Category: Government Opinion Pieces

The South African government is “looking forward to engaging” with United States of America (US) President Donald Trump’s administration on bilateral relations and other issues.

This according to a statement released by the Presidency on Monday, following a post by President Trump – released on his social media, Truth Social – that the US will be cutting off funding to South Africa, pending an investigation into the recently signed Expropriation Act.

On Sunday evening, President Trump said on Truth Social: “South Africa is confiscating land, and treating certain classes of people VERY BADLY (sic). It is a bad situation that the Radical Left Media doesn’t want to so much as mentioned.

“A massive Human Rights VIOLATION (sic), at a minimum, is happening for all to see. The United States won’t stand for it, we will act. Also, I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!”

However, the new Act states that property may not be expropriated arbitrarily or for a purpose other than a public purpose or in the public interest.

The Expropriation Act, which underwent a five-year public consultation process, was deliberated in Parliament, and is in line with the South African Constitution.

The Act repeals the Expropriation Act of 1975 and allows for the state to expropriate land in the public interest – subject to just and equitable compensation.

On Monday morning, the Presidency committed to engaging the US on the new Act.

“The recently adopted Expropriation Act is not a confiscation instrument, but a constitutionally mandated legal process that ensures public access to land in an equitable and just manner as guided by the constitution.

“South Africa, like the United States of America and other countries, has always had expropriation laws that balance the need for public usage of land and the protection of rights of property owners.

“We look forward to engaging with the Trump administration over our land reform policy and issues of bilateral interest. We are certain that out of those engagements, we will share a better and common understanding over these matters,” the Presidency said.

Government has not confiscated any land

The Presidency has also refuted any allegations that land has been confiscated by the state.

“South Africa is a constitutional democracy that is deeply rooted in the rule of law, justice and equality. The South African government has not confiscated any land.

“The US remains a key strategic political and trade partner for South Africa. With the exception of PEPFAR [U.S. President’s Emergency Plan for AIDS Relief] Aid, which constitutes 17% of South Africa’s HIV/AIDS programme, there is no other significant funding that is provided by the United States in South Africa,” the Presidency said.

Transport Minister Barbara Creecy and stakeholders in the fuels industry have adopted a logistics plan for the transportation of jet fuel for OR Tambo International Airport (ORTIA).

The stakeholders include SASOL and the Fuels Industry Association of South Africa.

“This means that there is no longer a shortage of jet fuel for the refuelling of airlines across ORTIA,” the Transport Department said on Sunday.

READ | Jet fuel secured for OR Tambo International Airport

The logistics plan was developed by the Airports Company South Africa (ACSA) and adopted in a meeting convened by the Minister on Friday, 31 January.

On 1 February, the opening stock at ORTIA was 20.1 million litres.

“An additional 59 million litres of jet fuel have been injected into the pipeline in the last week… and this volume will arrive at ORTIA by 6 February. This volume may necessitate the removal of the current restrictions on airlines and bring the fuel supply closer to normal operations,” the department said.

The department said 71.5 million litres of jet fuel will be imported into Durban via three vessels expected to arrive on 5 February and 10 February, respectively. The imported fuel will then be transported to ORTIA via pipeline.

The total available stock in February will be 150.6 million litres.

“In addition, the fuel industry has also agreed to establish a mechanism to share across contracted airlines so that any airline whose supplier runs short is able to access from a non-contracted supplier.

“The Minister has commended the various stakeholders for their collaborative efforts.  She also expressed her appreciation to all partners, airline customers, and the public for their understanding and co-operation during this period,” the department said.

Eskom has issued an alert for a high risk of load shedding “at short notice”.

The power utility has not implemented rolling black outs for at least 10 months owing to the implementation of the Energy Action Plan and Generation Recovery Plan.

Eskom Group Chief Executive, Dan Marokane, explained that there had been several breakdowns over the past week which may result in Stage 4 load shedding over the weekend.

“This is a potentially temporary setback. Load shedding is largely behind us due to the structural improvements in our generation fleet. However, over the past seven days, we have experienced several breakdowns that require extended repair times.

