BOSA sets five expectations for President Ramaphosa’s Opening of Parliament Address 

17 July 2024

Tomorrow President Cyril Ramaphosa will give the Opening of Parliament Address (OPA) to a joint sitting of the 7th Parliament, formally opening both the National Assembly (NA) and the National Council of Provinces (NCOP).

Much like the annual State of the Nation Address (SONA), South Africans have become accustomed to the exuberance of the event – with its glitz and glamour, fanfare, and political grandstanding – a day elected politicians seemingly forget what their jobs are. 

Given the previously unthinkable composition of the National Executive following the May elections, it is certainly not a “business as usual” occasion for the President and for the country. For the first time in democratic South Africa, the ANC has been forced to co-govern the country with many of its political and ideological foes.

This will require painstaking compromise, but the optimistic view is that it hands the President a golden opportunity to push forward a reform agenda which was previously unpopular within his own party. Voters used the ballot box to remove the ANC’s majority and in doing so communicated their desire for change.

It is with this mandate that government ought to charter a new pathway forward centred on a growing economy that creates jobs, a competitive and inclusive education system, safer communities and a competent and capable state free from corruption.

Ideally, the President needs to strike a delicate balance between taking stock of where we find ourselves as a nation, and providing assuring leadership as to where we are headed in the coming years. And this year the door is wide open for real, substantive progress to be announced and actioned.

We urge the President to not squander this moment. Citizens are watching, investors and the markets are watching, and our friends and adversaries abroad are watching.

BOSA today outlines five expectations for tomorrow’s address.

1. A commitment to an economic plan focused on growth initiatives

The South African economy is hampered by two interlinked issues. Negligible economic growth and stagnant, long-term unemployment. National Treasury revealed to Parliament this week that the economy has grown at an average of 1% over the past decade.

For a developing economy, this is a flashing red light. To ignite GDP growth to 5% and above, a growth-centred economic plan should include:

- An increase in opportunities in the expanded public works programme (EPWP). Any person of working age who is unemployed will have the opportunity to enrol in a variety of community service projects near their homes.

- A complementary private sector-led initiative that creates the opportunity for unemployed people to accept employment from a private employer under similar wage and health and safety conditions as those of the public works programme

- A voluntary National Civilian Service year that bridges the transition from school into the working world. This year will allow matriculants to enter into work-based training in community healthcare, basic education, civil service or community policing, gaining valuable work experience while earning.

- All townships declared as Special Economic Zones in terms of the SEZ Act. This will enable government to offer tax breaks, employment incentives, and streamlined regulation. It will also help direct public and private funding to entrepreneurs who establish businesses in townships.

- A cut to regressive taxes. This begins by scrapping all fuel levies. One-third (33%) of the fuel price goes straight to government via an array of taxes.

- Opposing NERSA’s proposed 44% increase on energy prices and revitalizing South Africa’s electricity sector. This requires unleashing private power generation capabilities using all sources of energy, from refurbished and cleaner coal-fired power stations, to natural gas resources, to forward-looking renewable energy options, and small nuclear power.

2. A commitment to overhauling the public education system

Following from the first expectation, South Africa experiences stagnant, long-term unemployment due to a poor education system that leaves millions of young people unemployed and unemployable.

The public education system needs a full overhaul to dismantle the dual system that currently exists, and offer every student an education that prepares one for a future economy, opportunities for lifelong learning, and for a career of their choice.

The immediate steps should be:

- Scrapping the 30% pass mark for subjects

- Introducing an independent education ombudsman

- Increasing budget for digital learning and infrastructure

- Higher pay for performing teachers

- A nationwide skills audit of educators

- A functional teacher training college

- Scrapping the BELA bill

- Scrapping the grade 9 school leaving certificate

- Creating new posts for thousands of unemployed teachers

- Addressing unyielding union power over the education system

3. A commitment to resolving troubles at State Owned Enterprises (SOEs), particularly Eskom and Transnet

At present, the status of most SOEs is unknown, following the President’s decision to disband the Department of Public Enterprises with the intention for SOEs to fall under the most appropriately aligned department.

Building a capable state requires reviewing the mandates and functions of all SOEs. If they are no longer required, shut them down. As for the economically vital enterprises, they must be strengthened. Build-own-operate initiatives in the energy space will free up Eskom to focus on distribution, its debt and capital attrition, and planning for a green energy future.

Transnet needs to onboard private/public partnerships with the right partners to strengthen leadership, inject capital and increase the movement of goods to stimulate trade.

Finally, financial bailouts ought to be a last resort, not a first option.

4. A commitment to respecting and strengthening Parliament

The GNU brings with it an unintended consequence that threatens to weaken Parliament’s accountability role. Currently 70% of Parliament is part of the GNU, and one in every five Members of Parliament is either a minister or a deputy minister.

We must avoid sacrificing accountability on the altar of government unity and the sentiment of GNUphoria. The rules of Parliament require amendment to reflect the new political composition of the National Assembly. The duty of Members of Parliament is to ensure the GNU is scrutinised using accountability mechanisms such as written and oral questions, speeches, debates, motions and oversight visits.

Because Parliament is the apex of the people’s accountability of government, the proportion of these mechanisms should be increased for the opposition. More written and oral questions, more time in debates, and oversight power.

Finally, the President as the head of the executive should too be better held accountable by Parliament. Supporting the establishment of a Standing Committee on the Presidency, where Ramaphosa and his Deputy Paul Mashatile are subject to, would send the right message to the public.

5. A commitment to streamlining Cabinet and cutting perks

With 75 members, this is now one of the largest National Executive's we've seen in democratic South Africa. Salaries cost the taxpayer almost R200 million a year. Mansions for ministers cost the taxpayer almost R1 billion. And VIP protection for politicians costs the taxpayer R2.1 billion per year.

BOSA is firmly opposed to extending patronage using cabinet positions, which is what has transpired in this Government of National Unity.

The President should indicate that the following perks will either be severely limited and/or removed:

- Blue light brigades

- VIP security detail

- Million-rand luxury cars

- Business class flights

- Travel and catering benefits

- Free ministerial houses

Conclusion

BOSA has chosen to stay out of the Government of National Unity and will instead build a centrist accountability structure for the government. We eagerly await the President’s Opening of Parliament tomorrow, and our role will be to ensure that all 61 million South Africans are at the centre of government’s plans for this new administration.

Issued by BOSA, 17 July 2024