SsnippetsSERVE AND
SsnippetsSERVE AND DELIVERCABINET APPROVES MTDP AND NCSFCabinet has approved the Medium-Term Development Plan (MTDP) for the period2024-2029, which outlines key priorities for the 7th administration.The MTDP builds on the National Development Plan, the Statement of Intent ofthe Government of National Unity and the consensus reached during the CabinetLekgotla held on 29 January 2025.Additionally, the MTDP incorporates the three strategic priorities outlinedby President Cyril Ramaphosa in his Opening of Parliament Adress on18 July 2024.“The plan guides government’s initiatives to create a more inclusive countrythat lives up to the commitments of the Government of National Unity.“It aims, among others, to ensure inclusive economic growth, reduceunemployment, poverty and the rising cost of living as well as to ensure acapable, developmental and ethical state,” Cabinet said in a statement.National Communication Strategy FrameworkCabinet has also approved the National Communication Strategy Framework (NCSF)for the period 2024-2029 for implementation across all spheres of government.The NCSF forms part of the ongoing work to consolidate and enhancegovernment-wide communication system, in support of the implementation of theMTDP 2024-2029 as envisaged in the Government Communication Policy, approvedby Cabinet in 2018 which is currently under review.The NCSF responds to the expectation that government communication mustbe coherent, improve public trust and investor confidence, foster unity and socialcohesion and mobilise citizens’ participation. This encourages South Africansto use information to improve their lives and take advantage of socioeconomicopportunities to contribute to the development of our country.SAnews.gov.zaSA’S AI REVOLUTION IS HERE – BUT ARE WE SECURE?AI is not just changing how businesses operate – it’s transforming the cyberthreatlandscape at an unprecedented pace. Cybercriminals are alreadyexploiting AI to automate deepfake attacks, craft hyper-realistic phishing scamsand weaponise malware. The question isn’t whether South African businesseswill be targeted – it’s when and how prepared they will be when it happens. As AIadoption accelerates, our digital core – the essential technology infrastructureunderpinning business operations – must be fortified. If we fail to secure it, werisk compromising customer data, disrupting supply chains, and eroding trustin South Africa’s digital economy.This is no longer a theoretical risk. South Africa’sbusinesses, financial institutions and governmentsystems are at increasing risk of AI-driven attacks.A reactionary approach to cybersecurity is nolonger sufficient – we must embed security intoevery AI-powered system from the ground up. Justas cybercriminals are using AI to attack, businessesmust use AI to defend. AI-driven security tools candetect, analyse and neutralise threats in real time,outpacing traditional threat-detection methods.Machine-learning models can identify anomalies, stopping breaches beforethey escalate. A zero-trust security model, which verifies every user, deviceand AI-driven process before granting access, must become the new standard.Organisations must continuously authenticate and validate all users, even thoseinside the network.AI systems rely on vast amounts of sensitive data, making robust datagovernance essential. This means securing cloud environments, enforcingstrict encryption standards and ensuring compliance with global and local dataprotection regulations such as South Africa’s Protection of Personal InformationAct (POPIA). AI systems must be evaluated for vulnerabilities before deployment.Businesses must adopt a framework for AI model risk management, ensuringthat AI-generated outputs are accurate, unbiased and resistant to manipulation.AI security audits should become standard practice.South Africa’s digital economy is at an inflection point. If we fail to secureour AI infrastructure, we won’t just lose data – we’ll lose trust, competitivenes,and economic momentum. South Africa has an opportunity to lead in AI-driventransformation, but only if security is a non-negotiable part of that journey. Wemust act decisively, investing in AI-driven cybersecurity solutions, regulatoryframeworks and a culture of cyber resilience.REFORMING PUBLIC SECTOR BOARD APPOINTMENTSIn this year’s SONA, Ramaphosa spoke of building a state with “leaders who areprepared to serve our people with complete dedication, and public servantswho are ethical, skilled and properly qualified”. He added, “To achieve theseobjectives we are strengthening the role of the Public Service Commission inthe appointment of the key people who direct the affairs of our state such asdirectors-general, deputy directors-general, chief executive officers of SOEsand board members and other senior positions.”However, this approach is unlikely to bring the desired improvements inleadership and governance, because the Ministers will still have the power tomake board appointments, which historically has seemed to be according topolitical lines and patronage. To ensure that SOE board members are indeed“ethical, skilled and properly qualified”, the Institute of Directors South Africa(IoDSA) strongly recommends thorough due diligence in the appointmentprocess, in line with the principles of King IV. “King IV advocates for acompetency-based approach to boardcomposition, ensuring that directorscollectively have the knowledge, skills,experience and personal qualitiesnecessary for effective governance andoversight,” says Parmi Natesan, CEO ofIoDSA. “Furthermore, the IoDSA’s formalchartered director and certified directordesignations provide a framework fordirectors to acquire and demonstratethe specialist skills, experience andintegrity needed to discharge their dutieswith mastery, in line with its DirectorCompetency Framework.”Parmi Natesan,CEO of IoDSA.6 | Service magazine
