Category: Africa

Government has proposed a set of measures aimed at reducing the high cost of electricity while ensuring that tariffs remain cost-reflective and that vulnerable households and strategic economic sectors are protected.

The measures are reflected in South Africa’s Revised Electricity Pricing Policy, which Cabinet approved for public comment last month.

The policy updates the 2008 Electricity Pricing Policy to reflect developments in the electricity supply industry, including ongoing market reforms linked to the unbundling of Eskom and the implementation of the Electricity Regulation Amendment Act, 2024.

It establishes national principles and tariff-path certainty, provides a framework for transparent, efficient and cost-reflective tariffs, guides the National Energy Regulator of South Africa (NERSA), Eskom and municipalities, aligns prices with a competitive market, and strengthens social protection and accountability.

“Over a period stretching back to 2007, electricity tariffs have increased by about 977%. A number of things have changed since that period, and that is a trigger as to why we are presenting this set of proposals before you,” Ramokgopa said on Tuesday in Pretoria at a media briefing.

Ten-year price forecast

The Minister said the policy seeks to establish a tariff path that will provide some certainty on the cost of electricity over the next 10 years.

“It is for this reason that, as part of this Electricity Pricing Policy, NERSA will be required to publish a 10-year price forecast.  This is important because, for heavy industries, when people want to make significant investments in the South African economy, and they’re investing in a sector that relies on electricity, they want to compute their return on investment. If electricity is a big part of the input cost, you need to have an appreciation of what the price path looks like,” Ramokgopa said.

The pricing policy will provide a framework for transparent and efficient cost-reflective tariffs to avoid hidden costs being included in electricity tariffs.

Once adopted, the policy will guide the work of NERSA, Eskom, municipalities and other actors across the electricity ecosystem.

Open the market to competition

As part of reforms in the sector, government is liberalising the electricity market to ensure that Eskom is no longer a monopoly and to introduce greater competition.

“By that I mean, as you know, as part of our comprehensive set of reforms, we’re introducing new generators. We’re going to allow a bilateral arrangement, where someone who is a generator can enter into an agreement with someone who is an off-taker. 

“Off-takers are entering into bilateral arrangements outside the realm of Eskom for the supply of electricity. That means that there’s a set of rules that must govern this new dispensation,” the Minister said.

Ramokgopa said South Africa is moving towards a wholesale electricity market.

“So, this policy extends beyond what has been the traditional ecosystem of electricity in the country, because that was really Eskom-heavy and municipality-predisposed,” the Minister said.

Strengthening social protection

He emphasised that the Electricity Pricing Policy will strengthen social protections.

“So, the support we are providing to the poor, the indigent and the vulnerable, will articulate most comprehensively what these kinds of support are that we are providing to these vulnerable communities,” Ramokgopa said.

The Minister explained that Eskom debt increases when consumers do not pay municipalities and, in turn, municipalities do not pay Eskom.

The current tariff structure enables Eskom to recover municipal debt through the tariff.

“If you look at the current tariff, anything between 1% to 2.5% of the tariff that you are paying is on the basis that Eskom is unable to recover what the people are owing, and municipalities, they put in the cost of supply studies the fact that they are being owed a lot of money and then it means that they are putting additional pressure on diligent consumers. In terms of this policy, that’s not allowed,” the Minister said.

Ramokgopa said the policy will enable action against those who do not pay for electricity and those who are illegally connected to the grid.

“We are insisting that the provider of electricity must be efficient. And when it is efficient, you will see that the price of electricity will not be what we are currently charging,” he said.

Free basic electricity

The Minister said there will also be an intervention on free basic electricity for indigent households.

“We’re also going to modernise free basic electricity administration. We’ll establish a central and nationally accessible free basic electricity database. With the new age of technology, we’re able to have that database in place. 

“That is possible because we integrate this database with existing databases of Home Affairs and also with the social grant databases, so there’s a good chance that someone who qualifies for the social grant will also qualify for free basic electricity,” he said.

Support for energy intensive industries

Government is also introducing, through the Electricity Pricing Policy, a Negotiated Pricing Agreement instrument to support industries that rely heavily on electricity.

“The current articulation of the Negotiated Pricing Agreement only triggers to qualify for, or to make an effort to qualify for, a negotiated price agreement when you are in distress.

