DOCUMENTS

BEE integral to growing the economy – ANC NEC

Bringing more black SAns in as owners, managers, financiers, industrialists and employees will expand capacity

ANC statement on the outcomes of the National Executive Committee held on 2-4 July 2022

5 July 2022

The National Executive Committee of the ANC held its ordinary session on 2-4 July 2022, focusing on critical issues facing the country and the world. These included the rising cost of living, the crisis caused by loadshedding, and the state of local govemment. The NEC also discussed migration, climate change and geo-political stability as further areas of concern. The NEC considered the ANC's comprehensive response to the final report of the Commission on State Capture, and dealt with a host of other intemal organizational matters.

The NEC agreed that these burning challenges require a united and renewed ANC, focused on improving the lives of all South Africans.

Condolences to families who lost children in the Enyobeni tragedy The NEC mourned the deaths of a number of young people, some of them minor children, at the Enyobeni tavern in the Eastem Cape. It is a profound tragedy that pains us all. The NEC extended its deepest condolences to the affected families, friends and loved ones.

Energy Security

The NEC with grave concern deliberated on the energy security crisis facing our country and the devastating impact of loadshedding on households, communities and businesses, and on national prospects for economic growth.

It emphasized the need for immediate interventions to alleviate the plight of South Africans, as well as the pursuit of longer-term systemic interventions to ensure sustainable energy security.

Whilst recognizing the need to protect the stability of the national electricity grid through loadshedding measures, the NEC called for this to be confined to lower stages and to be phased out in the medium to long-term.

The NEC called on government and Eskom to ensure continuous communication and engagement with communities affected by loadshedding and load reduction.

The NEC also called on government to act decisively in investigating and acting on reports of sabotage of the country's generation and distribution infrastructure. Furthermore, the NEC called for a campaign against illegal connections to eliminate load reduction, which is placing an added burden on communities, and call on all South Africans to join energy-saving measures to alleviate stress on the national grid.

The NEC urged government and Eskom to consider measures such as: (a) increasing maintenance and improving the availability of existing supply, (b) that Eskom should acquire appropriate skills and experienced mentors, (c) facilitate private investment in new generation capacity, (d) speed up the repurposing of power stations with alternate energy sources, (e) accelerate the procurement of battery storage, (f) empower municipalities to procure additional electricity and (g) encourage business and households to invest in renewable energies. Government must speed up reforms in the energy sector.

Rising Cost of Living and Food Security

The NEC noted with concern that rising food and fuel prices, and increases in municipal tariffs and interest rates, have placed severe pressure on the incomes and living standards of households still struggling to recover from the socio-economic impact of the Covid-19 pandemic.

Whilst South Africa is one of the most food secure countries, a number of global factors such as extreme weather conditions, the Covid-19 pandemic and the war in Ukraine, have disrupted global food supply chains and led to food shortages and sharp price increases.

The NEC commended a number of interventions by govemment to mitigate against rising food and transport costs, such as the timely payment of social grants, the school nutrition programme and efforts by the Competition Commission to protect consumers from unreasonable price increases.

The NEC called on government to intensify support small and subsistence farmers to ensure ongoing food security and affordability of foodstuffs, including through building our capacity to produce fertilizers. In this regard the NEC welcomed efforts to gain waivers to allow African countries to produce their own fertilizers.

The NEC called upon all South Africans to join hands during Mandela Month in July 2022 in a focus on food, including by establishing and supporting community and backyard food gardens and the planting of fruit trees.

Letsema Campaign - Clean, Food secure and Safer Communities
The NEC welcomed the report on the Letsema Campaign, through which ANC members and communities are working together every Friday or Saturday to clean their communities, fix potholes, work in community gardens and campaign against gender-based violence.

The ANC calls on all communities to strengthen organs of people's power, such as community policing forums, and work with law enforcement agencies to promote community safety . Together with the ANCWL, these efforts will enhance the Molo Makhelwane programme as part of knowing your neighbours, securing communities, and taking forward the fight against gender-based violence.

Through the Letsema Campaign and the Molo Makhelwane Campaign spearheaded by the ANC Women's League, we will during Mandela month mobilise ANC members and structures, community members, civil society and faith-based organisations to improve food security.

ANC Response to the Commission of Inquiry into State Capture
The NEC noted that the Commission of Inquiry into State Capture has now submitted its final report. While detailing the nature, extent and scope of state capture, the report also makes critical findings about our movement and its government, and individual members of the African National Congress. The NEC received a presentation by the task team led by cde Jeff Radebe on an action plan to deal with the recommendations of the Commission on State Capture.

