Theme: "Empowering Impact: Enhancing the National Lotteries Commission's Digital Presence for Effective Regulation and Grant Funding."

NLC Commissioner Ms. Jodi Scholts,

NLC Board Chairperson, Professor Barney Pityana

Programme Directors, Ms. Tintswalo Nkuna, Ms. Nomzamo Faith Mangope and Mr. Xoli Mngambi.

Various Commissions Chairpersons,

As we conclude the 2025 NLC Chairperson's Stakeholder Engagement Indaba, themed “Empowering Impact: Enhancing the National Lotteries Commission's Digital Presence for Effective Regulation and Grant Funding," we reflect on the transformative journey of the NLC and the critical engagements held over the past few days.

This Indaba has reaffirmed the Commission's renewed strategic direction—one grounded in innovation, transparency, ethical governance, and collaborative partnership. From the reports on the resolutions emerging from the various Commissions, it is evident that the NLC remains firmly committed to strengthening its developmental footprint and empowering communities across South Africa.

The initiatives showcased, including the Modernisation 4.0 Programme, strategic staff development efforts, improved governance systems, and robust anti-corruption measures, reflect the Commission's determination to rebuild trust and enhance the efficiency of both its regulatory and grant-making functions. These reforms are essential to ensuring that the NLC remains a credible and reliable developmental institution—one that safeguards the integrity of grant funding while enabling civil society to deliver maximum community impact.

Civil society organisations in our country have an important developmental role in advancing the gains of our democracy. As part of stakeholder participation during South Africa's G20 Presidency, President Cyril Ramaphosa expanded the G20 Social Summit to bring civil society voices to the forefront—elevating issues of social development, equity, and inclusion to the same level of urgency as macroeconomic and financial concerns. The Social Summit later submitted its Declaration to the G20 Leaders' Summit. I hope that many of the civil society organisations gathered here today seized the opportunity to participate in this important platform, which took place from 18–20 November.

Commissioner Jodi, we must emphasise—as was raised in one of the Commissions—the importance of labour law compliance among civil society organisations (CSOs) that rely on NLC funding. Adherence to labour laws not only ensures fair and ethical workplace practices; it strengthens institutional credibility, enhances sustainability, and positions organisations to access greater funding opportunities. Compliance is therefore not a bureaucratic requirement—it is a developmental imperative, one that contributes meaningfully to the promotion of decent work.

The Department of Employment and Labour stands ready to deepen its support for NLC-funded projects. Through targeted labour inspections, compliance advisory services, and capacity-building workshops, the Department can significantly improve the operational stability of organisations supported by the NLC. This partnership is essential in ensuring that grant-funded initiatives create safe, fair, and sustainable working environments.

Furthermore, collaboration between the Department and NLC grant beneficiaries can help modernise and fast-track compliance verification processes, including the checking of director information, organisational status, and legal compliance histories. This will reduce administrative delays and strengthen the overall integrity of the grant adjudication process.

Additionally, the Department will continue to expand its outreach programmes to ensure that NLC beneficiaries understand basic labour rules—including the national minimum wage, employment contracts, UIF registration, COIDA obligations, occupational health and safety standards, and general fair workplace practices. Many civil society organisations simply lack the necessary administrative capacity, and this partnership will help bridge that gap.

Chairperson of the NLC Board, Professor Barney, unemployment remains one of the country's most pressing challenges—with youth unemployment still at crisis levels. Civil society organisations can contribute meaningfully to job creation by leveraging government programmes and strengthening local development. According to the latest Third Quarterly Labour Force Survey for 2025 by Stats SA, the number of unemployed persons decreased by 248,000—meaning that over the last three months, 248,000 individuals have gained employment. While this is encouraging, much more still needs to be done.

The core mandate of the Department of Employment and Labour is to regulate the South African labour market for sustainable economic development through appropriate legislation and regulations, compliance monitoring and enforcement, protection of human rights, provision of employment services, promotion of equity, social and income protection, and the facilitation of social dialogue.

The Department's programmes are critical in this regard:

• The Unemployment Insurance Fund (UIF) supports job retention and labour activation.
• The Compensation Fund (CF) protects injured workers and enables their reintegration into the economy.
• Supported Employment Enterprises (SEE) provides dignified work opportunities for persons with disabilities, and continues to support many civil society organisations working in the disability sector through a grant received from the National Treasury.
  
  Strengthening alignment between these programmes and NLC-funded initiatives will empower communities, support livelihoods, and expand job opportunities in sectors where they are most needed—particularly for vulnerable citizens living in rural areas.
  
