Category: South Africa Government

Source: Government of South Africa

The South African Reserve Bank’s (SARB) position paper on a retail central bank digital currency (CBDC) in South Africa has concluded that it there is no compelling immediate need for its implementation.

A retail CBDC is defined as a purely digital banknote, denominated in the national unit of account, which could be used by individuals to pay businesses, shops or each other (a retail CBDC), or between financial institutions to settle trades in financial markets (a wholesale CBDC). 

At its core then, retail CBDC aims to mirror traditional currency, but in digital form.

“The SARB’s research and experimentation found that a retail CBDC is technically feasible and could be implemented in a way that aligns with regulatory and policy objectives. 

“However, the analysis does not reveal a strong immediate need for such an instrument. Instead, the SARB concluded that ongoing initiatives such as the Payment Ecosystem Modernisation Programme and expanding non-bank participation in the national payment system should remain the priority in the short-to-medium-term,” the Reserve Bank said. 

The SARB position paper on the necessity of a retail CBDC in South Africa and background note  was published on the bank’s website on Thursday.

The study focused on the potential role of a retail CBDC as a digital complement to cash, particularly in the context of South Africa’s evolving payment landscape and persistent financial inclusion challenge.

The SARB noted that in the longer term there may be a need for a retail CBDC to safeguard public access to central bank money − a public good that remains essential in a digital economy; and unlock opportunities to complement and enhance the existing payments landscape while supporting broader financial innovation in South Africa.

While the SARB does not currently advocate for the implementation of a retail CBDC, it will continue to monitor developments and will remain prepared to act should the need arise. 

“As the SARB continues its CBDC journey, the next phase will pivot toward further exploration of wholesale CBDC. This strategic shift reflects the growing global momentum around wholesale applications and their potential to enhance financial market innovation, cross-border payment efficiency and systemic resilience. The SARB will outline its plans for this next phase in due course.”

Central bank money plays a crucial role in the financial system for two primary reasons: it represents the highest quality of money, reducing risk and enhancing payment system efficiency and its accessibility through convertibility with commercial bank money fosters trade efficiency and mitigates financial instability in a dual money system.

Growth and cash

“From the research and analysis conducted as part of this study, there is evidence of significant growth in the adoption and use of digital payments in South Africa. 

“This has been driven by innovative solutions introduced by commercial banks, fintechs and the efforts of the SARB and other public sector agencies and partners,” it said.

These are anticipated to continue having a positive impact on financial inclusion, and it is expected that a growing number of South Africans will adopt and use digital payments on a regular basis.

“Notwithstanding the progress made, evidence also shows that physical cash continues to play a significant role in South Africa, particularly for certain segments of the population. This prevailing cash reliance is due to barriers such as infrastructure availability, costs of digital payments and network and power issues.

Balancing act

“More importantly, the continued ability to redeem private money into safe and liquid public money (i.e. banknotes and coin) provides a safety net in times of economic stress and maintains confidence in the financial system. Further, balancing access to both central bank and commercial bank money is essential for maximising trade efficiency,” SARB said.

This balance requires careful consideration of the unique benefits each type of money provides.

“In the SARB’s view, continued commitment and resources should be dedicated to realising the opportunities of existing payment modernisation initiatives, such as expanding the PayShap value proposition, enabling interoperability of different stores of value, allowing non-banks to issue electronic money and participating directly in the NPS [national payment system], QR code standardisation, introducing an open banking/open finance framework, among others,” the bank said.

SARB emphasised that the conclusion of the study should not be interpreted as a view that South Africa should not implement a retail CBDC in future. 

The study can be accessed on: https://www.resbank.co.za/en/home/publications/publication-detail-pages/Fintech/sarb-position-paper-on-the-necessity-of-a-retail-cbdc-in-south-africa

–SAnews.gov.za

Source: Government of South Africa

A total of 10 sluice gates are now in operation at the Vaal Dam, after three additional sluice gates opened on Thursday, to manage rising water levels.

The Department of Water and Sanitation (DWS) intensified flood management operations at the Vaal Dam by opening three additional sluice gates in response to rising inflows and persistent rainfall across the Vaal River System.

In a statement, the department announced that the gates were being opened in controlled intervals, with two gates opened at 10am and 12pm, and another scheduled to open in the afternoon at 2pm, to safely increase outflows throughout the day and stabilise dam levels.

These latest adjustments follow reopening of four sluice gates on Wednesday, between 10am and 1pm, which increased releases from 325 cubic metres per second (m³/s) to 950 m³/s.

