Gauteng Province and taxi leaders strike deal to resolve industry challenges

Source: Government of South Africa

Gauteng Province and taxi leaders strike deal to resolve industry challenges

The Gauteng Department of Roads and Transport and the leadership of the provincial taxi industry have reached an agreement to resolve key challenges in the sector.

The agreement will also ensure uninterrupted public transport services across the province.

Department MEC Kedibone Diale-Tlabela met with industry representatives on Thursday to discuss the issues including operating licences, regulatory compliance, commuter safety and sector stability.

“We welcome the spirit of cooperation demonstrated today. We remain committed to resolving all outstanding matters through constructive engagement in the best interests of commuters and the people of Gauteng.

“Uninterrupted public transport is critical to our economy and to the lives of our residents. Every commuter has the right to travel safely, freely, and without fear. We will continue working closely with the taxi industry to build a system that is safe, reliable, affordable, and compliant with the law,” Diale-Tlabela said.

Key agreements include:

•    Ongoing structured engagements with regular progress reviews 
•    Accelerated resolution of operating licence issuance, including verification and inheritance matters. 
•    Joint interventions to address commuter safety concerns, including allegations of intimidation and harassment.

“The provincial government and taxi leadership have recommitted to accountability and collaboration as we tackle the challenges facing the sector. Our shared goal is a safe, reliable, and accessible public transport system for all.

“The department is also strengthening direct engagement with operators to improve oversight and better understand sector challenges,” the MEC noted. – SAnews.gov.za
 

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President unveils national plan to tackle SA’s water crisis

Source: Government of South Africa

President unveils national plan to tackle SA’s water crisis

President Cyril Ramaphosa has unveiled a National Water Action Plan aimed at addressing South Africa’s worsening water supply crisis and ensuring a reliable supply of quality water across the country.

The plan was released on Thursday, following a meeting of the National Water Crisis Committee (WATERCOM) at the Union Buildings in Pretoria.

The National Water Action Plan sets out short, medium-and long-term interventions to tackle the root causes of persistent water supply challenges affecting municipalities, communities and businesses.

Among the measures outlined in the plan are increased investment in water infrastructure, including through private-sector participation, legal and regulatory reforms to improve municipal service delivery, and efforts to tackle corruption and criminality in the water sector.

WATERCOM, which is chaired by President Ramaphosa, was established following the 2026 State of the Nation Address in response to increasingly severe water supply interruptions in parts of the country.

The committee brings together government departments and public agencies responsible for implementing the plan, as well as the South African Local Government Association (SALGA).

The Presidency said the plan was developed following extensive consultations across all three spheres of government and with key stakeholders.

WATERCOM will work with municipalities to mobilise resources, technical expertise and new partnerships to stabilise failing water systems, restore critical services and expand access.

A key part of the plan is to reform the way water services are managed and financed, including ring-fencing water revenues to ensure that money collected for water services is used to maintain and upgrade water infrastructure.

The plan also seeks to increase investment in bulk water and distribution infrastructure.

According to the Presidency, the water crisis is partly rooted in a delivery model that has resulted in water revenues being diverted to other municipal functions, leaving insufficient funds for infrastructure maintenance, investment and the recruitment of skilled personnel.

The government also identified fragmented accountability as a challenge, saying municipal water and sanitation departments often oversee technical operations while having limited control over billing, revenue collection and the protection of water assets.

The Presidency said dedicated teams have been appointed to drive implementation of the plan, accelerate results and support long-term reforms in the sector.

President Ramaphosa compared the approach to the government’s response to the energy crisis, saying the same focus used to improve Eskom and reform the energy system would now be applied to the country’s water challenges.

“By acting boldly and decisively to improve the performance of Eskom and reform our energy system, we were able to end load shedding and achieve a secure and reliable energy supply.

“Now, we are applying the same approach to the water crisis that has been unfolding in many parts of our country,” the President said.

The President said the plan provided a “clear, practical and focused approach” to achieving water security for all South Africans.

