 2008 finansile ineenstorting of die covid-19 virus toegeskryf word nie, maar slegs die