Top 10 stories of the day: Mchunu placed on leave of absence
In news today, President Cyril Ramaphosa on Sunday night announced that Police Minister Senzo Mchunu has been placed on leave of absence.
Also, Eskom has spent over R5.2 billion on diesel between April 2023 and March 2024 to operate its open-cycle gas turbines.
Meanwhile, the Independent Electoral Commission (IEC) has rejected the Islamic State of Africa's (ISA) application for registration due to its stated intent to introduce Sharia law.
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Police Minister Senzo Mchunu placed on leave of absence
Following a public speech by KwaZulu-Natal Police Commissioner Lieutenant-General Nhlanhla Mkhwanazi against senior political and South African Police Service leadership, President Cyril Ramaphosa placed Police Minister Senzo Mchunu on leave of absence.
The president said Professor Firoz Cachalia has been appointed as acting minister of police. He will beign this role on 1 August.
President Cyril Ramaphosa. Picture: @GovernmentZA/X
'These allegations call for an urgent and comprehensive investigation. To address these allegations and the implications of these allegations, I'm establishing a judicial commission of inquiry that will be chaired by acting deputy chief justice Mbuyiseli Madlanga,' said Ramaphosa.
CONTINUE READING: JUST IN: Police Minister Senzo Mchunu placed on leave of absence
Eskom spends over R5bn on diesel to keep the lights on
Eskom has spent over R5.2 billion on diesel between April 2023 and March 2024 to operate its open-cycle gas turbines (OCGTs) in an effort to mitigate load shedding.
This is despite previous claims that the utility would reduce its diesel usage due to financial constraints.
Eskom said the power system remains stable. Picture: Adobe Stock
Eskom spokesperson Daphne Mokwena said the year-to-date load factor for OGCT has marginally increased to 10.78%, reflecting a 0.08% increase compared to the previous week.
CONTINUE READING: Eskom spends over R5bn on diesel to keep the lights on
IEC rejects application of Islamic party that wants to bring Sharia law to SA
The Independent Electoral Commission (IEC) has rejected the Islamic State of Africa's (ISA) application for registration due to its stated intent to introduce Sharia law.
The IEC rejected ISA's application on three grounds.
Image for illustrative purposes. Picture: The Citizen
One of the reasons is that ISA published the notice of its application in a newspaper that is only circulated in small parts of the eThekwini municipality.
CONTINUE READING: IEC rejects application of Islamic party that wants to bring Sharia law to SA
'A scammer trying to scam me as me' – Fake Connie Ferguson calls the real one
Actress and producer Connie Ferguson exposed a scammer who attempted to impersonate her in a video call to defraud unsuspecting people.
Ferguson posted a screen recording of the interaction, showing the fake caller trying to convince her to invest in a bogus deal.
Actress Connie Ferguson. Picture: Instagram
She warned her followers to stay vigilant, noting that scammers are using AI-generated or deepfake content to impersonate celebrities.
'Thieves are using AI to convince you that they are whoever they say they are. If it sounds too good to be true, it usually is. Don't be manipulated into losing your common sense because times are hard.'
CONTINUE READING: WATCH: 'A scammer trying to scam me as me' – Fake Connie Ferguson calls the real one
Boks to fully support Wiese following red card, says coach Rassie
The Springboks confirmed that the team will support Jasper Wiese following his red card during Saturday's Test in Gqeberha.
While Wiese will miss upcoming matches, he is expected to be punished by World Rugby for the incident, which will possibly rule him out of action for a few matches.
Jasper Wiese, with the ball, is set to miss the Boks' match against Georgia following a red card incident in the Test against Italy in Gqeberha on Saturday. Picture: Gordon Arons/Gallo Images
'He is just so committed and passionate about the team, and it would have been wonderful for him to play in this game with his brother,' said Springboks coach Rassie Erasmus.