WATERCOM is expected to meet regularly to oversee implementation of the plan and hold government departments and agencies accountable for delivering on the proposed interventions. – SAnews.gov.za
 

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City of Ekurhuleni clarifies financial standing

Source: Government of South Africa

City of Ekurhuleni clarifies financial standing

The City of Ekurhuleni has set the record straight regarding its bulk utility debt, assuring residents of its commitment to fiscal sustainability and uninterrupted service delivery.

The clarification follows commentary regarding the City of Ekurhuleni’s total outstanding creditor balance which stood at approximately R8 billion at the end of May 2026.

“Approximately 50% of this amount related to current invoices that had not yet reached their payment due dates. It is therefore important to distinguish between the City’s total creditor balance and amounts that are overdue.

“As at 23 July 2026, the amount owing to Rand Water was R524 228 547. This amount relates to the June 2026 invoice, which is not yet due for payment,” the city said in a statement.

The City of Ekurhuleni noted that its credit balance with Eskom stands at some R5 118 878 869, consisting of approximately R2.8 billion relating to the current invoice, which is not yet due for payment; and approximately R2.2 billion relating to historical invoices being settled in accordance with an agreed payment arrangement.

“The City remains fully compliant with the terms of the payment arrangement concluded with Eskom. During the final quarter of the 2025/26 financial year, the City paid approximately R11 billion to creditors.

“These payments demonstrate the City’s continued efforts to meet its financial obligations, manage its creditor position and improve financial stability,” the statement read.

Revenue collection and credit-control measures are being intensified to improve the municipality’s cashflow and reduce outstanding balances.

“[The] year-end financial management programme is also focused on strengthening liquidity, improving cash-flow management and ensuring that financial obligations are met sustainably.

“Creditor balances must be presented accurately and in their proper financial context. Current invoices that are not yet due, as well as historical amounts being settled under agreed payment arrangements, should not be conflated with unpaid or defaulted debt,” the statement continued.

The city warned that financial matters should not be “misrepresented or misconstrued” as this may “unnecessarily undermine public confidence and the City’s relationships with strategic service providers”.

“The City remains committed to prudent financial management, honouring its payment commitments and maintaining constructive relationships with Eskom, Rand Water and other creditors, while safeguarding the uninterrupted delivery of essential services to residents,” the statement concluded. – SAnews.gov.za
 

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President Ramaphosa to address First Session of the Seventh Pan-African Parliament

Source: President of South Africa –

President Cyril Ramaphosa will, on Monday, 27 July 2026, address the Official Opening of the First Ordinary Session of the Seventh Parliament of the Pan-African Parliament (PAP), at its headquarters in Midrand, Gauteng.

The session, convened by the Pan-African Parliament from 27 to 31 July 2026, will be held under the African Union’s 2026 Theme: “Assuring Sustainable Water Availability and Safe Sanitation Systems to Achieve the Goals of Agenda 2063.”

This follows the successful election of the new PAP Bureau on 30 April 2026, marking the commencement of a new parliamentary term, and reaffirming the institution’s role in promoting democratic governance, continental integration and the implementation of Agenda 2063.

As the host country of the Pan-African Parliament, South Africa remains firmly committed to  supporting the institution and strengthening cooperation among African Union Member States and continental institutions in advancing Africa’s collective interests.

The Official Opening Ceremony will take place as follows:

Date: Monday, 27 July 2026
Time: 11h00
Venue: Pan-African Parliament Headquarters, Midrand

NOTE TO MEDIA: The Media Accreditation process has been concluded by the Pan-African Parliament: Communications.

Media enquiries: Vincent Magwenya, Spokesperson to the President – media@presidency.gov.za

Issued by: The Presidency
Pretoria

Keynote Address delivered Minister Ronald Lamola on behalf Deputy President Shipokosa Paulus Mashatile at the Kgalema Motlanthe Foundation Winter Seminar, Johannesburg Stock Exchange, Sandton, Gauteng

Source: President of South Africa –

Master of Ceremonies, Prof. Nick Binedell, Founder of GIBS Business School,
Former President Kgalema Motlanthe,
Mrs Gugu Motlanthe, Executive Trustee, The Kgalema Motlanthe Foundation,
Business associates, Delegates, Colleagues Good Morning,

I am honoured to join you today at this year’s Kgalema Motlanthe Foundation Winter Seminar.

