Minister Hlabisa
By Thabo Mosia
Minister Hlabisa to Participate in High-Level Panel at 2025 Nedbank Chairperson’s Dialogue. The Minister of Cooperative Governance and Traditional Affairs (CoGTA), Velenkosini Hlabisa, is set to take part in a high-level panel discussion during the 2025 Nedbank Chairperson’s Dialogue. Scheduled for Thursday, 17 July, the event which will be held under the theme: “One Year into the Government of National Unity: Quo Vadis?” will be held at Nedbank’s head office in Sandton.
Understanding the Government of National Unity in South Africa
The Government of National Unity (GNU) came into being after the historic May 2024 national elections, where no single political party secured an outright majority for the first time since the dawn of democracy in South Africa. This led to a coalition arrangement involving multiple parties, including the African National Congress (ANC), the Democratic Alliance (DA), the Inkatha Freedom Party (IFP), and others, forming a broad-based unity project aimed at sharing power and tackling the country’s pressing issues. President Cyril Ramaphosa, who was re-elected and sworn in for a second term, described this setup as a new era of partnership and national unity, with a focus on rebuilding trust and delivering on promises to the people.
Over the past year, the GNU has set out clear goals to drive inclusive economic growth and job creation, build a capable state, and invest in people’s well-being through better education and health care. It has also committed to fighting corruption, improving service delivery, and promoting ethical governance. This coalition marks a shift from the past, drawing lessons from the 1994 GNU that helped transition South Africa out of apartheid, but adapted to today’s challenges like high unemployment, inequality, and infrastructure woes.
A Year of Progress, Challenges, and Green Shoots in the GNU
As the GNU marks its first anniversary, reviews show a mix of unity, friction, and some early signs of improvement. On the positive side, there has been a slight drop in unemployment, standing at 32% in the fourth quarter of 2024, down from higher levels before the coalition formed. This small change is linked to better investor confidence, with the rand strengthening and long-term interest rates easing after the GNU’s announcement. Exports to key markets like the United States have grown, making up over 2% of South Africa’s GDP in 2024, and mineral exports were spared from certain international tariffs.
Public sentiment has also improved, with polls showing that optimism about the country’s direction jumped from just 14% before the elections to 39% afterwards. Two-thirds of South Africans believe the GNU has been more effective in areas like electricity provision, where prolonged power cuts have become rare due to off-grid solutions, diesel use, and new regulations allowing private sector involvement in energy transmission. Other wins include clearing visa backlogs at the Department of Home Affairs, tackling kidnappings with a drop in some crime rates, and responding to agricultural disease outbreaks to support farmers.
However, the journey has not been smooth. Economic growth has been slow, with GDP rising by only 0.1% in the first quarter of 2025, and unemployment climbing to 32.9% when including those who have stopped looking for work, reaching 43.1% on an expanded basis. Young people face tough times entering the job market, far from the GNU’s aim to create jobs for half a million new entrants each year. Policy tensions have arisen, such as legal challenges to laws on national health insurance, land expropriation, and education amendments, highlighting clashes between parties like the ANC and DA. Foreign policy issues, including ties with countries like Iran and China, have strained relations with partners like the United States, especially after recent global leadership changes.
Critics, including opposition parties, have given the GNU low marks, pointing to ongoing corruption probes, a bloated cabinet that sometimes lacks focus, and failures in areas like small business support and social development. Yet, surveys indicate 57% approval for the GNU overall, with some ministries scoring high, like Sport, Arts and Culture at 77%. The coalition’s future hangs on delivery, as internal divisions and upcoming leadership changes in parties could test its strength ahead of local elections in 2026.
Minister Velenkosini Hlabisa’s Role in Strengthening Local Governance
At the heart of the dialogue will be insights from Minister Velenkosini Hlabisa, who leads CoGTA and brings a wealth of experience to the table. Born in rural Hlabisa near Mtubatuba in KwaZulu-Natal, the 54-year-old is the eldest of 10 children and a former school principal who rose to become president of the IFP. Appointed as CoGTA minister in July 2024, he has focused on fixing broken municipalities, responding to natural disasters, and boosting intergovernmental ties.
In his first year, Hlabisa has overseen key moves like launching a review of the 1998 White Paper on Local Government in May 2025, with a discussion document released in April 2025 outlining nine priority areas, including financial reforms, reducing political interference in municipal admin, and cutting spatial inequality. Public submissions were extended to 31 July 2025 due to strong interest, aiming for a final paper by March 2026. He has stressed that every municipality must work, calling out issues like potholes, water shortages, and waste management failures in non-viable areas.
Hlabisa has also tackled disasters head-on, announcing municipal disaster response and recovery grants on 7 July 2025 to aid flood-hit areas in the Eastern Cape, KwaZulu-Natal, and Western Cape. Oversight visits to places like Mthatha and the Garden Route showed a hands-on approach, with funds geared toward immediate relief, infrastructure rebuilds, and community resilience. In February 2025, he briefed Parliament on turning around distressed municipalities, establishing forums for traditional leaders, and updating laws on Khoi-San leadership.
Budget-wise, CoGTA’s Vote 3 for the medium term is R395.7 billion, mostly for transfers to municipalities, including the local government equitable share, disaster relief, and infrastructure grants. Vote 15 stands at R187.3 million for 2024/25, rising slightly in coming years, with cuts offset by a focus on efficiency. Initiatives like the District Development Model (DDM) and the R58.9 billion Eastern Seaboard Development project over 2025-2030 aim to involve traditional leaders and the private sector for better rural growth. Municipal Infrastructure Grant spending improved, halving stoppages from over R900 million in 2022/2023 to just over R450 million in 2023/2024, with rules now requiring 10% for water and sanitation repairs to cut leaks and spills.
What to Expect from the Nedbank Chairperson’s Dialogue
The 2025 Nedbank Chairperson’s Dialogue convenes in a rapidly evolving political and economic landscape, shaped by the GNU’s first year. The panel aims to explore the implications of the GNU for political stability, governance, structural reform, and long-term economic prospects. Hlabisa will join a distinguished panel of thought leaders to provide insights into how the GNU is enhancing cooperative governance, stabilising the local government sector, and strengthening intergovernmental collaboration for improved service delivery and developmental outcomes.
Set for 16h30 at the Nedbank Campus, Block A, Boonzaier Room, 135 Rivonia Road, Sandton, the event offers a chance to reflect on where South Africa is headed – the Latin phrase “Quo Vadis?” meaning “Where are we going?” The dialogue could spark ideas on sustaining the GNU’s early gains, addressing friction, and ensuring benefits reach ordinary people, from job seekers to rural communities.
As South Africa looks ahead, events like this highlight the need for ongoing talks among leaders to build a more united and prosperous nation. With local elections on the horizon, the GNU’s ability to deliver will be key to keeping public hope alive.
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