Honourable Members,
In September 2023, the National Planning Commission released its Ten-Year Review of the National Development Plan.
The review found that the targets relating to the elimination of poverty and reduction of inequality and unemployment will not be met by 2030.
While progress has been made on other NDP targets – such as access to education, health, water, electricity and social assistance – South Africa remains highly unequal, marked by wealth disparities that span generations.
The review by the National Planning Commission found several reasons for the lack of progress.
Some of these factors were external. The effects of the global financial crisis of 2007 to 2009 continued to be felt in the South African economy for several years afterwards.
The COVID-19 pandemic caused the most severe economic contraction in our economy, in which more than 2 million jobs were lost.
The years following the adoption of the NDP were the years of state capture, in which billions of rands were siphoned out of the state, critical institutions were repurposed to serve the corrupt and investor confidence plummeted.
The state owned companies on which our economy depends – such as Eskom and Transnet – were stripped of funds, skills and capable leadership.
The economy was also held back by nearly 15 years of insecure electricity supply and the declining performance of our ports and railway lines.
There have been broader challenges around the declining capacity of the state, particularly at local government level, a decline in fixed investment and poor coordination across the state.
The Medium Term Development Plan – or MTDP – has been developed to address these many challenges and to put the country back on track to realise the objectives outlined in the NDP.
The MTDP aims to drive inclusive growth and job creation through structural reform and massive investment in energy, logistics and water infrastructure.
It is focused on encouraging investment and creating employment in sectors like mining, agriculture, tourism and the green economy, while providing support for small and informal enterprises.
The MTDP has prioritised the reduction of poverty and the high cost of living through expanded social protection, improved healthcare, better foundational education and focused skills development.
To ensure the success of these efforts, the MTDP focuses on building a capable, ethical and developmental state.
This includes professionalising the public service, strengthening law enforcement, improving local government delivery and rooting out corruption.
The MTDP contains a Results Framework, which quantifies the outcomes, strategic interventions, indicators and targets to be achieved over the five-year term.
The targets in the MTDP inform the development of the Medium-Term Expenditure Framework. They are also reflected in the Annual Performance Plans of departments and supporting budgets.
The President concludes performance agreements with Ministers that incorporate key priorities and measurable indicators derived from the MTDP.
Through the implementation of the MTDP and the work that has been underway over the last five years, we are steadily rebuilding our economy and restoring the capability of the state – so that we can accelerate progress towards the achievement of the goals of the National Development Plan.
#RamaphosaQandA