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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. 5 HR AGO

    Ramaphosa notes education improvement, steady progress in further transforming sector

    Ramaphosa notes education improvement, steady progress in further transforming sector Ramaphosa wrote in his weekly letter to the nation that access to resources and quality teaching is uneven, noting that schools in townships and rural areas often struggle with overcrowding and educators have limited access to professional development and support. Last week during his State of the Nation Address, Ramaphosa spoke about government's work in education to prepare the youth to compete and thrive in a rapidly changing world. He said meeting the constitutional mandate to provide quality education is an "all-of-society effort". One of the efforts to help fill the gap is the Basic Education Employment Initiative, founded in 2020 as part of the Presidential Employment Stimulus (PES). The initiative deploys young people to schools as education assistants. To date, the school assistants programme has created more than 1.3-million work opportunities, Ramaphosa said, the largest youth employment programme in the country's history. "This is part of the goal of the Public Employment Stimulus to deliver public employment and livelihood programmes on a large scale while providing social value in the process," Ramaphosa said. He added that the young people involved in the programme go into schools well prepared. "General school assistants need to at least have grade nine, while education assistants need at least a matric certificate. In the most recent phase of the programme, 32% of education assistants had some sort of tertiary qualification and 14% had a teaching qualification. Education assistants are provided with both compulsory and optional training including on school safety, online safety, financial literacy, word processing, AI fluency and coding," he said. Education assistants have been placed at 19 000 no-fee primary schools to support numeracy and as Reading Champions to support literacy and bilingual reading. The effect of this intervention is being seen in rapid improvements in foundational literacy skills in many schools, Ramaphosa noted. Beyond educational and curriculum support, education assistants are supporting digital learning, working in care and support with at-risk learners, and serving as laboratory and workshop assistants. "This is not only good for the schools. For many of the school assistants, this experience is transformative. They are gaining skills and real work experience that will serve them well in finding employment and succeeding in their careers," Ramaphosa said. He said as government works to expand access to early childhood development (ECD) through the Bana Pele mass registration of ECD facilities and increase subsidies for ECD learners, the PES has stepped up support to the sector through the Social Employment Fund (SEF). He explained that the Department of Trade, Industry and Competition, working with an implementing partner, is helping more than 1 000 previously disadvantaged, underfunded ECD centres to meet the qualifying criteria for an ECD subsidy. "The centres are also receiving nutritional support for learners, as well as toys, books and learning materials. The work supported by the SEF now reaches over 50 000 children in ECD centres across the country," he said. Ramaphosa highlighted that these initiatives illustrate clearly the benefits of multisectoral cooperation between government, the private sector and civil society. President Cyril Ramaphosa acknowledged on Monday that while government has made significant progress in education over the last three decades, from expanding access to school to steadily improving matric results, there are still huge challenges in the sector.

