Ramaphosa reveals GNU's key priorities in Opening of Parliament address
The official opening of the 7th democratic administration came after a two-day Cabinet lekgotla, where the national executives convened to formulate a national policy agenda.
Members of Parliament listen to President Cyril Ramaphosa's Opening of Parliament address on 18 July 2024. Picture: GCIS
JOHANNESBURG - The Government of National Unity (GNU) has placed inclusive economic growth, reduced poverty, and building a capable state as its three main priorities.
President Cyril Ramaphosa officially opened Parliament of the seventh democratic administration on Thursday.
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The official opening event, which was held at the Cape Town City Hall, came after a two-day Cabinet lekgotla, where the national executives convened to formulate a national policy agenda.
Ramaphosa said the GNU was in full agreement that inclusive economic growth should be at the top of the country’s agenda.
“Our experience over the past 30 years has shown that when our economy grows, jobs are created. When our economy contracts, there is no job creation and jobs are lost. The Government of National Unity will pursue every action that contributes to sustainable, rapid economic growth and remove every obstacle that stands in the way of growth.”
REDISTRIBUTION OF WEALTH
Ramaphosa said the GNU agreed on the redistribution of wealth, and that 30 years into democracy, South Africa remained a deeply unequal country.
He told the opening of Parliament in Cape Town that the seventh administration would endeavour to build an inclusive economy.
“We are determined that growth must be inclusive. It must be transformational. Inclusive growth must drive the redistribution of wealth and opportunity. It must support the empowerment of black South Africans and women, and all those who in the past had been relegated to the fringes of the economy. This is part of the constitutional imperative to redress the imbalances of the past and deal with the slow process of development.”
STRUGGLING MUNICIPALITIES
The seventh administration vowed to fix the country’s struggling municipalities.
Ramaphosa said local government was at the coalface of the issues affecting many South Africans.
He said improving municipalities was crucial to the GNU achieving its goal of inclusive economic growth and creating jobs.
“To achieve rapid, inclusive growth, we need to fix our struggling municipalities. Growth happens at a local level, where people live and work. Our municipalities must become both the providers of social services and facilitators of inclusive economic growth. They must work to attract investment. This approach can encourage businesses to expand and create more jobs in municipal areas. Investors are attracted to areas with reliable and modern infrastructure.”
VAT-EXEMPT FOODS
The GNU also promised to expand the number of zero-rated value-added tax (VAT)-exempted food items.
South Africa currently has 19 basic food items that are not charged VAT.
This includes brown bread, maize meal, eggs, and samp, among others.
The issue of expanding the basket of food items exempt from VAT was one of a few where there was consensus among the majority of political parties in the GNU.
Ramaphosa says it was important the government did its part in shielding the population from the rising cost of living.
“Even at a time when many companies are making large profits, millions of South Africans are suffering as a result of rising prices. As the Government of National Unity, we will look to expand the basket of essential food items exempt from VAT, and undertake a comprehensive review of administered prices, including the fuel price formula, to identify areas where prices can be reduced.”