The Congress of South African Trade Unions (COSATU) notes President Cyril Ramaphosa and government led by the African National Congress’ 2025 State of the Nation Address (SONA). We welcome its progressive commitments and applaud improvements made but remain deeply concerned about the pace of implementation. The working class and society face numerous crises, in particular our 41.9% unemployment rate, entrenched poverty and inequality, paltry economic growth, endemic crime and corruption, struggling public and municipal service and embattled State-Owned Enterprises (SOEs).
We applaud the tireless work done to rebuild Eskom that has seen us overcome loadshedding. Eskom and our electricity infrastructure remain fragile and need continuous investments to bring on board new generation, transmission and distribution capacity. These must be anchored upon Eskom as our publicly owned utility and most strategic economic asset.
Progress made stabilising Transnet and Metro Rail has brought much needed relief to the economy. We urge government to accelerate efforts to rebuild Transnet and improve its performance, including debt relief to free capital to modernise our ports and rail network as well as law enforcement support to tackle cable theft. An efficient Transnet will unlock the mining, manufacturing and agricultural sectors and create thousands of jobs. A reliable Metro Rail will help 10 million commuters reach work and other destinations safely and boost the urban economy.
We are deeply disappointed that no new plans are being put in place to secure and rebuild Denel, SABC, the Post Office and Postbank. These SOEs have the potential to once again play leading roles in their sectors but they require support from the state, including the pressing need for Treasury to release the agreed to financial relief for the Post Office.
The outstanding work done by Home Affairs’ staff shows the inherent potential of the state and its contribution to unlocking investment and stimulating growth. It must not only be applauded but supported with the filling of critical frontline vacancies, paying workers a living wage and investing in the infrastructure capacity of the state. Government must abandon short-sighted and dangerous austerity budget cuts and provide essential services, in particular healthcare, education, policing, courts, transport amongst others; the resources they need to provide the quality public services the working class and economy depend upon. This is key as we move to roll out the National Health Insurance and ensure all South Africans have access to education, healthcare, social security, municipal services and land.
The state of local government is extremely worrying with increasing numbers in serious financial trouble and many no longer paying staff salaries, pensions and other payments or able to provide municipal services. We support the President’s call for urgent engagements on a new municipal funding model and a shift towards District Development Models.
The R943 billion allocated for infrastructure investments over the Medium-Term Expenditure Framework is key to stimulating the economy. We remain worried by the pace of investments and the construction mafia hindering many badly needed projects. Specialised law enforcement must be deployed to break these gangs and syndicates.
With 12 million South Africans unable to find jobs, public employment programmes, in particular the Presidential Employment Stimulus must be drastically expanded to accommodate at least 2 million participants by April and 4 million by November 2025. The days of cutting expenditure for these critical programmes must end. Engagements need to urgently take place at Nedlac on an overhaul of these programmes to ensure none pay below the National Minimum Wage, that TVET Colleges are roped in to help provide the skills, training and experience needed for their participants to find permanent work. These must include internships and artisan programmes across the private sector.
COSATU welcomes government’s commitment to transforming the Special Relief of Dispensation Grant into the long sought Basic Income Grant. All eligible persons must be enabled to access it. Its participants must be supported to access skills, training and employment opportunities.
We remain distressed by the insufficient funding allocated for SMME and industrial financing. We cannot stimulate the 3% plus growth we need to defeat unemployment with the current amounts of financing. We welcome the commitment for a new mass industrial financing programme. It must unlock resources from the fiscus, developmental finance institutions, banks and investment funds and be anchored upon supporting local procurement.
COSATU stands firmly with the President and government in defence of South Africa’s sovereignty and values. No country will be allowed to dictate to the people of South Africa their path. We are a robust and noisy democracy, but we will not tolerate any attempts to intimidate us. South Africa’s values are reflected in our foreign policy anchored upon the principles of peace and justice, solidarity and development, non-alignment and African unity. We bear the painful scars of apartheid, colonialism and genocide and stand with all nations experiencing such tyranny, including the Palestinian people.
We will continue to support government’s efforts to develop strong relationships with all nations. This must be accompanied by ramped up support to boost exports and diversify trade with not only key trading partners in America, Europe, China, Japan and India but in particular Southern Africa and Africa, where our destiny lays.
Government must ensure that the South African National Defence Force has the resources it requires to fulfil its peacekeeping missions across the African continent, including the necessary political support to ensure that often intractable conflicts such as those in the Democratic Republic of Congo are resolved at the negotiations table.
We welcome the President’s inclusive call for a National Dialogue coordinated by Nedlac. It must be premised upon the progressive values of the Constitution and vision of the Freedom Charter. The Federation stands ready to participate in and drive this much needed dialogue.
Whilst many of the SONA’s commitments are welcome, they need to be resourced and not walked back by the pending 2025/26 Budget. They need to be implemented by government with Parliament holding all Members of the Executive and departments, municipalities, entities and SOEs accountable. South Africa is a nation of immense potential, but we need government to act with the decisiveness that our many burning crises demand. The patience of workers and society is not unlimited. The working class deserves a better life. We dare not let them down.
Issued by COSATU
Matthew Parks(Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za
