Program Facilitators Both Deputy Ministers Board Chairpersons
Commissioners of the Funds Director General in absentia Deputy Director Generals
Senior Management of DEL, its Entities and all Officials Present Strategic Partners
Representatives from Presidency, Business, Labour and Community
Distinguished Guests
Good Morning
Today is Day Two of our Strategic Planning Session. By now, the technical discussions have begun to surface realities about
capacity, about performance, about ambition, and about constraints. Day Two is therefore not about scene-setting; it is
about direction-setting. It is about aligning leadership judgement with institutional action.
This Department carries one of the heaviest responsibilities in the state. We sit at the intersection of economic policy, social stability, and constitutional rights. Employment, labour relations, occupational safety, social protection, and skills development are not peripheral matters. They define whether the economy functions, whether households survive, and whether the future feels credible to all South Africans.
This morning, I want to set out the strategic terrain before us, explain why each area demands attention in the current context, and outline the expectations for institutional action. The objective
is clarity, clarity about the environment we are operating in, clarity about performance, and clarity about where leadership focus must now be directed.
The economic moment we are in, in South Africa is operating in a constrained but consequential economic moment. Growth
remains modest. Fiscal space is tight. The labour market continues to absorb people too slowly. Unemployment, particularly among the youth, continues to test the legitimacy of government and the patience of society.
And yet, there are important signals we must not ignore.
Standard C Poor's recent revision of South Africa's long-term foreign currency rating from BB- to BB, and the local currency rating from BB to BB+, both with a positive outlook, is not a miracle but it is not insignificant either. It reflects improving
macroeconomic management, institutional resilience, and policy credibility. It tells us that despite our structural constraints, the country is not adrift.
But ratings do not create jobs, businesses do, Government's do. Policies do. Execution does.
For this Department, the implication is clear: economic confidence must translate into labour market functionality.
Ratings and macro indicators only gain meaning when workplaces are safer, disputes are resolved efficiently,
inspections are credible, and skills systems respond to demand.
Geopolitics, trade and labour implications require us to be clear- eyed about the world we are operating in.
The global environment is becoming more fragmented and more assertive. Major powers are using military, trade, and regulatory
instruments to protect strategic interests. We have witnessed attacks on sovereign nations, the tightening of sanctions regimes, and the aggressive use of tariffs and industrial policy by advanced economies.
These shifts affect South Africa directly. Export-oriented sectors face new compliance pressures. Supply chains are being reconfigured. Labour standards, safety regimes, and
environmental compliance are increasingly embedded in trade rules and market access conditions.
For this Department, geopolitics translate into responsibility. Our regulatory systems, inspection regimes, and labour institutions must meet global standards. Weak enforcement or outdated systems are no longer neutral, they become economic liabilities.
In the course of my engagements over the past period, I have had direct exposure to how other countries are organising their labour markets, regulating workplaces, integrating social protection with employment, and modernising inspection and skills systems.
These engagements were not observational. They were working sessions with governments and institutions confronting challenges similar to our own. What I want to share today are
specific pockets of excellence, practical approaches that are delivering results in real economies. The intention is not to
transplant models mechanically, but to identify elements that can be fully integrated, adapted, and institutionalised within our own context to strengthen delivery, improve outcomes, and sharpen the effectiveness of this Department.
Occupational Health and Safety is a strategic pillar.
It remains foundational to the credibility of the labour market.
I directed that we benchmark and replicate international best practice. There are countries like Russia is one example often cited where the state exercises direct oversight over the
regulation and standardisation of personal protective equipment across the economy. The point was not to copy blindly, but to learn deliberately.
That did not happen to the standard I expected. This is not acceptable.
Occupational Health and Safety must therefore be understood as a core function of state authority. It concerns the protection of life, the dignity of workers, productivity in the economy, and
public confidence in the role of the state. For this reason, I am elevating this project to be housed in the Office of the Minister, where it will be driven with the required authority, coordination, and urgency until measurable improvements are achieved.
Going forward, OHS must be approached as a system: regulation, equipment standards, inspections, data, and employer
accountability working together. OHS Month must be a platform for substantive improvement, not symbolic compliance. I expect stronger preparation, deeper benchmarking, and clearer outcomes.
