6th Canada-Africa Business Conference Opens in Lagos, Headline Sponsored by Zenith Bank Plc

Source: APO – Report:

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The Canada-Africa Chamber of Business (www.CanadaAfrica.ca) today opens the 6th Canada-Africa Business Conference in Lagos, Nigeria, headline sponsored by Zenith Bank Plc, bringing together senior decision-makers from Canada, Nigeria and across African markets for two days of trade and investment engagement.

In his message (https://apo-opa.co/43TPktb) to delegates, Canada’s Prime Minister Mark Carney proudly offered his warmest greetings to delegates: “As we gather today, I would like to recognize the Canada-Africa Chamber of Business for convening leaders from across Canada and Africa to advance investment, trade, and partnership—connecting businesses and institutions to drive practical collaboration and shared growth.”

Canada’s Minister of International Trade, Hon. Maninder Sidhu underscored the vital importance of the program to accelerate trade and investment:

““Nigeria is Canada’s second largest merchandise trading partner in Africa, with bilateral trade exceeding close to $3 billion in 2025—and there is enormous potential to grow that relationship even further, including in financial services, infrastructure, energy, critical minerals, agriculture and clean tech.”

“Canada is committed to working with our Nigerian partners to attract investments, strengthen supply chains, and create good jobs and new opportunities in both our countries. The relationships built at this conference will help move that work forward, they will lead to new partnerships, new investments, and new opportunities for our people.”

— Hon. Maninder Sidhu, Minister of International Trade, Canada

The conference is designed as a practical platform for business leaders, investors, policymakers and institutional partners to identify opportunities, build relationships and advance commercial partnerships across sectors including financial services, infrastructure, energy, mining, agriculture, clean technologies and the wider innovation economy.

“On behalf of the Board, Management and Staff of Zenith Bank Plc, I extend a very warm welcome to all delegates attending the 6th Canada-Africa Business Conference in Lagos, Nigeria. As headline sponsor, we are honoured to enable the hosting of this this distinguished gathering in our home city, the commercial heartbeat of Africa.”

— Dame Dr. Adaora Umeoji, OON, Group Managing Director/Chief Executive Officer, Zenith Bank Plc

In her conference message, Dame Dr. Umeoji commended The Canada-Africa Chamber of Business for convening senior decision-makers from across Canada and Africa to advance trade, investment and partnership, while also recognizing the Government of Canada’s commitment to deepening commercial ties with Nigeria and the wider continent.

“The opportunity before us is substantial. Nigeria is Canada’s second-largest merchandise trading partner in Africa, with growing demand across financial services, infrastructure, energy, mining, agriculture and clean technologies.”

— Dame Dr. Adaora Umeoji, OON, Group Managing Director/Chief Executive Officer, Zenith Bank Plc

Zenith Bank’s participation underscores the importance of financial platforms, trade finance, treasury solutions and corporate and investment banking expertise in turning Canada-Africa relationships into bankable opportunities.

“Our commitment extends well beyond this conference: to every partnership that creates jobs, builds infrastructure and drives shared growth, innovation and sustainable prosperity between our two nations.”

— Dame Dr. Adaora Umeoji, OON, Group Managing Director/Chief Executive Officer, Zenith Bank Plc

“Lagos is an ideal setting for this next chapter of Canada-Africa engagement. With Zenith Bank as headline sponsor, the Chamber is proud to convene a program that showcases Nigerian excellence, Canadian ambition and the commercial partnerships that can serve global markets.”

— Garreth Bloor, President, The Canada-Africa Chamber of Business

In addition to Zenith Bank Plc as Conference Headline Sponsor, the conference is supported by Elephant Trade-Services DRC as Headline Chamber Sponsor, GardaWorld Security as Gold Conference Sponsor, and Silver Conference Sponsors Banwo & Ighodalo, Baywood Group, CBI News, Dentons, Eko Hotels & Suites, and Voranex Africa. The Government of Canada is recognized as Chamber Partner, with Abide Consulting serving as Conference Partner.

The two-day program includes keynote addresses, interactive panels, executive networking and business-to-business engagement, with a focus on practical outcomes for Canadian and African companies seeking growth, market access and long-term partnership.

– on behalf of The Canada-Africa Chamber of Business.

About The Canada-Africa Chamber of Business:
With more than 30 years of history, The Canada-Africa Chamber of Business is a non-profit organization dedicated to strengthening trade and investment between Canada and African markets. Through flagship conferences, targeted missions, and year-round engagement, the Chamber connects decision-makers and advances sustainable, private-sector-led development.