The NEC noted that some of the observations and findings are indeed unsettling, but vow that the movement will honestly and openly deal with all aspects of the Commission's report. This should strengthen the renewal of the movement, to identify shortcomings and take the necessary steps to address them.

The NEC adopted the following immediate action plan:

a) Proposed Constitutional. Leqislative and structural changes were referred to relevant NEC Committees for deliberation. The NEC must complete this work by end of August 2022.

b) On recommendations for action by specific entities, the NEC agreed that these are either part of the normal mandate of these entities which they should act on, or directed at specific industry bodies.

c) On findings on weaknesses and lapses by the ANC, the ANC will, among others, review its policies with respect to cadre deployment policy and practice; party funding principles; organisational discipline and accountability; and Parliamentary oversight. The task team will make recommendations on key principles in each of these areas.

d) Individuals mentioned or implicated in the Report: All such ANC current and former leaders and ANC members, without prejudice, must immediately take the initiative and present themselves to the Integrity Commission (IC).

Policy discussion paper on Corruption

The NEC received a presentation and made inputs on a discussion paper on the fight against corruption and measures to reverse and prevent the recurrence of state capture. This paper will be discussed in all ANC structures, in the processes leading up to and at the National Policy Conference later this month. The ANC will engage its Alliance partners and civil society in soliciting inputs before and after National Policy Conference on this critical national issue.

On Local Government

The NEC agreed that we have a range of progressive measures to address the situation at local govemment and that we must now implement these measures. There was, once again, acknowledgement that many of the issues at this level are as a result of the lack of political will to address the "political-administrative interface" and lack of consequence management.

The NEC agreed the time has now come to act against leaders of the ANC who flagrantly defy the organisational directives, instructions and prescripts, and will ensure a focused programme to rebuild local government, strengthening the district development model, as per ANC local government manifesto and pledges.

Policy discussion on Migration

The NEC received a presentation on migration, and the urgent need for review and reform of the national system of migration, in the context of the national and global obligations. The NEC affirmed that South Africa's approach to migration remains premised on protecting our national interests, our commitment to maintaining peace and friendship, and on promoting progressive Pan-Africanism.

Whilst the comprehensive review is in progress, we must immediately take concrete action on the following areas:

• Improving border security through the Border Management Agency, which is now in the process of being operationalised.

• Institute legislative reform to address contradictory regulations.

• Improve the capacity of Home Affairs to process applications and implement the regulatory environment in a manner which does not undermine the economy or abuse human rights and which prevents abuse of the immigration system.

• Law enforcement authorities to crack down on human trafficking and other forms of abuse of immigrants.

The issue of migration will be on the agenda of the ANC National Policy Conference expected to be held in Nasrec - Johannesburg - Gauteng Province from the 29th - 31 July 2022

Economic Reconstruction and Job Creation

The NEC reiterated the ANC's policy that if we are to meaningfully address poverty, inequality and unemployment, we must fundamentally alter the racial and gender composition of the ownership, control and management of our economy. We will continue to build a South African economy that truly reflects the composition, diversity and interests of the South African people.

The NEC noted that to give full expression to the vision of the Freedom Charter, we must continue through all available instruments to address the concentration of ownership in the economy, as many significant economic sectors continue to be dominated by just a few companies. Not only does this make transformation more difficult by limiting the scope for new entrants, but it also stifles competition, keeps prices high and encourages inefficiency.

We will continue to diversify our economy through the development of local industrial capacity, and by beneficiating our abundant minerals and agricultural produce, to realise their full potential value.

The NEC reaffirmed that the immediate priority remains speeding up inclusive growth and creating employment.

Job creation remains the most effective driver of inclusive growth, the most direct route out of poverty, and the best way to address inequality.

The NEC recalled that the Economic Reconstruction and Recovery Plan calls for the leveraging of public infrastructure investment far more effectively, using this to develop the country's manufacturing capabilities and local suppliers, and creating conditions for the growth of businesses, large and small. It also includes the potential of public and social employment programmes to provide unemployed people with livelihoods, skills and experience.

The NEC further emphasized that for transformation to be successful, black economic empowerment needs to be integral to efforts to grow the economy, with empowerment and growth as mutually reinforcing.

