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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. 2d ago

    Treasury says upgrades show path to investment grade

    Treasury says upgrades show path to investment grade South Africa's recent credit-rating upgrades are a strong endorsement of government policy and show the nation can restore its coveted investment-grade status if it stays on track, said the National Treasury chief. "This is a clear change of direction in our ratings trajectory after more than a decade of negative ratings news," Duncan Pieterse wrote in an op-ed published on News24 Thursday. "It could ultimately see South Africa regain its investment grade status — if it continues to do the right things on fiscal and economic policy." Fitch Ratings raised its credit assessment of South Africa on June 5 to BB, two notches below investment grade, delivering the upgrade before putting the rating on a positive outlook as it often does before taking such a step. The move brought it in line with Moody's Ratings and S&P Global Ratings, which also have the nation on a positive outlook — a significant marker of confidence against the backdrop of dimming global growth prospects and heightened inflation risks due to the Iran war. "South Africa is only the second Group of 20 country to be upgraded by Fitch this year," Pieterse said. "It is one of only two G20 countries on positive outlook at S&P and the only one at Moody's." After years of weak economic growth, rising debt and deepening concern over crime, mismanagement and corruption — which saw South Africa's credit rating downgraded to junk by all three agencies between 2017 and 2020 — investors have taken note. While the rand has weakened slightly since the Middle East conflict began in late February, it remains about 9% stronger against the dollar versus a year ago. The yield on the benchmark 10-year South African government bond are roughly 148 basis points lower. In addition to improving public finances, South African assets have also benefited from the country's removal from a dirty-money watch list and the adoption of a 3% inflation target by the central bank last year, whose announcement delivered a sharp drop in government bond yields. Pieterse said that being two notches below investment grade means there is still a way to go, "but the momentum is now positive" and the government is committed to lifting economic growth and continuing to lower public debt. South Africa's coalition government, formed after the African National Congress lost its parliamentary majority in 2024 elections for the first time since 1994, has made economic growth a core goal under the leadership of President Cyril Ramaphosa. Still, the future of the nation's reform agenda, which has numerous critics in a country still blighted by inequality 30 years after the end of White-minority rule, will face questions in coming years. South Africa next holds national elections in 2029. But a municipal ballot in November could deliver further voter setbacks for the ANC that weakens Ramaphosa's position at the head of the party — a post which he must relinquish anyway at the end of next year. The development could weaken his influence over the succession process, raising questions about the durability of his reforms and even his ability to remain as president of the nation. The ANC has forced its last two leaders to step aside as the head of state after relinquishing the party leadership position.

    3 min
  2. 2d ago

    Foundation condemns ‘reckless’ national shutdown calls, warns of xenophobic anarchy

    Foundation condemns 'reckless' national shutdown calls, warns of xenophobic anarchy The Ahmed Kathrada Foundation (AKF) has strongly condemned recent calls for a "national shutdown", labelling it "reckless" and warning of the risk of it descending into anarchy and xenophobic violence. Calls for a shutdown follow a June 30 deadline issued by the anti-illegal immigration group March & March, which is demanding that undocumented foreign nationals leave South Africa. The AKF urged government to fast-track its immigration and employment plans to maintain public confidence, and wants the immediate rollout of promised workplace inspectors to crack down on unscrupulous employers, and the execution of labour laws to prevent the exploitation of vulnerable workers. The foundation urged citizens to reject the shutdown and use constructive dialogue to deal with the issue. The foundation noted a "cautious optimism" following President Cyril Ramaphosa's recent address on border security and migration. Major federations such as COSATU, FEDUSA, and SAFTU welcome the enforcement of immigration laws, and organised business, faith-based organisations, and political parties support the human-rights-based approach. The AKF noted that previous State inaction directly fuelled community frustrations and vigilantism. The AKF said law enforcement must act firmly against lawlessness, calling on the South African Police Service and Border Management Authority to proactively stop vigilantism. "Security forces must prevent any economic or transport blockades. The State must relentlessly pursue internal corruption within the immigration system and political parties must resist using migration for populist electioneering and xenophobic rhetoric," it said. The foundation pledged to closely monitor the government's migration plan to ensure order is restored while strictly respecting human dignity. Meanwhile, more than 2 400 foreign nationals have been processed and repatriated from South Africa. Countries such as Nigeria, Ghana, Malawi, Mozambique, and Zimbabwe have initiated government-funded emergency evacuations and voluntary repatriation flights. The Home Affairs Department confirmed the processing of 586 Nigerian nationals for repatriation after they were found to be residing in the country illegally. The first repatriation flight left on Thursday morning, carrying 268 passengers back to Nigeria. The remaining individuals from the processed group are scheduled to leave on a second flight on Monday.

