Nigeria's Senate approves Tinubu's $21bn external borrowing plan
Tinubu asked parliament to approve the borrowing in May.
"With this approval we now have all revenue sources, including loans, in place to fully fund the budget," Solomon Adeola, Senate chair on appropriations, told reporters.
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IOL News
3 days ago
- IOL News
Understanding the cost implications of the US-South Africa Bilateral Relations Review Act on the property sector
If foreign investors exit the South African property market, property prices may cool. Image: Leon Lestrade, Independent Newspapers. The US-South Africa Bilateral Relations Review Act of 2025 will negatively affect the local property sector's investment dynamics and have cost implications if it becomes law. The bill was introduced by Ronny Jackson, a congressman from Texas, in April. For it to become a law, it will need to be approved by the House and Senate before being signed by President Donald Trump. It accuses South Africa of undermining the United States' interests by maintaining close relationships with the People's Republic of China and the Russian Federation, nations that are Pretoria's strong allies and key trading partners. On investment dynamics, Dr Farai Nyika, an academic programme leader in the School of Public Administration at the Management College of Southern Africa(MANCOSA), says South Africa's property sector depends significantly on both domestic and international investment. He said foreign involvement includes not only direct investment in physical developments but also the purchase of South African property-related shares on the Johannesburg Stock Exchange (JSE). 'Should the bill become US law, the geopolitical risks associated with doing business in South Africa may deter foreign investors. This could result in a slowdown in physical property developments by foreign investors and a sell-off of South African property stocks. "Such a sell-off would constrain these companies' ability to raise capital, potentially leading to reduced profitability, operational cutbacks, and, disastrously, job losses,' Nyika told "Independent Media Property". The academic leader said it is key to note that the bill, in its current form, may change to broaden penalties beyond what is currently stated, so they could only speculate on its current form. He said it should be remembered that the bill is really targeting South African individuals, rather than the country as a whole. 'However, perceptions matter more than reality and legal precision; for example, though Zimbabwean politicians were the target of U.S sanctions in 2003, the Zim government claimed that the country's subsequent economic hardships were the result of the entire country being sanctioned. "By extension-sanctions that target individuals indirectly harm the economy. Because many property investors will say that they do not want to do business in a country that the 'US is sanctioning'. "Perversely, there could be some economic benefits to the local property market from the U.S sanctioning local politicians. If foreign investors exit the market, property prices may cool. "This could make housing more affordable for locals who have previously been priced out-particularly in urban centres like Cape Town, where gentrification has greatly limited social mobility and access to property ownership,' Nyika said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading With regards to cost implications, he said a large proportion of building materials, especially high-end fixtures for luxury properties and solar technologies, are imported. He said in a country that has been grappling with persistent load shedding and a transition to cleaner energy, the demand for solar and energy-efficient solutions is rising. 'However, if the bill disrupts trade relations or leads to broader sanctions, the cost of these imported materials may increase, raising construction and development costs. This could slow down South Africa's Just Energy Transition in the short term.' With that said, Nyika said economic pressure often fosters innovation. He said historical precedents show that sanctions or trade restrictions can trigger industrial growth-as was the case in both Zimbabwe and apartheid-era South Africa during the 1960s and 70s. 'In the long run, if the South African government were to prioritise industrial policy and local manufacturing, the country could reduce reliance on imports. "This would benefit the property sector by fostering domestic production of certain formerly imported building materials and solar items, improving resilience, and potentially creating new economic opportunities to expand local property.' Asked whether the South Africa property sector will have resort in this regard, Dr Thandile Ncwana, also an Academic Programme Leader at the same institution, said but some of the possible strategic play for South Africa in this situation should the bill be approved, is to mitigate escalation and maintain its relationship with the US by considering engaging in high-level bilateral diplomacy aimed at clarifying its foreign policy positions while reaffirming its commitment to democratic values, trade and multilateral cooperation. She said proactive parliamentary diplomacy, Track II dialogue forums, and regular engagement with the US Congress and civil society actors could help reframe South Africa's stance as one of principled non-alignment rather than strategic antagonism. 'Because reinforcing bilateral economic ties and highlighting areas of mutual benefit, such as climate action, infrastructure development and health, can serve as diplomatic buffers. The government also have a chance to carefully balance between asserting its foreign policy independence and avoiding diplomatic or economic isolation. "This can be achieved by adopting a transparent foreign policy communication strategy, clearly articulating the principles behind its international engagements, and avoiding actions that may be interpreted as tacit support for states or groups under U.S. sanctions,' Ncwana said. She added that multilateralism should remain at the heart of South Africa's diplomacy, and efforts must be intensified to build consensus with African partners, BRICS allies, and Western institutions alike to maintain strategic flexibility and avoid becoming a casualty of great-power rivalry. Politically, she said South Africa should adopt a dual-track diplomacy strategy that preserves its non-aligned international stance while actively engaging U.S. policymakers to dispel misconceptions about its foreign policy positions. 