By Precious Mupenzi

• Social Development Minister Sisisi Tolashe emphasised that the future of the country’s development depends on a resilient, well-supported, and digitally enabled non-profit sector.
• The minister was a keynote speaker at the National Lotteries Commission (NLC) National Indaba.
• Minister Tolashe used her address to reflect on the challenges faced by South Africa’s non-profit organisations (NPOs) that are currently grappling with shrinking financial resources, growing community needs and increasing compliance expectations.

Minister of Social Development, Nokuzola Sisisi Tolashe, has called for deeper collaboration between the government, the National Lotteries Commission (NLC) and South Africa’s civil society sector to strengthen the country’s social development agenda.

Speaking on 26 November 2025 at the NLC National Indaba, held under the theme “Effective regulation and funding through digitisation”, the minister emphasised that the future of South Africa’s development depends on a resilient, well-supported and digitally enabled non-profit sector.

The indaba comes at a time when non-profit organisations (NPOs) across the country are grappling with shrinking financial resources, growing community needs and increasing compliance expectations.

The minister used her keynote address to reflect on these challenges while outlining the government’s strategy to transform the sector.

Civil society at the heart of global and national development

Minister Tolashe opened by contextualising the indaba within global developments, noting that only five days earlier, President Cyril Ramaphosa had addressed the G20 Social Summit, where he underscored the indispensable role of civil society in shaping global policy decisions.

Quoting the President’s remarks, Minister Tolashe emphasised that civil society forms the “strong roots” needed for sustainable global and national reforms.

She praised the sector for its influence on the G20 Declaration, which was “heavily shaped” by the Social Summit’s resolutions. “We thank you for ensuring that the collective voice of the Global South can no longer be ignored,” she said.

Progress on FATF grey list and ongoing vigilance

One of the minister’s key announcements was South Africa’s exit from the Financial Action Task Force (FATF) grey list, an achievement she credited to dedicated collaboration between government and civil society stakeholders.

However, she warned that the country “cannot afford to be complacent,” urging continued vigilance to maintain compliance under Recommendation 8, which specifically focuses on non-profit organisations.

Funding crisis in the NPO sector

The minister acknowledged that many NPOs, especially those led by youth and those driving food security, job creation and gender-based violence prevention, struggle to scale their programmes due to limited resources.

She welcomed the NLC Board’s decision, under the leadership of Professor Barney Pityana, to prioritise funding that advances the National Development Plan (Vision 2030), saying this intervention comes at a crucial moment with only five years remaining to meet national targets.

Rising child malnutrition: A national emergency

In one of the most urgent appeals of her address, Minister Tolashe spotlighted the alarming rise in child malnutrition cases, calling it “an issue that demands immediate attention”.

“We cannot let this happen under our watch,” she said, urging NPOs and partners to help the government respond swiftly in high-risk areas. She emphasised that early birth registration and access to the Child Support Grant remain vital tools in combating malnutrition.

Tackling teenage pregnancy and underage drinking

The minister lamented the “unacceptably high levels” of teenage pregnancy and underage drinking, noting that these challenges are deeply felt by frontline NPOs. “You see these issues every day,” she told delegates, commending them for serving as the “compassionate arm” of society under difficult circumstances.

Enabling a thriving NPO sector through policy reform

A major section of the keynote focused on the ongoing overhaul of the country’s non-profit regulatory environment.

Minister Tolashe highlighted that the Non-Profit Organisations Act was implemented without an accompanying policy, a gap her department is now addressing. A new NPO Policy is being drafted, and early 2026 will see a nationwide consultation process.

She encouraged organisations, especially youth-led and community-based groups, to contribute actively to the policy’s development.

She reaffirmed that the sector is a major employer, creating pathways for youth employment, entrepreneurship, skills development and vocational training. A recent Wits Business School study was cited, demonstrating that NPOs play a central role in shaping new forms of work for young people.

New priorities: Climate change, waste management and social entrepreneurship

Minister Tolashe urged NPOs to expand their focus to emerging developmental areas such as climate change, waste management, social entrepreneurship, and sustainable livelihoods suited to the modern economy.

She highlighted the reality that much of the small-business landscape, spaza shops, salons, and car washes, are currently dominated by foreign nationals, while South African youth remain unemployed. This, she argued, shows the urgent need to rethink community economic models.

Digital transformation: Introducing Digi-NPO

The minister reaffirmed her department’s commitment to digital transformation, highlighting the rollout of Digi-NPO, the new online NPO registration and compliance monitoring system.

Calling it “a welcome development”, she said the system aligns South Africa with Fourth Industrial Revolution standards and strengthens regulatory safeguards. While acknowledging minor initial challenges, she assured delegates that these were being resolved before the system is rolled out countrywide.

Minister Tolashe closed her address by thanking the NLC and its Board for convening a timely dialogue that responds to South Africa’s most pressing social challenges. She pledged continued collaboration with the NLC and the wider civil society sector to ensure that the indaba’s recommendations “find expression in government’s work”.