Let me start by emphasising the importance of this seminar, particularly in light of the current situation that confronts our country. The migration-related challenges facing South Africa today require spaces like this seminar to debate and reflect on difficult questions honestly, respectfully and constructively.

Indeed, the current wave of discussions around migration, border management, social cohesion, economic competition, and public service delivery has generated intense public debate. The issues we confront are complex, perspectives are firmly held, and emotions often run deep. That is why platforms such as this are essential to fostering meaningful dialogue.

We have not gathered here to impose predetermined answers or reinforce existing positions. The objective should be about providing a platform for deliberate engagement, fruitful discourse, and critical thinking. We are as much here to listen as to speak, to question as to advocate, and to seek to understand rather than easy conclusions.

Migration is not something new.

People throughout human history have moved in search of safety, opportunity, family reunification, and a better future. At the same time, migration has often raised legitimate questions about governance, resource allocation, identity, and social integration.

South Africa’s history is characterised by movement, displacement, and the struggle for human dignity, as well as a deep need for solidarity and the experience of exclusion. The birth of our constitutional democracy was rooted in the commitment to human rights, equality, and the recognition of our common humanity.

However, it would be disingenuous to ignore the brutal realities faced by many communities. High levels of poverty, unemployment and inequality continue to put significant stress on households and communities. Jobs, housing, education, health care and other public services are often scarce commodities and the feeling that they are not available to all fuel’s exclusionary politics. In such contexts, migrants are likely to be the target of wider frustrations associated with structural socio-economic problems.

This reality requires us to bring honesty and nuance to the migration debate. On the one hand, we must resist simple narratives that seek to blame migrants for all our social and economic problems. Such perspectives ignore the complexities of our developmental problems and are likely to increase intolerance and social division.

On the other hand, we need to recognise the legitimate concerns of communities about the effective management of immigration, border security, the regulation of labour markets and the capacity of public institutions.

To dismiss these fears is not to forge social cohesion but to undermine public trust. The challenge before us is not whether to choose between security and humanity or national interests and human rights. The real challenge is to implement policies that simultaneously promote all these objectives.

This means that decisions about policy should be based on facts, not on feelings. Effective and fair migration management requires strong institutions. It urges African nations to collaborate to address migration drivers like conflict, political instability, unemployment, inequality, and climate change.

Most importantly it requires an acceptance that migration cannot be considered in isolation from wider development issues. The movement of people is often a symptom of deeper economic, political and social conditions. To get to sustainable, long-term solutions we really have to address those underlying drivers.

In this regard, we would do well to reflect on the words of former President Kgalema Motlanthe, who reminded us that, “…in a democratic era, I urge you to use the democratic institutions available to us to voice our grievances and demands.”

His words are particularly meaningful today. They serve as a reminder that the strength of a constitutional democracy is its ability to create space for engagement, and peaceful resolution of differences.

Your words former President Motlanthe remind us that even in disagreement we have a responsibility to talk to one another using dialogue, evidence and democratic processes rather than exclusion, intolerance or division.

The purpose of a seminar such as this is not necessarily to arrive at complete consensus. Indeed, reasonable people will disagree on many aspects of migration policy.

Our willingness to engage with one another honestly, to test our assumptions, and to deepen our collective understanding of the issues is of greater value, as it enables us to progress from rhetoric to practical solutions.

Speaking of solutions, what we need to understand is that the migration challenge confronting South Africa cannot be addressed through South African solutions alone. Addressing this issue requires solutions that are specifically tailored to the realities of Africa.

It is not feasible or sustainable to consider migration only from a national perspective. We need to strengthen regional cooperation, step up economic integration, and work together to create opportunities across the African continent.

We must recognise that the prosperity and stability of one African nation are intrinsically linked to the prosperity and stability of others.

As Africans, we share a common history, a common destiny, and, increasingly, common challenges. The question before us is not simply how South Africa manages migration but how Africa creates the conditions under which migration becomes a matter of choice rather than necessity.