‘With today’s measured operations, the Vaal Dam will operate with 10 open sluice gates, enabling the department to regulate the rising upstream inflows while ensuring the integrity of key water infrastructure,” department spokesperson Wisane Mavasa said.

The department also confirmed that there are no changes to operations at Bloemhof Dam, with outflows remaining steady at approximately 1000 m³/s – consistent with last week’s adjustments and aligned with current dam safety protocols.

According to the department, both the Vaal and Bloemhof dams remain above 100% due to sustained rainfall this week, necessitating continuous monitoring and proactive intervention.

Mavasa noted that the opening of sluice gates is a standard operating procedure and a critical dam safety measure implemented when water levels rise sharply.

“Controlled releases help prevent overtopping, safeguard the structural integrity of dam infrastructure and protect communities downstream from potential disaster. With increased releases from the Vaal Dam, downstream areas may experience overflowing riverbanks, which could affect infrastructure located in low-lying zones of the floodplain,” Mavasa explained.

The department appealed to communities along the Vaal River, particularly those in the Vaal Triangle, Parys, and other riparian settlements, to remain vigilant and monitor rising river levels closely.

“Farmers and residents with pumps, movable equipment, or infrastructure situated close to the water’s edge are advised to take immediate steps to secure their assets. Livestock and valuable property should be moved to higher ground.”

The Department of Water and Sanitation remains on high alert and will continue to conduct real-time monitoring of inflows at both Vaal and Bloemhof Dams. Further updates will be issued as conditions change. – SAnews.gov.za
 

Source: Government of South Africa

Thursday, November 27, 2025

Source: Government of South Africa

The South African Government joins the international community in commemorating the 48th United Nations (UN) International Day of Solidarity with the Palestinian People. 

According to the Department of International Relations and Cooperation, South Africa reaffirms its commitment to achieving a just and lasting solution to the question of Palestine.

This year, the department noted that the International Day of Solidarity coincides with the 30th anniversary of diplomatic relations between South Africa and Palestine.

South Africa and Palestine continue to maintain strong ties of solidarity and cooperation, grounded in the principles of international law. 

Together, they are working towards creating a better future for their people, their regions, and the world.

According to the department, on Friday, 28 November 2025, Deputy President Paul Mashatile will participate in the commemorative event, alongside Deputy Minister of International Relations and Cooperation Thandi Moraka.

“The quest for Palestinian self-determination and statehood remains unresolved after 75 years and remains at the core of ensuring lasting peace and prosperity in the Middle East.

“In this regard, this occasion provides us with a crucial opportunity to reflect and take stock of the plight of the Palestinian people and to chart a way forward.” 

Government has once again urged Israel to recognise that the only path to achieving peace is through ending its illegal occupation of Palestine. 

This includes adhering to its obligations under international law and complying with various UN resolutions related to this issue over the decades.

“South Africa remains resolute in its commitment to continue strengthening the bonds of long-standing solidarity, friendship, and cooperation with Palestine, and calls upon the international community to tirelessly work for the attainment of peace and to provide strong humanitarian, economic and political support to the Palestinians.”

In keeping with South Africa’s long-term and principled support for the Palestinian people, government said it remains committed to supporting initiatives aimed at refocusing the international agenda on Palestine and reviving a genuine Middle East peace process that places Palestinian agency at its core. 

In light of the ongoing crisis in the Occupied Palestinian Territories, particularly in Gaza, South Africa has renewed its call for the urgent implementation of the Gaza Peace Plan. 

This includes Israel’s full compliance with a permanent ceasefire, the unrestricted entry of humanitarian assistance through the United Nations and other reputable relief agencies, and the withdrawal of Israeli occupation forces to the Egyptian border. 

South Africa further urges inclusive consultations with the Palestinian authorities on reconstruction efforts and the long-term governance of Palestine.

“South Africa calls on all UN member states, as third-party states, to ensure that they adhere to their international obligations not to engage in any actions that would sustain the illegal occupation or the current genocide in Palestine. 

“It is the duty of the international community to work tirelessly in assisting the Palestinian people to achieve their aspirations of freedom, justice and statehood,” the statement read. – SAnews.gov.za
 

Source: Government of South Africa

Deputy President Paul Mashatile has expressed South Africa’s deep appreciation for Finland’s unwavering support during the country’s Group of 20 (G20) Presidency and its struggle against apartheid.