About Zenith Bank Plc:
Zenith Bank Plc is one of Africa’s leading financial institutions, with an international footprint spanning Africa and Europe. The bank offers local market knowledge, trade finance and treasury solutions, corporate and investment banking expertise, and digital platforms built to global standards.

Uganda: Presidential Industrial Hubs: Farm Managers And Finance Officers Undergo Induction Training

Source: APO – Report:

The State House has embarked on the induction of 36 newly recruited farm managers and finance officers who will oversee agricultural enterprises at the Presidential Industrial Skilling Hubs and supervise more than 170 Savings and Credit Cooperative Organisations (SACCOs) established to support graduates of the skilling programme.

The officers are undergoing a week-long ideological and leadership course at the Oliver Reginald Tambo Leadership School in Kaweweta, Nakaseke district, ahead of their deployment to various parts of the country.

The training, which commenced on Monday, June 22, 2026, and ends on Friday, June 26, 2026, is exposing the recruits to leadership, patriotism, political economy, mindset transformation and the universal principles of development.

Senior instructors led by the school’s Deputy Commandant, Lt Col. AK Alege, are taking the officers through various modules aimed at nurturing visionary and transformational leaders capable of safeguarding the investments made under the Presidential Industrial Skilling Hubs programme.

While officially opening the training, the Director of Presidential Projects and Industrial Hubs at State House, Eng. Raymond Kamugisha, challenged the officers to appreciate Uganda’s history and allow it to guide their decision making in public service.

“History offers important lessons for national development. As leaders entrusted with public resources, you must understand where this country has come from and ensure that every decision you make contributes towards the transformation of our people,” Eng. Kamugisha said.

He revealed that the State House is shifting focus towards making the 19 Presidential Industrial Skilling Hubs financially sustainable through value addition projects being established across the country.

According to Eng. Kamugisha, a paper processing plant has already been established at the Mbarara Presidential Industrial Hub, while a grain milling facility is under testing at the Masindi hub, with similar projects being rolled out in the remaining hubs.

“Our objective is to ensure that these hubs become centres of production and wealth creation. Skills alone are not enough; value addition is critical if we are to realize maximum benefits from these investments,” he said.

Eng. Kamugisha noted that the newly recruited officers will oversee the farms established at the hubs and provide technical guidance to over 170 graduates’ SACCOs into which President Yoweri Museveni injected Shs50 million each as revolving funds.

“The President has committed enormous resources towards these farms and SACCOs because he believes in empowering young people to create wealth. These investments require professional management and accountability if they are to deliver lasting impact,” he said.

He also disclosed that State House will soon recruit additional experts to manage the value addition plants that are being established at the hubs.

Eng. Kamugisha, however, warned the officers against corruption and the mismanagement of public funds, saying even the slightest abuse of office could cost one a career in public service.

“Public service demands integrity and accountability. You must appreciate that there is no small amount when it comes to misuse of government resources. Even the misappropriation of Shs10,000 can cost you your job and destroy a career that may have taken years to build,” he cautioned.

He urged the recruits to jealously guard public resources and uphold the values of honesty and patriotism in executing their duties.

“We are not merely deploying workers; we are building custodians of a national vision. You must be disciplined, transparent and committed to serving Ugandans with utmost integrity,” Eng. Kamugisha emphasized.

The State House official further disclosed that they are seeking a directive from President Museveni requiring government institutions, particularly local governments, to prioritize procurement of products manufactured at the Presidential Industrial Skilling Hubs. These include furniture, school uniforms, metallic doors, windows, shutters and other products made by beneficiaries of the programme.

“We need to support our own industries and our own people. The young men and women trained at these hubs have demonstrated exceptional skills and are producing products of high quality,” he said.

“The government should deliberately buy from them because that is how we stimulate local production, create jobs and keep wealth within our economy.”

The Presidential Industrial Skilling Hubs programme was established to equip youths with practical skills and promote self-employment as part of the government’s strategy to fight unemployment and accelerate socio-economic transformation.

Upon completion of the training, the officers will be deployed to their respective stations to support the sustainability and growth of the initiative.

– on behalf of State House Uganda.

Media files

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Department clarifies end of Vlakfontein project contracts

Source: Government of South Africa

Department clarifies end of Vlakfontein project contracts

The Department of Water and Sanitation (DWS) says the termination of employment contracts for 178 workers on the Vlakfontein Canal Rehabilitation Project in Standerton does not constitute a retrenchment process but stems from the discontinuation of the project to which their employment was linked.