In this regard, I am reminded of the words of Kwame Nkrumah, who once said, “It is in our hands to join our strength, taking sustenance from our diversity, honouring our rich and varied traditions and cultures, but acting together for the protection and benefit of us all.”

The words are no less true today than they were when first uttered. They remind us that the challenges facing our continent cannot be met by countries acting in isolation. They require collective thinking, collective leadership, and collective action.

Our challenge is to look beyond narrow national responses and toward a continental conversation based on solidarity, shared responsibility, and a commitment to inclusive development. Only then will we have the chance to develop solutions that are effective and sustainable and just.

In the current context, it is for the benefit of our great continent, Africa, that we come together to examine the issue of migration into South Africa not merely as a South African challenge but as an African challenge.

South Africa has seen a rising trend in migration from various African nations, especially from Southern African Development Community (SADC) countries like Zimbabwe, Mozambique, Lesotho, and Malawi. The migration is caused by economic opportunities, political and governance issues, environmental factors and persistent family and cultural links across borders.

This reality presents the critical question: how do we as leaders and citizens of the SADC region work together to address the conditions that compel people to leave their countries of origin?

How do we grow our economies, deepen regional integration, and create opportunities that allow our people to thrive in their own communities if they want to?

SADC member states must take the first step by increasing cooperation, having honest conversations about economic development, youth unemployment, governance, skills mobility and regional investment. It is important to tackle the root causes of migration, not just migration management.

Let me put it very clearly: South Africa remains committed to the ideals of Pan-Africanism, and we continue to welcome our brothers and sisters from across the continent. Our history is a reminder of the importance of solidarity, and we thank many African countries who stood with us in our struggle for freedom.

However, social cohesion and public confidence in migration require a legal and orderly framework. We need to have proper and secure management of the migration flows, processing documentation efficiently, protecting the rights of migrants and enforcing immigration laws fairly and consistently.

We should therefore not look to divide Africans or create animosity towards migrants. Rather, our objective should be to build a migration system that is humane, well-managed, and responsive to the legitimate concerns of both host communities and migrants themselves.

We will not build the future we seek through isolation but through partnership; not through blame but through cooperation; not through division but through a shared commitment to building a prosperous, stable, and integrated Africa. Only then can migration become a source of opportunity rather than a source of tension.

The question often asked is: What is the South African Police Service or Government doing to combat illegal immigration and to manage the tensions arising from migration-related protests?

Government continues to strengthen migration management through coordinated efforts involving the South African Police Service, the Department of Home Affairs and the Border Management Authority. These interventions include enforcement operations, improved border management and stronger action against immigration-related criminal activity.

While citizens have the constitutional right to protest peacefully, the enforcement of immigration laws remains the responsibility of the State. This reflects a core value of our constitutional democracy: worries about illegal immigration are legitimate issues for public debate and government action, but they must be addressed lawfully and democratically, not through vigilante justice or hostility toward migrants.

SAPS has ensured a visible presence at demonstrations around migration to prevent the occurrence of violence, intimidation, vigilantism and attacks against foreign nationals.

We need to assist law enforcement agencies in carrying out their duties and address the root causes of migration through regional cooperation, economic development, and stronger partnerships among SADC member states.

In the end, secure borders, effective migration management and African solidarity are not mutually exclusive goals, but complementary pillars of a stable and prosperous region.

We South Africans know that the strength of any democracy is not in the absence of disagreement, but in its ability to work through disagreement constructively. Only through dialogue based on our common belief in human dignity and guided by evidence can we find just and sustainable solutions.

Let me conclude by stating this: South Africans are not inherently xenophobic; they are a welcoming and Pan-Africanist people. Our country remains open to legal immigrants.

Ladies and Gentlemen,

In the spirit of Kwame Nkrumah’s call for collective action, and in the spirit of Kgalema Motlanthe’s enduring faith in democratic engagement, let’s continue the conversation with open minds, mutual respect and a shared determination to create a better future for all.

I have no doubt that the discussions that will unfold here today will contribute meaningfully to our national and continental conversation on migration, social cohesion, and the future we seek to build together.

I wish you a successful seminar and productive discussions.

I Thank You, Inkomu.