snippetsSSERVE AND DELIVERA SOLUTION TO SA’S LAND REFORM CHALLENGES?The Expropriation Act, recently signed into law by President CyrilRamaphosa, has sparked mixed reactions across the country. Theobjective of the Act, as explained in its preamble, is to give effect tothe constitutional promise of land reform; a promise which, over 30years post the Constitution’s adoption, has not really materialised.Section 25 of the Constitution prescribes in section 25(1) thatno-one may be deprived of property, except in terms of a law ofgeneral application (a law that applies to everyone equally), and anysuch law may not authorise the arbitrary deprivation of property.Section 25(2) permits the expropriation of property for a publicpurpose or interest, and section 25(4) clarifies that “public interest”includes the country’s commitment to land reform.Section 25(3) provides for the payment of just and equitablecompensation in the event of expropriation, “reflecting an equitablebalance between the public interest and the interests of thoseaffected”. Section 25(3) also prescribes the circumstances to beconsidered when determining just and equitable compensation.These include the current use of the property, the history of theproperty’s acquisition, the market value, the extent of state supportin the acquisition and improvement of the property and thepurpose of the expropriation. This provision is mirrored in the Act todetermine just and equitable compensation.The Act provides for nil compensation when it is just andequitable. This aligns with the Constitution, as Section 25 does notprescribe what just and equitable compensation ought to be butrather provides guidance for its determination. It is conceivablethat in appropriate circumstances, compensation could be nil.Fortunately, the Act does provide guidance to determine when nilcompensation may be justifiable.The Minister of Public Works has the authority to expropriate onbehalf of other organs of state, upon the request of the ministerresponsible for that organ of state. Ostensibly then, the Land ClaimsCommission, responsible for overseeing land claims, may requestthrough the Minister of Rural Development and Land Reform, theexpropriation of land. If circumstances permit, this could be for nilcompensation. The implementation of this is at the discretion ofthe Minister of Public Works. It may have been preferable for theexpropriation power to reside with the Minister of Rural Developmentand Land Reform.By Ayanda Khumalo, Partner & Nkosinathi Thema, Senior Associateat Webber Wentzel.2025 BUDGET SPEECH – DELAYSThe 2025 National Budget delay underscores the political complexity of aligningfiscal priorities within the coalition and represents a critical test for theGovernment of National Unity’s (GNU) cohesion.Given South Africa’s economic and fiscal constraints, the budget’s stance ontax policy, infrastructure investment, and state-owned entity (SOE) support carriessignificant implications for investors and economic stability.Since the Medium-Term Budget Policy Statement (MTBPS) in October 2024, bothexternal and domestic conditions have evolved.External factors. With the potential return of President Trump’s policy agenda inthe US, possible tariffs and policy shifts could impact South Africa’s trade partners(China, Europe), affecting capital flows and currency stability. The increased riskpremium on South African assets is a concern.Domestic factors. Inflation remains benign, supporting real disposable income,while GDP growth expectations are cautious, with National Treasury projecting 1.7%for 2025. Although business confidence has improved marginally, infrastructureexecution continues to pose challenges. Fiscal affordability rulings impact socialrelief measures, with pressure to extend the Social Relief of Distress (SRD) grant.The debate over targeting a primary surplus as a fiscal anchor persists.KEY ISSUESRevised public private partnerships (PPP) framework. The consolidation ofinfrastructure financing entities and regulatory amendments.Consumer spending trends. The impact of the two-pot pension system.Government borrowing for infrastructure. Potential increases in debt issuance.SRD Grant. The likelihood of an extension given fiscal constraints.Transnet, Eskom and municipalities. Key challenges.Revenue and expenditure projections. Government spending priorities.Fixed investment/GDP ratio. Monitoring shifts in infrastructure investment.SOE SUPPORTGovernment has reiterated its commitment to targeted SOE interventions ratherthan blanket bailouts. Specific considerations include:Eskom. Allocations for transmission expansion.Transnet. General liquidity support and investment in freight corridor upgrades.Municipalities. Conditional grant reforms aimed at improving financialsustainability, with a focus on revenue collection and private-sector participationin service delivery.INFRASTRUCTURE INVESTMENTGovernment has prioritised investment in key sectors:Water sector. Allocations for infrastructure, including funding for non-revenuewater projects in key metros.Renewable energy and storage. Investments to accelerate South Africa’s energytransition initiatives.By Conway Williams, Head of Credit, Prescient Investment ManagementService magazine | 7
