Re-industrialisation, Transformation fund, Load reduction take centre stage at ANC legotla.

By Lehlohonolo Lehana.

The African National Congress (ANC) has vowed to continue pursuing its own policies within the Government of National Unity (GNU).

This comes amid rising tensions within the GNU, with the Democratic Alliance (DA) angry about the signing of the Expropriation Act.

The party decries the new act as unconstitutional.

The ANC is currently holding a three-day NEC Lekgotla in Kempton Park, Ekurhuleni.

The gathering focuses on strengthening the party, developing strategies to promote discipline, stability, and unity, and addressing corruption within its ranks.

The NEC member Zuko Godlimpi is highlighted key priorities at the lekgotla, focusing on an inclusive economy, poverty reduction, and improving local government.

Godlimpi emphasised re-industrialisation, supporting the steel industry, and private sector financing. He also said that municipalities will insource water tankers to combat water mafias.

He also touted the establishment of a South African National Defence Force-led national youth service to drive skills development and employment opportunities.

Godlimpi elaborated on the Social Relief of Distress (SRD) grant, stating that the NEC did not want to increase the number of people on the SRD grant as it was designed to be a safety net while beneficiaries find work.

Transformation Fund

Minister of Trade, Industry and Competition Parks Tau spoke frankly about some within the GNU who are trying to challenge the R100 billion transformation fund he announced recently.

Tau says the fund is a critical initiative that advances South Africa’s constitutional commitment to economic redress and inclusive growth, which the dtic is bound by. 

Rooted in Section 9(2) of the Constitution, it aims to promote shared equality through legislative and other measures to empower black-owned enterprises and small, medium, and microenterprises (SMMEs).

The following include the objectives of the Transformation Fund:
– Promotes economic inclusion: Provides financial and non-financial support to black-owned enterprises, ensuring meaningful participation in the economy.
– Addresses fragmentation: Aggregates resources from existing Enterprise and Supplier Development (ESD) obligations and other sources to enhance impact and efficiency.
– Fosters sectoral growth: Focuses on high-impact sectors, including agriculture, tourism, ICT, manufacturing, and businesses in township and rural areas.
– Enhances market access: Offers technical assistance, pre- and post investment support, and market access opportunities to beneficiaries.
– Supports industrialisation: Aligns with South Africa’s industrial policy to stimulate growth in productive sectors and underdeveloped areas.

The fund sparked widespread controversy after Tau unveiled plans to establish a R100-billion “transformation fund” aimed at bridging the financial gap for marginalised communities, those living in rural and township areas, among others.

“I recently received a call from one particular minister asking if we are discussion the issue of the transformation fund. That same MP released a statement saying we are imposing the transformation fund on them. This matter has not been engaged or discussed in Parliament because it is still in the DTIC and it will go to other departments in terms of engagements and will also go to society for engagement,” he said.

Tau said there is a deliberate effort to undermine government’s intention to address some of the socio-economic issues affecting black South Africans.

“It is a bit of a challenge when a significant issue is related to transformation is undermined through an orchestrated effort of introducing a debate on a document that has not been published but we have said yes we are discussing it. The ANC has said we need to accelerate economic transformation in the country and improve the mechanisms of accelerating transformation, “he added.

Load Reduction

Electricity and Energy Minister Dr Kgosientsho Ramokgopa acknowledged that the new challenge of load reduction continues to affect communities.

Load reduction is a measure implemented by the utility in which specific areas are temporarily disconnected from the power supply to regulate demand and maintain grid stability.

Ramokgopa said the utility, in collaboration with municipalities, is working tirelessly to address the issue.

He noted that three interventions have been introduced to tackle the problem.

“In theory, we have not achieved universal access in the 30 years of democracy, although we have made significant advances. So those are the interventions we’re making,” Ramokgopa said.

“The next frontier is to apply the same level of effort that resolved load shedding to load reduction. That’s the message to households—resolving load reduction is our top priority,” he added.

Ramakgopa has proposed a programme called “Electricity for All” to resolve the issue.

“In order to eliminate it, you need to know the root causes. You know there are challenges and issues around illegal connections and the by-passing of meters, so essentially you build the necessary infrastructure to support everyone that is consuming. Secondly, you are able to meter those so that you don’t do estimations; its accurate billing and its completeness of billing; and lastly, intervention is in relation to innovative solutions for generation behind the meter interventions. Before the end of March, we will be launching the first phase we have started in Limpopo,” he adds.

This happens against the backdrop of a decision expected next week on whether electricity regulator NERSA will accede to Eskom’s request for a 36% electricity tariff increase.

Furthermore, Ramokgopa said, South Africa will re-gazette the tender for the building of a new power station.

“Nuclear is making a comeback. As part of this, I am announcing a panel of internationally renowned nuclear experts and scientists to help us on the pace and scale just to articulate that. And then we will be able to re-gazette it. Remember it’s just a credibility of the process itself, it’s not about the technology.

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