The Deputy President made the remarks during a bilateral meeting on Wednesday with Finland’s Prime Minister Petteri Orpo at OR Tambo House in Pretoria.

“This commitment was underscored by the participation of His Excellency President Alexander Stubb at very short notice, for which we remain sincerely grateful. Relations between South Africa and Finland continue to be warm, cordial and constructive,” said Deputy President Mashatile on Wednesday.  

Prime Minister Orpo’s visit follows South Africa’s successful hosting of the G20 Leaders’ Summit over the weekend in Johannesburg, which was attended by President Stubb and his delegation. 

It also comes shortly after the Prime Minister participates in the 7th African Union–European Union (AU-EU) Summit in Luanda, Angola, marking the 25th anniversary of the AU–EU partnership.

Finland operates as a parliamentary republic, where the Prime Minister serves as Head of Government and oversees daily administration, while the President acts as Head of State with a primarily ceremonial role, including responsibilities in foreign policy and military command.

“Since the dawn of our democracy, Finland has recognised the importance of South Africa’s reconstruction and development efforts and has made a meaningful contribution through various development partnership agreements, as well as expanding trade and investment across diverse sectors.” 

The Deputy President highlighted that bilateral engagement has strengthened recently, especially during the State Visit by former Finnish President Sauli Niinistö in April 2023.

The country’s second-in-command reported that the visit resulted in several tangible and positive outcomes. 

These include collaboration on water resource management, the development of educational models for Early Childhood Development, initiatives aimed at supporting out-of-school youth and adult education, and a joint effort to train young peace mediators.

“These practical projects reflect the substance and value of our partnership.” 

He said yesterday’s visit builds on these high-level engagements and serves to further consolidate our bilateral relations, particularly in the areas of trade and investment. 

“We are encouraged that your delegation includes business leaders seeking to explore new opportunities in smart and sustainable mining, water and built environments, and the development of smart cities.” 

In addition, he stated that water management and digitalisation remain central pillars of bilateral cooperation. 

He referred to the 2023 memorandum of understanding (MoU) on water resources between South Africa and Finland as a significant milestone, particularly emphasising its focus on innovation and technology.

“We also value the Letters of Intent concluded with several municipalities on water resource management.”

Minister of Water and Sanitation Penny Majodina’s visit to Finland in August 2025, along with the participation of a Finnish delegation in the inaugural Technical Conference of the Association of Water and Sanitation Institutions of South Africa (AWSISA) earlier this month, highlights the strength of our collaboration in this field.

“We appreciate ongoing cooperation in advancing innovation systems and start-up ecosystems. Work continues on digital infrastructure – especially low-cost connectivity in township areas – which will help create an enabling environment for inclusive development. In this regard, we value Finland’s active participation in the G20 Digital Economy Working Group.” 

Beyond strong bilateral ties, Deputy President Mashatile believes the relationship has increasingly evolved into a partnership in support of Africa’s broader development priorities. 

“South Africa and Finland share the conviction that equitable representation in the United Nations and the wider multilateral system is essential for sustainable peace and development. 

“We commend Finland’s consistent and principled support for the comprehensive reform of the United Nations, particularly the Security Council, and for its advocacy for a more just, inclusive and rules-based international order.”

In addition, he recognised Finland’s continued partnership on key global challenges, including the strengthening of multilateralism and international law, peacebuilding and mediation, gender equality and human rights, and the global response to climate change. 

“The history of our respective struggles and the lessons drawn from our shared solidarity remind us that, by working together, we can help build a better world – one in which the aspirations of all nations and peoples may be realised.” – SAnews.gov.za
 

Source: Government of South Africa

Thursday, November 27, 2025

Source: Government of South Africa

South African Information and Communications Technology (ICT) company, BlueTel Communications, has arrived at Rail Live 2025 in Madrid with a clear and strategic mission, to secure international partnerships that can modernise and strengthen Africa’s digital and rail communication systems. 

The company forms part of the South African business delegation supported by the Department of Trade, Industry and Competition (the dtic) through its Outward Selling Mission (OSM), which aims to expand trade, unlock new markets, and position South African firms within global value chains.

Established in 2012, BlueTel Communications specialises in professional support services for the telecommunications industry, offering planning, implementation, maintenance, and after-sales support across the Southern African Development Community (SADC) region and parts of East Africa. 

Operating in a niche market traditionally dominated by global vendors, the company has leveraged its engineering expertise, strong customer relationships, and Africa-wide footprint to become a flexible and competitive partner for organisations seeking outsourced telecom solutions. 