In relation to inspections, in a technologically advanced world,
let me be very clear: Artificial Intelligence is here whether we like it or not.
The future of inspections is hybrid.
The future of labour inspections is already unfolding. Artificial intelligence, data analytics, and remote monitoring are reshaping how compliance is assessed across the world.
Countries such as Qatar are implementing hybrid inspection
models, combining physical inspections with technology-enabled risk profiling, digital reporting, and real-time data analysis. These systems improve reach, consistency, and impact.
South Africa must move in this direction. While we will initially maintain the “warm bodies" on the ground, we must then systematically migrate to hybrid inspection models supported by modern technology.
The recruitment of 20,000 inspector interns must be intensified, with clear reporting on numbers recruited, deployment, and
training.
Hybrid models that use modern technology to support
inspectors, improve targeting, and strengthen enforcement. If we continue with purely manual, paper-based inspection models, we will be outdated and out of touch within a few years.
I want a clear migration plan towards hybrid inspections, using modern technologies. We must partner deliberately with the Technology Innovation Agency and the CSIR.
This is not optional.
This is a strategic modernisation issue, not a technical preference.
Social protection linked to employment pathways
At the social protection side event in Qatar, Brazil presented a powerful lesson on integration. Their national central database
tracks citizens across the life cycle. Social grants, education data, health records, and employment status are linked.
When citizens reach working age, the system flags them. Skills, education, and employment interventions are triggered
automatically. The state does not wait passively—it intervenes deliberately.
This is the direction we must move in.
Social protection functions as a bridge to employment, not an endpoint.
This approach speaks directly to our own challenges. Fragmentation between social protection, skills development, and employment services weakens impact. Integration must become a strategic objective of this Department's work.
Repositioning trades and artisan pathways, Australia's approach to trades offers important insights. Through sustained policy alignment and social messaging, artisanship has become
attractive, respected, and economically viable. Trades are positioned as modern, skilled, and essential to national
development.
Australia has demonstrated how deliberate policy alignment can reposition trades within a modern economy. Through sustained coordination between the state, industry, and training institutions, artisan skills have been elevated in status, strongly linked to income security, and embedded in national development priorities. Trades are treated as high-value, skilled professions that underpin productivity and infrastructure growth.
For South Africa, this is central to the success of TVET reform. Artisan pathways must be visible, aspirational, and connected to real economic demand. We must benchmark this approach seriously and work closely with the Department of Higher
Education and Training to ensure that curriculum design, employer engagement, and public communication are aligned to a coherent national artisan strategy.
TVET placements and delivery commitments
The Government–Business Committee committed to the
placement of 30,000 TVET learners, DEL must undertake to take responsibility for 20,000 of those placements through the Labour Activation Programme.
This requires focused coordination across departments, entities, and employers. Placement is not an administrative exercise; it is the point at which training becomes opportunity. Clear reporting, timelines, and accountability are required to ensure delivery.
Youth mobility and international exposure
Over the past year, the Public Employment Services has
expanded its engagement with international partners, including Ireland, to facilitate structured skills mobility into other
jurisdictions. These collaborations create opportunities for employment, skills development, and income generation for South Africans. At the same time, they require careful oversight. Mobility initiatives must be monitored to safeguard our citizens against human trafficking, unsafe placement practices, and exploitative working conditions. Managing this space requires a deliberate balance between opportunity and protection.
Within this context, the youth training exchange programme with Spain is nearing finalisation. The programme is strategically
important for skills transfer, exposure to international work environments, and the strengthening of long-term cooperation aligned to South Africa's skills priorities. Its finalisation and implementation must proceed with urgency to ensure that
international exposure reinforces, rather than disconnects from, domestic labour market needs.
On Mining, beneficiation and labour strategy, the sector remains a major employer and a strategic pillar of the economy. The
President has been clear: the minerals of this country must be beneficiated here.
That means jobs—upstream and downstream.