CONTINUE READING: Boks to fully support Wiese following red card, says coach Rassie
Here are five more stories of the day:
Yesterday's News recap
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Daily Maverick
an hour ago
- Daily Maverick
Can SA forge a new consensus at G20 summit?
For the second time this year, the world's most powerful finance ministers have gathered in South Africa, this time at the lush resort of Zimbali north of Durban. But one minister will once again be conspicuous by his absence: that from the US. Scott Bessent, the mercurial US Treasury Secretary, has once again skipped the G20, choosing instead to send Michael Kaplan, the acting undersecretary for international affairs at the US Treasury. It all started when Secretary of State Marco Rubio refused to participate due to the host's vision of this year's G20 presidency being about 'Solidarity, Equality and Sustainability' — principles the current US administration theatrically rejects. In one sense, the timing of this South African presidency of the G20 could not be worse. Faced with the anti-globalist, protectionist bent of the US, what is usually a processional opportunity for showcasing a nation's soft power and producing vacuous missives about global cooperation has become a near impossible job of managing diplomatic fallout. As the first country from Africa to host the G20, South Africa had hoped to push issues vital for the very developing nations that stand to lose the most from the US president's trade war. With US aid budgets cut to virtual non-existence, and with tariffs about to decimate the export industries that, until now, had been the only hope for small African developing countries to build some semblance of a manufacturing sector, South Africa now finds itself managing the wreckage of international consensus. The G20 is a relatively new arrival to the international global system of forums and talk shops. Established as a response to the global financial crisis in 2008, the whole point was for countries like the US, the UK and the EU to include the faster growing nations of the Global South, which were becoming increasingly critical to the global economy. That promise now looks increasingly hollow. US vs the world: SA salvages G20 How naïve and quaint that looks, from the perspective of the realpolitik of 2025. In addition to Trump's threat of crippling levies on key trading partners from 1 August 2025, the US president has taken aim at the BRICS bloc of emerging economies — which includes host nation South Africa — threatening an extra 10% tariff for 'anti-American' policies. South African President Cyril Ramaphosa, following the BRICS summit in Rio last week, was the first of the group to hit back. 'The president of the US must recognise that multiple centres of power now define the global landscape,' he said. Ramaphosa is still trying to convince Trump to attend a G20 leaders' summit in Johannesburg in November, where he is due to hand over the presidency of the group to the US. But hopes that Trump will support any of South Africa's G20 initiatives have largely been extinguished. Under fire from corruption scandals at home, Ramaphosa's efforts are increasingly looking to be in vain. The G20 international outreach also follows a highly publicised Oval Office dressing-down, where Trump repeated false claims about a so-called genocide against white South African farmers. Still, despite Washington's aggressions, South Africa has no option but to press ahead with this week's meetings, which culminate on Thursday and Friday with sessions led by finance ministers and central bank governors. South African Reserve Bank governor Lesetja Kganyago and Finance Minister Enoch Godongwana will, at least, be in the limelight as opposed to the embattled president. The EU is now in the firing line It is not only developing countries that have been targeted by Trump. On Saturday, the EU received a typically condescending letter from Trump, threatening blanket tariffs on European goods. In a message that appeared to be copied and pasted from the one sent to South Africa and countless other recipients, Trump invited the EU to 'participate in the extraordinary Economy of the United States, the Number One Market in the World', while warning of sweeping new levies. His parting line, as ever: 'Thank you for your attention to this matter!' The proposed 30% tariff rate, together with existing sectoral duties and an expected levy on critical goods, would take the increase in the US effective tariff rate on the EU to a brutal 26%. According to estimates from Goldman Sachs, if implemented and sustained, it would lower euro area GDP by 1.2% by the end of 2026. The US is the largest trade partner of the EU, with the sum of exports from the EU totalling $815-billion in 2024. The EU understands that such a trade restriction with its biggest partner is nothing short of an existential challenge. In response, the bloc is actively seeking to diversify its trade ties. Besides Canada and Japan, the bloc is now fast-tracking agreements with India and other Asia-Pacific nations. Speaking from Beijing, EU competition chief Teresa Ribera confirmed that discussions with India are expected to conclude by year's end. 