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Polity.org.za offers a unique take on news, with a focus on political, legal, economic and social issues in South Africa and Africa, as well as international affairs. Now you can listen to the top three articles on Polity at the end of each day.

  1. 20 HR AGO

    Presidency assumes control of Iran naval inquiry from Defence Department

    Presidency assumes control of Iran naval inquiry from Defence Department The probe into Iran's participation in the BRICS Plus naval exercises, held in South Africa in January, is being relocated from the Ministry of Defence and Military Veterans to the Presidency. This is to "ensure an independent and timeous probe", according to the Presidency. President Cyril Ramaphosa launched the investigation into the participation of Iran in the Chinese-led Exercise MOSI III Will of Peace, after his request for Iran to withdraw from the drills was ignored. Initially launched by the Department of Defence, the inquiry will now be overseen by the Presidency, with the Presidency arguing that the President is the Commander-in-Chief of the South African National Defence Force. The investigative panel, which will report directly to Ramaphosa, will be chaired by Justice Bernard Ngoepe, who will be assisted by Justice Kathleen Satchwell, Justice Mashangu Monica Leeuw and Rear Admiral (Junior Grade) Patrick Duze. They will investigate why the President's orders were ignored, identify individuals who are responsible and make recommendations on possible actions to be taken. The Presidency noted that owing to national security reasons, the panel's work will be confidential, and that the President will decide, based on recommendations, whether or not to make the findings of the investigation public. "The Panel will have the power to summon any member of the defence force and/or public service it needs, and to request for all documents, including classified documents, to fulfil its mandate," the Presidency said. The panel will have one month to complete its work and furnish its findings, but this could be extended by the President if there is "compelling cause".

    1 min

  2. 20 HR AGO

    EFF lays criminal charge against Paul O’Sullivan

    EFF lays criminal charge against Paul O'Sullivan The Economic Freedom Fighters (EFF) on Friday laid a criminal charge against Forensic analyst Paul O'Sullivan for allegedly contravening the Powers, Privileges and Immunities of Parliament and Provincial Legislatures Act 4 of 2004, saying his refusal to complete recent testimony raised concerns of potential obstruction of accountability processes. This after O'Sullivan abruptly exited a hearing of the Ad Hoc Committee, established to investigate allegations made by the South African Police Service's (Saps') KwaZulu-Natal Provincial Commissioner Lieutenant-General Nhlanhla Mkhwanazi, while still under cross examination. The EFF argued that this conduct violated Section 17 of the Act, which states that a person who refuses to give evidence, or fail to remain in attendance without being excused, could be held in contempt of Parliament. In its affidavit, EFF deputy secretary general Leigh-Ann Mathys mentioned that O'Sullivan walked out despite objections raised by members of the committee and the committee chairperson. "…his departure was deliberate, voluntary and in direct defiance of the authority of the committee." Mathys said this constituted a prima facie contravention of Section 17. O'Sullivan returned to conclude his testimony on Thursday. He first appeared before the committee on February 10 following National Assembly Speaker Thoko Didiza's refusal to issue subpoenas on him and businessman Brown Mogotsi. Mathys claimed that O'Sullivan showed disrespect for the authority of the chairperson, refused to comply with lawful questioning and that he interfered with witnesses. She said Parliament cannot function effectively if witnesses are permitted to take an oath, answer selectively and then abandon proceedings at their will. She highlighted that the investigation has already produced "serious" prima facie evidence suggesting the existence of a wider network involving corruption, political interference with the Saps and possible protection of organised criminal activity. "Mr O'Sullivan is not a peripheral figure in these proceedings, but a central witness of significant interest. "His refusal to complete his testimony under oath raises reasonable concern regarding potential obstruction of accountably processes," said Mathys. She pointed to the need for urgency in the matter, claiming that O'Sullivan is a person of "substantial means". "I therefore demand that the South African Police Service register and investigate this matter with immediate effect and ensure that no delays or institutional conflicts of interest undermine the administration of justice," urged Mathys. Meanwhile, Didiza has requested an urgent report on the matter from the chairperson, indicating that action may be considered in terms of the Powers, Privileges and Immunities of Parliament and Provincial Legislatures Act and the rules of the National Assembly to safeguard the integrity of Parliament.

