Category: South Africa Government

National Treasury and the South African Reserve Bank (SARB) have extended the deadline for public comments on the draft Capital Flow Management Regulations, 2026, to the end of June. 

In a joint statement, the two institutions said the extension followed requests from stakeholders for more time to review the draft regulations and provide input.

The statement noted that public concerns and media attention have largely focused on the treatment, possession and trade of crypto assets, particularly possible restrictions on cross-border transactions.

Government said the draft regulations are intended to strengthen the authorities’ ability to detect, deter and disrupt illicit financial flows.

Authorities also assured the public that the proposed framework will complement existing regulatory measures already implemented by the Financial Intelligence Centre and the Financial Sector Conduct Authority.

“The draft regulations do not intend to criminalise the possession of crypto assets or apply the regulations retrospectively,” the statement said.

Government added that a proposed cross-border crypto asset framework, in the form of a draft manual, will soon be released for public comment to support the draft regulations.

The draft manual is expected to clarify which crypto asset activities would be regarded as cross-border transactions and therefore fall under capital flow management measures.

It will also outline the obligations and responsibilities of authorised crypto asset service providers.

According to the statement, the proposed framework is intended to allow lawful cross-border crypto asset transactions within clear guidelines, while protecting the integrity of the financial system.

“The Constitution protects various rights, including property rights, while also recognising that suspected illicit activities warrant the attention of authorities,” the statement said.

Government also dismissed concerns that holders of crypto assets, gold or foreign currency, could be forced to sell these assets to the State or authorised foreign exchange dealers.

“Any requirement to dispose of these assets would arise only under limited circumstances, such as where an offence has been committed,” the statement said.

It added that exchange control exemptions and relaxations introduced over the years already allow South Africans to legally externalise capital for foreign investment diversification and to hold foreign assets in various forms.

The draft regulations, published on 17 April 2026, are available on the National Treasury website.

The original deadline for public comments was 18 May 2026, but this has now been extended to 30 June 2026. The extension notice will be gazetted in due course.

Written comments must be submitted to the National Treasury at Commentdraftlegislation@treasury.gov.za by close of business on Tuesday, 30 June 2026.

After the deadline, the National Treasury and the SARB will review submissions and make any necessary revisions. – SAnews.gov.za

Major national routes in the Western Cape, including the N1 and N2, have been reopened and are operating close to normal capacity following recent severe weather, signalling significant progress in recovery efforts across the province.

Western Cape Local Government, Environmental Affairs and Development Planning MEC, Anton Bredell, said progress has been made in recovery, with mop-up operations and infrastructure restoration continuing in several affected areas.

“Restoration efforts are ongoing, particularly in areas affected by infrastructure damage, electricity outages, and displacement of communities. Electricity restoration remains a key focus area, with approximately 62% of affected areas now reconnected.

“Eskom teams are actively working to restore supply in the Cape Winelands and Theewaterskloof areas, where high-voltage infrastructure sustained significant damage,” Bredell said.

He added that humanitarian relief efforts are continuing across the province, with thousands of residents receiving relief in the form of food parcels, cooked meals, water, blankets, and hygiene supplies. Emergency shelters also remain operational in several districts, providing support to displaced individuals and families.

“Government acknowledges the challenges still faced by affected communities, particularly regarding access to clean drinking water, electricity and safe shelter. Municipalities and disaster response teams are working closely with partners, including NGOs and community organisations, to address these needs,” the MEC said.

While conditions are expected to remain stable over the weekend, the South African Weather Service has indicated the possibility of another weather system developing early next week, with rainfall expected primarily in the Overberg and Garden Route regions.

Officials said the situation is being closely monitored, with preparedness measures being strengthened in anticipation of further adverse conditions.

Western Cape Premier Alan Winde and Bredell are scheduled to conduct an aerial assessment of the affected areas on Monday. This will be followed by a formal briefing and media engagement to guide decisions on recovery, reconstruction and funding support.

Residents have been urged to remain vigilant, follow official advisories, and make use of available support services.