    3 min

  2. 5 HR AGO

    Allianz Trade maintains South Africa’s stable risk rating

    Allianz Trade maintains South Africa's stable risk rating Trade credit insurance company Allianz Trade has maintained South Africa's risk rating at stable in its latest Country Risk Atlas, as the country's GDP is expected to continue growing at modest rates of 1.3% this year and 1.5% in 2027, amid improving infrastructure and energy reforms. Allianz Trade has highlighted the Government of National Unity's continued support for growth with business-friendly policies, despite internal divisions. Moreover, it says the South African Reserve Bank's new inflation target of 3% aims to boost purchasing power; however, there is a risk that debt sustainability could worsen. The rand has strengthened owing to increased government revenues from gold exports, enhancing reserves, it adds. However, unemployment, particularly among the youth, remains a major challenge. South Africa's removal from the Financial Action Task Force (FATF) grey list signals improved financial regulation, Allianz Trade points out, also noting that geopolitical shifts have increased port traffic, positioning South Africa as a key trade hub. OTHER FINDINGS The company has published its third Country Risk Atlas, which assesses the economic outlook, risks and opportunities across 83 countries. It is based on a proprietary risk ratings model that is updated every quarter with the latest economic developments and Allianz Trade's proprietary data. "Our ratings provide comprehensive analysis and insights into the economic, political and business environment, as well as sustainability factors that influence trends in non-payment risk for companies at a macroeconomic level. Despite a year marked by intense trade tensions and multiple layers of risk (political, geopolitical and fiscal), Allianz Trade finds that global country risks improved this year, with 36 country risk ratings upgraded and 14 downgraded. This trend underscores the fiscal, monetary and trade-related coping mechanisms that tend to emerge in times of high uncertainty, the company explains. The 36 economies with improved ratings include Argentina, Ecuador, Hungary, Italy, Spain, Türkiye and Vietnam. "In 2025, the upgrades were driven primarily by stronger macroeconomic fundamentals, supported by more accommodative fiscal and monetary policies. In several emerging markets, better financing conditions, appreciating local currencies, and higher commodity prices allowed for a rollback of transfer and convertibility restrictions, a key dimension of political risk. However, while the number of downgrades appears low, it has almost tripled compared to 2024 (from five to 14), Allianz Trade says, also noting that some key economies like France, Belgium and the US are part of the list, said to showcase persistent medium-term headwinds for corporates. "Resilience broadens, but risk clusters persist in important economies. For instance, last year, we saw a deterioration in the medium-term macroeconomic environment in seven markets, compared with 18 that improved. "The global economy is undergoing one of its most turbulent periods in decades, with a convergence of shocks and structural shifts such as AI, demographics, climate change, trade, and regulation. Uncertainty remains elevated, and corporates must go for a selective, country-by-country approach so they can expand their business while safeguarding their assets. "This underlines the need for granular, forward-looking risk management that goes beyond headline ratings. Continuous monitoring of transfer and convertibility conditions, fiscal trajectories, and trade exposures will be essential to anticipate turning points," Coqui adds. "However, these deteriorations include Belgium, Brazil, France and the US, which together account for about one-third of global GDP, meaning ten times as much as the economies that saw an improvement," Allianz Trade CEO Aylin Somersan Coqui points out. "Among high-income economies, improved political stability, disinflation and stronger ...

    4 min

  3. 5 HR AGO

    Steenhuisen warns DA about exiting alliance

    Steenhuisen warns DA about exiting alliance South Africa's second-largest political party faces some internal pressure to quit the ruling coalition, but doing so would damage its growth prospects and be a "big mistake," its outgoing leader said. "The biggest switch off for them would be to see a party that panders to a right-wing element that is more interested in what Donald Trump's doing than what we are actually doing here in South Africa to build a better country," he said in an interview in Cape Town. Being in the government has enabled the DA to adjust its branding and attract more Black voters, who now view the party differently because it has demonstrated its ability to deliver better services, he said. The DA won 22% of the vote in the last national elections in 2024, and its internal polling shows it now has about 30% support. Its next major test will come in municipal elections, which must be held within the next 12 months. The party is facing a major challenge in its stronghold of Cape Town and the surrounding Western Cape province from the Patriotic Alliance, a party that has attracted a strong following among people of mixed race. "I'm very worried about the growth of the PA particularly, particularly in the Western Cape," Steenhuisen said. "I think that the DA needs to look very carefully at the strategy and understand why the PA is making inroads and then mitigate against that." Steenhuisen, 49, who serves as agriculture minister, said earlier this month that he won't seek re-election at the DA's conference in April, even though he was widely expected to secure another term. He intends to remain in the cabinet and keep his party membership. "Certainly I think he's got all of the attributes to be an excellent leader of the party and he's a person of high integrity," Steenhuisen said. "But, you know, it's not for me to anoint a successor. I think it's up for the party to decide." While nominations for his replacement will only open formally in two weeks, Cape Town mayor Geordin Hill-Lewis is seen as the current frontrunner. A bloc of conservative DA members who back the kind of policies favoured by US President Donald Trump want it to return to the opposition benches, yet doing so would diminish its appeal among a primarily Black electorate, said John Steenhuisen, who will step down as party leader in April after almost seven years at the helm. The business-friendly Democratic Alliance (DA) and eight smaller rivals joined the African National Congress-led government after 2024 elections failed to produce an outright winner for the first time since apartheid ended three decades earlier. President Cyril Ramaphosa's new administration has made headway in addressing pressing infrastructure challenges and rebuilding investor confidence, helping fuel a rally in the nation's assets, but the two main parties have sparred repeatedly over policy and appointments.