    2 min
  3. 3d ago

    ActionSA labels GNU’s tenure a 'failure'

    ActionSA labels GNU's tenure a 'failure' ActionSA has launched a scathing assessment of the Government of National Unity (GNU), declaring its two-year tenure a failure that has yielded a bloated executive, record unemployment, and widespread institutional decay. Speaking on Thursday, ActionSA parliamentary leader Athol Trollip revealed the party's "GNU Performance Tracker", which gives government's overall performance an F rating, citing a severe lack of urgency, accountability, and results. Trollip heavily criticised President Cyril Ramaphosa's decision to expand the Cabinet rather than streamline State expenditure. The executive has grown to 32 Ministers and 43 Deputy Ministers. According to ActionSA, this "bloated executive" costs taxpayers R6-billion a year, with R600-million going to salaries for Ministers, Deputy Ministers and support staff; R350-million going to travel and accommodation expenses; and R4.5-billion for VIP protection services. Trollip argues that this massive financial investment has yielded zero returns, pointing to a string of recent ministerial scandals. He highlights a suspended Police Minister linked to institutional infiltration, a Higher Education Minister who lied to Parliament, and a Social Development Minister who concealed luxury SUV gifts. ActionSA also awarded the GNU an F for Ethical Leadership and Public Service. The party painted a grim picture of the country's economic trajectory, noting that the expanded unemployment rate has climbed to an historic 43.7%. The economic indicators highlight a deep-seated crisis, with 345 000 jobs lost in the first quarter of 2026 alone, 12-million total South Africans currently unemployed and 0.5% GDP growth in Q1 2026, following weak growth of 0.6% in 2024 and 1.1% in 2025. "These are not growth figures; these are stagnation figures," Trollip states, emphasising that South Africa requires sustained growth of 3% to 4% to curb joblessness. The category of Economic Growth received an F from ActionSA. While the party acknowledges isolated improvements, it rates Infrastructure for Trade and Transport a D. Trollip notes that the Cape Town and Durban ports remain among the worst-performing container hubs globally, and freight rail volumes sit well below State targets. He does, however, concede that Eskom's energy availability factor has improved, marking one year without loadshedding. "But we do not congratulate a fish for swimming," Trollip remarks. "We ask why it nearly drowned in the first place." Law and Order received an E grade. While the national murder rate has seen a slight decline, an average of 58 people are still killed every day, and gender-based violence remains a national crisis, Trollip says. He raises major concerns over recent revelations from the Madlanga Commission and Parliament's Ad Hoc Committee, saying both probes exposed how deeply criminal syndicates have penetrated the top tiers of South African law-enforcement institutions.

    3 min
  4. 3d ago

    SARB sees financial system staying resilient despite Iran war

    SARB sees financial system staying resilient despite Iran war South Africa's central bank said on Wednesday the country's financial system was likely to remain resilient despite tighter financial conditions and monetary policy stemming from the Iran war. Africa's biggest economy started to pick up pace last year and investor sentiment brightened on signs of fiscal discipline, but the Iran war has dampened the near-term outlook as it has rippled through oil markets, capital flows and household finances. "The oil price shock is expected to continue to exert inflationary pressure, potentially prompting tighter monetary policy than before the conflict," the South African Reserve Bank (SARB) said in its Financial Stability Review, a biannual checkup on the health of the financial system. The SARB's quarterly projection model now suggests another interest rate increase in 2026 after a 25-basis-point hike at its policy meeting on May 28. "Relief for interest rate-sensitive households is unlikely to materialise as expected at the beginning of the year," it said in the report. It noted that beyond the immediate impact of the Middle East conflict, advances in frontier AI, notably Anthropic's Claude Mythos Preview, also posed financial stability risks. "Cyber risk has shifted from episodic and largely manageable events to continuous and compounding," it added. Other risks mentioned in the review included capital outflows amid heightened market uncertainty, unsustainable fiscal dynamics and increased financial distress in households. "Despite these risks, the South African financial system remains resilient overall," said the central bank. South Africa's foreign exchange reserves have grown to over 16% of gross domestic product, the highest recorded level since the early 1960s, and the country meets all major reserve-adequacy metrics, the bank continued.

    2 min
  5. 3d ago

    South Africa posts largest current-account surplus since 2022

    South Africa posts largest current-account surplus since 2022 South Africa posted its largest current-account surplus in four years in the first quarter as the value of gold exports surged and imports dropped. The balance on the current account — the broadest measure of trade in goods and services — widened to a surplus of 2.4% of gross domestic product, or R190.7-billion, from 0.6% in the previous quarter, the South African Reserve Bank said in a report on Thursday. That beat the median estimate of nine economists surveyed by Bloomberg, who forecast a positive balance of 1.1% of GDP. The quarterly surplus was the second in a row and the biggest since the third quarter of 2021, the central bank data showed. As a percentage of GDP, it was the highest since the first quarter of 2022. The better-than-expected outcome may boost the rand, which is little changed against the dollar since December after a rally at the start of the year was erased by the US-Israeli war in Iran that erupted on February 28. South Africa's trade surplus jumped to R437.9-billion in the first quarter from R282.2-billion "as the value of merchandise and net gold exports increased while that of merchandise imports decreased," the Reserve Bank said. The value of exported goods and services rose by R78.3-billion, reflecting higher prices and volumes, while the value of imports of goods and services dropped R96.8-billion as prices and volumes decreased. The deficit on the services, income and current transfer account was wider at R247.2-billion, compared with R232.1-billion during the prior three months, or 3.1% of GDP from 3% previously. "The wider deficit emanated from larger deficits on the primary income and current transfer accounts, while the shortfall on the services account narrowed," the central bank said.