The Western Cape Provincial Government reiterated its commitment to ensuring that all affected communities receive the necessary assistance as recovery operations continue. – SAnews.gov.za
 

The Minister of Water and Sanitation, Pemmy Majodina, has announced the establishment of a national Water Sector Anti-Corruption Forum as part of intensified efforts to combat crime, corruption and sabotage within South Africa’s water sector.

Presenting the department’s Budget Vote in Parliament on Friday, Majodina identified water mafias – organised criminal networks engaged in crime, corruption and sabotage of water infrastructure – as one of the central threats to water service delivery.

“One of the focus areas on the National Water Action Plan is the fight against crime and corruption in the water sector. The Forum involves law enforcement, government, the private sector and civil society, and is coordinating efforts to prevent, detect, investigate, and respond to corruption within the sector,” Majodina said.

Launched on 5 March 2026, in partnership with the Special Investigating Unit (SIU), the Forum will coordinate a multi-stakeholder response to corruption.

Rural access programme

The Minister also announced that the department has initiated a nationwide programme to accelerate access to water services for unserved communities, many of which are in rural areas.

The programme seeks to implement rapid, cost-effective, and appropriate interventions such as groundwater development, spring protection and rainwater harvesting, in addition to extensions of existing water supply systems.

Majodina noted that substantial work has been done to identify communities and potential water sources where there is no formal potable water infrastructure or where existing systems are non-functional. To date, over 2 600 settlements without reliable potable water have been identified. 

“We are now packaging a number of projects, prioritising grant funding, mobilising our Water Boards, the private sector and civil society, including through the Adopt-a-Village approach, to accelerate implementation,” Majodina said.

In the Eastern Cape, 14 borehole projects are currently being implemented across 16 communities, with a further eight spring protection initiatives underway in partnership with the Department of Agriculture. In KwaZulu-Natal, 28 boreholes and two spring protection projects are in progress.

Addressing water services challenges in metros

Majodina said the department is supporting broader institutional and governance reforms within the water sector, including support for Metro Trading Service reforms and technical guidance on ringfencing municipal water services as sustainable trading functions.

Key infrastructure projects include the upgrade of the Klipdrift Water Treatment Works in Hammanskraal, under the City of Tshwane Metropolitan Municipality, and the Welbedacht Pipeline in Mangaung Metropolitan Municipality.

“For the Welbedacht pipeline, Phase 1 was completed in June 2025 at a cost of R585 million, improving water supply reliability to Mangaung. In Phase 2, a 71-km expansion, estimated at R1.6 billion, is in advanced planning, with implementation scheduled from 2027 to 2032,” Majodina said.

Building skills and capacity in the sector

In addressing capacity constraints within the sector, Majodina revealed that while the department’s overall vacancy rate stood at 6.79% as of March 2026, critical engineering and scientific posts had a higher vacancy rate of 15.8%.

Over the past financial year, 116 technical positions were filled, alongside the appointment of 54 candidate engineers and scientists.

She added that the department’s Learning Academy continues to play a key role in building future capacity, with partnerships across the water sector and private industry to provide training and mentorship.

Since its inception, she said the academy has awarded bursaries to more than 1 000 young people, many of whom have gone on to join the department.

“The Learning Academy currently has 226 external bursars contracted to the department from all the mainstream universities. The bursars are studying in the scientific, engineering, construction and project management fields,” she said.

Global relationships

On the global stage, South Africa is playing a leading role in the African Union’s Africa Investments Programme, which was established by the United Nations High Level Panel on Water.

The Minister noted that the African Union’s Africa Investment Programme finalised a report, which highlighted the need for increasing investment in the water sector through mobilisation between R10 billion and R12 billion annually.

“This led to the United Nations appointing South Africa and France to prepare and co-chair a theme on investment in water for the 2026 United Nations Water Conference, which will be co-hosted by the United Arab Emirates and Senegal in December 2026,” the Minister reported.

The investment theme is one of six themes of the UN Water Conference, each of which will be co-chaired by two Member States. – SAnews.gov.za

An amount of R12.3 billion has been allocated to infrastructure grants to fund 70 bulk water projects and 341 water services initiatives across all provinces, as government intensifies efforts to stabilise struggling municipal systems.

