Category: South Africa Government

By Nomonde Mnukwa

As the year draws to a close and we stand on the threshold of a new year in 2026, the prevailing sentiment regarding our economy is one of confident optimism. Despite the formidable challenges our economy has navigated, we are now definitively turning the corner, accelerating towards a more stable and prosperous economic future.

It’s our spirit of never giving up and ingenuity that has made it possible for us to rise above recent hard times. Our ability to ‘make a plan,’ swiftly adapt to shifting circumstances, and pull together despite our differences is now paying dividends as we observe clear signs of a stronger economy.

In his recent address to the nation on South Africa’s successful hosting of the G20 Summit, President Cyril Rampahosa said: “Through the work we are doing together, we are beginning to see the green shoots of an emerging economic recovery. Unemployment has fallen in recent months. Our public finances are improving, allowing us to steadily reduce our national debt.”

The latest numbers show we have turned the corner towards a growth trajectory. For the first time since 2008, government debt is starting to level off. That means after years of borrowing more than we earned, we are changing direction and our country’s finances are getting healthier. Next year, debt is expected to stabilise at 77.9 per cent of gross domestic product (GDP).

This financial year, we project a primary budget surplus, which means we are no longer borrowing money just to cover day-to-day costs. By 2028/29, this surplus is expected to grow, freeing up more money to fund basic services like health care facilities and interventions to grow the economy to enable job creation. 
With the 7th administration’s no one priority being job creation, in the third quarter of 2025, more than 248,000 new jobs were created. The total employment is now over 17.1 million, marking the highest level recorded this year and confirming our steady path to full economic recovery. In a country where unemployment hurts so many families, these new jobs change lives and bring real hope.

The economy has posted its fourth straight gain with gross domestic product (GDP) expanding 0.5 per cent in the third quarter of the year, signalling an economy that is stabilising and beginning to build resilience.  Importantly, the growth was broad-based with mining, agriculture, trade, retail and accommodation all contributing positively which demonstrates that our economic recovery is taking root across multiple sectors rather than relying on a single driver. 

The agribusiness confidence also bounced back in the final quarter of the year, rising by five points to 67 in the Agbiz/IDC Agribusiness Confidence Index (ACI). 

Furthermore, initiatives such as the Youth Employment Service (YES) have to date, placed over 202 558 young South Africans in 12-month quality work experiences. The initiative which is enabled by more than 1 900 corporate partners has become a key driver of South Africa’s economic transformation, focusing on digital and technological skills development. 

The upward trend provides a solid foundation for stronger performance ahead, signalling renewed confidence and laying groundwork for deeper investment, job creation, and long-term economic renewal.

One of the clearest signs that things are improving came from S&P Global Ratings which recently upgraded South Africa’s outlook. For investors around the world and domestically, this says our reforms and careful financial management is working. South Africa is becoming a place people want to invest in again.
Eskom continues to provide consistent energy supply with South Africa having experienced 169 consecutive days without load shedding during the second quarter of the current financial year. 

This upward trend is not simply luck, but bold reforms that have set our economy on a new path. Through Operation Vulindlela we are fixing ports, speeding up new energy projects and cutting red tape, all of which are starting to deliver real results.

Structural changes like the establishment of a separate Transnet Rail Infrastructure Manager to manage the rail network while allowing for open access where private train operating companies (TOCs) can run their own trains, will bring about more competition, reducing costs, and ultimately shifting freight from road to rail. 

As part of major rail reforms, 41 freight rail routes will be opened to 11 selected private Train Operating Companies and will result in rail volumes increasing from 160-million tons to 250-million tons by 2030.

Moreover, joint work between Transnet, police and private companies has cleared blockages, reopened routes and made freight movement faster and safer. Businesses are saving money, factories can produce more, and our exports are growing.

Keeping inflation under control means more money back in people’s pockets as price increases are kept in check. Government wants to bring inflation even lower and has tasked the Reserve Bank to keep inflation around 3 per cent, which will match the best-performing countries.

Furthermore, we have also been taken off the Financial Action Task Force (FATF) grey list. In just two and a half years, government kept its promise to tighten rules and enhanced our ability to combat illegal money flows. Being off the grey list improves our reputation, makes it easier to do business overseas and attracts more investors. It shows the world we are serious about good governance.

