In a significant development for South Africa’s role in the global financial landscape, Cabinet has greenlit the hosting of the annual meeting of the New Development Bank (NDB) in June 2024. This decision underscores the nation’s commitment to fostering multilateral cooperation and sustainable development within the BRICS framework.
The announcement was made by Minister in The Presidency, Khumbudzo Ntshavheni, who highlighted the historic significance of the NDB’s establishment. Formed a decade ago by Brazil, Russia, India, China, and South Africa (BRICS) at the 6th BRICS Summit in Fortaleza, the NDB stands as the first multilateral development institution led by emerging and developing economies.
Ntshavheni emphasized South Africa’s substantial contribution of R25 billion towards the bank’s paid-in capital, underscoring the nation’s proactive involvement in shaping the NDB’s agenda. With the upcoming hosting of the NDB meeting, South Africa aims to further its collaborative efforts with member countries to drive sustainable development across the African continent.
In addition to the NDB meeting, Cabinet has approved a strategic initiative aimed at bolstering the nation’s social service sector. The Strategy for the Employment of social service professionals (SSPs) seeks to enhance the human resource capacity within government, non-governmental organizations, and the private sector. This strategic move aims to address pressing social challenges such as crime, gender-based violence, teenage pregnancy, mental health issues, and substance abuse.
Minister Ntshavheni stressed that the SSP strategy represents a collective commitment to building a socially inclusive and resilient future for South Africa, emphasizing the importance of proactive measures in overcoming societal ills.
Furthermore, Cabinet has invited public feedback on the revised Green Paper on Comprehensive Social Security. This paper outlines proposals for a mandatory social security pension system, offering retirement, disability, and death benefits to all workers. Notably, the paper suggests subsidizing contributions for low-income earners and advocates for the harmonization of tax treatment for older persons across tax and social grant systems.
The revised Green Paper also aims to streamline institutional frameworks to ensure administrative efficiency, improved service delivery, and effective regulation within the social security landscape. Minister Ntshavheni emphasized the importance of public input in shaping policies that promote social equity and provide robust support systems for all citizens.
South Africa’s proactive stance on financial cooperation, social development, and inclusive policymaking reflects its commitment to fostering a resilient and equitable society. As preparations for the NDB meeting gain momentum and strategic initiatives take shape, the nation stands poised to play a pivotal role in driving sustainable progress both domestically and on the global stage.
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