“We’re also introducing another criterion. This could be industries that are not in distress, but if they were to get concessional funding, they’re able to support the national interest in that they’ll be able to accelerate the growth in the priority sectors of the economy; they’ll be able to create employment. We’re using it as a pre-emptive strike to rejuvenate the South African economy,” the Minister said. –SAnews.gov.za

 

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The KwaZulu-Natal Treasury has called for a meeting involving all key stakeholders, including national and provincial authorities, regulators and Ithala representatives, to address outstanding issues, clarify the way forward and explore measures to preserve the value that remains within Ithala Bank.

This comes after reports that the Prudential Authority has withdrawn its application to liquidate Ithala SOC Limited.

In a statement issued by the KZN Treasury on Tuesday, the department said a legal team has been tasked with assessing the veracity of the reports but — and if confirmed — KwaZulu-Natal Finance MEC Francois Rodgers said the development will represent an important step towards finding a sustainable solution for Ithala, which has played a critical role in advancing financial inclusion and economic development in the province.

Rodgers has consistently opposed the liquidation application, a position shared by senior leaders within the Provincial Government, who have long argued that any intervention affecting Ithala must support the institution’s ability to regain control of its core assets and revenue streams in order to meet its financial obligations and secure its long-term sustainability.

“While this will be an important development, the key issue that now requires urgent attention is Ithala’s ability to regain control of its loan book. We remain concerned that these assets, which are critical to the institution’s viability, should not be under the control of the Repayment Administrator.

“Ithala requires access to its loan portfolio and the proceeds from its insurance businesses if it is to meet its financial obligations and chart a sustainable path forward,” Rodgers said.

Rodgers also expressed concern regarding the continued involvement of the Repayment Administrator Johan Kruger, noting that Ithala’s recovery efforts should focus on restoring the institution’s operational capacity and ensuring it can effectively utilise its assets and revenue streams.

“It is our considered view that the current arrangement has not advanced the objective of restoring Ithala to financial stability. The priority now must be to ensure that Ithala has control over the assets and revenue streams necessary for its operations, including its loan book and insurance proceeds. This is essential to rebuilding confidence, meeting obligations and securing the institution’s future,” the MEC said. – SAnews.gov.za

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Ahead of the 2026 Local Government Elections on 4 November, the voters’ roll closes today.

0n 11 August, the Commission made the provisional voters’ roll available for inspection at its national, provincial and local offices, opening the period for lodging objections to the provisional voters’ roll.

According to the Electoral Commission, the Commission will consider all objections and notify objectors of its decisions by 24 August 2026.

“The Chief Electoral Officer will certify the final voters’ roll for the 2026 Local Government Elections on 26 August 2026,” the Commission said.

The certified voters’ roll will be published and electronic copies provided to certified contestants. 

Earlier this month, the Electoral Commission welcomed the proclamation of the election date by the Minister of Cooperative Governance and Traditional Affairs (CoGTA), Velenkosini Hlabisa.

READ | Electoral Commission publishes Election Timetable

“The proclamation provides certainty by formally setting Wednesday, 4 November 2026, as Election Day. It also marks the commencement of the country’s 89-day Election Timetable leading up to the elections,” Electoral Commission Chairperson Commissioner Mosotho Moepya said at the time.  – SAnews.gov.za

 

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South African Local Government Association (SALGA) President Bheke Stofile says the Integrated Development Planning (IDP) must be more than compliance checklists, but a living document that link community priorities to budgets, strengthen service delivery and position municipalities as investment hubs.

“The IDP must become a living economic contract with measurable projects, clear responsibilities and firm timelines, not a document remembered only when compliance is tested,” Stofile said.

Stofile was speaking at the SALGA Eastern Cape Provincial Executive Committee (PEC) Investment Lekgotla, currently underway at KuGompo City, in East London.

The Eastern Cape convened the PEC Investment Lekgotla, which forms part of the SALGA Provincial Members Assembly (PMA), bringing together municipal leaders, government stakeholders, and investors, to reflect on socio‑economic progress achieved during the 6th term of Local Government Administration.

As the highest constitutional decision-making platform of SALGA’s member municipalities in the province, the PMA provides a strategic forum to review progress, address persistent challenges, and set priorities for strengthening local governance and accelerating service delivery.

In accordance with the SALGA Constitution, the two-day Assembly, which commences on Tuesday, 18 August 2026, will adopt the province’s programme of action, business plan and budget, consider reports from provincial structures and oversight bodies, and deliberate on matters affecting municipalities across the Eastern Cape.

Proceedings started with a Local Government Investment Promotion Lekgotla, aimed at positioning municipalities as attractive investment destinations and unlocking new opportunities for local economic development.