'We need to explore how far, how deep we can go in the Pacific area with other countries.' Africa will undoubtedly be next. Can South Africa lead a G19 without the US? Where the tariff war ends is anyone's guess. But with the US — the architect of the post-war global order — now acting as a destabilising force, the need for alternative alliances and renewed multilateralism between other parties has never been clearer. Already, the US absence has drawn others closer. After Rubio's withdrawal, the EU publicly endorsed South Africa's G20 agenda. Within weeks, the EU and South Africa held their first summit since 2018, marking a thaw in previously strained relations. Strangely then this year's G20 could prove to be its most consequential since its inception. Will it become the moment when the rest of the world reaffirms a commitment to open markets, trade and mutually beneficial cooperation? Or will it cement the beginning of the end for the rules-based global economy? In that sense therefore the timing of South Africa's G20 presidency could not be better. As a nation that once symbolised the post-Cold War liberal ideals of inclusion and equality, it is perhaps fitting that it should fall to us to rally the Global South and like-minded powers toward a new consensus. But the challenge is enormous. Can Ramaphosa — wounded politically and isolated diplomatically — rise to the occasion? Can South Africa lead a meaningful G19 in the absence of the US? To quote Tennyson's Ulysses, while 'death closes all, some work of noble note may yet be done'. The South African president may identify with the itinerant Greek after his own interminable political odyssey. Given his patchy track record in office, the answer may not be encouraging. And yet, history never asks whether leaders are ready. It simply presents the moment. Ramaphosa now faces his. DM
Daily Maverick
an hour ago
- Daily Maverick
Socioeconomic crisis looms as US tariffs hit Eastern Cape's vital automotive industry hard
The Automotive Business Council says it is hopeful that a proposal for 40,000 tariff-free vehicles for export to the US will find favour, as the impact of tariffs in their current form will be catastrophic for both the manufacturing industry and the Eastern Cape. 'This is not just a trade issue, it's a socioeconomic crisis in the making,' CEO of the Automotive Business Council (Naamsa) Mikel Mabasa said on Tuesday. The organisation, like many others in the Eastern Cape, is grappling to come to terms with the devastating impact of export tariffs imposed by the United States. Mabasa said the export tariffs threatened thousands of jobs in the automotive sector, disrupted hard-won industrial capabilities, and risked devastating communities such as East London, where the automotive sector formed the economic heartbeat of the town. He said Naamsa was, however, encouraged by South Africa's early proposals for a quota of 40,000 duty-free vehicle units per annum, 'which would allow us to retain our footprint in this key market'. He said that if the country could not retain export markets such as the US, 'we risk turning vibrant industrial hubs into ghost towns'. Ripple effects through the value chain He said the ripple effects of production loss due to disappearing export markets would be felt throughout the automotive value chain – from component manufacturers to logistics providers, and across the thousands of workers and families who depended on the sector for their livelihoods. 'Export diversification and finding new markets is not something that can be achieved overnight. Our global competitors are already redirecting their exports into markets we traditionally serve. This intensifies the pressure on our original equipment manufacturers (OEMs), who must now absorb rising costs, reduce production, and reconsider future investments,' he said. Urgent diplomacy needed 'We have also taken note of President Cyril Ramaphosa's formal response on the same day, which confirmed South Africa's diplomatic and strategic approach to this matter. He said South Africa's automotive sector was particularly vulnerable to the 25% sectoral tariff imposed under Section 232 of the US Trade Expansion Act of 1962, which specifically targeted automotive exports. This escalation in trade tensions poses a serious threat to one of South Africa's most globally integrated and export-oriented industries. He said the United States had consistently been South Africa's second-largest trading partner and key export destination for South African manufactured vehicles. Agoa at risk – billions in trade and thousands of vehicles 'Since the inception of the African Growth and Opportunity Act (Agoa), the automotive industry has benefited from substantial two-way trade and investment. In 2024, the auto sector accounted for 64% of all Agoa trade between South Africa and the US, generating R28.6-billion in export revenue, with 24,681 vehicles exported to the US under Agoa,' Mabasa said. He said the effect of just the anticipation of the high export tariffs, however, had been devastating to the industry and had an immediate effect on trade performance. He said that even before the formal effect of the tariffs, vehicle exports to the US dropped by 73% in the first four months of 2025, followed by a further decline of 80% and 85% in April and May, respectively. 