President Jacob Zuma addressed the State of the Nation on 11 February.
The proceedings took place in the Houses of Parliament, the National Assembly and National Council of Provinces in Cape Town.
Parliament started on a shaky note when EFF’s Floyd Shivambu, joined by EFF leader Julius Malema, interrupted Parliament before it had started. The EFF was
disruptive to the point where they were asked to leave the chambers which they did willingly, after a number of further interruptions chanting, “Zupta must fall” even during the President’s speech and on their way out.
President Zuma took to the podium after the EFF and Cope members had left and made his speech with no interruptions. He started off by acknowledging that 11 February marked the 26th year that former President Nelson Mandela was released from prison, which was one of the most remarkable episodes in the history of our country and that the year 2016 also marks the 20th anniversary of the signing into law by Mandela, of the Constitution of the Republic in 1996. “We are proud of our democracy and what we have achieved in a short space of time. Our democracy is functional, solid and stable,” said President Zuma.
Points noted by President Zuma:
- As we all are aware, racism has been the topic on South African’s lips since the Penny Sparrow scandal in January. “The nation was shaken last month when racism reared its ugly head on social and electronic media, causing untold pain and anger. There is a need to confront the demon of racism. Human Rights Day, March 21, will be commemorated as the national day against racism this year. It will be used to lay the foundation for a long-term programme of building a non-racial society,” said President Zuma.
- President Zuma also spoke of the economy, “When the economy grows fast it delivers jobs. Workers earn wages and businesses make profits. The tax base expands and allows government to increase the social wage and provide education, health, social grants, housing and free basic services, faster and in a more sustainable manner,” said president Zuma. The President also mentioned that the economy has been facing difficulties since the financial crisis in 2008 and that the government has embarked on an aggressive infrastructure development programme to stimulate growth.
- The prices of gold, platinum, coal and other minerals that we sell to the rest of the world have dropped significantly and continue to be low.
- Our reality right now is that global growth still remains muted. Financial markets have become volatile. Currencies of emerging markets have become weak and they fluctuate widely.
- Our economy is also affected by domestic factors such as the electricity constraints and industrial relations which are sometimes unstable
- Our country seems to be at risk of losing its investment grade status from ratings agencies. If that happens, it will become more expensive for us to borrow money from abroad to finance our programmes of building a better life for all, especially the poor.
- Our country remains an attractive investment destination. It may face challenges, but its positive attributes far outweigh those challenges.
- Sanral has built some of the best roads in Gauteng and in many parts of the country. These make us the envy of many parts around the globe.
- Eskom, in spite of the challenges, still manages to keep the economy going, against all odds.
- SA Tourism will invest R100 million a year to promote domestic tourism, encouraging South Africans to tour their country.
- It is fundamental to our ambition to become a financial centre for Africa.
- In 2013, the Minister of Finance announced a number of cost containment measures. Excessive and wasteful expenditure has been reduced, but there is still more to be done to cut wastage.
- The budget vote: dinners for stakeholders hosted by government departments in Parliament, after the delivery of budget speeches will no longer take place.
- Government has invested R83 billion in Eskom which has enabled the utility to continue investing in Medupi and Kusile, while continuing with a diligent maintenance programme.
- The first phase of the Mokolo and Crocodile Water Augmentation Project in Lephalale area in Limpopo is fully operational. It will provide 30 million cubic metres of water per annum.
- To curb water wastage, the Department of Water and Sanitation has begun its programme of training 15 000 young people as artisans.
- The state-owned pharmaceutical company, Ketlaphela, has been established. The company will participate in the supply of anti-retroviral drugs to the Department of Health from the 2016 to 2017 financial year.
- China announced investments of USD 50 billion of which South Africa will receive USD 10 billion for infrastructure, industrialisation and skills development.
