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IOL News
an hour ago
- Politics
- IOL News
President Ramaphosa defends decision to proceed with National Dialogue despite deep divisions
Despite the withdrawal of several prominent Legacy Foundations from the structures of the Preparatory Task Team (PTT) and the upcoming First National Convention of the National Dialogue scheduled for August 15, 2025, President Cyril Ramaphosa confirmed on Friday that the Dialogue will proceed as planned. Image: Jairus Mmutle / GCIS THE national convention organising team responsible for the National Dialogue has been reorganised and is being reinforced by various social partners and civil society formations, says the Presidency. This comes after the withdrawal of several foundations, a development the Presidency insists does not represent a setback. The first meeting of the National Dialogue is expected to proceed this week. The Presidency also confirmed that all budgetary processes related to the National Convention were in full compliance with the Public Finance Management Act (PFMA). This follows a meeting of the interim Preparatory Task Team (PTT) on August 7, where members were divided on key issues, including whether the PTT is ready to deliver the National Convention as scheduled on August 15, 2025. The first National Convention is expected to bring together 200 organisations from 33 different sectors, to kickstart the National Dialogue process, by outlining key themes for discussion and finalise the establishment of a broadly representative Steering Committee, among others. A day after the PTT meeting, several prominent foundations announced their withdrawal from both the PTT and the upcoming National Convention. In a joint statement issued on Friday, the Steve Biko Foundation, Thabo Mbeki Foundation, Chief Albert Luthuli Foundation, Desmond and Leah Tutu Legacy Foundation, FW de Klerk Foundation, Oliver and Adelaide Tambo Foundation, and the Strategic Dialogue Group confirmed their decision to pull out, citing that the convention was being rushed. They argued that without sufficient programmatic, operational, and communications in place, the event could not serve as a "credible launchpad for a truly transformative process for South absence of a confirmed, approved budget allocation, and a last-minute commitment of initial funds has made sound preparation impossible. This raises real risks of a poorly organised and unaccountable process". 'The rushed timeline, constrained logistics, and limited interactive design mean that the proposed convention no longer offers a meaningful platform for engagement. The structure risks becoming symbolic rather than substantive. What began as a citizen-led initiative has unfortunately, in practice, shifted towards government control. In pushing forward for a Convention on 15 August at the will of government officials and against the advice of the Sub-Committee Chairs, we believe that a critical moment in which citizens should be leading will be undermined. The principles and important nature of being a citizen-led process are being sacrificed for the sake of expediency,' the group said. Their decision did not represent a withdrawal from the National Dialogue project itself. They proposed moving the event two months later, to after 15 October 2025, which the president has declined to do. In a statement, President Cyril Ramaphosa said: 'The National Convention must happen so that South Africa's people can take ownership and control of the National Dialogue. Invitations have gone out to organisations across the country and delegates are preparing themselves to attend the convention. It is at the National Convention that the people of South Africa will take over and run with the National Dialogue process,' he said. Ramaphosa expressed regret at their withdrawal from the preparations, but said he was 'encouraged' by their intention to continue to play a meaningful role in the National Dialogue as it unfolds. On Friday, Ramaphosa also met with the co-chairs, deputy chairs and the secretary of the Eminent Persons Group (EPG). EPG member Archbishop Thabo Makgoba maintained the foundations pulling out of preparations should not be seen as a setback, but 'as a genuine effort to wrestle with – and find agreement on – issues upon which the success of the whole initiative will depend'. He called on all involved to 'serve the common good in the interests of the whole nation'. Cape Times
IOL News
7 days ago
- Business
- IOL News
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. 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 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.