    2 min

  4. 3 DAYS AGO

    Economists see three more South Africa rate cuts, split on when

    Economists see three more South Africa rate cuts, split on when The South African Reserve Bank will likely cut interest rates three more times before ending its current easing cycle, according to a survey. Most of the 14 economists canvassed by Bloomberg, including those at Morgan Stanley, UBS Group AG and BNP Paribas SA, see scope for the central bank to lower borrowing costs three more times by 25 basis points each, to 6%. That would bring to an end its rate-cutting cycle that began in September 2024 and has so far delivered cumulative reductions of 1.5 percentage points, they forecast. BNP sees the cuts being completed by September and UBS and Morgan Stanley by the first quarter of 2027. The central bank's own model signals room for a further 75 basis points of easing by 2027. "If all the disinflation impulses remain intact, including the stronger rand, there could be scope to deliver these 75 basis points of interest-rate cuts even quicker," said Elna Moolman, head of South Africa macroeconomic research at Standard Bank Group. More rate reductions would support an economy that has stagnated for more than a decade, likely boosting household consumption expenditure, which accounts for about two-thirds of gross domestic product. The central bank's monetary policy committee left the benchmark rate at 6.75% on January 29, citing global uncertainty and risks from higher food and electricity prices, even as it lowered its inflation forecast to 3.3%, closer to its new 3% target. Factors supporting lower inflation include the rand's more than 3% appreciation this year as the dollar weakened and gold and platinum — key exports — rallied, as well as oil prices averaging about $66 a barrel, close to the central bank's 2026 assumption. "We maintain that a majority on the MPC favour a more patient approach to policy recalibration under the SARB's new 3% inflation target," BNP's Jeffrey Schultz and Lior Kohanan said in a note last month. "We stick to our call for a quarterly pace of 25 basis point cuts in 2026 and a terminal rate of 6% reached by the end of the third quarter." Goldman Sachs Group and Nedbank Group are among the outliers, forecasting seven and four 25-basis-point cuts, respectively. Goldman's dovish view is based on its outlook for lower inflation. "We maintain our forecast for rate cuts at alternating MPC meetings down to a 5% terminal rate reached in early 2028," Andrew Matheny, an economist at the investment bank, said in a note.

    2 min

  5. 3 DAYS AGO

    Zille confident DA will do well in CoJ, promises to fight corruption if elected mayor

    Zille confident DA will do well in CoJ, promises to fight corruption if elected mayor Ahead of the upcoming local government elections, Democratic Alliance (DA) Johannesburg mayoral candidate Helen Zille assured Polity on Friday that ending corruption is one of her priorities for the City of Johannesburg (CoJ). Zille was speaking in Johannesburg, during a media meet and greet, where she expressed confidence that her party would "do good" in the CoJ. "We will do our best. We will make the issues the issue, and we will appeal to people who want solutions," she stated. Earlier this week the party accused African National Congress-led municipalities and Rand Water of collapsing the Gauteng water system, threatening to take legal action against Johannesburg Water and Water and Sanitation Minister Pemmy Majodina. This follows weeks of dry taps around the province, exacerbated by infrastructure failure, supply throttling and recent labour issues at Joburg Water. The party is demanding that Majodina immediately instruct Rand Water to regularly and timeously communicate directly with the public and not through metros. The DA on Wednesday also called for the water crisis to be declared a national state of disaster to unlock emergency funding and resources. DA Water and Sanitation spokesperson Stephen Moore cautioned that there needed to be clear rules with such funding. "…this cannot be a blank check or an avenue for corruption, it cannot be a bailout for general municipal cash flow. Any support must be ring-fenced for stabilisation and non-revenue water reduction, with strict reporting and measurable outputs. Leak repair capacity, pressure management and pipe replacement are the key things…," he said. Zille said the DA would head to court to ensure that people's constitutional rights were realised. She said a DA leadership would ring-fence the money for maintenance of water infrastructure and for new investment. The party will also ensure that there are public-private partnerships to help catch up with the backlog. With regards to President Cyril Ramaphosa's newly announced National Water Crisis Committee, Zille said she would "wait and see" if any good results came from it. "…I know that President Ramaphosa loves to have a lot of committees and task teams and other things, and I will wait and see," she said. During his State of the Nation Address Ramaphosa declared the water crisis a national priority, announcing the establishment of the National Water Crisis Committee aimed at addressing the challenges. Ramaphosa will chair this committee.