While the Department of Mineral Resources has its own
legislative mandate under the Mine Health and Safety Act, and this DEL regulates occupational health and safety more broadly, there is a clear overlap in our responsibilities. These overlapping mandates make collaboration essential. We must renew and strengthen the Memorandum of Understanding with the industry to ensure coordinated action in a sector of such scale and
potential especially in logistics, beneficiation, and downstream industries. Programmes for ex-miners require renewed focus,
both within South Africa and across the continent.
The African Mining Indaba is taking place in the next two weeks. We must ask ourselves honestly: do we have a presence there?
We should. We should have a pavilion.
We must be fully engaged in this sector as it remains a major employer and a strategic pillar of South Africa's economy
We also need to look closely at the work of the Public Investment Corporation and the broader question of investment
management.
The management of worker savings through PIC carries both fiduciary and developmental responsibilities. Portfolio
diversification and strategic investment allocation can support productive sectors and job creation while safeguarding pensions.
This requires close engagement with investment governance structures and a clear understanding of labour market implications.
This must be a decisive year for youth employment.
Fast-tracking ESSAB is critical to enabling the designation of jobs for South Africans. ESSAB must also explore operational innovations, including the establishment of internal call centre capacity to improve responsiveness and placement efficiency.
The National Labour Migration Policy that was approved by cabinet can only be enacted once approved by parliament and made into law.
Regulations under the National Employment Policy, particularly the declaration of vacancies by the private sector, must be finalised to improve labour market transparency and matching.
Digital skills are skills of the future and skills development must be aligned to real economic demand. The report from the Government–Business Committee on Skills, Employment, and the SMME Secretariat must be submitted and must inform programme design and funding decisions.
The Digital Skills Training Programme targeting 10,000 young
people over 3 years must be accelerated. R100 million has been
set aside by NSF however there is a shortfall of R400 million and
as DEL under the LAP this need to take a centre focus as these are guaranteed jobs. Digital capability is now foundational to
productivity across sectors. Informal sector strategy
We must elevate the discussion on the informal sector.
The informal economy plays a significant role in employment and livelihoods. Policy engagement must move beyond recognition to structured intervention, supporting productivity, protection, and progression.
Collaboration with SALGA, DSBD, COGTA, and DTIC is essential to ensure participation of South Africans in the informal economy, alongside enforcement of compliance with South African laws for foreign nationals operating businesses.
Institutional reform and implementation capacity are a key priorities.
The unbundling and reconfiguration project must be finalised and fast-tracked, we don't have time. The strengthening of the PMO has commenced by placing Advocate Morejane to lead this area. Simply put strategy without implementation capacity is theatre.
All of these priorities require informed and structured guidance. The finalisation of the Ministerial Advisory Committee is therefore critical to strengthening policy coherence and strategic oversight. This strategic platform is currently being established and finetuning is being done to ensure that that the committee grounded in a formal legal mandate, ensuring its authority,
legitimacy, and capacity to provide high-level advisory support to the Minister and the Department.
The Medium-Term Development Plan places employment,
inclusion, productivity, and social protection at the heart of South Africa's growth path. For the Department of Employment and
Labour, this is not abstract policy, it is our core business.
Our contribution to MTDP targets must be explicit: we are charged with protecting existing jobs, creating pathways to new employment, enforcing fair labour standards, and expanding
social security coverage.
The 2026/27 planning cycle is not simply another year in our
Medium-Term Strategic Framework. It is a moment to consolidate gains made since the disruption of the pandemic, confront the structural weaknesses that persist in our labour market, and
decisively reposition the Department as a strategic centre of government capability.
The latest Quarterly Labour Force Survey confirms three hard truths: unemployment remains stubbornly high, particularly among young people and women; deep provincial disparities persist, driven by uneven economic capacity and skills mismatches; and the informal economy continues to absorb
labour market pressure, yet remains under-supported and under- integrated into policy.
There is no single, uniform solution. To be effective, our response must vary by province, sector, and demographic group.
Informality is growing faster than formal job creation. Studies by banks, academic institutions, and the World Bank show that much economic activity, particularly in township and local economies, is underreported or misclassified. This is not a
problem, it is a policy opportunity. We must support emerging and
informal forms of work, turning them into engines of inclusive growth.
We must also shift our approach: from process-heavy to impact- driven; from invisible regulators to visible partners in economic recovery; and from working in silos to operating as one integrated system.