IOL News
7 days ago
- Business
- IOL News
Minister Ramokgopa promises to change unsustainable electricity prices
Electricity minister Kgosientsho Ramokgopa, Image: Jairus Mmutle/GCIS ELECTRICITY and Energy Minister Dr Kgosientsho Ramokgopa has promised big changes to electricity prices in the coming months in efforts to address what he described as unsustainable prices. Ahead of the ANC NEC meeting at various venues in Gauteng, Ramokgopa disclosed that South Africa was on the brink of 'energy poverty'. "Electricity is unaffordable. We cannot continue along this tariff path. We are getting into a situation here in the country with new dimensions of energy poverty. There are households there, as I speak to you, that will not be able to afford the cost of households are being forced to make choices between a loaf of bread and buying prepaid electricity units," he said. His remarks come after the residents of Tembisa forced Ekurhuleni Mayor Nkosindiphile Xhakaza to reconsider the R126 electricity fixed surcharge against residents who took to the streets two weeks ago over skyrocketing electricity prices. Energy expert, Professor Vally Padayachee, reflecting on the soaring prices of electricity, indicated that the rising cost of electricity is concerning as it impacts not only household budgets but also the overall economy. "Increases of over approximately 600% in recent years are unsustainable and disproportionate to many citizens' income levels. Electricity, a public good, should arguably be like water, a fundamental right, accessible and affordable for all South Africans. "For the average South African household, rising electricity costs have become a serious financial concern. Many families find themselves allocating a growing portion of their income to energy bills, which can lead to difficult choices between essential services such as food, education, and healthcare. This financial strain can cause stress and adversely affect family life," he stated. 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 To curb the effects of energy poverty, Vally said: "The rising costs of electricity calls for urgent structural reforms to the energy pricing model in South Africa. Policymakers must explore ways to stabilise prices for households and reduce the burden on vulnerable populations. There must be a concerted effort towards transitioning to a sustainable energy future that emphasises renewable energy sources. "By investing in sustainable energy technologies, the government can work towards reducing reliance on expensive fossil fuels, ultimately lowering electricity costs over the long term." Taking to X, former Eskom COO, Matshela Koko, lamented the rising costs of electricity in spite of a promise that IPPs (independent power producers) would help reduce energy prices. "Eskom's electricity sales have plummeted from 220 TWh to 180 TWh over the past decade, yet electricity costs have skyrocketed by 600%. Here's the truth: wind, solar, and battery storage won't lower the electricity prices you see on your electricity bills. It is irrespective of the near-zero marginal cost of production of wind and solar projects." Cape Times
IOL News
29-07-2025
- Business
- IOL News
IMF holds steady on South Africa's growth forecast despite regional optimism
In the latest World Economic Outlook (WEO) released on Tuesday, the IMF's forecasts for South Africa remain unchanged. Image: Jairus Mmutle/GCIS The International Monetary Fund (IMF) has confirmed its projections for South Africa's economic growth, maintaining that the nation will only see an increase of 1% in 2025 and 1.3% in 2026. This forecast comes amid an upward revision of growth expectations for the sub-Saharan Africa region, showcasing a contrasting outlook for South Africa in the midst of broader regional optimism. In the latest World Economic Outlook (WEO) released on Tuesday, the IMF's forecast for South Africa remained unchanged, retaining the lower estimates set in April when the organisation had previously cut its forecast by 0.5 percentage points due to slowing activity in key trading partners compounded by rising US tariffs. According to the IMF's predictions, South Africa is expected to lag behind regional counterparts. The forecasts contrast with those from the National Treasury, which anticipates a growth rate of 1.4% in 2025 and 1.6% in 2026, as well as the South African Reserve Bank's more optimistic outlook of 1.2% growth for 2025 rising to 1.8% by 2027. These discrepancies highlight a deeply concerning divergence between South Africa's economic trajectory and that of its neighbours in sub-Saharan Africa. While the IMF has kept its growth forecast for South Africa stagnant, it has revised its outlook for the sub-Saharan Africa region to a robust 4.0% for 2025, up from the prior forecast of 3.8%. The IMF predicts further growth to 4.3% in 2026, indicating a more positive economic climate for many nations within the region. The IMF's overall assessment includes the acknowledgment that global growth is expected to slow down, as the impacts of recent trade-related disruptions begin to unravel. The Fund projects global growth rates of 3.0% in 2025 and 3.1% in 2026, both of which remain below the 2024 forecast of 3.3% and the historical average of 3.7% prior to the pandemic. Pierre-Olivier Gourinchas, the IMF's chief economist, indicated that the anticipated front-loading in international trade has contributed positively to the revised forecasts, although this trend is expected to unwind in forthcoming quarters, potentially dampening activity in 2026. He emphasised the precarious nature of the current trade environment, warning that rising tariffs could negatively impact global productivity should existing agreements falter. 