Deputy Minister leaves PIC board confident that it will ‘safeguard savings’

Source: Government of South Africa

Deputy Minister leaves PIC board confident that it will ‘safeguard savings’

Deputy Finance Minister Dr David Masondo has expressed confidence in the ability of the Public Investment Corporation (PIC) to execute its mandate and protect the interests of all South African workers’ investments.

The assurance comes as Masondo announced his resignation from his role as Chairperson of the PIC Board.

“I do so in the interests of the Republic of South Africa, the continued stability of the PIC, and the confidence of the millions of South Africans whose savings are entrusted to this institution.

“I leave the Board with confidence in the institution, gratitude for the opportunity to have served, and an unwavering belief that the PIC will continue to play a vital role in safeguarding the savings of South Africa’s workers and advancing the country’s long-term economic development,” Masondo stated.

Reflecting on his tenure, the Deputy Minister noted that he acted with “integrity and in good faith”.

“Throughout my tenure, I sought to discharge my fiduciary responsibilities without fear or favour.

“In this instance, my actions were guided by the imperative to protect and safeguard the funds entrusted to the PIC on behalf of South Africa’s workers and their beneficiaries,” he said.

Masondo emphasised that all Board decisions were made on the basis of sound legal counsel and strict adherence to governance principles.

“The PIC occupies a unique place in our economy. It safeguards the retirement savings of public servants, while supporting investment, industrialisation, entrepreneurship, and economic growth. At a time when confidence in public institutions is paramount, it is important that nothing distracts from this vital mandate.

“Throughout my tenure, the Board acted collectively, in good faith, based on sound legal advice and in accordance with the principles of good governance. I remain confident in the integrity of the decisions we took,” Masondo said.

Furthermore, together with staff and management, the PIC:

  • Advanced the implementation of the Mpati Commission recommendations.
  • Strengthened governance.
  • Reinforced institutional controls.
  • Continued supporting South African businesses, industrialists, and entrepreneurs in pursuit of inclusive economic growth.

“I am deeply grateful to my fellow Board members, management, and every employee of the PIC for their professionalism, diligence, and unwavering commitment to rebuilding and strengthening this important institution. It has been an honour to serve alongside such dedicated professionals.

“While I believe the Board discharged its responsibilities faithfully, leadership requires placing the institution above oneself. It is therefore prudent that I step aside to avoid any uncertainty or distraction that could affect the stability of the PIC or undermine confidence in its work,” Masondo stated.

Masondo urged the incoming leadership and executive team to build upon the foundation laid by the outgoing Board.

“I hope they will continue to fulfil their mandate to protect and safeguard the funds of South Africa’s workers and to grow the investments under the stewardship of the PIC.

“I also hope that the outstanding matters the previous Board was dealing with, including the whistleblower report, the allegations against the CEO, the Acapulco matter, which I referred to the SIU, and other related issues, will be thoroughly investigated and appropriately addressed, rather than being swept under the carpet,” the Deputy Minister added.

He noted that as some matters will be before court later this month, the “the judicial process should be allowed and enabled to proceed unhindered”.

“For the sake of transparency and accountability, it is important that these issues be determined by the courts and brought to their proper legal conclusion, despite the resignation of the previous Board.

“More importantly, I trust that the governance and investment reforms, particularly in the unlisted portfolio, initiated by the previous Board, together with the filling of critical vacancies that the Board are addressed and pursued with the urgency they deserve,” Masondo concluded. – SAnews.gov.za

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President Ramaphosa to officiate Ummbila Emoyeni Wind Energy Facility commercial operations

Source: President of South Africa –

President Cyril Ramaphosa will, on Friday, 31 July 2026, officiate the commencement of commercial operations at the Ummbila Emoyeni Wind Energy Facility near Bethal in Mpumalanga.

The commencement of commercial operations marks an important milestone in South Africa’s efforts to strengthen energy security, advance infrastructure development and drive inclusive economic growth through investment in renewable energy.

Three years after the investment commitment associated with the Seriti Green project was announced at the South African Investment Conference, the commencement of commercial operations represents a significant milestone in translating investment commitments into operational infrastructure that contributes to South Africa’s long-term economic development.