'This represents a risk of a direct loss of vehicle and component export volumes, and annual export earnings, which would be difficult to recover in the short term,' he said. OEMs under pressure But the news is even worse, he said, as tariff disruptions placed major pressure on [OEMs], who had made long-standing industrial commitments to South Africa and invested significantly in local manufacturing, skills development and export infrastructure. The SA automotive industry contributes 22.6% of the country's total domestic manufacturing output and directly supports 110,000 formal sector jobs. Mabasa said Naamsa welcomed the SA government's continued diplomatic engagement with the US, including discussions held on the sidelines of the US-Africa Summit in Luanda on 23 June 2025, and the submission of SA's Framework Deal on 20 May 2025 to address the concerns raised by the US government. 'We urge both governments to accelerate negotiations toward a balanced, rules-based trade agreement. We are encouraged by early proposals for a quota of 40,000 duty-free vehicle units per annum, which would allow us to retain our footprint in this key market. It's vital that we use this opportunity to preserve the business case for continued investment', he said. Mabasa, however, emphasised the need to prepare for a more uncertain and competitive global landscape. Behind every statistic are people and communities 'Naamsa is equally concerned about the livelihood impact of these developments. Behind every tariff statistic are real people – auto workers, supply chain technicians, logistics operators and their families. Nowhere is this more visible than in East London, a community that has grown and thrived on the back of automotive exports. 'The erosion of this trade threatens to unravel decades of socioeconomic progress. We urge all parties involved in the diplomatic negotiations to recognise the strategic and social importance of safeguarding mutually beneficial trade frameworks like Agoa, and to avoid short-term decisions that carry long-term consequences for vulnerable regions,' Mabasa said. CEO of the Nelson Mandela Bay Business Chamber Denise van Huyssteen, said it was clear that the US trade tariffs, planned for implementation on 1 August, would have a disproportionate impact on the Eastern Cape economy given its high reliance on the automotive sector. 'The initial most vulnerable automotive and components manufacturers will be those who directly export products to the United States. The tariffs will put them in a very uncompetitive position, making it difficult to continue to do trade with the US, which could lead to export orders drying up. This, in turn, will have a knock-on impact on direct and indirect suppliers located in East London and Nelson Mandela Bay, and the overall supporting ecosystem around these manufacturers, who may or may not be able to withstand the loss in volume. 'Additionally, as the volumes, especially of [OEMs], potentially decline, economies of scale are diminished, potentially putting some components manufacturers in a position where they are unable to continue a viable supply to their other OEM customers located elsewhere in the country,' she said. Competitiveness crisis She said the tariff structure also meant that manufacturers who exported products to other parts of the world may now be competing with other countries that had significant cost advantages over South Africa, as they faced lower tariffs or could absorb the tariffs. 'Essentially, the global trade order has been upended, and this is likely to affect global manufacturing footprints and where the best locations will be to produce products in the future,' Van Huyssteen said. She said that switching markets was not a quick solution as these measures took time to implement, and neither would 'replace' current OEMs with new ones. 'On this score, and in order to retain employment, it is vital that any potential incoming OEM investors commit to utilising local components for their manufacturing operations,' she said. Unemployment warning for Nelson Mandela Bay She said the chamber also remained deeply concerned about the devastating impact these 'tariff wars' might have on Nelson Mandela Bay's economy and the thousands of jobs supported directly and indirectly through the automotive industry and its supply chain. 