In my first 100 days following appointment by the President, the Deputy Ministers and I made it clear that this Department must be outcome-driven, governance-led, and people-centred. The social contract we hold with South Africans is clear: we will use
the authority entrusted to us to protect decent work, enforce the law, and help align people to opportunity.
During those first 100 days, we stabilised oversight, reinforced accountability across entities, and aligned departmental priorities. The Annual Report for 2024/25 reflects a Department that has stabilised its core functions. The foundation is in place, now delivery must accelerate.
We celebrated excellence through the first Ministerial Performance Awards, recognising deliberate reforms and collective efforts across branches and entities. These improvements are not accidental; they are the result of
disciplined leadership, operational excellence, and shared commitment.
Yet, challenges remain. Audit and Risk Committees have highlighted qualified audit outcomes, persistent ICT issues, and weaknesses in financial reporting. We must address these with urgency.
In response, we established Seven Strategic Priorities, which must be embedded across all Annual Performance Plans with clear indicators and consequences:
Strategic Priority 1: Strengthen Regulatory Capabilities
Our Department and entities must be credible regulators. Inspection, enforcement, compliance monitoring, dispute resolution, and adjudication must be firm, fair, and efficient. Weak regulation erodes investor confidence and costs jobs. Project 20k has already employed over 5200 inspectors. In
2026/27, we will embed data-driven, sector-focused enforcement prioritising high-risk industries and vulnerable workers.
Strategic Priority 2: Coordinate Employment Interventions Fragmentation is a luxury we can no longer afford. We must coordinate employment interventions across government, partners, and programmes. Skills mismatches are not only a
training failure, they are a coordination failure, and young people pay the price.
Strategic Priority 3: Good Corporate Governance
Clean audits are the floor, not the ceiling. Governance must translate into service delivery outcomes, regulatory certainty, faster turnaround times, and public trust. Weak governance must be addressed decisively and timeously.
Strategic Priority 4: Improve Service Delivery
We are expanding labour centre footprints and accelerating delivery channels. The Mogwase labour centre and eight UIF
mobile buses are bringing services closer to communities. Every interaction, whether UIF claims, Compensation Fund benefits, inspections, referrals, or dispute resolution — must be faster,
simpler, and more effective.
Strategic Priority 5: Strengthen Institutional Capacity
We must invest deliberately in people, systems, and leadership. Vacancies, misalignment, and duplication undermine delivery. Bolstered frontline capability is non-negotiable.
Strategic Priority 6: Massify Marketing of Services
Many South Africans remain unaware of DEL services. Visibility is a prerequisite for impact. The Yazini Friday's initiative
demonstrates how taking the Department to the people builds trust and utilisation. Every entity must integrate visibility and outreach into its performance targets.
Strategic Priority 7: Advance the New Employment Mandate through Partnerships
DEL is a facilitator of employment outcomes. Partnerships with government, business, labour, international agencies, and civil
society are essential. Labour activation, supported employment, productivity improvement, and workplace inclusion must sit at the centre of our work.
The entities within our department each play a distinct yet interconnected role. NEDLAC is the backbone of social dialogue. The Compensation Fund safeguards worker protection and income security. The CCMA ensures labour peace and stability.
Supported Employment Enterprises advance inclusion for
persons with disabilities. Productivity SA drives competitiveness and operational excellence.
The Unemployment Insurance Fund continues to be a critical shock absorber for the economy. While an earlier moratorium on investments arose from concerns regarding the Public Investment Corporation's capacity, decisive steps are now being taken to
address these challenges. UIF management and its Advisory
Board have introduced strengthened guardrails to improve investment performance and oversight.
These include more active management of the investment portfolio, greater UIF participation on boards of supported
entities, an updated Service Level Agreement with the PIC, and strengthened partnerships with sector-based Development Finance Institutions. A funding partnership valued at R10 billion is nearing finalisation to support strategic investments in key
industrial sectors, helping to stem deindustrialisation and promote sustainable employment creation. In addition, the PIC is advancing a R4.5 billion funding agreement with the National Empowerment Fund to support emerging enterprises, particularly in rural and township economies, contributing to the spatial
decentralisation of economic activity.
