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Plans To Combat Loadshedding And Logistics Inefficiencies Aimed At Boosting Economic Growth



Plans To Combat Loadshedding And Logistics Inefficiencies Aimed At Boosting Economic Growth

Plans To Combat Loadshedding And Logistics Inefficiencies Aimed At Boosting Economic Growth.Minister Godongwana unveiled strategies to reduce loadshedding and tackle logistics inefficiencies to stimulate economic growth during his 2024 budget speech. These initiatives are crucial for overcoming obstacles hindering South Africa’s economic progress.

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Addressing Loadshedding

Godongwana acknowledged the detrimental effects of loadshedding on production and livelihoods, emphasizing the need for long-term energy security through sector reform. Scheduled power cuts disrupt various sectors, leading to production delays, increased operating costs, and revenue losses. The government aims to promote investments in renewable energy to mitigate these challenges, proposing an increase in the limit for qualifying projects under the carbon offsets regime.

Eskom Role

The minister announced the imminent release of the independent review of Eskom’s coal-fired power stations, which will inform the utility’s corporate plans. To reduce load shedding, a combination of private investments in energy projects, rooftop solar installations, and improvements in Eskom’s generation fleet is essential.

Addressing Logistics Challenges

Godongwana highlighted the introduction of third-party access to the freight rail network by May 2024 to address logistical inefficiencies. Inefficient logistics create bottlenecks that hinder economic efficiency and competitiveness, resulting in stockouts, higher storage costs, and reduced customer satisfaction. Upgrading Pier 2 of the Durban Container Terminal and private sector partnerships aim to enhance operational efficiency and technological capability.

Support for Transnet

The government provided Transnet with a R47 billion guarantee facility to support its recovery plan and immediate debt obligations. This support is conditional, requiring Transnet to focus on core activities and introduce private sector partnerships to enhance sustainability and implement the Freight Logistics Roadmap.


Minister Godongwana’s plans to combat load shedding and logistics inefficiencies are crucial steps toward boosting economic growth in South Africa. These initiatives, coupled with private sector partnerships and investments, are expected to improve energy security, enhance logistical capabilities, and drive economic competitiveness.

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How NSFAS Allowances Paid To Students



How NSFAS Allowances Paid To Students

How NSFAS Allowances Paid To Students. More than one million students in South Africa benefit from comprehensive bursaries provided by the National Student Financial Aid Scheme (NSFAS). Despite this support, student unions, particularly the South African Students Congress (SASCO), have expressed concerns about the effectiveness of the current funding system and have called for improvements.

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Challenges Faced by Students

In 2023, NSFAS funded over a million students enrolled in approved courses at universities and Technical and Vocational Education and Training (TVET) colleges. However, the scheme faced challenges in effectively assisting the poor and working-class students due to several issues. These challenges were partly attributed to the implementation of a direct allowance payment system, which led to irregularities and necessitated “consequence management.”

Controversy Over Allowance Distribution

The direct payment system, introduced in 2022, involved four companies handling student allowance payments. However, an investigation revealed potential conflicts of interest, leading to the dismissal of NSFAS CEO Andile Nongogo and termination of contracts with the service providers. Despite this, in 2024, NSFAS required students to register with these same companies for allowance distribution, drawing criticism from SASCO.

SASCO Criticisms and Demands

SASCO has accused the NSFAS Board of hypocrisy for reinstating allegedly irregular service providers. They argue that the current system exploits students, leading to delays, inefficiency, and unnecessary charges. SASCO calls for the implementation of recommendations from the Werksmans report, including terminating contracts with the companies.

Accommodation Crisis

SASCO also criticizes NSFAS for its indecisiveness in addressing the student accommodation crisis. While NSFAS launched an accommodation portal in 2022, SASCO argues that NSFAS has not taken practical steps to increase bed spaces in higher learning institutions and TVET Colleges. They demand immediate action to improve student living conditions.


The current NSFAS funding system faces criticism from student unions like SASCO, who call for more transparency, efficiency, and student-centered approaches. The ongoing controversies highlight the need for NSFAS to address these concerns promptly to ensure that students receive the support they need to succeed in their studies.

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