'This, in turn, will add to the already unacceptably high unemployment and poverty levels in Nelson Mandela Bay and the Eastern Cape. It must be remembered that Nelson Mandela Bay is home to the greatest number of automotive component suppliers in the country. Furthermore, 41% of the country's automotive manufacturing employment is based in the Bay,' she said. Call for government urgency 'Given how small SA's economy is, the country's response should not be to retaliate, but rather to look internally and consider deploying incentives to support local manufacturers, rather than to keep others out by way of tariffs. This should also incorporate policy support and assistance in establishing new markets for SA-produced goods.' She called for urgency on the side of the government. 'The government needs to move fast and take action in addressing barriers such as excessive red tape and complex policies associated with doing business in the country. Absolute urgency is required to improve the country's competitiveness versus other emerging locations, which have, over the years, become much more attractive investment destinations. 'These even include some countries on this continent who have surpassed South Africa in some key performance areas. Priority focus must be placed on ensuring that the basic enablers are in place, such as well-maintained infrastructure, efficient logistics and the delivery of basic services at a local municipal level, to help improve the competitiveness of local manufacturers and to sustain their continued operations in the Bay.' MEC warns Mercedes-Benz may exit Speaking at the Finance Committee in the Council of Provinces last week, Eastern Cape MEC for Finance Mlungisi Mvoko said they had held discussions with the Department of Trade, Industry and Competition (DTIC), as the matter significantly affected the Eastern Cape. He highlighted that Mercedes-Benz, currently exporting 90% of the vehicles it manufactures in East London to the United States, was facing the most risk. Mvoko warned that the company might consider withdrawing from South Africa due to the tariff changes. Mvoko said that if Mercedes-Benz were to leave, it would have devastating consequences for the East London Special Economic Zone (SEZ), where many companies existed solely to supply the vehicle maker. He also made it clear that thousands of families in East London and Qonce were reliant on Mercedes-Benz operations. DM
Daily Maverick
an hour ago
- Daily Maverick
SA's critical minerals strategy a shopping list to revive existing carbon-intensive mining economy
South Africa's recently released critical minerals and metals strategy continues to prop up carbon-intensive processing and manufacturing activities, while giving a nod to greener minerals and green hydrogen as future endeavours. Following successive pronouncements by South African Mineral and Petroleum Resources Minister Gwede Mantashe on the need to leverage the country's critical minerals, the ministry recently published its national Critical Minerals and Metals Strategy. Mantashe has been vocal in criticising developed countries for defining 'critical minerals' to serve their own interests, and in February this year, threatened to withhold access to these minerals from the US if it limited funding. At the time, he called on African countries to embrace their strategic mineral advantage and take charge of growing demand. The South African critical minerals strategy seeks to do just that, by charting a roadmap that leverages these resources to the nation's benefit, while simultaneously driving growth, job creation and industrial development. Its stated intention is to focus on the entire value chain, with a view to growing the country's existing industrial base while improving value addition. The draft is sensitive to geopolitical tensions and trade restrictions and positions itself in that context, identifying the need to anchor the country as a supplier of critical minerals globally in the context of growing demand for certain minerals. Similar to many African countries, South Africa's value chains are primarily upstream, with a focus on extraction and export and little beneficiation and value addition. Like its neighbours, for example, Zimbabwe and Namibia, the country wants to take steps to localise beneficiation and processing. Carbon-intensive processing However, the strategy is less focused on leveraging minerals for the low-carbon transition and related green technologies, unlike the recently finalised African Union Green Mineral Strategy. Instead, it continues to prop up existing carbon-intensive processing and manufacturing activities, while giving a nod to the need to pursue greener minerals and green hydrogen as future endeavours. Noting the difference between a 'green mineral' and 'critical mineral' strategy, the one published by the ministry is very much the latter. This follows a unilateral view of what counts as a 'critical mineral', which Mantashe has previously stressed