“This has necessitated the use of all our emergency reserves, which now need to be replenished. Consequently, we are closely monitoring the status of our current emergency reserves, and load shedding up to Stage 4 may be implemented over the weekend,” Marokane said.

South African consumers will have to brace for another blow to their cost of living, as the National Energy Regulator of South Africa (NERSA) has approved a 12.74% electricity price hike for Eskom, set to take effect in the next financial year.

The regulator has also approved further hikes of 5.36% for 2026/27 and a further increase of 6.19% for the 2027/28 financial year.

The decision comes as part of Eskom’s Sixth Multi-Year Price Determination (MYPD6) revenue application for the 2025/26, 2026/27, and 2027/28 financial years, which was announced on Thursday afternoon.

Tough balancing act

NERSA Board Chairperson, Thembani Bukula, described the complexity of the decision-making process as a “delicate balancing act” of “conflict” that took into account the needs of all stakeholders.

“We are required to ensure that Eskom is sustainable within the short and the long term. At the same time, we are required to ensure that the electricity services that Eskom provides are affordable.

“This is never an easy task. For inevitably, it is also influenced not just by our methodologies and rules but by the greater economic environment both locally and internationally. We remain guided and directed by the policies and the legislation of this country,” Bukula said.

A question of affordability

Last year, Eskom applied to NERSA for increases of 36% in 2025/26, 11.81% in 2026/27, and 9.1% for the financial year 2027/28.

This proposal sparked significant public and business outcry, with many deeming the increases unaffordable.

Bukula highlighted that the regulator took extensive steps to ensure that public participation inputs from all stakeholders were considered.

Stakeholder meetings and public hearings were held with written submissions also accepted by the regulator.

“During this process, we received various inputs from the stakeholders who came to our presentations as well as inputs that we got from the written comments. Top of the list was the affordability of electricity if the prices applied for by Eskom were approved. This was voiced by domestic customers as well as the business customers.

“Domestic customers stressed the fact that if these prices are approved, they then have to choose between buying food or buying electricity. Businesses on the other side made it clear that if these increases are approved, a lot of them would be forced to close their businesses,” he said.

The first price hike is set to be implemented on 1 April 2025.

Western Cape Premier Alan Winde has officially handed over to the South African Police Service (SAPS) a report detailing the structural engineering findings of the George building collapse.

Winde handed over the report on Thursday to the province’s Police Commissioner, Lieutenant-General Thembisile Patekile, and the lead investigator from SAPS, Captain Johan de Lange.

The Western Cape Government (WCG) commissioned an independent investigation into the building collapse in George on 6 May 2024.

The incident, which occurred while the building was still under construction, resulted in the deaths of 34 people and serious injuries to many others.

Twenty-eight people were rescued alive in a multi-stakeholder disaster operation.

“At the time, the Western Cape Government understood that the event would have repercussions for human lives and livelihoods, and that an investigation into its cause would be essential.

“And so, while the multi-stakeholder operation was underway, the WCG secured the services of an independent structural engineering firm to conduct an investigation of the collapse site, simultaneous with the rescue operation,” the statement read.

The WCG stated that the peer-reviewed final report of this firm was to ensure its integrity.

“This probe is one of several that were launched, with the SAPS being the lead body responsible for investigating an incident of this nature,” Winde said.

This means the report is now under the jurisdiction of the SAPS, which must take into account both the findings of this independent report and all other evidence available during the overall criminal investigation.

The WCG believes the report’s technical findings will greatly aid the SAPS investigation in determining whether charges should be filed.

“Given the nature of the incident and the fact that 34 people tragically lost their lives, it is entirely possible that criminal proceedings may ensue.

“It is for this reason that the findings of the independent probe cannot be made public so that we do not in any way compromise the SAPS investigation and further possible proceedings,” the Premier explained.

The provincial government said the findings of the various agencies’ investigations must be consolidated to ensure an overall understanding of what transpired and to hold those responsible accountable.