'Accordingly, we have revised our growth projections upwards from the April 2025 reference forecast, from 2.8% to 3.0% this year, and from 3.0% to 3.1% next year. Most regions are experiencing modest growth upgrades this year and next. This resilience is welcome, but it is also tenuous,' Gourinchas said. 'While the trade shock could turn out to be less severe than initially feared, it is still sizeable, and evidence is mounting that it is hurting the global economy. For instance, compared to our pre-April forecast, global growth is revised downwards by 0.2 percentage points this year. 'At around 3%, global growth remains disappointingly below pre-COVID average. And we continue to project a persistent decline in global trade as a share of output despite the recent frontloading, from 57% in 2024 to 53% in 2030.' Gourinchas said risks to the global economy remained firmly to the downside, but warned that the current trade environment remained precarious. He said tariffs could well reset at much higher levels once the 'pause' expires on August 1 or if existing deals unravel. 'If this were the case, model-based simulations suggest global output would be 0.3% lower in 2026. Without comprehensive agreements, the ongoing trade uncertainty could increasingly weigh on investment and activity,' he said. 'Further, while exports frontloading has supported global activity so far, firms could become vulnerable if the demand for stockpiled goods does not materialize. The geopolitical environment also remains fragile, with a potential for more negative supply disruptions.' BUSINESS REPORT
IOL News
08-07-2025
- Politics
- IOL News
An open letter to the President Cyril Ramaphosa: A call for accountability
A letter writer has urged President Cyril Ramaphosa to put the interests of the country before that of his political party. Image: Jairus Mmutle / GCIS Sir, At the outset, let me state that your presidency, spanning now into a third term albeit the second term being a partial one, has been an utter and bitter disappointment. A smiling and amiable personality is no criterion for supreme leadership, especially in a country like South Africa, after decades of degeneration, corruption, and pure thuggery. You are fortunate in that you can scream privilege, only because of political association, connections, and indeed under-the-table dealings that have yielded much for you personally. When you failed in securing yourself the nomination for the presidency post the Mandela presidency, you hibernated in a sabbatical from the political arena but were well ensconced in the business sector. This gave you opportunities that ordinary South Africans may have been denied only because of your profile as chief negotiator during Codesa; the business sector saw you as an opportunity for the furtherance of their economic objectives in the future. You obviously had ample opportunity to entrench your privilege and prepare a launch pad for your re-entry into mainstream politics. I do not begrudge you for your ambitions. 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 However, the time has come when we call a spade a spade. What exactly have you done as head of state to correct the burgeoning corruption and jobbery in our failing bureaucracy? The unacceptable levels of criminality, both against the innocent citizens of this country and the state coffers, go on unabated. KZN Police Commissioner Nhlanhla Mkhwanazi has revealed flagitious, damning, and disturbing facts that should be your responsibility to attend to in the immediacy, all things considered. The fragile GNU which you head will not pass muster post the next General Election. This GNU, if we are to be honest, is tempered with compromise and expediency - for the sake of stability, we are thankful - but the reality of a volatile political climate dictates otherwise. A figure of approximately R700 million has been budgeted for what has been criticized as a "vanity project" for the appointment of so-called eminent persons to address the National Dialogue. R700 million - really? My critique has an undercurrent of dissatisfaction that does not portend well - but it is a critique that, from a ripple effect, is turning into a tidal wave, and in your zest to protect your image and that of your party, you are selling South Africa out. What has the debacle and farce that your visit to the White House yielded? In my books - nothing. The essence of my correspondence is that you need to urgently reflect on your ability to handle, control, and execute effective leadership that will make a real difference to all citizens - the notion that we have "previously disadvantaged" citizens is real, but the small elite who are rising to become the cream of the crop were often the very ones who were previously disadvantaged. Yet their meteoric rise in economic grandeur was precipitated largely, not everyone but the chosen ones, by thuggery and corruption. Where are the two mega cities that you once touted to be developed in a SONA address? The questions abound. The hubris of your authority - as you try and assuage pertinent matters without any bullish action - darkens the looming horizon even further. You may not qualify for another term as president, but your declining tale and legacy is surely becoming a sight for sore eyes, and you don't need advisors to assist in your decision-making - the ordinary citizen is best equipped to do that. It is high time you put the interests of the country before that of your political party - that's what a good and effective president does. Finally, be a president worthy of emulation - this country deserves more - much, much more.
