Persistent challenges remain in the Northern Cape, with an increase in the percentage of people living in poverty and a drop in the number of households with access to basic services such as water, whilst youth unemployment remains particularly high. Another challenge is increasing municipal debt.
In his opening remarks on Friday, 25 July, at the engagement between the National Executive and the Northern Cape Provincial Executive Council, President Cyril Ramaphosa said although the province’s economy has been growing and creating jobs, the National Treasury’s 2025 provincial socio-economic review points to these persistent challenges.
The president was speaking at the South Campus Hall of Sol Plaatje University in Kimberley, flanked by the premier of the Northern Cape, Dr Zamani Saul, and Minister Velenkosini Hlabisa as programme director. In attendance were ministers, deputy ministers, MECs of the Northern Cape, as well as executive mayors of the five districts and other senior officials.

At this sixth formal engagement between the national executive and a provincial executive, Ramaphosa said fiscal constraints are holding back projects, particularly at municipal level. These include disaster response, asbestos eradication, land restitution, rural electrification and public housing.
‘Two persistent challenges holding back government’s progress’
Addressing two persistent challenges that have been holding back progress as a government was one of the driving forces behind the District Development Model established in 2019.
“The first challenge is that of working in silos. This has been a particular problem when it comes to the interface between the national, provincial and local spheres of government,” Ramaphosa said.
“The second is what I have termed ‘parachuted development’. This refers to projects and programmes being initiated, scoped and budgeted for at national level without due consideration of the realities of implementation on the ground, or even of whether that particular initiative meets community needs.”
These challenges have been time-consuming and costly, and have contributed to a widening trust deficit between government and communities when these ventures fail to take flight or encounter implementation challenges.
President Cyril Ramaphosa
Structured engagements between the national and provincial executives are designed to narrow and ultimately close these gaps, resolve challenges and plan smarter.




‘Northern Cape could be new heartbeat of economy’
The Northern Cape is an economic pioneer and frontier of innovation, Ramaphosa emphasised. The province was characterised by the Pulitzer Centre as South Africa’s emerging powerhouse, being at the forefront of the clean energy revolution and experiencing a surge in power projects, notably solar and green hydrogen.
To quote the Pulitzer Centre report, once the energy transition unfolds as envisaged, the Northern Cape could be the new heartbeat of the economy.
President Cyril Ramaphosa
The Northern Cape is also working to become an industrial hub, supported by traditional industries such as mining. It is being expanded through special economic zone development, industrial park development and major infrastructure developments, notably in port and rail.
Ramaphosa said measures to improve revenue collection by municipalities and how the province can leverage its key tourism attractions would also be discussed during the engagement.
“I look forward to hearing your dreams, looking very closely at the potential you have and how you intend to exploit it,” Ramaphosa concluded in his opening remarks.
In his welcoming address, Saul emphasised once again the Sixth Administration’s vision to build a modern, growing and successful province.
“We view this meeting as an opportunity to address the barriers which are an impediment to economic growth and to align our collective efforts to effect the transformation of the economic fortunes of our province,” Saul remarked. He mentioned that “tremendous positive outcomes” have been seen at especially the Department of Health and Education
- More information on the engagement, which was a closed session, will be relayed once received.






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