04-08-2025
New EFF bill aims to tighten control over South Africa's foreign loans
Minister Enoch Godongwana revealed in a recent interview with Bloomberg Television that the government is managing a loan package totalling about R54 billion
Image: Jairus Mmutle/GCIS
The Economic Freedom Fighters (EFF) have taken formal steps to introduce a Private Member's Bill aimed at tightening parliamentary oversight over the country's foreign borrowing.
According to party MP Sinawo Tambo, the proposal is already being processed through the Bills Office and is 'at an advanced stage.'
The legislation seeks to ensure that all foreign loan agreements receive prior approval from Parliament and are fully disclosed to the public.
The party wrote to the National Assembly Speaker Thoko Didiza in June, notifying her of their intention to table the Public Finance Management Amendment Bill, 2025.
"It aims to strengthen democratic oversight and ensure that all foreign loan agreements undergo prior parliamentary approval and are subject to full public disclosure before conclusion. The policy rationale and urgency for this amendment are outlined in the attached policy proposal and consultation documents. The party said in the letter to Didiza.
"The Bill is premised on the constitutional principles of transparency, accountability, and sound financial governance, as provided for in Sections 215 and 216 of the Constitution."
The proposal comes amid growing concerns over the country's escalating debt levels. South Africa's debt-to-GDP ratio has grown from 23.6% in 2008/09 to a projected 74.7% in 2024/25.
The International Monetary Fund has also recommended that South Africa reduce its debt-to-GDP ratio to 60% to align with international standards.
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Action SA is just pathetic.
The EFF is already processing this with the Bills Office and it is at an advanced stage.
This is just a sad and pathetic stunt. — Sinawo Thambo (@Sinawo_Thambo) August 3, 2025
Earlier this year, the party was also critical of the government's decision to sign a US$1.5 billion (R27.2 billion) loan agreement with the World Bank for infrastructure development.
"The EFF is deeply concerned by the rising trend of foreign-denominated loans, particularly when there is sufficient liquidity in the domestic financial market and alternative monetary policy interventions that remain unexplored, " the party said.
Since then, the government has secured several additional loans. Finance Minister Enoch Godongwana revealed in a recent interview with Bloomberg Television that the government is managing a loan package totalling about R54 billion from international lenders, including the World Bank, African Development Bank, and KFW.
