This week Moneyweb@Midday looked at the Gauteng cabinet, food security in the Eastern Cape and more.
The political focus this week on Moneyweb@Midday was on the composition of the GNU and what was happening with the formation of a government in Gauteng.
On the national front Helen Zille, chairperson of the Federal Council of the Democratic Alliance (DA), discussed the implications of the DA becoming a national government for the first time.
Zille highlighted the significance of avoiding a far-left populist government, emphasising that the centrist government now in power can foster economic stability and growth.
This achievement she said marks a long journey from the DA’s initial coalition win in Cape Town in 2006 to their current national role. The negotiations leading up to this point were intense and challenging, culminating in a last-minute effort by the Economic Freedom Fighters (EFF) to influence the outcome.
Despite some disappointment over not securing more cabinet portfolios, Zille expressed satisfaction with the significant and challenging ministries the DA obtained, such as Home Affairs, Basic Education, and Communications and Digital Technology.
She acknowledged criticisms regarding the size of the new cabinet but defended the proportionality of the DA’s representation. Zille also addressed concerns about the ANC’s commitment to their agreement, stressing the importance of mutual accountability and the challenges of shared governance.
You can also listen to this podcast on iono.fm here.
Gauteng Premier Panyaza Lesufi announced his cabinet after a fortnight of postponed negotiations with the Democratic Alliance (DA), forming a minority government with the Patriotic Alliance (PA), Inkatha Freedom Party (IFP), and Rise Mzansi.
Lesufi refuted claims that the government is a minority, emphasising that it enjoys support from 78% of political parties in Gauteng, including informal partnerships with the Freedom Front Plus, ActionSA, and other smaller parties.
Despite efforts to include the DA in the provincial government for stability, negotiations deadlocked over the allocation of a single Member of the Executive Council (MEC) position. The DA’s abrupt withdrawal from talks and public denunciation he said led to the final formation of the cabinet without their involvement.
Lesufi addressed allegations of bad faith negotiations, asserting that the ANC adhered to the terms proposed by the DA, which initially supported his election as Premier. The Premier highlighted the urgency of passing budgets to ensure public services, indicating an openness to future negotiations with the DA.
On a different subject Chris Nissen, chairperson of the South African Human Rights Commission (SAHRC), has called for the Eastern Cape government to implement sustainable food security programmes to address the region’s severe hunger crisis.
Dr Eileen Carter, head of the SAHRC in the Eastern Cape, elaborated on the dire situation, referencing a malnutrition report that highlighted the province’s critical condition and suggested declaring the Eastern Cape a disaster area. Despite some government responses, such as the premier’s steps outlined in the State of the Province Address and the formation of a rapid response team, Dr Carter said more innovative and cooperative solutions are urgently needed.
The Eastern Cape’s food insecurity she said is exacerbated by historical land dispossession, underutilization of agricultural potential, and significant socioeconomic issues like poverty and unemployment. Dr Carter highlighted the complex interplay of inadequate infrastructure, wasted food, and inefficiencies in resource allocation as major barriers. She suggested that declaring a state of disaster would facilitate immediate relief and funding, but stressed the need for a holistic approach, including policy reforms and better resource management. Without urgent action, she warned, the region will continue to face a generational crisis, undermining efforts to achieve Sustainable Development Goal 2 of zero hunger.
You can also listen to this podcast on iono.fm here.
And Johannesburg residents using prepaid electricity will now face a R200 surcharge, along with increased tariffs ranging from R2.72 to R3.62 per kilowatt hour, based on usage.
Nqobani Mzizi, Senior Manager for Revenue Enhancement at City Power, explained the rationale behind the surcharge, noting that prepaid customers historically only paid for consumption and not for infrastructure maintenance. With a significant migration to prepaid due to its lower costs, the funds for maintaining and upgrading infrastructure have dwindled. This surcharge aims to ensure all customers contribute fairly to these essential services, despite anticipated backlash from the community.
Mzizi acknowledged the decision’s unpopularity but emphasised its necessity to prevent further financial decline for the City of Johannesburg, which is already facing substantial debt. He explained that the R130 network capacity charge and the R70 service charge were calculated based on the costs of maintaining infrastructure and covering fixed expenses. Without these charges, the city’s debt, already at R10 billion, would continue to grow, further exacerbating financial challenges.
You can also listen to this podcast on iono.fm here.