Beyond investments, the UIF remains firmly focused on improving services to beneficiaries. Most provinces report performance levels exceeding 70 percent across service-delivery metrics.
Mobile service buses and IT modernisation initiatives are
expanding access, allowing clients to reach UIF services from their communities and homes. Two major banks are also exploring partnerships to extend UIF service offerings through their national networks.
By the end of the second quarter, approximately R2.79 million
beneficiaries had received unemployment, maternity, and death benefits, amounting to R15.23 billion. Key interventions have
been initiated to strengthen accountability, including the restoration of reporting lines from provincial operations directly to UIF management.
The UIF is finalising its Labour Activation Programme strategy, which will be presented to me before the end of February (I hope this could be sooner). This strategy will ensure value for money in labour activation projects and secure their alignment with the priorities of the 7th Administration.
Reflections on Corporate Services
This session is an opportunity not only to celebrate our achievements but to critically examine areas where we must do better, and to align on priorities that will ensure our department remains effective, accountable, and responsive to the needs of South Africans.
Corporate Services
Over the past year, the Corporate Services Branch has advanced our vision of a capable, ethical, and developmental department. We committed over R1.13 billion to modernize our digital ecosystem, completed bandwidth upgrades at 16 priority sites, and rolled out new data centers and ICT infrastructure to support digital-first service delivery for the UIF and Compensation Fund.
Cybersecurity has improved significantly, with 80% implementation of the Centre for Internet Security controls project, securing our digital workspaces. We maintained a 100% payment rate for valid invoices within 30 days, while procurement targets continued to promote women, youth, and persons with disabilities. Our communications unit executed over 40 targeted activities, keeping both internal and external stakeholders informed and increasing the visibility of our services and programs.
Yet, we must acknowledge our challenges. Parliamentary Questions require timely and comprehensive responses, including a communications component. Administrative reform and institutional redesign, particularly the Unbundling Project, must accelerate.
Ministers should never have to chase information—over- communication is preferable to silence.
Vacancies at executive levels including DG, Productivity SA CEO, UIF Commissioner, and Compensation Fund leadership continue to impede decision-making, accountability, and service delivery. Equally important, we must focus on frontline staff, grievance and disciplinary processes, and develop an early warning dashboard to strengthen operational oversight, risk control, and provincial support.
Engagement with the Auditor-General underscores the urgent need for timely responses and improved audit outcomes. Closer collaboration with Risk and Audit Committees will ensure Combined Assurance matures across the Portfolio.
Public Employment Services
Through Public Employment Services, we continue to provide unmatched support to unemployed work seekers. Our Employment Services system remains the largest in South Africa, with over 6.5 million work seekers registered, 1.9 million receiving employment counselling, and 472,000 placed in jobs.
Strategic partnerships with Harambe, Jobs Fund, IDC, CAPES, ILO, and the World Bank support our medium-term targets. Policy developments, including the National Labour Migration Policy (NLMP), National Employment Policy (NEP), and the Employment Services Amendment Bill, will further strengthen service delivery.
The Inter-Ministerial Committee on Employment and Migration will coordinate 15 Ministries to ensure a unified, cross-sectoral approach.
Inclusion remains central. Subsidy schemes for people with disabilities have created over 1,000 employment opportunities across seven provinces. Public Employment Programmes are being strengthened through the framework developed in 2024, and the National Dialogue on PEPs ensures alignment with business, government, and community stakeholders.
Package of Labour Law Reforms
Colleagues, the Department is implementing a decisive package of labour law reforms to address long-standing weaknesses in enforcement, exclusion, and institutional inefficiency:
All these Bills will be tabled in Parliament in 2026, giving full legal effect to the proposed reforms and strengthening South Africa's labour market regulatory framework.
The DEL together with DTIC, SBD, COGTA, and SALGA will work to develop a coordinated regulatory framework for foreign nationals' access to business ownership. These engagements aim to expand South African participation, remove barriers to entry, improve access
to finance, and ensure entrepreneurship drives inclusive growth, local ownership, and sustainable economic development.
