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IOL News
2 days ago
- Business
- IOL News
Not about the EFF — It's about the people': Malema laments fuel Levy Blow to the poor
EFF leader Julius Malema slams the Western Cape High Court's ruling on dismissing their urgent appeal to halt the implementation of fuel levy. Image: Phando Jikelo/Parliament of SA EFF leader, Julius Malema, has denounced the Western Cape High Court's decision to reject his party's urgent attempt to halt the implementation of a rise in the fuel levy, describing it as a severe blow to South Africans who are already struggling financially. The EFF sought to have the raise, which the finance minister had announced in last month's national budget, blocked by the court on Monday. Pump prices increased by 16 cents per litre for petrol and 15 cents for diesel on Wednesday, the day the new fuel levies went into force. 'The court ruling is not a setback for the EFF,' Malema said during a visit to the family of late actor Presley Chweneyagae in Pretoria on Tuesday. 'It is a setback for the millions of South Africans who are already battling the high cost of living.' Often referred to as a "silent tax," the fuel levy is embedded in the price consumers pay at the pump—impacting transport, food, and goods across the board. 'Once you put an increase on fuel, fuel levy, everything else goes up. The bread that goes to children in schools, the food that goes to patients in hospitals, all of that is going to be affected. We are already saying life is difficult for people as it were now,' Malema 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 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. Next Stay Close ✕ While the levy increase took effect, South African motorists simultaneously received minor relief at the pumps due to declining global oil prices. Petrol prices have decreased by five cents per litre across both grades, while diesel has dropped by 36 cents per litre. Despite the temporary reprieve, Malema warned that the structural increase in the fuel levy adds to a growing burden on ordinary citizens. The EFF maintained that the government's continued reliance on indirect taxes like fuel levies disproportionately affects low- and middle-income households. He also called for a complete review of the country's taxation strategy in relation to basic living costs. 'To put any other increase on fuel levy, it will be a burden our people and they cannotafford. We are happy we took up that struggle,' he said. IOL Politics
IOL News
28-05-2025
- Business
- IOL News
Budget 3. 0: a look at South Africa's plan to use pension funds for building infrastructure
Minister of Finance, Enoch Godongwana Image: Phando Jikelo/ Parliament of SA FINANCE Minister Enoch Godongwana delivered the third iteration of the 2025 national budget speech last Wednesday. As citizens, we all hoped this time would bring positive changes. The latest version of the 2025 budget appears more reasonable within our current economic context and paints a vivid picture of South Africa's finances. 'I believe this budget supports economic activity while enhancing future economic prospects, directs spending towards the social wage, and invests in state capability and critical infrastructure,' said Godongwana. The budget revises several key areas, including the country's economic status, growth projections, substantial debt servicing costs, the withdrawal of the controversial VAT increases, and the continuation of the social relief grant. Although there were no VAT hikes, financial experts warn that public relief may be short-lived. Rising fuel levies and unadjusted tax brackets to account for inflation mean households could still face financial pressures. 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 ✕ Godongwana noted that, despite sluggish growth over the past decade, South Africa's economy is expected to expand by only 1.4% this year, a reduction from the 1.8% projected in March. This decline is primarily attributed to increased trade tensions, geopolitical issues, and policy uncertainty. Additionally, the new budget sets the national borrowing requirement at R588 billion for 2025/26, approximately R6 billion more than planned in March. The 2025 Budget Speech, especially in its 3.0 version, emphasizes infrastructure investment and explores alternative financing mechanisms, such as infrastructure bonds. These mechanisms aim to involve various stakeholders in the investment process. The budget also includes structural reforms to improve access to basic services, particularly in network sectors. As the minister stated: 'The reality, however, is that the decision to eliminate the VAT increase, without a viable alternative source of revenue, significantly reduced our ability to fund additional government programs and projects to the extent we had deemed necessary.' Infrastructure, the fourth pillar of our economic growth, necessitates the exploration of alternative financing arrangements. Therefore, the government is investigating options allowing pension funds, commercial banks, development banks, and international financial institutions to participate in financing the country's infrastructure plans. While South Africa has relatively developed core infrastructure, disparities and inequalities exist in areas like transport, power, communications, and water/sewage systems. These aspects of infrastructure are crucial for enhancing the country's commercial competitiveness. The minister hopes that by seeking alternative financing instruments, the government can leverage infrastructure investment to alleviate