    2 min

  3. 20 HR AGO

    Cape Town Mayor to run for leadership of DA

    Cape Town Mayor to run for leadership of DA Cape Town Mayor Geordin Hill-Lewis said he'll stand for election as leader of the Democratic Alliance (DA), South Africa's second-biggest political party, a contest he's widely expected to win. John Steenhuisen has led the DA since 2019, but he announced earlier this month that he won't stand for another term when the party holds its elective conference in April. Nominations for a successor opened on Friday. "I will be seeking a specific mandate, a mandate to build a stronger DA," Hill-Lewis told reporters in Cape Town. "If we are to build a stronger South Africa, we must have a stronger DA." The DA, which garnered 22% support in the last national elections in 2024, is a member of President Cyril Ramaphosa's 10-party coalition government. Hill-Lewis, 39, has served as mayor of South Africa's second-biggest city since 2021 and won praise for his management of the tourism and financial-services hub. He's said he intends to seek re-election to that post in upcoming municipal elections, a job he can do while concurrently leading the DA.

    1 min

  4. 1 DAY AGO

    Moody’s says South Africa budget ‘confirms’ strong fiscal stance

    Moody's says South Africa budget 'confirms' strong fiscal stance South Africa's latest budget painted an encouraging picture of improving public finances, according to Moody's Ratings, while cautioning that "meaningful" debt reduction will require stronger economic growth. The budget "confirms South Africa's strong fiscal performance, underpinned by broad-based revenue growth, and points to improving fiscal prospects," said Evan Wohlmann, Vice President-Senior Credit Officer at Moody's. Finance Minister Enoch Godongwana's annual budget presentation on Wednesday showed debt and debt-service costs peaking this year and then declining, helped by surging precious-metals prices that have boosted government revenue. The rand and government bonds rallied. In his speech to lawmakers in Cape Town, the minister said the world had taken note, citing S&P Global Ratings' decision in November to grant South Africa its first upgrade in two decades. That lifted S&P's assessment to BB from BB-minus and also put it on a positive outlook, which South African officials said was as good as two ratings upgrades. The move raised hope that the country is on track to restore the investment-grade rating it lost as public finances deteriorated under former President Jacob Zuma, whose tenure in office was marred by corruption scandals, mismanagement and soaring debt levels. Moody's rates South Africa Ba2 — two notches below investment grade. National Treasury Director-General Duncan Pieterse said his team was actively engaging credit-rating companies to encourage them to recognise the country's progress. "We have taken a much more proactive approach, interrogating the modelling of some of the ratings agencies, questioning some of those assumptions and making our case of fiscal credibility," he told reporters in Cape Town. "Over time, hopefully, that will assist in the potential for ratings upgrades." Moody's cut South Africa to junk in 2020, after similar moves by S&P and Fitch several years before. While it's upbeat about the outlook after the budget, it stressed the need for stronger economic growth. "South Africa's fiscal space to absorb shocks will remain limited," Wohlmann said. "We expect general government debt will remain above 80% of gross domestic product in the coming years and meaningful debt reduction likely hinges on growth exceeding our baseline." Others agreed that the ratings companies will want to see tangible results before upgrading their assessments. "We expect that if GDP growth improves in first half 2026, a positive outlook from Fitch and Moody's might emerge toward the year-end," said Citigroup Inc.'s South Africa economist, Gina Schoeman.

    2 min

  5. 1 DAY AGO

    Godongwana stresses need for higher growth to draw investment

    Godongwana stresses need for higher growth to draw investment South Africa's Finance Minister Enoch Godongwana said on Thursday that meeting fiscal targets alone was insufficient to draw investment into Africa's biggest economy, stressing the need for higher economic growth. Godongwana was speaking a day after his annual budget showed the country's economy was on track for a third consecutive primary budget surplus, where tax revenue surpasses non-interest spending, and that debt was projected to peak this year. "Managing these numerical targets alone is not going to be enough in the absence of growth," Godongwana told Reuters. South Africa's economic growth has averaged less than 1% over the past decade, but it picked up slightly last year and is expected to rise further to 1.6% this year. The fiscal picture also looks brighter thanks to an improvement in domestic demand and strong commodity prices, which have helped boost government revenue. Godongwana said the government's reform agenda was landing well with investors and expressed hope this would translate into higher levels of fixed investment over time. "I think we're in a better space now to achieve structural reforms and macroeconomic stability, ... I think all of those things will provide a pull factor for private sector investment." He told lawmakers on Wednesday that the government was working on a legal "fiscal anchor", a set of rules to try to ensure that public finances are sustainable over the longer term. He is expected to give more details at a mid-term budget review due in October or November this year. Godongwana, who was appointed finance minister in 2021, said on Thursday that for now he had no reason not to finish his term, which is due to run until 2029.

