South African President Cyril Ramaphosa is set to deliver his final state of the nation address ahead of the most competitive national election since the end of apartheid 30 years ago.
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The president will likely take stock of his administration's accomplishments and leave announcements of new initiatives to another keynote address after the vote. The speech to MPs in Cape Town on Thursday night comes two weeks before the party presents its manifesto to voters.
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Important points to note are:
1. Election Day
President Ramaphosa announced the 2019 election date in his State of the Nation Address and could do so again this week – his spokesperson said on Wednesday that an announcement would be made within 15 days. Once that is done, the date will be published in the Official Gazette and the voter list will be closed. Voting is due by August, and polls show the ruling African National Congress is at risk of losing its national majority for the first time since it came to power under Nelson Mandela in 1994.
Read: President Ramaphosa to announce election date by February 23
2. Income subsidy
A tug-of-war continues within the government over whether the temporary R350 monthly salary introduced to ease the burden on unemployed workers due to the coronavirus should be made permanent. The National Treasury has called for a comprehensive review of the entire welfare system, warning that income subsidies are unsustainable unless new sources of funding are found. But the ANC insists the extension of benefits is non-negotiable, and at a party meeting last month, Mr Ramaphosa said: “Within fiscal constraints, targeted income support subsidies for unemployed people will be provided.'' “There is strong evidence that it should be introduced permanently.” If he does speak out on the matter, it will likely be up to Finance Minister Enoch Godongwana to detail the source of the money when he submits his annual budget on February 21.
Read: Ramaphosa hints at income support as election approaches
3. Energy and railway crisis
Prime Minister Ramaphosa is expected to detail what is being done to address power shortages and logistics disruptions that are hurting the economy, but is not expected to announce a new comprehensive plan. The country suffered record power outages last year, sometimes lasting up to 12 hours a day, as state power company Eskom Holdings was unable to meet demand from aging and poorly maintained power plants. Private investors are working together to bring new capacity online, but the process has been difficult. Transnet, the ailing state-owned company that runs the freight rail network and all major ports, is working to implement a restructuring plan to address complaints from mining companies and farmers that it cannot supply enough goods to market. There is. In December, the government agreed to provide the company with a R47-billion debt guarantee, and Mr Ramaphosa may hint at whether further support is forthcoming.
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Read all of Eskom and Transnet's coverage.
4. Medical reform
Late last year, lawmakers signed into law the controversial national health insurance bill. The bill aims to promote universal access to health care through a centrally managed government fund that purchases services and medicines from public and private providers. The bill has been referred to the president, who can either approve it or ask Congress to amend it if he deems it legally or technically flawed. Mr Ramaphosa is unlikely to announce his resignation, but it could signal how close he is to a decision. Business groups and opposition parties say the law violates the constitutional rights of patients and health care workers, and they intend to challenge it in court if it is adopted as is.
Read: NHI means 31% more taxes and 69% less benefits for health plan members
5. Government review
The Treasury is working with the president on a cabinet reorganization plan, which expands despite Ramaphosa's repeated pledges to slim down the cabinet since he took office in 2018. If re-elected, the president could spell out specific steps he would take to reduce the number of ministers and parliamentarians and consolidate ministries with similar powers. Rationalization will go some way to helping the Treasury rein in runaway public sector wage bills that are destabilizing public finances.
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