Cabinet Backs Reforms

Minister in the Presidency Khumbudzo Ntshavheni. Pic: SAG

Yasmin Bilal

A series of policy reforms and legislative changes aimed at boosting economic growth, improving service delivery and preparing the country for this year’s local government elections have been approved.

Briefing the media on the outcomes of Wednesday’s Cabinet meeting, Minister in the Presidency Khumbudzo Ntshavheni said the decisions were focused on strengthening the economy, modernising public services and improving infrastructure.

“We remain focused on implementing practical reforms that strengthen the economy, improve service delivery and create opportunities for all South Africans,” said Ntshavheni.

Among the key decisions was the approval to extend the validity period of driving licences for light motor vehicles from five years to 10 years.

The change will only take effect once the necessary legislative amendments have been passed. Until then, motorists must continue renewing their driving licence cards under the current system.

Ntshavheni said the move aligns with international best practice and will reduce the burden on motorists while easing pressure on licensing centres.

The meeting also welcomed encouraging signs in the economy. Transnet Freight Rail recorded a 4.4% year-on-year increase in freight volumes during the first quarter of the 2026/27 financial year. This was despite an additional maintenance shutdown on the Iron Ore Line.

Toyota South Africa Motors’ R10.4 billion investment in its Prospecton plant to produce the ninth-generation Hilux was also welcomed.

Chery Group’s acquisition of the former Nissan manufacturing facility in Rosslyn was highlighted as another boost for the automotive sector. The investment is expected to secure existing jobs while creating thousands more across manufacturing, logistics and engineering.

The International Monetary Fund’s decision to revise South Africa’s projected economic growth to 1.1% was also welcomed.

“While the upward revision remains modest, it reflects growing confidence in South Africa’s economic recovery efforts despite weaker global growth and geopolitical tensions in the Middle East,” said Ntshavheni.

The publication of the revised Electricity Pricing Policy and the draft Electricity Sector Market Transformation Position Paper for public comment was also approved.

The reforms are intended to modernise the electricity market, improve energy security and attract investment. They are also expected to create a more competitive industry while protecting vulnerable consumers.

Water security also featured prominently.

The National Water Action Plan and the National Water Access Acceleration Programme are expected to expand access to safe drinking water in rural communities.

More than R200 million has been allocated to the programme’s first phase. A further R156 billion has been committed to water and sanitation infrastructure over the next three years.

On migration, Ntshavheni said more than 68,000 undocumented foreign nationals were repatriated between 14 June and 24 July through coordinated law enforcement operations.

The Musina Temporary Repatriation Centre will also be downscaled. Its capacity will be reduced from 20,000 people to 1,500.

Responding to reports involving white South Africans who relocated to the United States, she reaffirmed that the country remained home to all its citizens.

“South Africans, irrespective of their political views, will always have a home in this country without the fear of political persecution and suppression in accordance with the laws of the Republic,” she said.

Concern was also expressed over the deaths of 47 initiates during the winter customary initiation season.

Ntshavheni said authorities had opened 161 criminal cases, arrested 41 suspects, closed 42 illegal initiation schools, rescued 181 initiates and hospitalised 93 others.

Several Bills were approved for introduction to Parliament or publication for public comment.

These include the Municipal Structures Amendment Bill, aimed at creating a legislative framework for coalition governments, amendments to electoral laws ahead of this year’s local government elections, proposed changes to tackle illegal mining, reforms affecting trusts and legal practice, and amendments to financial legislation.

The revised National Road Safety Strategy was also approved.

It aims to reduce road fatalities by 45% by 2029 through stronger law enforcement, improved governance and digitally enabled systems.

South Africa’s readiness to host the SADC Summit in Durban from 16 to 17 August was also confirmed. The country will also mark the 70th anniversary of the 1956 Women’s March on 9 August.

Ntshavheni encouraged eligible South Africans, particularly young and first-time voters, to register during the final voter registration weekend on 1 and 2 August.

“We call on all South Africans, especially young and first-time voters, to exercise their democratic right to vote. Our democracy is based on the will of the people, and your vote is central to the success of a well-functioning democracy,” said Ntshavheni.

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