    2 min
  6. 4d ago

    'State capture never ended': Hill-Lewis backs Rasilingwane to clean up Ekurhuleni

    'State capture never ended': Hill-Lewis backs Rasilingwane to clean up Ekurhuleni The DA has launched its Election Pledges to the people of Ekurhuleni, declaring it a definitive promise that the city will be rescued from crippling institutional corruption and structural collapse. Speaking at the party's campaign launch alongside the DA's mayoral candidate for Ekurhuleni Khathu Rasilingwane, DA leader Geordin Hill-Lewis pulled no punches about the scale of the crisis he said was facing the municipality. Hill-Lewis claimed that "State capture never truly ended in Ekurhuleni". Instead, he argued, the metro had "mutated into the epicentre of a Gangster State" where he stated political corruption was enforced through fear. "Every contract, every service, everything is corrupted, so that politicians and senior officials can steal millions and millions out of the city. And their corruption is protected by gangsters who will murder to keep it quiet," he said. According to the DA, the everyday struggles of Ekurhuleni residents were a result of a deeply entrenched criminal network. The DA is positioning Rasilingwane as the "strong medicine" needed to deal with corruption. The party highlighted its governance track record in Cape Town, the Western Cape, Midvaal, and Umgeni as proof that "clean, transparent" governance is possible in South Africa. Hill-Lewis highlighted that the party's campaign outlined a choice between two visions for the residents of Ekurhuleni - one the failed vision of the ANC, EFF and MK, which he said was more "State control, more corruption, more cadre deployment, more racial division, more reckless spending, more hostility to business, and more empty promises". On the other side was the DA's vision of "growing economy, honest government, safe communities, quality services, infrastructure that works, and a State that helps people to build their own future", he said. The rescue plan targets urgent revitalisation across Tembisa, Katlehong, Benoni, Boksburg, Kempton Park, Germiston, and Edenvale. The primary objectives focus on fixing potholes, securing electricity grids, stabilising water supply, and building a professional, responsive municipal administration that actively welcomed job-creating investment.

    2 min
  7. 4d ago

    SACP blames capitalism, exploitative employers for immigration crisis, condemns vigilantism

    SACP blames capitalism, exploitative employers for immigration crisis, condemns vigilantism The SACP said while it agrees that South Africa cannot tolerate illegal immigration or corruption in its immigration system, the root of the crisis is not migrant workers, but rather capitalism, accusing some employers of deliberately exploiting the status of undocumented migrants to pay them low wages and undermine labour rights. The party believes that undocumented migration is inextricably linked to labour exploitation, adding that it strongly supports proposed labour inspections to penalise employers who break immigration and labour laws. The party welcomed President Cyril Ramaphosa's national address on migration, affirming that immigration enforcement remains strictly the duty of the State. While acknowledging legitimate public concerns about systemic issues, the SACP issued a strong warning against vigilantism, xenophobia, and the scapegoating of foreign nationals. The SACP said it supported the President's stance that immigration laws must only be enforced by authorised State institutions. The party strongly condemned mob vigilantism, street intimidation, and individuals demanding identity documents under the guise of "community concern". The SACP said such lawlessness endangers communities and undermines the rule of law. The party cautioned against narrowing the migration issue down to a security or policing problem. Echoing Ramaphosa's sentiment, they noted that illegal immigration is not the sole cause of South Africa's economic challenges. Instead, the SACP directed the focus to structural causes, mass unemployment and poverty, deindustrialisation and weak local production and the ongoing domination of the economy by monopoly capital. To address the challenges faced by poor, working-class communities, the SACP insists that migration must be part of a broader socioeconomic transformation programme. The party wants robust working-class solidarity to confront what it says are systemic failures, rather than turning documented and undocumented workers against each other. The SACP suggests the building of democratic, community-owned, and worker-controlled economic alternatives, such as cooperatives, buying clubs, and local procurement systems, and the expansion of public employment, land and agrarian transformation, and developing local manufacturing. Ties must be strengthened with the Southern African Development Community and the African Union to address the root causes of forced migration, the party adds. The SACP also wants government to ensure the Inter-Ministerial Committee on Migration collaborates with civil society, organised labour, and legitimate community structures.

    2 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.