The department said the affected employees were appointed on project-based contracts tied specifically to the implementation of the Vlakfontein Canal Rehabilitation Project, and that their contracts would conclude on 30 June 2026 following a decision to discontinue and de-establish the project.

The department said it was providing clarity on the matter due to public interest and concerns about the impact on affected workers and their families.

The Vlakfontein Canal Rehabilitation Project was launched in 2015 as a major infrastructure initiative aimed at improving water conveyance and irrigation systems in the area.

At its inception, the project employed 241 local workers, and by 2026, the workforce had declined to 178 employees through retirements and resignations.

According to the department, the project was initially scheduled for completion within 48 months but experienced significant delays due to a combination of operational, technical and financial challenges.

Following a comprehensive assessment of the project’s performance, progress and long-term sustainability, the department decided to discontinue the rehabilitation programme.

The department explained that the Vlakfontein Canal supplies water to strategic users, including Eskom, Sasol and municipalities in the region. Rehabilitation work was undertaken during scheduled dry periods, with water supply supported by the Vaal River Eastern Sub-System Augmentation Project (VRESAP).

However, operational deficiencies within the VRESAP system have limited its ability to provide reliable alternative supply for extended periods, making it difficult to shut down the canal long enough to complete rehabilitation work without compromising water security for key users.

“The constrained use of VRESAP means that the Vlakfontein Canal cannot be shut down for rehabilitation for extended periods of time without detrimentally affecting the assurance of supply to users,” the department said in a statement.

The department indicated that the rehabilitation project could be revived once the VRESAP system becomes reliably operational, and should this occur, consideration would be given to reappointing workers on the same project-based contractual basis.

DWS said consultations had been held with affected employees and organised labour following the decision to discontinue the project. Discussions took place through the Departmental Bargaining Chamber, where information relating to the project’s status and the reasons for its discontinuation was shared.

The department said it recognised the impact the decision would have on workers and their families and had engaged with employees throughout the process to provide clarity and support during the transition period.

As of 22 June 2026, 61 affected employees had collected and acknowledged receipt of their termination letters.

The department said all contractual and legal obligations would be honoured.

“Affected employees will receive all benefits due to them, including payment of accumulated leave, a pro-rata bonus, payment in lieu of notice for employees who elect not to serve the notice period, and severance-related benefits in accordance with applicable conditions of service. Benefit payments are scheduled to be processed by 31 July 2026,” the department said.

The department acknowledged the contribution made by employees throughout the lifespan of the Vlakfontein Canal Rehabilitation Project and appreciated their dedication and service over the years.

“Support measures have been put in place to assist affected employees during this transition, while engagement continues through the appropriate labour relations structures,” it said. – SAnews.gov.za

 

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SACAP, NPA partner to improve enforcement of Architectural Profession Act

Source: Government of South Africa

SACAP, NPA partner to improve enforcement of Architectural Profession Act

The South African Council for the Architectural Profession (SACAP) has taken steps to strengthen collaboration with the National Prosecuting Authority (NPA) as part of efforts to enhance enforcement of the Architectural Profession Act and improve compliance within the architectural profession.

Representatives of SACAP met with officials from the NPA at the Phalaborwa Magistrate’s Court in Limpopo on Tuesday to discuss measures aimed at improving the investigation and prosecution of offences related to the Architectural Profession Act, 2000 (Act 44 of 2000).

According to SACAP, the engagement formed part of its ongoing commitment to protecting the public through the effective regulation of the architectural profession.

The meeting provided an opportunity for SACAP to brief the NPA on the legislative framework governing the profession and the council’s role in safeguarding public interests through professional regulation.

Discussions focused on challenges encountered in investigating and prosecuting offences linked to the Act, including the misuse of protected professional titles and other contraventions of the legislation.

The parties also explored practical ways to strengthen cooperation between SACAP and law enforcement agencies to support more effective enforcement of the Act.

SACAP said the engagement aligned with its broader objective of maintaining professional standards, promoting accountability and ensuring that individuals who violate the provisions of the Architectural Profession Act are held accountable in accordance with the law.

The council welcomed the opportunity to work closely with the NPA and other law enforcement partners to advance a regulatory environment that promotes professionalism, accountability and public protection within South Africa’s built environment.

SACAP is the statutory body responsible for regulating the architectural profession in South Africa in terms of the Architectural Profession Act.