should be something that a country decides for itself. In the words of the strategy, critical minerals are those which are 'critical for South Africa'. This is seen to include 'minerals that are strategically important for economic growth, industrial development, job creation and national security', measured through economic potential, supply risks and risk of supply disruptions. In the strategy, this translates into a list of 21 minerals and metals (some of which are not strictly speaking either), which fall on a continuum of 'highly' critical to 'moderately' critical to the country. Sitting in the highly critical list are coal and iron ore, both extremely carbon-intensive input materials, grouped with minerals and metals well known for their green transition value, such as chrome and platinum. Lower on the list are gold, copper and aluminium, coupled with rare earth metals, cobalt, and uranium. This classification clearly illustrates that although there are differing interpretations of what a 'critical mineral' is, the South African approach is by no means linked to forward-looking technologies or a low-carbon transition. Coal Instead, it presents as a lengthy shopping list of measures across a broad spectrum of mined resources to revive South Africa's existing minerals economy, including sectors that have fared poorly in recent times, such as gold. South Africa is not alone in designating coal a critical 'mineral'. US President Donald Trump earlier this year issued the 'Reinvigorating America's Beautiful Clean Coal Industry' executive order. This designation of coal is contrary to the forward-looking and globally driven critical minerals environment, which the strategy itself acknowledges is primarily driven by the renewable energy transition, geopolitical dynamics, technological advancements and international trade policies and standards. The latter would include the EU's Carbon Border Adjustment Mechanism (CBAM) that penalises carbon-intensive goods and services. The strategy also seeks to position the country as a regional hub for critical minerals' processing and beneficiation, as well as battery manufacturing, and underscores the importance of working with other countries in the region. Regional coordination However, notwithstanding comments around the difficulties of nationalism and unilateral action, it does not meaningfully address how South Africa intends to work with its neighbouring partners to jointly benefit from their respective strategic advantages and what role these other countries might play. This is something the African Continental Free Trade Agreement (AfCTA) could play a role in facilitating and supplementing, as it provides for the progressive elimination of tariffs on mining-related goods and services between members. The strategy then pans to other sectors such as hydrogen and fuel cell manufacturing, revitalising the ferro-alloys sector through various incentives and stimulus measures, trade measures to support the local steel industry, a handful of measures to stimulate electric vehicle manufacturing, and steps to develop a downstream industry for titanium. The measures are detailed and considered and build on or echo previous initiatives that have sought to revitalise these aspects of the economy. For example, the focus on batteries and fuel cells to support new energy vehicles (e-mobility) in the Just Energy Transition Implementation Plan and Electric Vehicle White Paper. The basics To work, however, South Africa will first need to ensure it gets the basics right. Minerals and metals have little value if they can't get to the ports or national processing facilities; if there is no power to process or utilise them; or if the ports are non-functional or congested. This has been a challenge over the past decade that has brought the South African mining sector to its knees. The strategy acknowledges this, but offers little more than reiterating the need to deepen existing efforts (Operation Vulindlela) to support port, energy and rail infrastructure and to create special zones, support initiatives, infrastructure finance and energy conservation measures. The strategy is laudable for the many measures and interventions it seeks to introduce or build on to further grow the sector, but given the breadth of its scope, and the legacy challenges that beset the industry, it will need a comprehensive implementation plan with sufficient financial backing and political will to get it off the ground. This may be the hardest part of all. Similarly, if it is to overcome the nationalistic trade tendencies and geopolitical tensions to become the regional hub it promotes, it will need to develop a much clearer strategy with neighbouring countries so that each can profit from their relative advantages. DM Olivia Rumble is a consultant to Enzi Ijayo Africa Initiative and a director at Climate Legal. Leezola Zongwe is a researcher at Enzi Ijayo, specialising in critical minerals and energy policy.
