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Theme: “From Our Roots, We Rise: Strengthening Performance, Partnerships, and Impact,"

Good morning, Acting Chairperson of the Board, Ms. Bev Jack.

Thank you for the kind introduction and for affording me the opportunity to address the Productivity SA Annual General Meeting.

Allow me to acknowledge and warmly welcome the newly appointed Board.

We are honoured to have the new Chairperson of the Board, Ms. Zola Tshefu;  the reappointed Ms. Bev Jack and Mr. Gilly Dlamini, representing organised business; I welcome the reappointment of Mr. Godfrey Masale Selamatsela, representing organised labour.

I am equally honoured to extend warm greetings to the entire outgoing Board members, the Productivity SA Executive Committee, led by the Acting CEO, Ms. Amelia Naidoo, esteemed government partners, and representatives from labour, business, academia, and community, as well as all distinguished guests present here today.

Since my appointment as Deputy Minister of Employment and Labour on 3 December 2024, I have been deeply committed to working with all of you to advance Productivity SA's mandate and to drive productivity-led growth in South Africa.

On behalf of the Department of Employment and Labour, I also wish to convey our sincere appreciation to the outgoing Board members. Your dedication, leadership, and invaluable contributions have laid a strong foundation upon which future progress can be built.

As you take office following this AGM, we look forward to your fresh perspectives, innovative leadership, and steadfast commitment to steering Productivity SA in support of inclusive socio-economic growth, employment creation, and a stable labour market. Please be assured of our full support as you embark on this important responsibility.

I would also like to express appreciation to the Acting CEO, Ms. Amelia Naidoo, the Executive team, and all staff of Productivity SA. Your hard work, professionalism, and commitment to the organisation's mandate are evident in the results achieved over the past year, including the maintenance of high standards in governance and performance.

As we gather for this AGM, we do so during Heritage Month—a time that calls upon us to reflect deeply on our collective history, celebrate the richness of our cultural diversity, and pay tribute to the heroes and heroines who sacrificed for our freedom. It is also a period that reminds us of the enduring values of resilience, unity, and perseverance, which not only define our nation's journey but also resonate with Productivity SA's mission of driving inclusive growth and sustainable progress.

Our AGM theme, “From Our Roots, We Rise: Strengthening Performance, Partnerships, and Impact," reflects this journey: building on the strong foundations of Productivity SA, rising through innovation and resilience, strengthening performance, leveraging partnerships, and delivering measurable impact that drives inclusive growth, creates jobs, and strengthens competitiveness.

Heritage Month reminds us that our work is not just about today—it is about transforming our roots into a stronger, more productive, and inclusive future for all South Africans.

The 2024/25 financial year stands out as a clear indicator of our progress. We are proud that Productivity SA has achieved 85% of its Annual Performance Plan (APP) targets, a notable improvement from the 77% recorded the previous year. But beyond the numbers, this performance signifies the expanding influence of Productivity SA in the South African economy, particularly in championing inclusive growth and supporting the SMMEs, Cooperatives, and Entrepreneurs who are the backbone of economic recovery.

At the heart of this impact is the Competitiveness Improvement Services (CIS) Programme, which has continued to deliver transformative results. For five consecutive years, the CIS has met 100% of its annual targets. In the 2024/25 period alone:

• 1 323 SMMEs and enterprises were supported
• 2 696 entrepreneurs, workers, and managers were capacitated
• 423 productivity champions were developed and empowered.
  
  In partnership with the Department of Trade, Industry and Competition (DTIC), 102 enterprises participated in the Workplace Challenge Programme (WPC). Importantly, 75% of these WPC-supported businesses were Black-owned, 33% had women ownership, and 19% had youth ownership, underscoring Productivity SA's commitment to transformation and empowerment. Through these efforts, 3 241 jobs were preserved, an essential contribution in a country battling persistently high unemployment.
  
  Productivity SA was also identified as a key implementing partner for the Productivity Ecosystem for Decent Work project in South Africa. Additionally, the CIS programme embarked on a special collaboration with the International Labour Organisation (ILO) to support 150 SMMEs through four targeted service offerings.
  
  As we reflect on our work, it is important to locate it within the broader context of national and global competitiveness. South Africa's recent rankings in the IMD World Competitiveness Yearbook remind us of the structural challenges we face. Productivity remains central to competitiveness, it determines whether our businesses thrive, our economy grows, and our citizens prosper. When productivity declines, competitiveness suffers, economic growth slows, and opportunities for employment and inclusion become scarce.
  
  Competitiveness is not just a ranking, it is a measure of our ability to create an environment where enterprises can innovate, workers can thrive, and communities can prosper. This is why Productivity SA's work in promoting employment growth, supporting SMMEs, and enhancing enterprise competitiveness is so vital to our national development agenda.
  
  The Department of Employment and Labour, in collaboration with Productivity SA, is committed to interventions that strengthen productivity and competitiveness across key areas:

1. Labour Market Reforms: Enhancing Public Employment Services, strengthening inspectorates, and improving compliance monitoring.
2. Enterprise Productivity Support: Scaling up national productivity improvement programmes, particularly for SMMEs and industrial sectors, focusing on digital transformation and future-ready skills.
3. Youth Employment and Skills Alignment: Expanding sector-based training and work readiness programmes, ensuring alignment between education and labour market needs.
4. Infrastructure and Investment Coordination: Collaborating with relevant departments to align infrastructure planning with employment and competitiveness objectives.
   
   South Africa's participation in the African Continental Free Trade Area (AfCFTA) presents unprecedented opportunities for enterprises to access a market of over 1.3 billion people and a combined GDP of more than 3.4 trillion US dollars. Productivity SA has a critical role to play in preparing our SMMEs, cooperatives, and youth-owned enterprises to seize these opportunities, scale production, and integrate into regional value chains.
   
   
   The work of Productivity SA's Research, Innovation, and Statistics unit is central to the department's evidence-based approach. By measuring and analyzing productivity and competitiveness, we are able to design interventions that deliver measurable impact, ensuring that resources are allocated where they will make the most difference.
   
   While we celebrate achievements, including progress in the Business Turnaround and Recovery Programme, we acknowledge that challenges remain. Many enterprises, especially in rural areas and townships, still require support. Expanding the geographic reach of programmes, enhancing innovation, and leveraging partnerships remain key priorities.
   
   Today, as we review plans for the year ahead, let us move from insight to action. Let us leverage data, partnerships, and innovative programmes to drive productivity, employment, and inclusive growth across South Africa. As former President Thabo Mbeki said, “Gloom and despondency have never defeated adversity. Trying times need courage and resilience. Our strength as a people is not tested during the best of times."
   
   In conclusion, I reaffirm the Department of Employment and Labour's commitment to working with Productivity SA, its Board, Executive, and staff, to build a productive, competitive, and inclusive South Africa. Together, we will harness the power of productivity to drive economic growth, create jobs, and open opportunities for all citizens.
   
   As we look forward, I am filled with confidence in the future of Productivity SA. Working hand in hand with the newly appointed Board, the Executive team, and every member of staff, we have an incredible opportunity to amplify our impact, to champion inclusive growth, and to ensure that every South African enterprise, worker, and entrepreneur can thrive. Together, we will turn insight into action, challenges into opportunities, and vision into measurable results that will shape the competitiveness and prosperity of our nation.
   
   Let us remember, productivity is not a sprint—it is a marathon. Every step we take, every enterprise we support, and every job we preserve brings us closer to a stronger, more resilient, and more competitive South Africa. As we run this marathon together, let our pace be steady, our commitment unwavering, and our vision clear.
   
    
   
   I thank you.​

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