The profession includes architects, senior architectural technologists, architectural technologists, draughtspersons, specified categories and candidates, all of whom are required to register with the council before practising architecture. – SAnews.gov.za

 

 

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Gauteng Education Department apologises for delayed report cards

Source: Government of South Africa

Gauteng Education Department apologises for delayed report cards

The Gauteng Department of Education (GDE) has apologised to learners, parents and school communities affected by delays in the issuing of report cards at some public ordinary schools across the province.

In a statement on Wednesday, the department said that the delay is due to technical challenges affecting access to the South African School Administration and Management System (SA-SAMS), following the temporary unavailability of the Citrix environment that supports the system. 

This has limited the ability of some schools to access, capture and finalise learner data required for the printing and issuing of report cards.

Gauteng MEC for Education, Sport, Arts, Culture and Recreation, Lebogang Maile, acknowledged the inconvenience caused and assured affected communities that the matter is receiving urgent attention.

“On behalf of the Gauteng Department of Education, I extend my sincere apology to learners, parents and school staff affected by this delay. We understand the importance of report cards in tracking learner progress and planning for the academic term ahead,” MEC Maile said.

The MEC further clarified that SA-SAMS is a national system administered by the Department of Basic Education, and that provincial education departments depend on its operational stability for learner administration and academic record processing.

The department has confirmed that system administrators and technicians are actively working to restore full functionality and normalise access as soon as possible.

Maile has urged affected schools and parents to allow the technical process to be concluded so that report cards can be issued without compromising the integrity and accuracy of learner records.

“We are confident that the technical teams handling the matter will restore the system soon. We appreciate the patience shown by schools, learners and parents as this process is being resolved,” Maile concluded.

The Gauteng Department of Education said it will continue to keep schools informed as progress is made. – SAnews.gov.za

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South Africa improves global competitiveness ranking

Source: Government of South Africa

South Africa improves global competitiveness ranking

South Africa has improved its position in the 2026 World Competitiveness Yearbook (WCY), climbing 10 places to rank 54th out of 70 economies surveyed, according to the latest report released by the Institute of Management Development (IMD) in collaboration with Productivity SA.

The country moved up from 64th position in 2025, reflecting gains in government efficiency, business confidence and infrastructure management.

In a statement, the Department of Employment and Labour said the improvement signals progress in several key areas of government efficiency, business confidence and infrastructure management, although structural challenges continue to affect the country’s competitiveness and economic performance. 

The annual rankings, compiled by the IMD and coordinated locally by Productivity SA, assess countries across four pillars: Economic Performance, Government Efficiency, Business Efficiency and Infrastructure.

The department said that South Africa’s improved overall ranking was driven by gains in government policy adaptability, transparency, management of cities, energy infrastructure, public finances and efforts to address bureaucracy and corruption. 

Improvements were also recorded in employment growth trends, exchange rate stability and health infrastructure.

Speaking at the launch of the rankings in Midrand, Gauteng, Productivity SA Chief Economist Dr Lungelo Cele said the 2026 results “suggest improved confidence in aspects of the policy and institutional environment”. 

The report showed significant progress in Government Efficiency, where South Africa improved by nine places from 63rd to 54th, while Business Efficiency recorded the largest improvement, rising 15 places from 57th to 42nd.

Infrastructure improved by three places from 62nd to 59th, while Economic Performance declined marginally from 63rd to 64th.

Overall, the country improved from 64th position in 2025 to 54th in 2026.

Senior Economist at Switzerland’s Institute of Management Development, Dr José Caballero, emphasised the importance of long-term investment in sustaining competitiveness.

“Competitiveness is built, not granted, and to grow competitiveness there must be investment in long-cycle assets (e.g., infrastructure, education, R&D) that compound over years,” Caballero said.

While welcoming the improvement, Cele cautioned against viewing the results as evidence of a complete turnaround.

“The improvement should be viewed with caution and interpreted within the broader context of ongoing structural economic challenges. While perceptions regarding aspects of the business environment, institutions, and governance improved, South Africa continues to face persistent challenges.

“The rankings therefore suggest positive momentum in some areas, but not yet a comprehensive competitiveness turnaround,” Cele said. 

Despite the gains, the report identified several constraints that continue to hamper economic growth and investment.

These include persistently high unemployment and a mismatch between skills and labour market needs, low economic growth coupled with rising public debt, infrastructure bottlenecks in energy, water and logistics, as well as corruption and crime that undermine service delivery and investor confidence.

The report also highlighted the need for stronger support for businesses operating in high-growth sectors.

