Water security, the economy and fragile GNU under spotlight at ANC indaba

The ANC’s National Executive Committee (NEC), the party's highest decision-making body between conferences, made bold proposals during its three-day annual lekgotla to combat poverty and the soaring cost of living, as 30 million South Africans remain trapped below the poverty line.

The proposals include regulatory actions like a fuel price cap, VAT exemptions on electricity and expanding the list of zero-rated food items to include essential nutritious products, which President Cyril Ramaphosa will have to consider ahead of a crucial Cabinet meeting later this week.

The deputy minister of trade, industry and competition and deputy chairperson of the party’s subcommittee on economic transformation, Zuko Godlimpi, said: “All of us agree that we need to do two things — you need to relieve households from the current pressures that they have, but the economics of it is to free some money so that they can buy more goods from the economy, then you kickstart the demand again.”

He said that when more goods were bought, demand increased, jobs were created and more tax revenue was generated. “We are prepared to get into the nitty gritty of that conversation with the National Treasury if it has to come to that, but we are convinced that everybody is going to accept our position.”

In his 2024 State of the Nation Address, Ramaphosa confirmed that the R370-a-month Social Relief of Distress (SRD) grant, initially introduced as a Covid-19 relief measure for those struggling, would continue for another year.

The reality, however, is that while necessary, the grant is a heavy burden on the fiscus, given the millions who depend on it.

Godlimpi said the party was in agreement that the grant should have been a temporary measure — it was confident that its proposed ideas on the economy would substantially cut the number of people receiving the grant.

“The intention of the ANC is not to increase the numbers in the SRD; it was supposed to be a temporary measure in the wake of Covid-19. If we have to get these labour-intensive programmes rolling they should automatically kick people out of the SRD,” he said.

Water security 

Water was another key issue that dominated the lekgotla. Giving a political report at the meeting, Ramaphosa said, “In dealing with water and security, it is quite clear that law enforcement agencies in our municipalities must attend to the water infrastructure sabotage and theft that continues, and more importantly, the corruption by water tanker mafias as well as illegal water connections.”

The party proposed the urgent upgrading of ageing municipal water infrastructure through the ring-fencing of water revenue for critical maintenance.

“Municipalities will also insource water tankers to eliminate the influence of water mafias and enhance accountability. A financing framework will attract private sector participation in infrastructure refurbishment while maintaining public ownership.

“Additionally, law enforcement agencies will work with municipalities to combat sabotage, theft and illegal water connections, ensuring stability in service delivery,” the party said.

Electricity 

Ramaphosa praised Electricity Minister Kgosientsho Ramokgopa after the country went for more than 300 days without load shedding. However, many communities continue to struggle with frequent power outages, often labelled “load reduction”.

Ramokgopa said the Department of Electricity and Energy would start a new programme called “Electricity for All” which would focus on three key areas.

The first would aim to eliminate load reduction by addressing its root causes, such as illegal connections and meter bypassing, while working closely with municipalities.

The second area would focus on advancing technology for more accurate billing. This technology would also help extend free electricity to qualifying households that currently lack access.

Lastly, the programme would explore innovative solutions for electricity generation.

“We will resolve load reduction, it is our number one enemy now,” said Ramokgopa.

The GNU  

Ramaphosa used his opening remarks to reaffirm the ANC’s commitment to implementing its policies within the Government of National Unity (GNU) and serving the interests of all South Africans.

“Even within the GNU, we have a clear obligation to implement policies and measures that advance the NDR [National Democratic Revolution]. More importantly, we must continue making decisions that directly benefit our people, whether in education, health or land reform,” he said.

His remarks came soon after DA leader John Steenhuisen declared a dispute and called for a reset of the GNU’s relationship with the ANC following the signing into law of the Expropriation Bill this week.

Read more: GNU tension erupts after Steenhuisen seeks urgent dialogue over Ramaphosa's signing of Expropriation Bill

The signing of the Expropriation Bill revealed further tensions within the GNU, after Public Works Minister Dean Macpherson and his deputy, Sihle Zikalala, publicly disagreed on the matter.

Zikalala described the Bill as “groundbreaking,” while Macpherson said that no private property would be expropriated without compensation during his tenure.

Previously, the DA, the second-largest party in the GNU, raised serious concerns about the Bela Bill and National Health Insurance, with some of its ministers publicly saying they would not cooperate with the implementation of these legislations.

When asked about resolving the dispute with DA ministers who refused to implement policies, ANC Secretary-General Fikile Mbalula said they would be held accountable and accused the DA of being anti-transformation.

“We will take them to task. You can’t run a government like it is a stokvel,” “We will take them to task. You can’t run a government like it is a stokvel,” said Mbalula.

He denied ignoring the DA leadership when it reached out with concerns about the Expropriation Bill. Previously, he suggested that the DA could leave the GNU whenever it wanted. However, at the weekend, he softened his stance, saying the ANC was open to discussions.

“We'll engage whenever it is necessary to do so. We are open to do that. We have committed ourselves when we face difficulties and political parties have difficulties in the GNU in relation to matters including expropriation. We will meet and talk about those issues,” said Mbalula.

The ANC’s alliance partners, the SACP and Cosatu, commended the signing of the recent Bills, adding that those failing to implement them must be dealt with decisively.

ANC renewal and 2026 

Former president Thabo Mbeki, known for his public criticism of the party he once led, called for the ANC’s renewal. He emphasised the role of veterans in driving this effort, highlighting their institutional knowledge.

He also stressed the need for better communication and a more robust battle of ideas and suggested that the party focus on improving the lives of citizens as a way to recover from its recent electoral losses.

Cosatu’s deputy general secretary, Gerald Twala, cautioned the gathering against reminiscing about past glories, saying it should rather focus on concrete proposals for the year ahead and securing an outright majority in the 2026 local elections.

“Voters, and in particular the working class, don’t want to hear vague promises of a better life, they don’t want to hear about our factional spats or extravagant slogans. Society wants to see a sense of humility, to know we have heard their anger and are addressing our mistakes. They want to hear from us a clear plan of action on how we will improve their lives.”

According to Cosatu, key to the current issues is fixing the state and moving away from austerity budget cuts that collapse the ability of the state to deliver the quality public services that the working class and the economy depend upon. DM