    2 min

  6. 3 DAYS AGO

    Mixed political reactions to water crisis committee announced during SoNA

    Mixed political reactions to water crisis committee announced during SoNA Political parties expressed mixed reactions to President Cyril Ramaphosa's State of the Nation Address (SoNA), criticising the announcement of the National Water Crisis Committee (NWCC). On Thursday, Ramaphosa declared the ongoing water crisis as the most critical national concern and announced that he will chair a NWCC, which will provide a coordinated national response to water supply disruptions. The President warned that municipal managers would be held personally liable for failing to supply water, noting that 56 municipalities already faced criminal charges. On Wednesday, Ramaphosa instructed Water and Sanitation Minister Pemmy Majodina and Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa to skip SoNA and attend to water challenges in the City of Johannesburg and in the City of Tshwane. ActionSA Parliamentary leader Athol Trollip said water infrastructure took decades to collapse and equally long to rebuild, stating that Ramaphosa's "sudden flurry" of promises is too little, too late. He said Ramaphosa's latest commitments "ring hollow". "He has sleepwalked into yet another crisis of his own making. Gauteng municipalities' taps have dried up whilst the Vaal river and dam system is overflowing, this is the worst indictment of the national, provincial and local governments," Trollip said. He noted Ramaphosa's promises in last year's SoNA to fast-track major water projects, finalise the National Water Resource Infrastructure Agency, introduce licensing and enforcement for water service providers, and unlock large-scale investment in water infrastructure. "…yet the national water crisis has only worsened," Trollip pointed out. The uMkhonto we Sizwe Party described the committee as another "empty promise" by government, while the Economic Freedom Fighters accused the Government of National Unity (GNU) of lacking capacity in the ongoing water challenges. Democratic Alliance (DA) leader John Steenhuisen pointed out that despite Ramaphosa's admission that some local municipalities were not providing basic services as they should, he said the President's SoNA did not go far enough to deliver action to fix the "broken" municipalities. He said South Africans and all local businesses needed municipalities that worked. He claimed his party had long called for accounting officers to be held personally liable for local government spending that fails the annual audit, welcoming the commitment by the President to charge municipal managers for failing to provide services as called for in the Constitution. Steenhuisen noted the ongoing water crisis and blamed it on African National Congress mayors and cadre deployment. "…the situation will not recover unless voters choose a new government with a proven track record in honest, transparent governance. Where the DA governs, we deliver water within the existing framework, proof that it can be done," he challenged. Earlier this week, the party threatened legal action against Johannesburg Water and Majodina. Meanwhile, Steenhuisen, who is also Minister of Agriculture, welcomed Ramaphosa's declaration of a State of Disaster to combat the foot-and-mouth disease, currently ravaging farms. He said the State of Disaster would strengthen the work already underway, accelerate rollout, tighten movement controls, and unlock the resources the country's veterinary teams and farmers urgently needed. He said economic recovery under the GNU was now underway. "Inflation has moderated. Investor confidence is showing signs of recovery. The country has exited the grey list. Government debt appears to be stabilising. These are important signals that, with the adults in the room in government, South Africa can rise," Steenhuisen said. However, he said South Africa needed faster reform, which he claimed the DA had been working towards and fighting for in government. "South Africa must accelerate economic growth if...

    4 min

  7. 4 DAYS AGO

    Human rights commission calls for water crisis to be declared a national disaster

    Human rights commission calls for water crisis to be declared a national disaster The South African Human Rights Commission (SAHRC) is calling for the water outages currently crippling South Africa to be declared a national disaster, as it believes that the water challenges have reached crisis proportions. The SAHRC will be issuing a letter to the head of the National Disaster Management Centre containing the recommendation of a national disaster on the water crisis. The commission said it was concerned by the ongoing downward spiral regarding water management and distribution as communities and households in various parts of the country continued to battle with lack of access to water. The water challenges are widespread and significantly disrupt the lives of communities. It is also significantly compromising the delivery and functioning of other essential services, such as schooling and healthcare. The commission highlights how data from the South African Water Justice Tracker corroborates the fact that the water crisis is not a localised phenomenon but is widespread, affecting various parts of the country. The Water Justice Tracker is a project partnership between the SAHRC and the University of the Witwatersrand to track drivers and causes of failure by water services authorities in providing households with clean and sufficient water. It reveals aging infrastructure; inadequate funding models; skills deficit and poor intergovernmental coordination as some of the key systemic and structural drivers contributing to the dysfunctionality of water services authorities. The crisis is also a result of insufficient attention and allocation of budget for the maintenance of water infrastructure; insufficient planning for population growth; high levels of water losses beyond the acceptable norms; and the scourge of water infrastructure vandalism related to the emergence of water mafias, besides others. "Considering the dire nature of the water crisis in the country, the SAHRC, empowered by Section 13(1)(a)(i) of the South African Human Rights Commission Act 40 of 2013, recommends that government declare the water crisis engulfing the country a national disaster in accordance with the Disaster Management Act 57 of 2002." "The water crisis has reached a level where a broad, integrated and coordinated effort is required to turn the dire situation around. Therefore, the classification and concomitant declaration of the water crisis in the country as a national disaster constitutes a reasonable measure in the circumstances." Properly and effectively implemented, the national state of disaster will ensure that emergency funds are mobilised and government collaboration is better coordinated. "An intervention of this magnitude is essential amid the ongoing water crisis in the country," the SAHRC said, cautioning, however, that the declaration of a national state of disaster on the ongoing water crisis should not become "a breeding ground for corruption, malfeasance and embezzlement of funds". Sufficient oversight measures to ensure fiscal prudence should be instilled. The SAHRC calls on government to continue to institute proactive measures, such as ensuring preventative infrastructure maintenance; critical water infrastructure rehabilitation; expediting the finalisation of bulk water projects; and instituting community behavioural change campaigns on water preservation.