At the same time, the study noted positive perceptions of South Africa’s corporate governance standards, business agility, entrepreneurial culture and openness to global markets.

Productivity SA said sustained progress would depend on addressing long-standing structural constraints, particularly unemployment, education outcomes, infrastructure reliability and economic growth. – SAnews.gov.za

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SAPS shines spotlight on its dedicated young police officers

Source: Government of South Africa

SAPS shines spotlight on its dedicated young police officers

As South Africa marks Youth Month in June, the spotlight is firmly on the achievements, challenges and aspirations of young members of the South African Police Service (SAPS) through its national campaign, “SAPS Youth – Leading the Reset Agenda”.

Under the banner “My Blood is Blue”, SAPS is celebrating young officers who have answered the call to serve, protect and lead with integrity.

These officers represent the future of policing and the continued renewal of the Service under the SAPS Reset Agenda.

Among them is 26-year-old Constable Masego Maimane, who is two years into his policing career at Akasia Police Station in northern Pretoria. He is one of many young men and women helping to drive meaningful change within the police service and the communities they serve.

Maimane admits the journey has not been without challenges, but says progress is possible with the guidance of experienced mentors – especially in demanding environments such as the Soshanguve informal settlement, locally known as the extensions.

He acknowledges the financial pressures facing government, which require limited resources to be stretched across essential services. Yet, he remains steadfast in his belief that policing cannot afford to slow down.

Maimane is among a growing number of young South Africans making their mark in public service while creating a positive impact in their communities.

Driven by a passion for growth, he embraces every opportunity to learn and expand his skills.

After spending time at the station’s front desk handling complaints and community concerns, Maimane’s curiosity and eagerness to learn led him to the Firearm Registry.

In just two years, he identified the need to strengthen his understanding of firearm-related matters, recognising the scale of firearm-related challenges facing communities.

Now serving as a young Designated Firearm Officer (DFO) and studying toward an Honours degree in Communication, Maimane is using both his practical experience and academic knowledge to raise awareness around firearm safety and compliance.

“I realised that the station recovers many unregistered firearms during crime prevention operations. Many of these weapons are used to commit crimes.

“While recovering these firearms and arresting those found in possession of unlicensed weapons remains critical, community outreach is equally important,” he said.

Maimane hopes to deepen his knowledge across different areas of the organisation to better equip himself to serve the public.

He also encourages fellow young officers to stay focused and not be discouraged by those who claim career growth within the service is slow.

“We rely on the community, and I believe their perspectives are crucial to our crime prevention strategies if we are to succeed in combating crime.

“Personal growth is vital, so invest in yourself to become a better person and a better law enforcement officer for the community,” Constable Maimane said. – SAnews.gov.za

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Youth and Constitution Dialogue to mark 1976 uprising anniversary

Source: Government of South Africa

Youth and Constitution Dialogue to mark 1976 uprising anniversary

The Department of Justice and Constitutional Development, together with the University of South Africa (UNISA), will host the Youth and the Constitution Dialogue in observance of the 50th anniversary of the 1976 student uprising and the 30th Anniversary of the adoption of the Constitution.

The dialogue will be held on Thursday as part of the department’s Youth Month commemorations and brings together “the youth of 1976 and the youth born post-democracy for inter-generational sharing of experiences”.

“The objective of the dialogue is to reflect on the sacrifices made by the youth of 1976 in the liberation of our country and their contribution to the attainment of constitutional democracy.

“The dialogue also seeks to create a common understanding and vision of a united South Africa where all young people have equal rights and access to socio-economic opportunities,” a statement from the department read.

The dialogue is expected to be held at UNISA’s campus in Limpopo.

“The date of 16 June was declared the National Youth Day in South Africa in honour of the students who protested the use of Afrikaans as the compulsory medium of instruction in schools,” the statement read. – SAnews.gov.za

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Whole-of-society response needed to reduce adolescent pregnancy

Source: Government of South Africa

Whole-of-society response needed to reduce adolescent pregnancy

Deputy Minister in the Presidency for Women, Youth and Persons with Disabilities, Mmapaseka Steve Letsike, has called for a new model of partnership to tackle adolescent pregnancy.

The Deputy Minister described the issue as one of South Africa’s most significant development challenges.

Speaking at the close of a private sector consultation on adolescent pregnancy in Johannesburg, Letsike said participants from government, the private sector, development partners, civil society and young people agreed that adolescent pregnancy requires a collaborative approach.