Located in Mpumalanga, South Africa’s traditional energy-producing region, the Ummbila Emoyeni Wind Energy Facility demonstrates the practical implementation of South Africa’s Just Energy Transition.

The project combines renewable electricity generation with significant investment in transmission infrastructure, long-term regional operations, local supplier participation, skills development and community investment.

The first phase of the project entails 155MW of wind generation and forms part of a planned 900MW renewable energy programme that will contribute additional renewable electricity generation capacity while strengthening South Africa’s energy system.

The event also showcases how collaboration between government, the private sector, investors and local communities is supporting infrastructure-led growth, expanding energy capacity, creating employment opportunities and contributing to regional economic development.

President Ramaphosa will officiate the commencement of commercial operations at the Ummbila Emoyeni Wind Energy Facility as follows:

Date: Friday, 31 July 2026
Time: 10h00
Venue: Seriti Green’s Ummbila Emoyeni Wind Energy Facility, Bethal, Mpumalanga

Members of the media wishing to cover the event are requested to RSVP by completing the attached form and submitting to newsdesk@journalismweb.co.za before Monday, 27th July 2026.

Media accreditation enquiries: Dean McCoubrey at 083 4554 808/Patience Mtshali at 083 376 9468

Media enquiries: Vincent Magwenya, Spokesperson to the President – media@presidency.gov.za

Issued by: The Presidency
Pretoria

President Ramaphosa releases the National Water Action Plan

Source: President of South Africa –

President Cyril Ramaphosa today, Thursday 23 July 2026, released the National Water Action Plan following a meeting of the National Water Crisis Committee (WATERCOM) at the Union Buildings in Pretoria. 

The National Water Action Plan (NWAP) sets out a focused, programmatic series of actions to ensure a reliable supply of quality water to all South Africans, aiming to address the root causes of the water supply challenges in many municipalities.

The Plan outlines strategic interventions to address the water crisis over the short, medium and long term. 

The NWAP outlines a strategy to increase investment in infrastructure, including through private sector investment; to implement legal and regulatory reforms to improve municipal service delivery; and to address corruption and criminality in the water sector.

The NWAP was developed by WATERCOM, which was established following the 2026 State of the Nation Address in response to increasingly severe water supply interruptions in several parts of the country. 

WATERCOM is chaired by the President and includes a range of government departments and public agencies responsible for implementing the Plan as well as the South African Local Government Association (SALGA). 

The Plan was informed by extensive consultation with stakeholders across all three spheres of government – national, provincial and local – and associations such as SALGA. 

WATERCOM is working with municipalities to mobilise resources, expertise, and new partnerships to stabilise failing systems, recover critical services and expand access across the country. It will ensure a coordinated approach to the institutional and financing reforms necessary to achieve water security, including ring-fencing water revenues to ensure adequate maintenance of water assets and increasing investment in bulk water and distribution infrastructure. 

In doing so, it will build on the work already being done by the Department of Water and Sanitation, the Department of Cooperative Governance and Traditional Affairs and the National Treasury, among others, to address the challenges in the water sector. 

In releasing the Plan, President Ramaphosa said: “By acting boldly and decisively to improve the performance of Eskom and reform our energy system, we were able to end load shedding and achieve a secure and reliable energy supply. Now, we are applying the same approach to the water crisis that has been unfolding in many parts of our country. The National Water Action Plan outlines a clear, practical and focused approach to ensure water security for all South Africans, no matter where they live.”

Government is firmly committed to ensuring a reliable supply of quality water for all South Africans. The Plan will bring together all spheres of government and social partners to achieve this objective.

Background Note

Too many municipalities, communities and businesses can no longer rely on safe, reliable water services – threatening public health, economic activity, and social stability. 

The scale of the challenge now demands an urgent national response and a fundamental shift in how water services are managed.

The National Water Action Plan (NWAP) sets out a focused programme of priority interventions designed to establish new foundations for sustainable water service delivery. 

Dedicated teams have been mandated to drive implementation, accelerate results, and catalyse long-term reform. 