Our hosting the G20 Summit last month has been a game-changer for South Africa. The images of a safe, organised and vibrant South Africa went around the globe. Heads of State and Business leaders who flew in for the summit saw with their own eyes the world class infrastructure and our budding potential.
The progress we have made is real. Our strengths now outweigh the problems, and we are putting effort in fixing the remaining challenges with clear plans and teamwork.

While turning the corner is a big step, our journey is not finished, we must keep the momentum. Government, business, workers and communities all need to keep working together, supporting reforms, investing, innovating and making sure growth reaches every South African.

South Africa has entered a time of new possibility. If we stay united and keep pushing forward, the good signs we see today will grow into a strong, fair and thriving economy that works for all of us.

*Mnukwa is the Acting Director-General of the Government Communication and Information System (GCIS).

 

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The National Transmission Company South Africa (NTCSA) has confirmed that it is committed to concluding a new electricity supply agreement with the Mozal aluminium smelter in Mozambique.

In an update on the Mozal smelter, the NTCSA said it is committed to a new agreement as well as to protect South African electricity consumers from unintended cost impacts.  

“The National Transmission Company South Africa (NTCSA), a subsidiary of Eskom Holdings SOC Ltd, confirms that it remains committed to concluding a new electricity supply agreement with the Mozal aluminium smelter in Mozambique, in a manner that safeguards the NTCSA’s financial stability and protects South African electricity consumers from unintended cost impacts. The long standing supply agreement between the parties has been in place for more than 20 years, and all parties were aware that the new agreement is due on 15 March 2026,” the NTCSA said on Wednesday.

It added that to remain globally competitive, the Mozal smelter requires an electricity price that is significantly lower than the direct cost of supply.

“It has become clear that this arrangement is not sustainable for the NTCSA going forward. As such, a mutually beneficial solution, developed collaboratively with stakeholders in both Mozambique and South Africa, is essential to support regional industrial activity, while ensuring the NTCSA’s financial sustainability and fairness to South African electricity consumers.

“The NTCSA will continue engaging with stakeholders in both countries to explore the feasibility of such an arrangement,” NTCSA Chief Executive Officer, Monde Bala said.

It further added that the Negotiated Price Agreements (NPA) policy mechanism provided by the National Energy Regulator of South Africa (NERSA), does not extend beyond South Africa’s borders.

“The NTCSA remains available and open to finding a solution for the Mozal smelter. We have consistently indicated, over the past year, an appropriate price range for the supply of electricity to secure a new supply agreement with our valued customer,” Bala said.

The NTCSA remains committed to supporting industrial operations within a lawful and economically sustainable framework that balances the needs of industry with the rights of all customers.

Safeguarding households and small businesses from unintended cost impacts remains central to Eskom’s mandate.

The NTCSA will provide further updates as and when developments arise. –SAnews.gov.za

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Human Settlements Minister, Thembi Simelane, is expected to conduct an oversight visit to the Baken Park Catalytic Housing Project located in Bethlehem in the Free State today, Thursday, 18 December 2025. 

“The project, expected to cost over R370 million, is a mixed-income residential development which to yield 1248 housing units on completion. These include First Home Finance, Breaking New Ground (BNG), and social housing. Already one hundred serviced sites have been released for First Home Finance, thus enabling the missing middle to build houses for themselves,” the Department of Human Settlements said in a statement. 

The Minister will be joined on her oversight visit by Free State Premier Ma-Queen Letsoha-Mathae.

According to the department, the project represents a strategic intervention aligned with national and provincial priorities to accelerate housing delivery, promote spatial transformation, and stimulate inclusive economic growth.

The in-loco inspection will be led by MEC for CoGTA and Human Settlements, Saki Mokoena, and the Executive Mayor of Dihlabeng Local Municipality, Tseki Tseki. –SAnews.gov.za 
 

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The Department of Higher Education and Training (DHET) has officially opened a call for applications to eligible South African students for a fully funded scholarship to study in Germany at the Constructor University. 

 The scholarship is for a fully funded Bachelor’s, Master’s, and PhD studies, under the Funda Germany Scholarship Programme, commencing in September 2026.

“Constructor University is an English-medium, campus university in Bremen, ranked among the top 30% globally.  With students from around 120 different nations, it is among the world’s most international universities, offering Bachelor’s, Master’s and Doctoral degrees in a wide variety of fields,” the department said.

Who can apply for the scholarship?