Presenting the Budget Vote for the Department of Water and Sanitation (DWS) in Parliament on Friday, Minister Pemmy Majodina announced that the funding will be channelled through the Regional Bulk Infrastructure Grant (RBIG) and the Water Services Infrastructure Grant (WSIG).

The Minister said RBIG will fund 70 bulk infrastructure projects across all nine provinces, while the WSIG will support 341 projects, including 175 planned for completion in the current financial year.

“Grants will also be used to leverage additional investment by unlocking partnerships with the private sector and development institutions. DWS will make increasing use of its Water Boards and other implementing agents, such as the DBSA [Development Bank of Southern Africa] to assist struggling municipalities to implement projects more expeditiously,” the Minister said.

Major projects completed in 2025/26 include the R759 million Klipdrift Water Treatment Works in Hammanskraal (now producing its full 50 megalitres per day); Phase 1 of the R4.8 billion Giyani Water Project (24 of 55 villages reticulated); the R736 million Babanana Bulk Water Pipeline in Limpopo; Phase 3 of the R1.5 billion Maphumulo Bulk Water Scheme in KwaZulu-Natal, and the R351 million Moretele South Bulk Water Supply Scheme in the North West.

Among major projects planned for completion in 2026/27 include four bulk water schemes worth R2.24 billion in Chris Hani District Municipality; the R2 billion Loskop Regional Bulk Water Supply Scheme in Mpumalanga; the R1.1 billion George Water Supply Project in the Western Cape; and multiple North West schemes, totaling over R2.3 billion.

The allocation comes amid a constrained fiscal environment, with the department’s overall budget declining from R23.4 billion in 2025/26 to R22 billion in the current cycle.

Majodina acknowledged that while South Africa has made notable progress in expanding access to water and sanitation since 1994, the reliability of municipal water services has deteriorated significantly.

She said the department will intensify support and intervention in the 107 worst-performing municipalities, identified through the 2023 Blue Drop and 2025 Green Drop assessments. The recent findings show a worsening trend in wastewater management, with systems classified as critical increasing from 39% in 2022 to 47% in 2025.

Debts owed by municipalities to water boards

The Minister raised concern over debts owed by municipalities to water boards, noting that as of 31 March 2026, municipalities owed water boards more than R27 billion, including R23 billion in overdue debt, a deterioration from figures recorded in mid-2025.

She said water boards have responded by implementing stricter credit control measures, including throttling water supply to defaulting municipalities and, in extreme cases, attaching municipal bank accounts.

“National Treasury has implemented the withholding of equitable share allocations for the worst non-paying municipalities, and this has affected 62 municipalities to date,” the Minister said.

The Minister has also led coordinated engagements with Premiers, MECs for Cooperative Governance and Traditional Affairs (CoGTA), and Mayors to improve payment compliance and restore financial stability in the sector.

Echoing concerns raised by President Cyril Ramaphosa during His State of the Nation Address in February, the Minister said many communities now have infrastructure in place, but continue to experience water shortages, poor quality supply, and sewage spillages.

“The reliability of municipal water services has declined sharply, with worsening water services disruptions, sewage spillages, and poor water quality in many areas. In other words, while most people now have access to a tap, water often does not come out of the tap or is not safe to drink. This remain an undeniable truth which we are attending to.

“In the spirit of co-operative governance, the President met with mayors on 30 April 2026 to discuss the National Water Action Plan. He said that the plan addresses the root causes of the crisis in municipal water services, including reforms to the way in which the services are delivered, to improve their financial sustainability, and to ensure that they are effectively managed by staff with the required competencies,” Majodina  said. – SAnews.gov.za
 

Deputy Minister in the Presidency Nonceba Mhlauli has called on young South Africans to take an active role in shaping government and the country’s future, declaring them “not just leaders of tomorrow, but changemakers today”.

Speaking at the Seventh-day Adventist Community Day held in Maragon Mooikloof, Pretoria, Mhlauli said young people play a very important role in shaping government, society, and the future of the nation.

She emphasised that South Africa’s youth, estimated at around 21 million people between the ages of 15 and 34, make up more than a third of the population, and must therefore be central to decision-making processes.