The NWAP identifies the root cause of the crisis as an inappropriate delivery model for water services. This is characterised by the absence of ring-fencing as water revenues are often used to fund other municipal functions, reducing the resources available for water infrastructure maintenance, investment and hiring skilled staff. 

Additionally, diffuse accountability weakens incentives for effective and financially sustainable water management and service delivery as municipal water and sanitation departments are typically responsible for technical functions but have limited control over billing, revenue collection, and asset protection. 

This points to a clear path to address this challenge, aligned with successful models and adapted to South Africa’s context. 

WATERCOM will meet regularly to oversee the implementation of the Plan and to hold the responsible departments and agencies accountable for delivery.

Media enquiries: Vincent Magwenya, Spokesperson to the President – media@presidency.gov.za

Issued by: The Presidency
Pretoria

Reserve Bank keeps interest rate unchanged

Source: Government of South Africa

Reserve Bank keeps interest rate unchanged

The South African Reserve Bank’s Monetary Policy Committee (MPC) has kept the repo rate unchanged at 7%.

This was announced by Reserve Bank Governor, Lesetja Kganyago on Thursday.

The prime lending rate will also stay steady at 10.50%.

“Four members preferred a hold, while two favoured an increase of 25 basis points.

“The committee agreed that the outlook is uncertain, and with the rate increase at our previous meeting, the policy stance is appropriate for now, with rates somewhat restrictive,” Kganyago said.

Turning to growth, the Governor said that while first quarter growth stood “stronger than expected”, the MPC expects sluggish growth through the second and third quarter.

“Consumer confidence has fallen sharply, and business confidence has also weakened. Sectoral data show generally lower activity, since the start of the war. Prices for our export commodities have also fallen, although terms of trade are better, given lower prices for imports.

“We started this year with good momentum, but households have suffered from higher fuel prices, while uncertainty has weighed on investment. It is also increasingly clear that municipal dysfunction has become a binding constraint on growth,” he said.

Kganyago added however that domestic reforms can propel the economy toward a “rising growth trend, as global conditions stabilise”.

“Our baseline forecast is that the economy starts to recover in the second half of this year, as the shock fades. But the outlook is uncertain. We see downside risks to growth,” he noted.

Stabilising inflation

On Wednesday, Statistics South Africa revealed that the inflation rate hit its highest reading since June 2024, reaching 5% in June.

Kganyago highlighted that this was driven by higher fuel costs as a result of the war in the Middle East.

“Petrol and diesel prices eased this month, but global prices have now risen again. We expect headline inflation to stay above 4% until early next year.

“Aside from fuel, goods prices have been relatively contained. The exchange rate has been resilient, with the rand close to where it started the year against the dollar, and stronger against the euro. This has helped with import prices.

“Food inflation has also slowed recently, which reflects good harvests, as well as fading effects from the outbreak of foot-and-mouth disease. El Niño may start affecting food supply next year, but this is still a risk factor, not part of our baseline,” he explained.

The Governor reiterated that while inflation outlook has “improved slightly” it still remains too high with slow growth.

“We are setting policy to achieve 3% inflation over time, ensuring the current supply shock does not de-anchor inflation expectations.

“At the same time, we recognise that South Africa’s growth prospects will be driven mainly by domestic reforms. This covers structural interventions, such as fixing local government, and improving productivity in the network sectors, like transport and energy. It also includes the macroeconomic goals of sustainable debt and permanently lower inflation.

“Our main contribution is to stabilise inflation in line with our 3% target, over time, and the MPC will act as needed to achieve that,” Kganyago concluded. – SAnews.gov.za

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South Africa, Germany deepen Strategic Partnership

Source: Government of South Africa

South Africa, Germany deepen Strategic Partnership

South Africa and Germany have reaffirmed their commitment to strengthening their Strategic Partnership, with discussions focusing on expanding economic cooperation, accelerating the Just Energy Transition and addressing pressing global challenges, including conflicts in the Democratic Republic of the Congo (DRC), Ukraine and the Middle East.