supply-side constraints on the economy and improve citizens' access to social services. As citizens, it is essential to understand the rationale behind this proposal. The current budget aims to reduce our reliance on external borrowing and the revenue needed to service this debt. This strategy addresses South Africa's infrastructure deficits and stimulates economic growth. However, it also raises important considerations regarding the implications for pension fund members and the broader economy. The idea of using pension funds to invest in infrastructure is not new. However, we can be assured that the South African government cannot directly seize or take pension fund money without following proper legal processes. Although there have been proposals for pension funds to invest in government-backed assets or infrastructure, regulations and legal frameworks restrict the government's ability to utilise these funds. Regulation 28 of the Pension Funds Act limits how much pension funds can invest in various assets, including government bonds and infrastructure projects. No mandated investments or 'prescribed assets' require pension funds to invest in specific government-backed projects. The government's primary role is ensuring a stable and sound financial system while creating a framework that prudently allows pension funds to invest. Therefore, we can rest assured that no legal mechanism permits the government to take pension fund money without adhering to proper legal procedures and respecting the rights of pension fund members. To implement this strategy, the government is seeking to amend Regulation 28 of the Pension Funds Act to allow retirement funds to allocate up to 45% of their assets to infrastructure investments, an increase from previous limits. This aims to support the government's intention of mobilizing domestic capital for infrastructure development, thereby reducing reliance on external borrowing. If this proposal is adopted, it could bring significant benefits to our country's economy. First, infrastructure growth will stimulate economic activity, create jobs, and enhance service delivery, contributing to overall economic growth. By attracting private investment into infrastructure, the government can relieve fiscal constraints and allocate resources to other critical areas of the economy. It could also allow pension funds to diversify their investment portfolios and potentially achieve long-term returns. As a fellow citizen, I understand the concerns surrounding the implementation of this proposal and the cause for alarm. The primary goal of a member's pension fund is to secure their financial future during retirement. Additionally, we live in a country where we cannot rely on social grants for support in our retirement years. Recognising the various risks that could impact this proposal and potentially reduce our retirement savings is essential. Infrastructure projects are complex and may carry risks that could affect their returns. Therefore, ensuring transparency and accountability in selecting and managing these projects is crucial for protecting pension fund assets. The initiative to utilise pension funds presents both opportunities and challenges. Transparent governance, prudent risk management, and a clear focus on protecting pension fund members' interests are imperative for the success of this strategy. The government must first ensure that a sound, well-regulated financial system is in place to ensure pension fund members' investments are not at risk. Our honourable minister stated in his speech, '…we are not deaf to the public's concern about wasteful and inefficient expenditure … It must be matched by much stricter oversight that quickly identifies problems and provides timely solutions when things go wrong.' As citizens, we must hold him accountable for his promise. Jennifer Reddy Image: File Jennifer Reddy is the chief executive officer of Morar Incorporated, a leading national accounting and advisory firm with a footprint across South Africa. She is a qualified chartered accountant, registered auditor, certified fraud examiner, and holds an MBA. ** The views expressed do not necessarily reflect the views of IOL or Independent Media. THE POST
IOL News
25-05-2025
- Politics
- IOL News
Julius Malema stands firm against Donald Trump, vows to keep singing ‘Kill the Boer'
EFF leader Julius Malema has addressed supporters in Kwakwatsi, Free State, defiantly singing the controversial chant despite global backlash. Image: Phando Jikelo/Parliament of SA Just days after US President Donald Trump called on President Cyril Ramaphosa to arrest Economic Freedom Fighters (EFF) leader Julius Malema for singing the controversial 'Kill the Boer' chant, Malema once again led the song on Sunday and vowed to continue doing so. 'I'm not going to be silenced by the threat of violence. I'm not going to be silenced by the threat of death,' he said. Malema made the remarks on Sunday at the Mminara Sports Ground in Kwakwatsi, Free State, ahead of local by-elections this week. 'When you say 'don't tell him,' Ramaphosa should have said, 'In South Africa, we don't tell people like that.' There are codes in South Africa, and the codes have said there is nothing wrong with this song,' he said. Malema said he neither owns nor composed the song, which has been widely criticised for inciting violence. 'This is not my song. I did not compose this song. I found this song; the struggle heroes composed this song. All I'm doing is defending the legacy of our struggle…,' he said. He described the chant as a part of South Africa's liberation heritage. 