    1 min

  6. 1 DAY AGO

    DA welcomes members from ActionSA's 'dictatorship'

    DA welcomes members from ActionSA's 'dictatorship' Soweto-based ActionSA Councillor Mandla Nyaqela and five of the party's branch chairpersons and members have defected to the Democratic Alliance (DA) and were welcomed into the blue party on Thursday by DA Johannesburg mayoral candidate Helen Zille. She is expressing confidence that many more will join the party. Speaking at a briefing in Johannesburg, Nyaqela said he had joined ActionSA with high expectations but had been "sorely disillusioned", claiming that there was "no space for debate" in the green party. He described ActionSA as a "top-down dictatorship", stating that members only received instructions. Nyaqela expressed unhappiness with a lack of internal elections in ActionSA, claiming that all positions were appointed by one or two top leaders. In response, ActionSA leader Herman Mashaba posted on X, "I would to take this opportunity to deeply convey ActionSA's appreciation to the @Our_DA and Helen Zille in particular, for saving us the trouble of undergoing a disciplinary process and potential legal expenses." Meanwhile, Zille thanked the new recruits for their "courage, conviction and determination". "People are beginning to understand that the best way to get water, electricity, clean neighbourhoods, investment and jobs is through the kind of good governance that the DA has a record in delivering," she stated. The DA believes the defections will severely impact ActionSA's ability to organise on the ground in its key constituency of Soweto. MAYORAL CANDIDACY Meanwhile, following a by-election victory for the DA in Ward 102 of Randburg/Bryanston on Wednesday, Zille is expected to fill a vacant proportional representation seat, allowing her to officially join the Johannesburg City Council ahead of the general local elections. In her campaign as the mayoral candidate for City of Johannesburg, Zille has vowed to fix the City's failing water systems, repair roads and stabilise electricity supply. She highlighted the R200-billion infrastructure backlog as a critical hurdle. To effect her plans, Zille aims to digitise internal systems to curb corruption and streamline the City's bureaucracy.

    2 min

  7. 2 DAYS AGO

    Treasury mandates sustainability plans as fiscal anchor going forward

    Treasury mandates sustainability plans as fiscal anchor going forward To entrench commitments to healthy public finances, national government will introduce legislation requiring each new administration to table a medium-term fiscal plan to embed fiscal sustainability, Finance Minister Enoch Godongwana confirmed during the 2026 Budget speech on February 25. Since 2008/09, government's debt ratio has more than tripled with debt service costs having risen from 8.8% of revenue in 2008/09 to 21.3% in 2025/26, which crowds out other spending. Over the next three years government aims to anchor fiscal policy with the primary budget surplus, which means a continued expected increase in the fiscal surplus will ensure government debt embarks on a sustainable path. A debt-reducing main budget primary surplus will therefore anchor fiscal policy over the medium term. "National Treasury developed a debt sustainability model to assess risks to the fiscal framework and inform good fiscal decision-making," Godongwana stated, adding that departments would need to be more deliberate in motivating their budgets rather than simply increasing them by inflation each year. Departments will have to provide evidence-based assessments for the continuation of programmes and projects. Treasury ultimately proposes a principles-based obligation to anchor fiscal sustainability in law, requiring each new government to table a plan to ensure that the fiscal position is sustainable throughout its term of office and that an appropriate fiscal metric is selected to measure compliance. This will build confidence and maintain the gains of fiscal consolidation without resorting to painful spending cuts or tax increases. Treasury aims to announce details of this fiscal anchor endeavour in the 2026 Medium Term Budget Policy Statement (MTBPS). DEBT FIGURES For the first time this decade, debt service costs will grow slower than government's overall expenditure. South Africa debt-to-GDP ratio is currently at 78% which is unsustainable but is at least the peak, according to Godongwana. The higher debt is attributed to weaker nominal GDP growth and increased borrowing in 2025/26. Government's interest on debt has grown faster than the economy and takes a larger slice of the Budget than basic education, health or social protection. "By sticking to a responsible plan, government is making the economy stronger for all South Africans," Godongwana said. He affirmed that South Africa's debt as a share of economic output would reach its highest point this year and then start to decline. The main budget deficit is R12.4-billion lower than forecasted at the time of the 2025 Budget as a result of strong fiscal outcomes for the first ten months of 2025/26. He expects the country's GDP to grow by 1.6% this year and by 2% in 2028. South Africa's debt service costs as a percentage of revenue will decrease from 21.3% in 2025/26 to 20.8% in 2026/27 and continue to decline to 20.6% and 20.2% by 2027/28 and 2028/29, respectively. Principal and interest payments are expected to be R21-billion lower than estimated in the 2025 MTBPS while revenue collections for 2025/26 are projected to be R28.8-billion higher than the 2025 Budget estimate. This means non-interest expenditure will increase by R22.1-billion and government will achieve a primary surplus of 0.9% of GDP. The consolidated budget deficit is expected to narrow from 4.5% of GDP in 2025/26 to 3.1% of GDP in 2028/29. Likewise, National Treasury predicts the main budget primary surplus will increase from 1.6% of GDP in 2026/27 to 2.3% of GDP in 2028/29. Debt service costs have been revised down by R10.6-billion over the medium term, driven by improved bond yields, an appreciating rand and lower inflation and interest rates. An estimated R12-billion of savings under the Targeted and Responsible Savings (TARS) initiative over the medium term can markedly improve service delivery. The TARS initiative was announced in the 2025 MTBPS as ...

