Cape town: President Cyril Ramaphosa announced that the government is implementing the Medium-Term Development Plan (MTDP) to address structural challenges in the economy and realign South Africa with the objectives of the National Development Plan (NDP). The President's remarks were made in response to oral questions in the National Assembly regarding the attainability of the NDP's targets, which include reducing unemployment to 6%, achieving 5% economic growth, and building a capable state by 2030.
According to South African Government News Agency, the President referenced a Ten-Year Review of the NDP by the National Planning Commission, released in September 2023, indicating that targets for eliminating poverty and reducing inequality and unemployment may not be met by 2030. Despite this, he acknowledged progress in areas such as education, health, water, electricity, and social assistance, while noting persistent wealth disparities.
President Ramaphosa attributed the slow progress to several factors, including the global financial crisis of 2007-2009, the economic impact of the COVID-19 pandemic, and the era of state capture, which compromised investor confidence and weakened state-owned enterprises like Eskom and Transnet. Additional challenges include unreliable electricity, declining infrastructure performance, reduced fixed investment, and poor governmental coordination.
To combat these issues, the MTDP is designed to promote inclusive economic growth and job creation through structural reform and substantial investment in energy, logistics, and water infrastructure. It encourages investment and employment in sectors such as mining, agriculture, tourism, and the green economy, alongside support for small and informal enterprises.
The government also aims to reduce poverty and high living costs through expanded social protection, improved healthcare, foundational education, and skills development. The MTDP emphasizes building a capable and ethical state by professionalizing public service, strengthening law enforcement, enhancing local government performance, and combating corruption.
The plan includes a results framework with measurable targets, strategic interventions, and indicators for the five-year period. These targets guide the Medium-Term Expenditure Framework and are incorporated into departmental performance plans and budgets. Performance agreements with ministers encompass key priorities and measurable indicators from the MTDP.
'Through the MTDP and ongoing efforts over the past five years, we are gradually rebuilding our economy and state capability to expedite progress toward the NDP goals,' President Ramaphosa stated.
In a related matter, the President addressed the role of traditional leaders in governance, emphasizing their importance under the District Development Model. Legal frameworks, such as the Traditional and Khoi-San Leadership Act, empower traditional councils to work with municipalities, identify community needs, and participate in council meetings.
While these frameworks are robust, the President acknowledged uneven implementation across municipalities. The MTDP now includes an indicator for traditional leadership participation in government programs. Capacity-building workshops are being conducted to improve compliance, and a review of the White Paper on Local Government is expected to enhance cooperation between municipalities and traditional leadership.
'The Government is committed to fully recognizing, empowering, and integrating Traditional and Khoi-San Leadership into our governance system, as their wisdom and community proximity are vital for building a capable state and improving service delivery,' President Ramaphosa concluded.