Employment and Labour Deputy Minister, Judith Nemadzinga-Tshabalala, said the Department's Productivity SA, is committed to interventions that strengthen productivity and competitiveness.

She said productivity was not a sprint – but a marathon. She cautioned that: “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".

Nemadzinga-Tshabalala said some of these key areas of focus include:

• Labour Market Reforms - enhancing Public Employment Services, strengthening inspectorates, and improving compliance monitoring.
• Enterprise Productivity Support - scaling up national productivity improvement programmes, particularly for SMMEs and industrial sectors, focusing on digital transformation and future-ready skills.
• Youth Employment and Skills Alignment - expanding sector-based training and work readiness programmes, ensuring alignment between education and labour market needs.
• Infrastructure and Investment Coordination - collaborating with relevant departments to align infrastructure planning with employment and competitiveness objectives.
  
  Nemadzinga-Tshabalala was delivering a keynote address during Productivity SA's annual general meeting (AGM) held at Accolades Boutique Venue in Midrand. The latest Productivity SA AGM marked the final gathering of the current board. The theme of the AGM was: “From Our Roots, We Rise: Strengthening Performance, Partnerships, and Impact."
  
  The incoming Productivity SA board will be chaired by Ms. Zola Tshefu. The board will also include: Ms Nolukholo Sigaba (Government representative), Ms Makgoka Sinah Mosehla (Government representative), Ms Bev Jack, Mr Gilly Dlamini (organized business), and Mr Godfrey Masale Selamatsela (representing organised labour). The term of the new board will start from 1^st October 2025 to 30^th September 2030.
  
  “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," the Deputy Minister said.
  
  The AGM is a yearly formal forum for the organisation's shareholders and board of directors to discuss financial performance, strategic direction, and vote on important issues.
  
  Productivity SA is a public entity established under Section 31 of the Employment Services Act, No. 4 of 2014, reporting to the Department of Employment and Labour. Its mandate is to promote employment growth and productivity in South Africa, contributing meaningfully to national competitiveness, socio-economic development, and inclusive growth.
  
  It delivers on its mandate through flagship programmes of enterprise development and support programmes, particularly the Business Turnaround and Recovery (BT&R) and Competitiveness Improvement Services (CIS). The programmes are focused on supporting companies in distress and strengthening the capabilities of SMMEs and cooperatives, especially in townships and rural economies.
  
  Nemadzinga-Tshabalala said that at the heart of Productivity SA's impact is the Competitiveness Improvement Services (CIS) Programme, which has continued to deliver transformative results. She said it was commendable that for five consecutive years, the CIS has met 100% of its annual targets. She said in the 2024/25 period alone through CIS: 1,323 SMMEs and enterprises were supported, 2696 entrepreneurs, workers, and managers were capacitated, 423 productivity champions were developed and empowered.
  
  She noted that in partnership with the Department of Trade, Industry and Competition (DTIC), 102 enterprises participated in the Workplace Challenge Programme (WPC). Importantly, she said 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, she said.
  
  The Deputy Minister said Productivity SA was also identified as a key implementing partner for the Productivity Ecosystem for Decent Work project in South Africa. She said that through collaboration with the International Labour Organization (ILO), 150 SMMEs have been supported.
  
  “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. When productivity declines, competitiveness suffers, economic growth slows, and opportunities for employment and inclusion become scarce," she said.
  
  Nemadzinga-Tshabalala said 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.
  
  Josias Moloto, Chief Financial Officer of Productivity SA, said that in the period 2024/25, the organization has achieved an unqualified outcome with matters of emphasis. He said there was scope to improve internal controls. He said the organisation is intent on modernising its business and leveraging technology to ensure financial sustainability.
  
  Productivity SA relies on grant funding from DEL and the Department of Trade, Industry, and Competition.
  
  Bev Jack, a board member of Productivity SA, said the country's recent drop in productivity to 64 out of 69 was a matter of concern.
  
  Acting CEO, Ms. Amelia Naidoo, had praise for the organisation's SMME support programme, which she said had, since 2020, supported over 9 694 SMMEs while employing more than 14 000 employees. She said Productivity SA's Business Turnaround and Recovery Programme had supported 40 companies, saved 7 094 jobs (184%), and trained 365 Future Forum members (158%).
  
  For media enquiries, please contact:
  
  Teboho Thejane
  
  Departmental Spokesperson
  
  082 697 0694/ teboho.thejane@labour.gov.za
  
  -ENDS-
  
  Issued by: Department of Employment and Labour
  
   
  
   
  
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