Minister of International Relations and Cooperation Ronald Lamola hosted Germany’s Federal Minister of Foreign Affairs, Dr Johann Wadephul, on a working visit to South Africa on Wednesday and Thursday, with the two Ministers holding a tête-à-tête earlier on Thursday before convening official talks.

The visit follows the 12th Meeting of the South Africa-Germany Bi-National Commission (BNC), held in Berlin in April 2026, which marked 30 years of the mechanism and saw both countries elevate their relationship to a Strategic Partnership.

The two countries also adopted a Joint Action Plan aimed at translating the enhanced partnership into practical areas of cooperation.

Lamola said the latest discussions were aimed at reviewing progress in implementing the Action Plan and identifying areas where cooperation should be accelerated.

“I am pleased to report that our engagement was frank, warm and productive. We reviewed implementation across the Action Plan, took stock of the progress made and agreed on the areas in which we must move faster,” Lamola said.

Germany remains one of South Africa’s most important trading partners in Europe, with bilateral trade valued at approximately R295 billion in 2025. More than 600 German companies operate in South Africa, employing around 100 000 people.

Lamola said economic cooperation formed a key part of the discussions, particularly around expanding trade and investment, cooperation on critical raw materials and developing a battery value chain that supports industrialisation and job creation in South Africa.

“We discussed the expansion of trade and investment, cooperation on critical raw materials, and the development of a battery value chain that creates value and jobs here in South Africa,” he said.

The Ministers also discussed cooperation under the Just Energy Transition Partnership, which supports South Africa’s transition towards cleaner energy while ensuring social and economic considerations are addressed.

“We also discussed the Just Energy Transition Partnership, which supports our shift towards cleaner energy in a manner that is socially just, as well as our long-standing cooperation on vocational education and training. This cooperation speaks directly to the urgent challenge of youth employment,” Lamola said.

The Strategic Partnership between the two countries also places emphasis on strengthening political dialogue. Lamola said both sides had agreed to institutionalise regular high-level engagements between their foreign ministries.

“Our intention is to ensure that engagement of this kind becomes a standing feature of our partnership, rather than an occasional event,” he said.

The two ministers further agreed to deepen cooperation on strengthening democratic resilience, including efforts to counter disinformation.

“We further agreed to advance practical cooperation on strengthening democratic resilience, including through efforts to counter disinformation, an area in which both our societies face similar pressures,” Lamola said.

Beyond bilateral matters, the talks covered major international developments, including peace and security challenges on the African continent, particularly the situation in eastern DRC, the war in Ukraine and the humanitarian crisis in Gaza.

On the Middle East, Lamola reiterated South Africa’s position, calling for the implementation of the ceasefire, humanitarian access and a political solution based on international law.

“We remain gravely concerned about the humanitarian situation in Gaza. We call for the full implementation of the ceasefire, unimpeded humanitarian access, and a credible political process leading to a two-state solution, with a viable Palestinian state existing alongside a secure Israel. Our approach is grounded in international law and the United Nations Charter,” he said.

Lamola acknowledged that South Africa and Germany did not share identical views on all aspects of the conflict but said the strength of their partnership allowed them to engage openly.

“South Africa and Germany do not view every aspect of this question in the same way. It is precisely because of the strength of our partnership that we are able to discuss our differences openly and in good faith. I welcomed the candour of our exchange,” he said.

As Chair of the Southern African Development Community (SADC), South Africa also briefed Germany on regional priorities ahead of the SADC Summit scheduled to take place next month.

Lamola said these priorities include industrialisation, agricultural transformation, the energy transition and supporting African-led efforts to promote peace and stability.

“I also expressed South Africa’s appreciation for Germany’s principled support for an inclusive G20, and for its view that the forum should not be diminished,” he said.

South Africa hosted the first G20 Summit on African soil in 2025 and, according to Lamola, remains committed to protecting the inclusivity and integrity of the forum.

The South Africa-Germany relationship is managed through the Bi-National Commission, established in 1996 following former President Nelson Mandela’s State Visit to Germany. The mechanism consists of eight senior official-level working groups covering key areas of cooperation.

Germany is also one of South Africa’s largest sources of foreign direct investment and ranks among the country’s leading overseas tourism markets. – SAnews.gov.za
 

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