Winde has acknowledged the hard work of government staff, who, along with many other partners, worked tirelessly to rescue those trapped on the site.

He thanked the independent team that came on board and concluded the investigation carefully and speedily.

“There must be consequences for those responsible for this horrific tragedy. We have now handed over the report to the SAPS, who we have been assured are working tirelessly on this case, and we will continue to monitor this matter very closely.

“I will never forget being there when our teams recovered Gabriel Guambe alive from the site over 100 hours after its collapse. It is for him, for Delvin Safers, for their peers and friends who made it out alive, and for those who succumbed, and the families of the victims, that justice must be delivered,” Winde said.

The provincial government said the Western Cape Department of Police Oversight and Community Safety Court Watching Brief Unit will closely monitor its progress.

The Ministry of Sport, Arts and Culture, in collaboration with the Bid Steering Committee (BSC), has extended the submission deadline for the Request for Expression of Interest (RFEOI) for South Africa’s Formula 1 Grand Prix bid.

“This extension aims to give stakeholders additional time to submit comprehensive, well-structured proposals in line with RFEOI requirements. The Ministry is committed to a transparent and competitive process to secure this prestigious motorsport event,” the Ministry said on Tuesday.

The deadline for submission has been extended to18 March 2025.

“Hosting a Formula 1 Grand Prix would boost our economy, tourism and development while showcasing South Africa as a premier global sporting destination. This extension ensures bidders have the time to prepare exceptional proposals,” the Minister of Sport, Arts and Culture Gayton McKenzie said.

In December 2024, McKenzie announced a team of experts to form South Africa’s Formula One Bid Steering Committee (BSC) for the return of the international auto racing event.

READ | F1 – here we come!

At the time he said the team will be responsible for all aspects of preparing a bid for the consideration of the Formula One Group and global motorsport’s governing body, the Fédération Internationale de l’Automobile (FIA), and a phase of choosing which city and track to put forward for consideration.

Proposals must be submitted via email to bid@saf1bsc.com .
Queries can be directed to info@saf1bsc.com  .

The RFEOI document is available for download on the Department’s website under “What’s New.” The document can be accessed using this link : https://www.dsac.gov.za/sites/default/files/2025-01/Request-for-Expression-of-Interest-Formula-BID.pdf

President Cyril Ramaphosa has signed into law the Expropriation Bill, which sets out how organs of State may expropriate land in the public interest for varied reasons.

In a statement, The Presidency said that the new legislation, which repeals the pre-democratic Expropriation Act of 1975 , aligns expropriation processes with the Constitution and marks the culmination of a five-year process of public consultation and Parliamentary deliberation.

“The Bill assented to by President Ramaphosa outlines how expropriation can be done and on what basis. This law will assist all organs of State – local, provincial and national authorities – to expropriate land in the public interest for varied reasons,” the Presidency said.

Section 25 of the Constitution recognises expropriation as an essential mechanism for the state to acquire someone’s property for a public purpose or in the public interest, subject to just and equitable compensation being paid.

Up to now, expropriation of property has been governed in terms of the Expropriation Act of 1975, which predates the expropriation mechanism provided for in section 25(2) of the Constitution.

“Local, provincial and national authorities will use this legislation to expropriate land in the public interest for varied reasons that seek, among others, to promote inclusivity and access to natural resources,” the statement read.

The Bill repeals the Expropriation Act and to provide a common framework in line with the Constitution to guide the processes and procedures for expropriation of property by organs of state.

“In terms of this law, an expropriating authority may not expropriate property arbitrarily or for a purpose other than a public purpose or in the public interest.

“Expropriation may not be exercised unless the expropriating authority has, without success, attempted to reach an agreement with the owner or holder of a right in property for the acquisition thereof on reasonable terms,” the Presidency said.

The Presidency further explained that an expropriating authority is therefore obliged to enter into negotiations with the owner of a property required for such purposes.

An expropriating authority must also attempt to reach an agreement on the acquisition of the property before resorting to expropriation – except in circumstances where the right to use property temporarily is taken on an urgent basis in terms of a provision in the legislation.