By bringing more black South Africans into the economy — as owners, managers, financiers, industrialists and employees — we are expanding the capacity of our economy. The NEC reaffirmed the commitment of the ANC as governing party, to use the levers of state procurement more effectively to affirm black-owned companies.

The NEC also reaffirmed a skills revolution as central to social and economic transformation and shared prosperity.

The efforts to ensure that all children have access to quality basic education, to make higher education accessible to all, and to equip our young people with skills appropriate to the workplace of tomorrow, will lay the firmest foundation for development, growth and inclusion.

The NEC reiterated the need to tirelessly build a capable developmental state that can effectively direct resources towards areas of greatest economic and social benefit, including its implementation, planning and monitoring capability. We also need to build our state owned enterprises to fulfil a clear developmental function, and ensure they are governed effectively, manage their finances responsibly and are led by capable, honest and accountable people.

The NEC welcomes work currently underway at NEDLAC to conclude a social compact for economic recovery and job creation. The ANC will continue to engage fellow members of the revolutionary alliance to build consensus on the principles that must inform the social compact.

International matters

The NEC noted that the world is just emerging from the global Covid 19 pandemic. The pandemic exposed the vulnerability of the developing world, but also showed the strength of nations acting in unity and highlighted the need for greater solidarity and collaboration between developing and emerging economies.

South Africans showed tremendous strength and determination in the face of a devastating pandemic that took so much from so many of us. We have yet to fully reckon toll on our people and country, but we can say that thus far we have endured. The pandemic is not over and we must remain cautious. However, we can now face the future with the knowledge that as a people and a continent, we have the necessary tools to manage and live through pandemics like these.

The world continues to face multiple crisis, including slow post Covid 19 recovery, other threats of infectious diseases, rising inequality exacerbated by energy challenges and food insecurity, the war in Ukraine, migration and internal displacements continue to be a major issue of our time, and the crisis of global warming and climate change.

Climate change has seen more and more extreme and unpredictable weather events across the globe: prolonged droughts, wildfires and unusual heatwaves, mudslides and severe floods, and hurricanes and freak hailstorms.

Despite the fact that Africa has and is the least contributor to global emissions, climate change continues to impact on us most severely.

In our own country, climate change caused the recent tragic floods in parts of KwaZuIu-NataI and the Eastern Cape. Our initial response, as the movement, civil society and as government, was compassionate and we succeeded in moving people out of danger and into temporary shelters with the necessary speed. However, the NEC noted that it is equally true that government has been unacceptably slow in constructing permanent dwellings for displaced people in a number of areas. We now need to move faster to ensure those people who still remain in temporary shelters are assisted and the delivery of houses are fast-tracked, with all three spheres of government working together.

The African continent's own commitment to silencing the guns remains unwavering. The SADC region continues to work to assist the process in Lesotho, to resolve the crisis in Eswatini and to find lasting solutions to the conflicts in Delgado, Mozambique and the Democratic Republic of the Congo. The NEC noted that Congo Republic and Senegal will hold national elections and Tunisia a constitutional referendum in July, and in August 2022 citizens of Kenya and Angola will go to the polls in general elections. We wish these countries peaceful, free and fair elections.

The NEC welcomed the recent engagements at the 14th BRICS Head of State Summit and the G7 Summit, which reinforced the correctness of the ANC's position on strengthening multilateralism.

BRICS remains an important forum to drive progressive reforms of multilateral institutions and ensure increased participation and representation of developing countries on the global stage. It is also an important forum to spread progressive policies on the global stage and many more countries want to be part of BRICS. Many countries have joined the BRICS Bank and we must make greater advantage of the funding available from BRICS.

Congratulations to Banyana Banyana, you made us Proud!

The NEC congratulates Banyana Banyana, the South African national women's soccer team for their stunning 2-1 win over Nigeria in the African Women's Cup group stage competitions.

The formidable Super Falcons, as the Nigerian team is known, is by far the most successful African women's team, and has emerged as champions of the African Women's Cup of Nations Il times. The Super Falcons is also the only CAF team to represent the continent in the FIFA Women's World Cup. Worthy opponents indeed!

The NEC applauds the Banyana Banyana players, coach Desiree Ellis and support team for keeping the South African flag flying high. Their sterling performance is testimony to the illogic of the gender pay gap in sports, which must be closed so that all our sports persons, men and women, are able to reach their full potential.

Issued by Pule Mabe, National Spokesperson, ANC, 5 July 2022