'This includes convening high-level bilateral dialogues, leveraging multilateral platforms like the United Nations and African Union to clarify its principled positions, and re-establishing structured parliamentary exchanges with the US Congress. "South Africa's leadership can also benefit from a strategic public diplomacy campaign that communicates its commitment to constitutional democracy, human rights, and peaceful conflict resolution principles historically shared with the US. "These efforts can de-escalate tensions and rebuild political trust, allowing space for honest disagreement without undermining the broader relationship.' Ncwana said that overall, the South African government can lastly play a strategic move by enhancing interdepartmental coordination, particularly between the Departments of International Relations and Cooperation (DIRCO), Trade and Industry, and National Treasury to ensure cohesive messaging and responsiveness to external developments like the US legislative process. Independent Media Property
eNCA
4 days ago
- eNCA
US lawmakers push for sanctions against ANC officials
JOHANNESBURG - The US may review its diplomatic relations with South Africa. The House Foreign Affairs Committee has approved the US-SA Bilateral Relations Review Act. It still has to be sent to the House and then Senate and be ratified by the President before it becomes law. This may still take a while with the House in recess until September. The bill also proposes sanctions on officials over alleged ties to adversaries like China, Russia, Iran and Hamas. AfriForum is welcoming the passing of the bill, while the ANC says it will not compromise its principles.
IOL News
4 days ago
- IOL News
Controversial US bill targeting ANC leaders likely to pass, says former ambassador
Former South African ambassador to Portugal, Dr Kingsley Makhubela, believes the controversial bill sanctioning ANC leaders will pass in the United States. Image: AFP A former South African ambassador and seasoned diplomat believes the controversial bill introduced in the United States Congress, seeking to review relations with South Africa and to impose sanctions on some leaders of the African National Congress, will pass. IOL reported on Wednesday that a bill which seeks to re-evaluate the bilateral relationship between the United States and South Africa, and identify government leaders who should be subject to sanctions, was passed by a US House Committee on Foreign Affairs this week. The US-South Africa Bilateral Relations Review Act of 2025 was introduced in April by Ronny Jackson, a congressman from Texas. The bill, to become a law, will need to be approved by the House and Senate before being signed by President Donald Trump. The bill accuses South Africa of undermining the United States' interests by maintaining close relationships with the People's Republic of China and the Russian Federation, nations that are Pretoria's strong allies and key trading partners. Former South African ambassador to Portugal, Dr Kingsley Makhubela, on Thursday told Newzroom Afrika that the Democrats have the numbers, and they might even get support from some Republicans. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading "Quite honestly, this bill is likely to pass. If you look at the numbers, both in the House and in the Senate, currently, the House consists of about 435 members and the Republicans are having 219, and I think the Democrats have 217, so it is likely to pass. This time last year, when this bill was first discussed during the (Joe) Biden administration, 61 Democrats voted for the bill to go through, which has similarities with what we are seeing now. "The only thing that you see now is that there have been added issues on this bill. For instance, there are questions of the relations with Taiwan playing its role, the question of the tension that arose because of Rasool's (former South African ambassador to the United States Ebrahim Rasool) expulsion, it plays into this bill. So this bill is likely to pass," he said. Makhubela said the bill is also framed around the United States' national security, and Americans often close ranks across the political divide once concerns about their national security are raised. Dr Kingsley Makhubela Image: File Earlier, Ernst van Zyl, head of public relations at AfriForum, said the ANC's "years of reckless and extremist diplomatic actions and rhetoric" are now bearing bitter fruit. 'From AfriForum's side, I do not see why punishing corrupt politicians is going to destroy a country's economy. That is going to be left to the ANC to explain how those politicians who are pushing destructive laws, when they are punished for the human rights abuses or corruption. How is that going to destroy the South African economy or going to affect negatively the average man on the street?" Van Zyl also told broadcaster Newzroom Afrika. According to a report by IOL earlier this year, the bill mandates a comprehensive review to identify South African government officials and leaders of the African National Congress who may be subject to sanctions for their alleged support of American adversaries such as China, Russia, and Iran. Commenting on X about the committee's approval of the bill, Jackson said: 'South Africa made its choice when they abandoned America and our allies and sided with communists and terrorists. Today, my bill to fully review America's relationship with South Africa and give President Trump the tools necessary to hold their corrupt government accountable passed through committee. The days of allowing our so-called 'allies' to walk all over us are over!' The bill will now be debated and amended in the House of Representatives before a vote is held on it. The House of Representatives will then submit the approved bill to the Senate for final consideration. IOL News