    3 min

  8. 4 DAYS AGO

    IMF finds South African economy resilient, but warns of downside risks

    IMF finds South African economy resilient, but warns of downside risks International financial institution the International Monetary Fund (IMF), as part of its yearly consultation with South Africa, has found that its economy has proven resilient thus far, owing to natural endowments, independent institutions and a strong monetary policy framework. It warns, however, that the country also faces downside risks and entrenched structural impediments that constrain potential growth and employment. The IMF's executive board completed its 2025 Article IV Consultation, which found that South Africa's economic activity is expected to improve gradually over the medium term, although risks remain tilted to the downside, related to continued trade and global policy uncertainty and domestic reform fatigue. Economic activity picked up in 2025, with growth estimated at 1.3%, supported by robust private consumption. Inflation moderated to an average of 3.2%, which enabled a shift to a lower 3% inflation target. The current account remained stable despite higher US tariffs and global policy uncertainty, and the banking sector remains sound. Public debt, however, has risen further, reaching 77% of GDP at end-March 2025, the IMF says. Growth is projected to accelerate to 1.4% this year and to 1.8% in the medium term, supported by resilient consumption and investment driven by structural reforms. Inflation is projected to reach the 3% target by end-2027. However, while fiscal deficits are moderating, they remain elevated, and public debt is therefore projected to continue rising over the medium term. Risks are tilted to the downside, mainly stemming from global fragmentation, trade tensions and domestic reform fatigue, although upside risks include faster reform implementation and stronger global growth. The IMF executive directors emphasised the need for well-coordinated policies and reforms to safeguard fiscal sustainability, secure low and stable inflation, ensure financial stability and achieve higher and inclusive growth. South Africa's commitment to strengthening fiscal sustainability was welcomed and the executive directors emphasised the need for credible, growth-friendly and socially acceptable fiscal consolidation to stabilise and reduce public debt, while protecting priority spending. Consolidation efforts should focus on reprioritising and improving the efficiency and equity of public spending, while protecting vulnerable groups, along with continued efforts to mobilise domestic revenues, the directors recommend. "A fiscal rule anchored in a prudent debt ceiling could help underpin the adjustment and bolster credibility," they add. The South African Reserve Bank was also praised for reducing inflation and the IMF welcomed the move to a lower, 3% inflation target with a narrower band, which should support macroeconomic stability and reduce borrowing costs. The IMF recommends maintaining a flexible and data-driven approach focused on guiding inflation expectations to the new target. Careful communication and gradual implementation of the new target are key to maintaining credibility, while preserving flexibility in case of shocks. Further, the assessment welcomed the authorities' efforts to safeguard financial stability, including bank-resolution and safety-net reforms and steps to bolster the anti-money laundering and countering of financing of terrorism framework that has enabled South Africa's exit from the Financial Action Task Force grey list. The IMF encourages the authorities to continue to monitor risks related to nonperforming loan and the sovereign–financial sector nexus, while strengthening supervision of banks and non-bank financial institutions. Additionally, it is important to improve access to finance, including smal and medium-sized enterprises, while bolstering payment-system efficiency, the IMF directors emphasise. The ongoing electricity and logistics reforms aimed at removing critical impediments to growth throu...

    7 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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