The law provides for disputes to be referred for mediation or to appropriate courts.

Public Works and Infrastructure Minister Dean Macpherson has welcomed the department’s appointment of PricewaterhouseCoopers (PwC) to conduct an investigation into the circumstances surrounding a controversial R800 million Oxygen Plant tender awarded by the Independent Development Trust (IDT).

The investigation follows the IDT’s admission last year that three companies were awarded the tender despite two lacking the necessary registration with the South African Health Products Regulatory Authority (SAHPRA).

According to the department, the independent probe is expected to be completed within eight weeks. Its primary objectives include determining whether irregularities occurred during the tender process and whether officials should be held accountable.

The concerns stem from allegations made last year about potential irregularities in awarding the Pressure Swing Adsorption (PSA) Oxygen Plant bids. These include claims that two of the companies lacked SAHPRA registration and that one company may have submitted fraudulent documentation.

“This follows an admission by the IDT itself last year that concerns exist regarding the R800-million tender and that these concerns warrant investigation,” the Department of Public Works and Infrastructure said in a statement.

The PwC investigation will focus on several key areas, including:

• Examining the tender process: Determining whether proper procedures were followed in appointing external service providers.
• Identifying financial misconduct: Establishing whether officials caused the IDT to incur irregular, fruitless, or wasteful expenditure during the tender’s administration.
• Evaluating legal compliance: Assessing whether IDT officials or external individuals violated laws or duties during the tendering process or subsequent contract management.
• Quantifying financial losses: Determining the extent and value of financial losses incurred by the IDT in relation to the tender.
• Uncovering irregularities: Identifying illegal activity or irregular conduct involving IDT officials or external service providers.
• Recommending action: Proposing appropriate steps to hold responsible parties accountable where irregularities are confirmed.

“The independent investigation will determine whether irregularities occurred during the Oxygen Plant tendering process and whether further action is required against those implicated,” Minister Macpherson said.

He emphasized the importance of transparency and accountability, adding that the investigation is a crucial step in improving governance and ensuring that public funds are used responsibly.

“As Minister, I cannot turn a blind eye when serious allegations arise involving close to R1 billion of public money,” Macpherson stated. “This is why the Department of Public Works and Infrastructure will remain focused on uncovering the truth, holding officials accountable where necessary, and ensuring the integrity of public procurement processes.”

Macpherson also expressed confidence that the investigation would clear innocent individuals while holding guilty parties to account.

The minister concluded, “The independent investigation should be welcomed as a vital tool in restoring public trust and addressing any misconduct in the Oxygen Plant tendering process.”

Statistics South Africa (Stats SA) has recorded an increase in the Consumer Price Index (CPI), with data showing that inflation increased in December to 3%, from 2.9% in November 2024.

“At the end of each year, Statistics South Africa calculates the average inflation rate for the year. The average inflation for 2024 was 4.4%, down from the average of 6% in 2023,” Stats SA Chief Director, Patrick Kelly, said on Wednesday.

Inflation for food and non-alcoholic beverages ticked up to 2.5% from 2.3% in November.

Annual price increases for bread and cereal products was steady at 3.7%. Although prices dropped by 0.2% between November and December, a number of week based products showed monthly declines, including brown bread down 0.6%, macaroni 0.7% lower, instant noodles with a negative 2.2%, and cake flour with a 1.1% decrease.

The price index for meat softened by 0.4% in the 12 months to December, representing the lowest annual rate since May 2019 (-0.9%). Products that registered the largest annual declines included sausages (down 3.3%), pork (down 2.2%) and whole chicken (down 1.7%). Several products were more expensive, however, including beef extract (up 5.1%), bacon (up 4.8%) and ham (up 4.2%).

Hot beverages remains in the food and non-alcohol beverages category with the highest annual increase at 13.5%, up from November’s increase of 13.1%.

Instant coffee was 16.1% more expensive in December 2024 compared to December 2023.