'This is the song that was sung by Peter Mokaba in the presence of Chris Hani, in the presence of Winnie Mandela,' Malema said. 'And therefore, I will never stop singing a song that Winnie Mandela sang before she died. That would be a betrayal of the struggle of our people.' He warned that calls to stop the chant could be followed by demands to end discussions about land reform. 'Comrades, when they say stop singing 'Kill the Boer, kill the farmer,' they are going to say to you: Stop demanding the land because you are offending white people. Don't talk about the land,' he 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 Video Player is loading. 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Next Stay Close ✕ Trump made the call for Malema's arrest during a recent meeting with Ramaphosa at the White House last week on Wednesday. Trump criticised Malema and the chant, citing it as evidence of targeted violence against white Afrikaner farmers. His remarks were influenced by a video clip of Malema speaking in Parliament about land reform. Democratic Alliance (DA) leader John Steenhuisen, who attended the meeting, said his party joined South Africa's Government of National Unity (GNU) to prevent extremist parties, including the EFF and uMkhonto weSizwe, from gaining power. Trump's comments escalated tensions between Washington and Pretoria, particularly regarding South Africa's land reform policy. Trump described the policy as 'seizure of land' from white farmers, a claim the South African government has denied. Defiant in the face of criticism, Malema closed his speech by singing the chant on stage alongside supporters. Meanwhile, Former president Thabo Mbeki defended the controversial 'Kill the Boer' chant — widely sung by Malema — saying it was a symbolic expression rooted in the anti-apartheid struggle and not a literal call to violence. Mbeki said the chant, used during the liberation struggle, was never intended to be taken literally and remains misunderstood by critics. 'It's unchanged. I mean, that thing is a chant. It was a chant during the days of struggle,' Mbeki said in an interview with SABC News. 'Chants of that kind in our tradition, in the African tradition, you don't take them literally.' IOL Politics Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
22-05-2025
- Business
- IOL News
Godongwana injects much-needed boost for frontline healthcare services in public hospitals
Minister of Finance, Enoch Godongwana, tabled the 2025 Budget Speech during the National Assembly plenary at the Cape Town International Convention Centre. Image: Phando Jikelo/ Parliament of SA THE plight of healthcare workers in public hospitals, as highlighted in a letter by a University of Cape Town medical student, was one of the reasons Finance Minister Enoch Godongwana's budget maintains the spending trajectory presented in the main budget on 12 March. Over the medium-term expenditure framework (MTEF) period, the provincial health sector budget will total R845 billion. An additional R20.8b will be allocated over three years to employ 800 post-community service doctors, procure essential goods and services, and reduce accruals that have hindered service delivery. The increase would also help the sector deal with personnel budget pressures that have been growing steadily across provinces, said Godongwana. The Department of Health's total expenditure is expected to rise to R275.5b in 2025/26, R288.5b in 2026/27, and R301.7b in 2027/28. This marks a gradual but consistent increase aimed at restoring both infrastructure and human capacity in the public health system. The overall increase to the health function's baseline is R7b or 0.85%, from R858.8b in the 2024 MTEF to R865.8b in the 2025 MTEF. The bulk of the increase, R4.6 billion, will go to the provincial equitable share to support implementation of the 2025 public sector wage agreement. 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 ✕ This will ease the salary pressures that have led to understaffing, particularly in rural and high-pressure facilities. In her letter to Godongwana Sarah Stein, a medical student at UCT, detailed the dire conditions healthcare workers face in public hospitals. 'Working in a public hospital with way too few resources punches you in the gut every day. It's not just the trauma of seeing your patient die, it's having no gloves in a delivery room; no alcohol swabs to clean wounds; and knowing that nurses stop at the shop on their way to work to buy their own gloves and masks because the clinic has run out. "Where waiting times for a scan are months long, and surgery delays needlessly let disease progress to the point of being inoperable. It's the limited beds in high care mean that doctors are regularly forced to decide whose life is worth saving because there's only space for one,' Stein wrote. Godongwana said addressing the persistent spending pressures to restore critical frontline services and invest in infrastructure was critical for improving access to basic services and lifting economic prospects. On the future of National Health Insurance (NHI) funding, Godongwana allocated R858m to the NHI indirect grant in 2025/26 and R259 million in 2026/27. Cape Times
IOL News
21-05-2025
- Business
- IOL News
Impact of rising fuel levies on developers: increased input costs and tighter margins ahead
