The Government of National Unity (GNU) has begun shaping its agenda for the year, with Cabinet convening a two-day lekgotla in Pretoria to focus on funding priorities, economic growth and key policy interventions.
Minister in the Presidency Khumbuzo Ntshavheni said the work of the seventh administration is guided by the Medium-Term Development Plan for 2024 to 2029, which centres on three core priorities: driving inclusive economic growth and job creation, reducing poverty and addressing the high cost of living, and building a capable, ethical and developmental state.
President Cyril Ramaphosa convened the extended Cabinet Lekgotla on Wednesday, bringing together members of the executive to assess government plans and priorities for the year ahead.
Ntshavheni highlighted improvements in South Africa’s fiscal position, pointing to a significant reduction in government borrowing costs. She said borrowing costs have declined from over 13% at the start of the previous budget cycle to about 9%, reflecting stronger fiscal management and discipline.
She also noted that gross domestic product (GDP) growth has increased by 2.1% year-on-year, while the rand has shown signs of stabilisation, which she attributed to sound fiscal governance.
The lekgotla is also focusing on industrial policy and skills development as key drivers of inclusive economic growth. Ntshavheni stressed that economic expansion depends heavily on the country’s skills base, adding that departments are examining ways to better coordinate existing skills funding mechanisms to boost employment, particularly among young people.
Crime and organised criminal activity are also on the agenda, with Cabinet set to receive a presentation on strategies to combat illicit trade. Ntshavheni warned that economic growth cannot be sustained in an environment undermined by criminality.
The outcomes of the Cabinet Lekgotla are expected to inform President Ramaphosa’s upcoming State of the Nation Address as well as the national budget.