The session will showcase bankable municipal projects, promote public-private partnerships, facilitate engagements between municipalities and investors, and strengthen efforts to build investment-ready local governments capable of driving inclusive economic growth.

Municipalities from across the province will present investment-ready opportunities, while key economic development departments and institutions will outline the support available to unlock local economic development and attract investment into communities.

Stofile warned that the fiscal story of local government remains incomplete as debt owed by government departments, businesses and households remains overlooked, yet service delivery depends on the timely payment of municipal accounts.

On the second day of the Assembly, Eastern Cape MEC for Cooperative Governance and Traditional Affairs Zolile Williams is expected to reflect on the achievements of the 6th Administration and outline priorities for the incoming 7th Administration.

His address will focus on strengthening cooperative governance and accelerating service delivery outcomes for communities.

The Provincial Members Assembly comes at a defining moment for local government, providing an opportunity to reflect on the progress made over the past 30 years, while also marking three decades of SALGA’s advocacy for developmental local government.

The Assembly will also seek to position Eastern Cape municipalities for the future by strengthening governance, attracting investment, and driving inclusive economic growth that translates into improved livelihoods and better services for communities across the province. – SAnews.gov.za

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President Cyril Ramaphosa has appointed former Finance Minister Nhlanhla Musa Nene and Malijeng Ngqaleni as Chairperson and Deputy Chairperson of the Financial and Fiscal Commission (FFC), respectively.

In a statement on Tuesday, the Presidency said the appointments are in terms of section 221 of the Constitution of the Republic of South Africa of 1996 and section 8 of the Financial and Fiscal Commission Act of 1997.

The Commission’s primary objective is to make recommendations to Parliament, the provincial legislatures, local government, and other organs of state on financial and fiscal matters as envisaged in the Constitution and other national legislation.

In addition, the President appointed Bulelwa Dygrecia Nqadolo, Advocate Neo Khethang Tsholanku, Andrew Robert Donaldson, and Astrid Ludin as members of the Commission.

“The appointments are for a period of five years, effective from the date of assumption of office. Furthermore, the Chairperson serves as a full-time member, while the Deputy Chairperson and the other members serve on a part-time basis,” the Presidency said.

Nene also served as a Member of Parliament. He served as  the Deputy Minister of Finance and as a member of the Local Organising Committee for the 2010 FIFA World Cup held in South Africa.

Ms. Ngqaleni is currently a member of the Commission. She is a former Deputy Director-General: Intergovernmental Relations at the National Treasury, where she was also the Chief Director: Provincial and Local Government Infrastructure and Director: Provincial Budget and Policy Analysis.

Ms. Nqadolo was previously a Deputy Director-General: Municipal Financial Governance, Deputy Director-General/Chief Financial Officer, Chief Director/Chief Financial Officer at the Eastern Cape Provincial Treasury and also served as Director: Financial Administration at the Eastern Cape.

Advocate Tsholanku serves as Head of Corporate: Legal Services at the South Africa Revenue Service (SARS). He is the former Head of Criminal Investigations at SARS and a General Manager: Legal and Compliance, Chief Legal Advisor, Legal Team Manager at Eskom, and Senior Legal Advisor at the South African Broadcasting Corporation. He was a practicing Advocate and also served as a public prosecutor.

Mr. Donaldson is a Senior Research Associate of the University of Cape Town Southern Africa Labour and Development Research Unit. He is a former Deputy Director-General of the National Treasury, responsible for the Budget Office and Public Finance, and served as the Acting Head of the Government Technical Advisory Centre (GTAC).

Ms. Ludin was a Deputy Commissioner at the Financial Sector Conduct Authority (FSCA), where she was responsible for oversight over financial markets and retirement fund supervision, as well as the digital transformation of the FSCA.

She is the President of the International Organisation of Pension Supervisors (IOPS). In addition, Ludin held senior positions in several regulatory and policy institutions, including serving as the Commissioner at the Companies and Intellectual Property Commission, a Deputy Director-General at the Department of Trade and Industry and a Deputy Commissioner at the Competition Commission and was a Senior Advisor at the Prudential Authority.

“Their expertise, experience, and institutional memory will add enormous value to the Commission,” the Presidency said.

President Ramaphosa has congratulated the appointees and wished them all the best in their new responsibilities.

Furthermore, the President expresses his appreciation for the former Chairperson of the Commission, Dr. Patience Nombeko Mbava, for her dedication and expertise during her term of office. –SAnews.gov.za

 

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