“If one-third of our population is young, then young people must be central to every important decision about the future of South Africa,” Mhlauli said.

The Deputy Minister highlighted the significance of 2026 as the 30th anniversary of the Constitution, describing it as a document that not only protects rights but also guarantees active participation in democracy.

She urged young people to participate in all processes of government across all three spheres, by contributing to policy development, public consultations, municipal planning, budgeting, and accountability.

“Government works best when citizens are involved, and democracy becomes stronger when young people speak and leaders listen.”

Drawing on history, Mhlauli noted that young people have always shaped the destiny of the country, such as the 1976 uprisings and the 1994 democratic elections, adding that today’s generation continues to make strides in entrepreneurship, education, science, social activism, and the creative industries.

She also challenged young people to prepare themselves to engage with emerging policy areas, including artificial intelligence, noting that such developments will influence jobs, education, healthcare, security, and the economy.

“Young people are the generation that will live with the consequences of these decisions, and their voices must be heard. This principle applies not only to artificial intelligence but to every major policy that affects our country,” the Deputy Minister said.

Collective response to youth unemployment

Addressing the issue of youth unemployment, Mhlauli acknowledged it as one of the country’s most pressing challenges but stressed that it requires a collective response.

“Youth unemployment is not a problem for young people alone. It is a national challenge that requires all hands on deck. Government, business, labour, civil society, educational institutions, faith communities and families all have a role to play. Young people themselves must continue to prepare, participate, and persevere,” Mhlauli said.

She highlighted government initiatives, such as the Presidential Youth Employment Initiative (PYEI), which connects young people to work opportunities, skills development and pathways into employment; the National Youth Development Agency (NYDA), provides business grants, entrepreneurship training, career guidance and support for young innovators; as well as the SAYouth.mobi platform, which is a zero rated site where government deposits all youth empowerment related opportunities, as key tools available to support young people.

Beyond economics, Mhlauli encouraged youth participation in sectors such as technology, agriculture, arts, sports and education, citing South Africa’s global success in citrus exports and the international rise of local music genres like Amapiano as examples of youth-driven impact.

She also recognised the role of faith communities in nurturing responsible and values-driven citizens, describing them as vital partners in national development.

She further urged young people to take ownership of their future.

“This is your country. Do not wait for others to shape your future. Read government policies, attend public meetings, volunteer in your communities, and pursue excellence in your studies.

“South Africa needs your energy, your creativity and your commitment. As we celebrate 30 years of our Constitution, let us recommit ourselves to building a country in which every young person can thrive. We must build a country where opportunity is real, where talent is nurtured, where no dream is too big and where young people are not spectators but architects of our democracy,” the Deputy Minister said. – SAnews.gov.za

Social Development Acting Minister Sindisiwe Chikunga has undertaken an oversight visit to the Sozo Foundation’s Genesis Incubator Hub in Vrygrond, Cape Town, placing youth enterprise development at the centre of her first day in office.

The visit forms part of preparations for the Department of Social Development’s Budget Vote 19 for 2026. It aimed to assess the impact of a youth enterprise development programme funded by the National Development Agency (NDA).

During the engagement on Friday, Chikunga interacted directly with young entrepreneurs participating in the programme, who showcased their products and services at an exhibition.

She commended the Sozo Foundation for advancing government’s commitment to community empowerment and sustainable, youth-led economic initiatives.

“This visit is linked to preparations for the upcoming Budget Vote 19. I am elated that the department has already been hard at work to assist young people to participate meaningfully in the economy and contribute to growth,” Chikunga said.

She also emphasised the importance of aligning skills development with real economic opportunities to ensure long-term impact.

Vrygrond, home to an estimated 5 0000 residents, continues to experience high levels of poverty and unemployment.

Established in 2003, the Sozo Foundation has been at the forefront of community upliftment, initially operating from a single container. Today, its Genesis Incubator Hub, located at Capricorn Business Park has created a responsive ecosystem that addresses real-time socio-economic challenges through youth entrepreneurship, home-based enterprises, and local economic development.