• South African citizens in good health.
• Students with a strong academic record.
• Bachelor applicants require a minimum average of 65% or above in their NSC (including Life Orientation as well as Mathematics and 1 other STEM subject).
• Postgraduate applicants should have performed well in their previous studies, with a minimum of 60% average mark or above achieved in their previous studies.
• Must have an interest to study in Germany and demonstrate commitment to the development of South Africa.
• Available and eligible to study full-time in Germany from September 2026.
• Meet the entry criteria for the selected study programme at Constructor University.

Fields of Study

• A wide range of study fields is available for Bachelor’s and Master’s degrees and PhD projects, including various engineering fields, robotics, management, mathematics, fuel cell development, artificial intelligence, neuroscience, computational systems biology, nano electronics, specialist areas in physics, chemistry, applied mathematics and geosciences, social data sciences, cognitive psychology, computer science, biotechnology, accounting and auditing, political sciences, international logistics, computational drug discovery, communication science, history, economics, sociology and many more.

Deadline for receipt of applications

• 15 February 2026

A comprehensive list of fields of study for the Bachelor’s degree is available at https://constructor.university/programs/undergraduate-education and for Master’s programmes at https://constructor.university/programs/graduate-education.

A comprehensive list of fields of study for the PhD can be accessed via https://constructor.university/phd-degrees-constructor-university

What the scholarship offers

The scholarship will cover the following:

• Return airfare to Germany.
• Tuition fees.
• Monthly stipend for living expenses.
• Accommodation.
• A once-off settlement allowance.
• Annual flights at the end of the academic year for Bachelor’s students. Master’s students may qualify for annual flights if accommodated on campus.
• Mid-term flights after 18 months (PhD students).
• Medical insurance allowance.
• An annual allowance at the beginning of each academic year.
• Academic support for qualifying postgraduate students.
• Psychosocial support.
• Pre-departure orientation.
• SAQA verification of qualification and one professional board examination (if applicable).

Application process

Application for the scholarships is strictly online via the application portal.

Applicants at the Bachelor’s and Master’s level are required to complete the online application on the Constructor University application portal, accessible on the website by the deadline indicated and fulfil all requirements as stipulated.

Successful awardees who withdraw from the programme after signing the Constructor University contract will be liable for the full costs as stipulated in the Constructor University student contract. 

More information about the scholarship is available on: https://www.internationalscholarships.dhet.gov.za/index.php/scholarships/undergraduate-scholarships/496-germany-dhet-funda-germany-scholarship-programme-2026-2027. – SAnews.gov.za

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Trans-Caledon Tunnel Authority (TCTA) Chief Executive Officer, Percy Sechemane, has raised concern over the high levels of water losses in South Africa, particularly at municipal level.

Speaking to the media on the sidelines of the department of Water and Sanitation’s oversight visit to Lesotho to monitor progress on Phase II of the Lesotho Highlands Water Project (LHWP), Sechemane said while major infrastructure projects, such as the LHWP are critical, the country must also address inefficiencies within existing systems to avoid unnecessary costs.

“We are losing too much water in South Africa at municipal level, and ordinary citizens end up paying higher tariffs because the municipalities add on and then we just bail.

“If we were to bring those efficiencies wherein every drop we can actually account for, then we don’t need to be doing all these other phases, and because the infrastructure is there already, then the cost of water in terms of tariffs would not be escalating as it does,” Sechemane said.

He noted that while it is nice to come and look at the project like LHWP and highlight the amount of money spent on them, it would be nice not to come and build another dam on the other side.

According to Sechemane, much of the required infrastructure is already in place in South Africa, and that proper maintenance could significantly reduce water losses and help stabilise water tariffs.

“What we need to do is ask how do we look at those losses and find out what are we doing [to manage] them. What is a use of building those infrastructure when the water gets lost once it reaches South Africa and the tariffs are going up. We need to look at what we already have, and if you maintain [and optimise] what we already have, we don’t have to spend more money on operating additional assets,” Sechemane said.

Trans-Caledon Tunnel Authority is a state-owned entity charged with financing and implementing bulk raw water infrastructure projects. It is an agency of the National Department of Water and Sanitation (DWS), which is responsible for the country’s water resources in respect of usage, equitable allocation and distribution.

TCTA assists the government in its pursuit of water security for South Africa and in realising its constitutional obligation of ensuring universal access to this essential resource for all citizens. – SAnews.gov.za
 

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As South Africans travel to various holiday destinations during the festive season, Water and Sanitation Minister Pemmy Majodina, has reiterated her call for the public to use water sparingly.