  Across government platforms, through engagements with community-based organisations and local development structures, it is evident that many challenges persist at grassroots level:

• high unemployment,
• limited access to accredited skills programmes,
• weak economic participation among women, youth, and persons with disabilities,
• and persistent socio-economic barriers that undermine community resilience.
  
  Community organisations must therefore continue to prioritise employability, basic training, youth development, social cohesion, and programmes that respond to immediate community crises. Your work as civil society organisations underscores the importance of NLC funding and the need to strengthen alignment with government programmes that improve economic participation.
  
  Several legislative amendments are currently under review to ensure that the South African labour market remains fair, competitive, and transformative. These include:

• reforms to the Employment Equity Act,
• amendments to immigration regulations, and
• updates to the framework governing the employment of foreign nationals.
  
  These reforms aim to strengthen oversight, prevent exploitation, promote transformation, and ensure that job opportunities—particularly in vulnerable sectors—balance national priorities with South Africa's international obligations.
  
  I know that many of you gathered here today are not driven by profit. However, let me emphasise that civil society organisations can be central to promoting entrepreneurship, as small businesses remain the backbone of job creation in South Africa. To ensure comprehensive support, the Department continues to implement targeted interventions through:

• TERS, supporting businesses—including eligible civil society organisations—during periods of distress,
• Productivity SA turnaround programmes to help companies remain competitive, including non-profit entities,
• SETA programmes designed to align skilling efforts with current and future economic priorities.
  
  Our country urgently requires a workforce equipped with the skills demanded by the future economy—digital competencies, artisanal trades, technical expertise, industrial innovation, and green-economy capabilities. SETAs must therefore strengthen their alignment with industry needs to improve economic outcomes.
  
  Recent 30% tariff hikes by the United States have intensified pressure on several industries, threatening exports, reducing competitiveness, and deepening economic instability. This global shift has already affected domestic companies, with entities such as AMSA and Coca-Cola either closing operations or scaling down. Latest data from Stats SA reveals that in October alone, 128 companies applied for liquidation, bringing the total number from January to October 2025 to 1,308 recorded liquidations.
  
  These closures are not abstract—they represent job losses, declining household income, weakened local economies, and rising unemployment. The situation calls for urgent intervention to strengthen industrialisation, diversify export markets, and intensify retraining and re-skilling efforts for affected workers.
  
  For civil society organisations, this translates into heightened pressure to respond to the social challenges associated with unemployment, including GBVF, drug and substance abuse, and community instability.
  
  Civil society organisations play a vital role in advancing the priorities of the National Development Plan (NDP) 2030 and the Medium-Term Development Plan (MTDP) 2024–2029, especially in tackling the interconnected challenges of Gender-Based Violence and Femicide (GBVF), substance and drug abuse, and HIV/AIDS. The NDP highlights the need for a capable, developmental state supported by strong social partners and identifies GBVF reduction, improved community health, and HIV/TB prevention and treatment as national priorities.
  
  The MTDP further stresses social protection, community safety, and better health outcomes. Civil society organisations contribute directly to these goals through shelters, counselling services, awareness campaigns, treatment literacy programmes, rehabilitation initiatives, and youth development projects. By reaching vulnerable groups and strengthening community resilience, they help create safer, healthier, and more inclusive communities, supporting the country's long-term vision as outlined in the NDP.
  
  Civil society also plays a key role in advancing the NDP and MTDP's commitments to building a low-carbon, climate-resilient society. The NDP highlights the importance of environmental sustainability and climate adaptation, while the MTDP focuses on Just Transition, ecological protection, and community-based resilience. Through local climate projects, recycling and waste reduction initiatives, community food gardens, and environmental education, civil society empowers communities to withstand climate shocks such as floods, droughts, and heatwaves. These efforts ensure that vulnerable populations—particularly those in rural and informal settlements—are better prepared for environmental and economic challenges, while supporting government's goals for sustainable, inclusive development.
  
  As I conclude, South Africa must respond with agility and unity. Government, labour, business, and civil society must deepen social compacts to protect jobs, stimulate investment, and ensure the long-term survival of local industries.
  
  As we move forward from this Indaba, let us embrace the opportunities presented by digital transformation, strengthened governance, and deeper partnerships. Let us carry forward the resolutions and insights from this gathering with commitment and urgency. Together, we can build a brighter, more equitable, and more accountable future for all communities—one in which grant funding is used ethically, development is sustained, and no community is left behind.
  
  Thank you for your participation and your unwavering commitment to this shared vision.

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