Minister of Finance Enoch Godongwana, proposed a fuel tax increase, which will go towards the shortfall left by the cancelled VAT hike on Wednesday. Image: Phando Jikelo/ Parliament of SA Higher fuel levies and reduced revenue projections could translate into increased input costs, tighter margins for developers, and slower project rollouts, particularly in the affordable housing space. Dr Meshel Muzuva, the academic programme leader at the Management College of Southern Africa (MANCOSA) School of Business Excellence, said that the fact that baseline departmental budgets and critical infrastructure spending are largely protected, offers some optimism. She said that public-private development partnerships could still thrive, especially in housing and urban regeneration, if execution stays on track. 'My advice to property stakeholders: Stay agile. Rethink development timelines and cost structures while closely monitoring inflation and interest rate trends. "Opportunities will exist, especially where the state seeks to stimulate economic growth through infrastructure, but capitalising on these will require a sharper strategy and stronger collaboration with government planning initiatives,' Muzuva said. Adrian Goslett, CEO of RE/MAX of Southern Africa and chairman of the Real Estate Business Owners of South Africa (REBOSA), said South Africa's Budget 3.0, tabled this week following months of political negotiation and fiscal reworking, brings with it a blend of relief, realism, and renewed responsibility. 'While I welcome the fact that we avoided a VAT increase, this budget does signal some underlying challenges that could temper market momentum. One of the most sobering updates in this re-tabled budget is the revised GDP forecast of just 1.4% for 2025, down from the earlier projection of 1.9%. "This weakened outlook inevitably affects consumer confidence and employment prospects, two essential drivers of real estate demand,' Goslett said. He said another downside is the proposed fuel tax increases, which will go towards the shortfall left by the cancelled VAT hike. 'Although this measure is more targeted than a blanket VAT increase, it still filters through to household budgets. Rising fuel costs increase the cost of transport, food, and services, all of which erode disposable income. "This means less room in the budget for mortgage payments, maintenance, or savings for a deposit and/or transfer costs,' Goslett 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 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. Next Stay Close ✕ Apart from these factors, Goslett is also concerned about the scaling down of modernisation funds for Home Affairs. 'This could have very real implications for the property market. Home Affairs plays a pivotal role in property transactions. Delays or inefficiencies in this department can slow down transactions, frustrate cross-border investment, and erode confidence in the ease of doing business in South Africa. Modernising Home Affairs is not just a tech upgrade, it's a vital component of making our property and financial systems more agile and trustworthy,' he noted. Despite these concerns, Goslett wants to acknowledge the effort made by the National Treasury to present a measured and politically workable budget. 'The property sector thrives on policy certainty, consumer confidence, and economic momentum. Budget 3.0 offers some of that – but the warning signs in the macroeconomic data remind us that we're not out of the woods yet,' he stated. Muzuva said Budget 3.0 presents a more measured and politically aligned fiscal framework, especially after the VAT hike proposals in previous versions were withdrawn. She said while Finance Minister Enoch Godongwana reassured the public that this is 'not an austerity budget,' the message is clear: we are operating in a tight fiscal space. 'The upward revision of the debt-to-GDP ratio (projected at 77.4% in 2025/26, the highest since 1994) and the fuel levy increases (16c on petrol, 15c on diesel) highlight the need for careful prioritisation, even as the government aims to sustain investment in critical services.' Dr Andrew Golding, chief executive of the Pam Golding Property Group, said the welcome commitments made in the Budget Speech included growing the economy-a key element of job creation, accelerating infrastructure investment and facilitating greater private sector participation in public infrastructure, tackling corruption, and eradicating wasteful and inefficient expenditure while investing in our frontline services-including free basic services for poor households. He said, much to the relief of consumers, that as recently announced, the proposed VAT increase has been removed in the revised Budget. 'This is also encouraging for home buyers acquiring new-build units in property developments which incorporate VAT in the purchase price, as well as first-time and other home buyers embarking on property acquisitions, as there are a number of VAT-inclusive services associated with the purchase of a home,' Golding said. He said the Budget has positively retained the 10% increase in the threshold for transfer duties, which means that properties up to R1.21 million are exempt, which is meaningful for first-time buyers, as the average price paid by a first-time buyer from January to April 2025 was R1.245 million, according to ooba Home Loans. 'Regrettably, the fuel price levy increases in June by 16 cents per litre for petrol and 15 cents for diesel; however, on the plus side, this is hopefully offset by indications that fuel prices will decrease by an estimated 23c per litre next month (June). "It is also unfortunate that allowance has not been made for tax bracket creep to allow for inflation, as in effect, this results in higher tax being paid by individuals who are pushed into higher tax brackets.' Independent Media Property