“Housing rentals are measured every quarter. The annual rate for actual rentals was 2.8% in the fourth quarter of last year, down from 3.3% in the third quarter.

“Owners’ equivalent rent inflation decreased to 2.4% from 2.9% over the same period. These declines pulled an overall rate for housing and utilities category down to 4.4% from 4.7%,” Kelly said.

Vehicle inflation dropped steeply during 2024 after starting the year at 7.2% in January.

Used vehicles are on average cheaper than they were a year ago, recording an annual decline of 0.6% in December.

Fuel prices increased by 1.1% between November and December. However, fuel prices are 10.2% lower than they were in December 2023.

“Inflation for restaurants and hotels dropped to 4.2% in December, from 5.9% in November. This is largely a result of hotel room rates dropping by 4.2% between November and December, pulling the annual change for hotels down to 1.9% in December compared to 7.6% in November,” Kelly said.

The CPI release contains results of the monthly Survey of Consumer (Retail) Prices. The purpose of the survey is to collect and provide information regarding changes in the overall level of prices of all goods and services bought by the average household.

President Cyril Ramaphosa, says South Africa is undergoing a “fundamental transformation” – as it seeks to accelerate inclusive economic growth.

President Ramaphosa was speaking at the South Africa Night World Economic Forum (WEF), held at the Garden Hall in Davos Klosters, Switzerland, on Tuesday evening.

The event, hosted by Brand South Africa, celebrated the country’s G20 Presidency, an extraordinary opportunity to shape the global agenda for inclusive growth and sustainable development.

The event was held on the sidelines of the annual WEF meeting, which is taking place from 20-24 January 2025, under the theme: “Collaboration for the Intelligent Age”.

The President told the gathering that the country has introduced reforms in sectors, including water, electricity and logistics, that are serving as a base for economic growth.

“South Africa is undergoing a fundamental transformation. We have introduced bold economic reforms to overcome persistent challenges and unlock the vast potential of our country and its people.

“These reforms have underpinned the country’s economic recovery in the wake of more than a decade of stagnant growth, state capture and the worst global pandemic in more than a century. These reforms are laying a firm foundation for sustained and accelerated growth into the future,” President Ramaphosa said.

He added that the reforms, and the subsequent structural transformation are “sharpening South Africa’s competitive edge, boosting productivity and attracting investment”.

The President pointed to the establishment of the Government of National Unity (GNU), as an example of the commitment from all leaders to maintain “stability, progress and partnership” in South Africa, as the country moves towards inclusive growth.

“While each party campaigned on different platforms, the Government of National Unity has agreed on a common programme to grow an inclusive economy, create jobs and build a capable state.

“Surveys have shown that South Africans have confidence in the Government of National Unity to take the country forward. It has also contributed to a marked improvement in business and investor confidence,” he said.

President Ramaphosa also pointed to partnerships that have been developed between government and social partners, in order to drive the country forward and face challenges together.

“We have a tradition of dialogue and cooperation, of working together to overcome even the most intractable of problems. As we confront the challenges of the present, social partners have been working together, in various forms and forums, to drive a programme of inclusive growth and transformation.

“A concrete example of this is the strategic partnership between the South African government and business. This collaboration focuses on innovative solutions to tackle critical issues, such as energy security, infrastructure gaps, crime and corruption, and job creation,” President Ramaphosa said.

President Ramaphosa described 2025 as “a momentous year for South Africa”, as the country takes its place as the first African country to bear the Presidency of the Group of 20 (G20).

He said through South Africa’s G20 Presidency, the country will demonstrate its unwavering commitment to global solidarity, equality, and sustainability.

“From the triumph of democracy 30 years ago, to our ongoing pursuit of inclusive growth, South Africa has demonstrated that collaboration and determination can shape a brighter future. It is this ethos we bring to the G20.

“Our Presidency provides a platform to amplify voices that have often gone unheard. It is an opportunity to advocate for solutions that prioritise the well-being of all, particularly the most vulnerable. South Africa is well placed to play this role,” he said.