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Budget Speech 2021

10. African and Regional Economic Policy


Madam Speaker,


This Budget takes seriously our commitment to the continent of which we are a part. Payments to the Southern African Customs Union (SACU) have been revised upwards by R1.9 billion in 2022/23 and R15.5 billion in 2023/24 to R137.3 billion over the medium term.


The African Renaissance and International Cooperation Fund will over the MTEF support projects that enhance African trade, economic development and integration. An allocation of R148.1 million is set aside for this purpose.


The Africa Continental Free Trade Agreement (AFCTA), part of which came into effect earlier this year, presents the opportunity to deepen our trade and financial linkages with the Continent. Following last year’s Budget announcement on supporting the African Continental Free Trade Agreement through a more modern risk‐based capital management flow system, much progress has been made to implement the new system, and new regulations will be published by the South African Reserve Bank shortly.


The National Treasury also continues to work with industry bodies to promote South Africa as a financial hub for Africa. From 1 March 2021, companies with a primary listing offshore, including dual‐listings, will be aligned to current foreign direct investment rules, which the South African Reserve Bank will oversee.


In order to improve access to African markets, our six busiest border posts will be upgraded and expanded. These will be significant infrastructure interventions using the PPP model. Starting with Beitbridge, which was built in 1929 and last upgraded in 1995, these One‐Stop‐Border‐Posts will harmonise the crossing of borders by people and goods, eliminating the dreadful scenes we witnessed recently.


Though we face many difficulties, we must not lose sight of our place in the world, as well as our potential and responsibilities. Twenty‐five years ago, on 8 May 1996, the occasion of the adoption of the South African Constitution, former President Thabo Mbeki delivered his seminal “I am an African” address at this podium.

President Mbeki reminded us that there are moments in time when we must define what we want to be.


“Together with the best in the world, we too are prone to pettiness, petulance, selfishness and short‐sightedness. But it seems to have happened that we looked at ourselves and said the time had come that we make a super‐human effort to be other than human, to respond to the call to create for ourselves a glorious future, to remind ourselves of the Latin saying:


Gloria est consequenda ‐ Glory must be sought after!”