Its long-term vision is to grow into one of the continent’s leading telecommunications service providers.

Speaking on the first day of the Rail Live Expo, BlueTel’s Director of Business Development and Finance, Hilkia Jacobs, said the event offered unmatched opportunities for collaboration. He explained that the synergies between ICT and railway technologies made Rail Live the ideal platform for expanding the company’s reach into the rail sector.

“Partnerships are the reason I am here. There is enormous alignment between communications technologies and the rail environment, especially on issues like connectivity, data reliability, and communications across moving trains. 

“We came to Rail Live to find innovators and equipment manufacturers we can partner with, learn from them, train our engineers, and bring those technologies back to South Africa and the broader African market,” Jacobs said.

He noted that expanding into the rail sector has long been a strategic ambition for BlueTel, pointing to earlier attempts to collaborate with Transnet on communications improvements for the Blue Train. 

Jacobs emphasised Africa’s growing demand for modern infrastructure and the company’s commitment to driving technological advancement on the continent.

“Africa is where things are happening. Our goal isn’t to take our expertise to Europe. It’s to bring the best global innovations back home. We want to position ourselves as the bridge between international technology providers and African markets,” he explained.

Since arriving at the expo, BlueTel has already experienced exceptional interest from international firms looking for a reliable partner to enter the South African and broader African markets.

“In the first five to six hours, I made more leads than I normally make in six months. There are strong indications that the companies I engaged with here want to enter the South African market. Because we operate nationally, with offices in Johannesburg, Pretoria and Cape Town, we are well positioned to offer clients an immediate footprint, storage facilities, and a trusted partner on the ground,” noted Jacobs.

BlueTel credited the dtic’s Outward Selling Mission for enabling South African companies to showcase their strengths on a global platform, explore new sectors, and attract partnerships that support South Africa’s industrial growth objectives.

“The support from the dtic has given us exposure we would not have achieved on our own. It has opened doors to opportunities that can shape the future of our business and contribute to the development of Africa’s ICT and rail sectors,” Jacobs said. – SAnews.gov.za

Source: Government of South Africa

Trade, Industry and Competition Minister Parks Tau says South Africa continues to benefit from a wide network of preferential and non-preferential trade agreements covering 90 countries, representing 28% of global Gross Domestic Product (GDP). 

Tau was addressing the Portfolio Committee on Trade, Industry and Competition supported by Deputy Minister Alexandra Abrahams on the state of South Africa’s trade relations, progress in ongoing negotiations, and the country’s strategy to navigate an increasingly volatile global trading environment. 

In a statement on Tuesday, Tau told Parliament that global trade is undergoing seismic shifts, with rising unilateral measures, retaliatory tariffs, and disruptions in the multilateral trading system. 

“The share of world trade governed by WTO [World Trade Organisation] rules has already dropped from 80% to 72% in 2025. These shifts, driven by growing geopolitical tensions and great-power competition, are creating uncertainty and weakening predictable rules-based trade,” he said. 

Tau said there is a need for South Africa to strengthen its industrial base, diversify trade partners and build greater economic resilience.

He emphasised the importance of African economic integration, revealing that significant momentum has already been recorded under the African Continental Free Trade Area (AfCFTA).  The AfCFTA which entered into force in May 2019, is expected to boost trade and economic growth on the continent. Trading under the AfCFTA regime commenced January 2021. 

“South Africa exports under the AfCFTA have increased from R485 million in 2024 to R1.386 billion in the first seven months of 2025. Imports under AfCFTA also rose substantially. 

“South Africa implemented the agreement in January 2024, and by 2025, 24 African countries had begun trading preferentially. 
“New market access is now unlocked in 13 non-SADC [Southern African Development Community] countries. Recent breakthroughs include agreement on critical rules of origin for autos and textiles, opening new opportunities for South African industry,” he said.

He said South Africa continues to engage the United States on a reciprocal trade deal that will lower the current tariff imposed that will make South African exports more competitive.

“While South Africa’s access to the African Growth Opportunity Act (AGOA) expired at the end of September, there is strong bipartisan support in Washington for renewal. And current proposals include a one-year and a two-year extension, though no bill has yet been tabled,” the Minister said. 

The Minister highlighted the Butterfly Strategy adopted by the department to mitigate global risk and expand export growth, and said it will assist with objectives to grow South African exports from R2 trillion to R3 trillion by 2030. 

“We will focus our efforts on implementation and adopt a coherent approach to our trade agenda,” he said. – SAnews.gov.za