In 2025, South Africa successfully hosted the G20 Labour and
Employment Ministers' Meeting under its G20 Presidency. This high- profile event highlighted the country's leadership and substantive contributions on critical global issues, including the future of work,
social protection, and just transitions, raising both the Department's and the nation's international profile.
At the continental and regional levels, South Africa has demonstrated sustained leadership. As Chair of the African Regional Labour Administration Centre (ARLAC), the country has strengthened labour administration, promoted social dialogue, and supported capacity building and the harmonisation of labour standards across Africa.
Similarly, South Africa is serving a rare double term as Chair of the SADC Employment and Labour Sector (ELS) until August 2027, using this platform to advance labour mobility, coordinate social security, improve occupational health and safety, and drive regional industrialisation efforts.
Globally, South Africa has played a strategic role at the International Labour Organization (ILO). Mr. Ndebele's elevation as Chair of the Committee on the Application of Standards (CAS) places the country at the centre of critical discussions on fundamental rights at work.
Together, this multi-tiered leadership from G20 visibility, through continental and regional coordination, to global standard-setting
demonstrates South Africa's credibility, influence, and effectiveness on the international stage. It delivers tangible benefits at home, shaping global norms that protect South African workers, attracting investment, and positioning the country as a principled and capable leader in the global labour community.
Colleagues, the task ahead is clear. Visibility matters. Partnerships matter, they are central to our success. The challenges we face in employment creation, social protection, and labour market stability are too complex for any single organisation or institution to address alone. That is why
collaboration across government, business, labour, civil society, and international agencies is critical. Through coordinated action, we can align resources, leverage expertise, and scale solutions that are responsive to the needs of our people.
New ways of doing business will unlock new pathways for job creation, social protection, and public confidence. Partnerships allow us to innovate — whether it is through sector-focused skills programmes, public-private investment initiatives, or inclusive
labour activation projects. They also allow us to reach communities that have been historically underserved, turning policy into tangible impact in the lives of workers and their families.
In this work, DEL and its entities are not merely implementers — we are conveners, facilitators, and enablers. By working together with purpose, we can ensure that every intervention is coherent, every resource is maximised, and every South African has access to opportunity, protection, and dignity in the workplace.
Partnerships transform good intentions into measurable outcomes, and they are the bridge between policy, practice, and public trust.
I thank my Deputy Ministers for their sterling work in strengthening oversight and reinforcing accountability. The vessel of this Department is turning — day by day, our efforts are
becoming visible on the ground. Communities are seeing the
Department in action, services are reaching the people, and outcomes are beginning to reflect our commitment. Clearly, we are on the right path, and the progress we are making is no
accident — it is the result of deliberate action, teamwork, and an unwavering focus on delivery. I also acknowledge Parliament and Portfolio Committee, our Audit and Risk Committees, and all oversight structures. Accountability is not a threat; it is the foundation of performance.
As I conclude colleagues,
We meet at a pivotal moment in South Africa's labour market. The challenges we face are complex, the stakes are high, and the
public rightly expects results. This Department has stabilised its foundations, delivered measurable outcomes, and demonstrated that deliberate reforms and disciplined execution produce
impact. But stability is not enough. Visibility, coordination, innovation, and accountability must now define our work.
The choices we make in this strategic planning session will
determine the relevance, credibility, and effectiveness of this
Department for years to come. Every programme, every branch, and every individual must translate authority into action, policy into impact, and strategy into tangible improvements in the lives of workers, jobseekers, and employers.
We have the tools, the talent, and the mandate to act decisively. We have seen international examples that show what is possible when policy, governance, and implementation align. We have stabilised our systems, strengthened our oversight, and laid the groundwork for transformative delivery. Now, it is time to
accelerate, to innovate, and to execute with precision.
Let us commit, here and now, to making this Department a
visible, credible, and impactful centre of government capability.
Let us ensure that every South African sees the results of our
work—in jobs protected, opportunities created, workplaces made safer, and skills developed for the future.
The moment to lead is now. The responsibility is ours. Let us act with urgency, with courage, and with unity of purpose. South Africans expect nothing less—and we will deliver.
Thank you.
© 2019 - The South African Department of Employment & Labour