Through structured incubation, training, mentorship and access to productive resources, the programme targets young people who are not in education, employment or training (NEET), equipping them to build sustainable livelihoods.

Sozo Foundation Chief Executive Officer Anton Cuyler said the initiative goes beyond financial assistance.

“The Foundation creates a supportive environment where young entrepreneurs feel acknowledged and trusted, enabling them to develop innovative solutions to challenges in their own communities,” Cuyler said. 

One such initiative is Mosebe Enterprise, a youth-led business producing affordable solar energy solutions aimed at reducing frequent shack fires in informal settlements. The enterprise has already created employment opportunities for seven young people.

NDA funding to the Genesis Incubator Hub has supported 38 youth entrepreneurs to date, with a grant to the value of R849,255.10.

The funding currently supports 20 operational micro-enterprises across sectors including food services, cleaning services, renewable energy, beauty and personal care, clothing and printing, early childhood development, and gaming and entertainment, together contributing up to 61 work opportunities.

Programme beneficiary Julia Koeberg, owner of Julie’s Nail Bar, a mobile nail salon in Vrygrond, described the initiative as life changing.

“This opportunity has changed my life. I am a business owner. I earn an income for myself and my family, and I have grown personally. I am an independent woman taking charge of her life,” Koeberg said. 

The programme aligns with the strategic priorities of the Department of Social Development and the NDA to promote inclusive economic development, strengthen community-owned enterprises and expand livelihood opportunities in under-resourced communities.

Founder of Mosebe Enterprise, Vincent Mosebe, highlighted the broader role of young entrepreneurs in supporting government development goals.

“By empowering entrepreneurs like us, we are able to create solutions that uplift our communities and provide jobs for our peers.”

Social Development Deputy Minister Ganief Hendricks welcomed Chikunga’s decision to prioritise the initiative, noting its significance in creating pathways for young people.

Ward 45 Councillor Mandy Marr said that despite ongoing challenges, the Vrygrond community continues to demonstrate resilience and determination.

In closing, Acting NDA Chief Executive Officer Raphaahle Ramokgopa reaffirmed the agency’s commitment to youth development.

“Despite limited resources, the NDA remains committed to unlocking the potential of young people. Through partnerships such as the one with Sozo Foundation, we can unlock potential for the creation of sustainable livelihoods,” Ramokgopa said. – SAnews.gov.za
 

The North West MEC for Cooperative Governance, Human Settlements and Traditional Affairs, Oageng Gaoage Molapisi has wished all initiates, traditional surgeons, caregivers, traditional leaders, parents and all stakeholders a safe and successful winter initiation season.

“As the winter initiation season begins, we wish all initiates safe travels and a successful journey through this important and sacred cultural rite of passage. Initiation remains one of the most respected traditions within our communities and must always be conducted with the highest level of responsibility, care and respect for human life,” said Molapisi.

This as the winter initiation season commenced on 15 May 2026 and conclude on 17 July 2026.

“Non-school-going initiates will commence with initiation activities from 15 May 2026, while school-going initiates will begin on 26 June 2026.

The Provincial Initiation Coordinating Committee (PICC) has approved a total of 92 male initiation schools and 29 female initiation schools across the province for participation in the 2026 winter initiation season, following the processing and verification of applications,” said the provincial Cooperative Governance, Human Settlements and Traditional Affairs Department on Friday.

The MEC has urged all initiates, particularly non-school-going initiates who will be travelling from various areas to initiation schools, to prioritise safety and adhere to all lawful and cultural processes throughout the initiation period.

The MEC further emphasised the importance of compliance with all legislative and health prescripts governing initiation schools, including proper registration, medical screening, continuous monitoring, and cooperation with law enforcement agencies and healthcare practitioners.

“We call upon traditional leaders, principals of initiation schools, parents and guardians to ensure that only legally recognised initiation schools operate during this period. The safety, health and wellbeing of initiates must remain our collective responsibility and priority,” said Molapisi.

The department, working together with the PICC, traditional leadership structures, law enforcement agencies and the Department of Health, will continue to monitor initiation schools throughout the season to ensure compliance and enable immediate intervention where necessary. –SAnews.gov.za