SASRIA recovery and performance, SA–Germany development cooperation

Video Annual Performance Plan (APP) of Government Departments & Entities 2026/27 The Select Committee on Finance received a briefing from SASRIA SOC Ltd on its performance, financial sustainability, solvency position, governance arrangements, and progress made since the Committee’s last engagement with it in 2023. It outlined its recovery following the July 2021 unrest, reporting that it had rebuilt its capital base through retained earnings, premium adjustments, strengthened reinsurance arrangements, and improved underwriting measures. Only 44 claims from the 17 571 claims lodged due to the July 2021 unrest remained outstanding, with a combined value of about R105 million. Its reserve accumulation strategy, its target of reaching R30 billion in reserves by 2029, and ongoing efforts to strengthen operational resilience, governance controls, and support for SMMEs. Members raised concerns on climate change risks, dependence on National Treasury guarantees, capital adequacy, underwriting risks, governance failures linked to irregular and fruitless expenditure, premium growth performance, SMME coverage, and claims processing timelines. Questions were also raised on the sustainability of the Wrap Cover product, the affordability impact of premium increases, operational preparedness for future unrest events, and support measures for vulnerable businesses and youth employment initiatives. SASRIA responded that the July 2021 unrest constituted an extraordinary systemic event, requiring future modelling adjustments. It stated that while government support remains necessary for catastrophic events, measures are being implemented to reduce long-term dependence on the fiscus. SASRIA also confirmed that governance controls and procurement oversight mechanisms had been strengthened following identified weaknesses. The Committee received a briefing from National Treasury on the Exchange of Notes between South Africa and the Federal Republic of Germany on the “Strengthening Participation in the Energy Transition” programme. National Treasury outlined the longstanding development cooperation relationship between South Africa and Germany since 1994, noting that Germany had committed about €276.5 million for the 2025/6, including €76.5 million in grants and €200 million in concessional loans directed towards climate and energy-related initiatives. The programme aims to strengthen public participation and socio-economic outcomes linked to South Africa’s energy transition process under the Just Energy Transition Partnership framework.