“Ensure that you close all your taps when you leave home. Don’t pump your swimming pools and avoid irrigating when it is not necessary, especially during the day. [Rather] irrigate in the evening or early morning,” Majodina said.

She added that municipalities also have a responsibility to assess and manage water usage within their jurisdictions.

The Minister also urged members of the public to harvest rain water, noting that government is trying to focus on expanding access to ground water, particularly in rural areas where communities still lack reliable water supply.

“Identify springs that communities grew up using. We want to protect those springs, install pipes, build reservoirs next to them and provide water to communities,” Majodina said.

She cited an example in Mhlontlo in Qumbu, Eastern Cape, where three springs were protected, resulting in water supply to 22 communities.

“When the President said water must be priority number one, that is why we are here. Water is a social and economic need and a catalyst for development. Let us all be committed to that,” she said.

Majodina also warned that water-saving efforts would be undermined if challenges such as leaks, illegal connections, non-payment for services, and unregulated car wash outlets persist.

“It does not matter how many cubic litres are saved if there are leaks, illegal connections and a lack of enforcement of municipal by-laws. This will not assist our country,” she said.

The Minister was speaking on the last day of her two-day oversight visit to Lesotho to monitor progress on Phase II of the Lesotho Highlands Water Project (LHWP).

During the oversight on 14 and 15 December 2025, the Minister visited the construction site of Polihali Dam, and the Katse Dam Outfall Tunnel system and the Senqu bridge, among other infrastructure associated to the project.

She expressed satisfaction with the progress made across the project, adding that houses built for affected communities are expected to be handed over to the beneficiaries by May next year.

“The feeder roads are progressing well. The only outstanding issue is the amendment of the Treaty to allow the project to be handed over to the Lesotho Government for maintenance,” she said.

Majodina also emphasised the need to actively market the recently revamped, state-of-the-art lodge at Katse to ensure its productive use, including the conference facilities.

“Having botanical garden demonstrates our commitment to protect and preserve our environment, and indigenous plants. These [infrastructure projects] have created about 16 000 jobs, and more jobs are to be created. We are packaging a progress report for the next Cabinet meeting,” Majodina said.

The Minister said government wants South Africa to be fully prepared for Phase II of the project, which will significantly increase the volume of water supplied to the country.

She stressed the importance of building reservoirs, fixing leaks and ensuring that water from Phase II benefits additional provinces, including parts of the North West, Free State and Mpumalanga.

“Rand Water is ready for more water to come. They have built enough infrastructure,” Majodina said. – SAnews.gov.za

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The Special Investigating Unit (SIU) has successfully obtained a preservation order from the Special Tribunal, allowing it to freeze R2.7 million, including accrued interest, from the sale of land that Tintswalo Patience Chauke received as part of her divorce settlement. 

Chauke was previously married to Alfred Muzwakhe Sigudla, a recipient of multiple grants from the National Lotteries Commission (NLC), until their divorce in 2021.

“This order prohibits Chauke from withdrawing or transferring the funds until the SIU completes a review application to cancel the grant funding that enabled the purchase of the land, thereby ensuring that the potentially misappropriated funds are secured,” the SIU said on Wednesday.

In 2018, the SA Youth Movement NPC, chaired by Sigudla, received approximately R23 million in funding from the NLC for the construction of old-age homes in KwaZulu-Natal and the Free State. 

“However, evidence collected by the SIU reveals that, after receiving these funds, Sigudla transferred a portion to his own companies’ bank accounts and subsequently used them to acquire two luxurious properties, namely in Midstream Estate and Copperleaf Golf Estate. 

“Notably, the Midstream property has been frozen pending completion of the review application into the legitimacy of the grant funding to recover misused NLC funds.

“The primary mission of the SIU is to recover proceeds from beneficiaries of NLC grant funding who are involved in unlawful activities, thereby restoring the State’s financial losses,” the SIU said.

Authorised by President Cyril Ramaphosa through Proclamation R32 of 2020, the SIU is dedicated to investigating allegations of corruption and maladministration within the NLC and to recovering financial losses incurred by the State. 

The order from the Special Tribunal represents an important step in the SIU’s ongoing efforts to combat corruption and ensure accountability and transparency in the management of public funds. –SAnews.gov.za

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