    4 min

  8. 2 DAYS AGO

    Treasury expects healthy trade, investment conditions until at least 2028

    Treasury expects healthy trade, investment conditions until at least 2028 National Treasury expects demand from South Africa's major trading partners to tick up from an estimated 3.1% in 2025 to 3.3% in 2026, settling at 3.4% in 2027 and 2028. This trend is supported by strong investments in technology and accommodative fiscal and monetary policies, despite ongoing trade policy uncertainty globally. Global investor participation in the domestic bond market ticked up from 24.6% in 2024 to 25% in 2025, supported by lower risk aversion and improved perceptions of South Africa's credit outlook. In comparison, global trade demand growth is projected to reach 3.4% in 2028. The sovereign risk premium is expected to ease further in South Africa, supported by government's sustained commitment to a credible macroeconomic framework. Treasury explains in it 2026 Budget delivered on February 25 that South Africa's removal from the Financial Action Task Force grey list and the EU list of high-risk jurisdictions, together with a recent upgrade of the country's foreign currency sovereign credit rating, all bode well for investor confidence. TWO SCENARIOS Treasury outlines two scenarios to it baseline economic growth forecast for South Africa of between 1.6% and 1.9% from 2026 to 2028. In the global upside scenario, an improved global environment is driven by easing geopolitical tensions and more stable trade policies that reduce uncertainty, improve supply chains and boost productivity. With supply conditions improving, commodity markets can stabilise and oil prices are likely to remain slightly below baseline in the medium term. Earlier and more decisive monetary easing by major central banks, combined with lower global financial market volatility, strengthens investor appetite for emerging market assets, bolstering emerging market currencies. In turn, stronger global demand and reduced borrowing costs support exports and enhance financing conditions, raising domestic economic growth above the baseline. In this scenario, South Africa's economic growth is projected to average 1.9% from 2026 to 2028. On the other hand, the global downside scenario mulls the possibility of increased geopolitical tensions, further supply chain and critical infrastructure disruptions, as well as heightened uncertainty. These constraints could raise prices for key commodities, including crude oil and gas, while increasing demand for safe-haven assets such as gold. This in turn lifts global inflation, delaying monetary policy easing and weakening global growth. Simultaneously, financial market volatility increases, tightening financial conditions and reducing investors' appetite for risk. For South Africa, higher oil prices and a weaker exchange rate raise imported inflation, while elevated risk premiums lead to higher borrowing costs, delaying the domestic easing cycle and slowing consumption and investment. As a result, growth in this scenario averages 1.6% from 2026 to 2028. PROMINENT RISKS Some of the local risks to South Africa's trade landscape remain that of persistent logistics bottlenecks, weak public infrastructure and exposure to climate shocks. These continue to raise the cost of doing business and threaten production and investment prospects. In contrast, Treasury says faster structural reform implementation – particularly in energy and logistics – would boost potential growth. South Africa is making progress in becoming more trade and investment friendly. Since 2020, for example, government has expanded the use of concessional foreign funding with favourable terms from multilateral and development finance institutions, complemented by Eurobond issuance. In December last year, government successfully raised $3.5-billion in global markets through an oversubscribed transaction. Government has also introduced a formal process to attract new foreign-currency funding structures from financial institutions, as a result of which several transactions have b...

    4 min
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Polity.org.za offers a unique take on news, with a focus on political, legal, economic and social issues in South Africa and Africa, as well as international affairs. Now you can listen to the top three articles on Polity at the end of each day.

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