“What emerged [from discussions] was a shared understanding that the complexity of adolescent pregnancy demands a different model of leadership,” she said, adding that young people must be recognised as co-creators of solutions rather than simply beneficiaries of policy.

Letsike said one of the consultation’s key outcomes was a shift from consultation to co-creation.

She noted that South Africa already has programmes, institutions and communities with proven experience in addressing the drivers of adolescent pregnancy, but that these efforts often operate in isolation.

“Our challenge is not that we lack solutions. Our challenge is that too many of those solutions exist alongside one another rather than with one another,” she said.

The Deputy Minister stressed the need to identify interventions that have already demonstrated impact and scale them nationally.

She highlighted evidence showing that keeping girls in school delays pregnancy, improves educational outcomes, increases future earnings and strengthens communities.

Discussions also explored the use of technology to improve access to sexual and reproductive health information and services, including self-service kiosks and smart vending solutions.

Participants further considered structured programmes during school holidays that combine sport, culture, entrepreneurship, mentorship and health promotion.

Letsike emphasised that parents, guardians and families must form part of any strategy aimed at supporting adolescents, describing households as critical spaces where values and aspirations are shaped.

She also supported a “layered approach” to prevention, arguing that services related to sexual and reproductive health should connect young people to broader opportunities such as career guidance, entrepreneurship support, bursary information, psychosocial services and employment pathways.

Letsike said adolescent pregnancy has direct implications for productivity, human capital development and economic growth.

For that reason, she said, the private sector was invited not only as a source of funding but as a partner bringing expertise in innovation, technology, logistics, operational management and scaling successful models.

The consultation concluded with what Letsike described as concrete commitments to explore sustainable financing models, develop implementation frameworks and strengthen collaboration with TVET colleges, municipalities and communities.

She said these commitments represented the beginning of a broader social compact focused on improving outcomes for South Africa’s girls. “We will measure success not by the number of projects we own, but by the number of young lives we change,” she said. – SAnews.gov.za

 

 

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Constitutional Court confirms VAT treatment of recycled gold

Source: Government of South Africa

Constitutional Court confirms VAT treatment of recycled gold

The Commissioner for the South African Revenue Service (SARS), Dr Johnstone Makhubu, has welcomed a unanimous Constitutional Court judgment in the matter against Lueven Metals (Pty) Ltd, which confirms SARS’ interpretation of the Value-Added Tax Act.

The court confirmed that the zero-rating of gold under section 11(1)(f) of the Value-Added Tax Act, 1991, does not apply to second-hand or recycled gold that has already undergone prior manufacturing.

SARS said the ruling provides clear legal guidance, puts an end to aggressive VAT interpretations, and reinforces its commitment to enforcing tax law in a principled manner.

“This judgment reaffirms a foundational principle of our constitutional democracy: that legislation must be applied as written, consistently, and fairly. 

“The Constitutional Court has provided unequivocal clarity, and that certainty benefits vendors, financial institutions, and the precious metal industry regarding the VAT treatment of gold supplied under section 11(1)(f),” the Commissioner said on Tuesday.

The judgment clarifies that the zero-rating of gold supplied to the South African Reserve Bank, the South African Mint Company (Proprietary) Limited, or a registered bank applies only when the gold is supplied in one of the prescribed forms and has not undergone any manufacturing process other than refining or the manufacture or production of those prescribed forms.

The matter arose from a dispute over the VAT treatment of refined gold supplied to prescribed purchasers, such as registered banks.

Lueven Metals, a buyer and refiner of second-hand gold, treated its sales of refined gold bars to a commercial bank as zero-rated, despite the gold originating from previously manufactured sources, such as scrap jewellery. 

Following an audit, SARS determined that these supplies did not qualify for zero-rating under the VAT Act. 

The High Court upheld SARS’ interpretation, and the Constitutional Court has now conclusively confirmed that position, dismissing the appeal with costs.

SARS said that, in its unanimous judgment, the Constitutional Court held that section 11(1)(f) sets out three cumulative requirements for zero-rating.

These include that the supply must be to a prescribed purchaser; the gold must be supplied in one of the prescribed forms; and, critically, the gold must not have undergone any manufacturing process other than refining or manufacturing into those prescribed forms.

“Gold that has previously been manufactured into non-prescribed forms, such as jewellery or other fabricated items, falls outside the scope of the zero rating,” SARS said.

The court found that SARS’ interpretation gives proper meaning to the statutory text and avoids rendering key provisions redundant.

“While refining does eradicate the recycled gold’s previous form, it does not alter the fact that such gold previously underwent a disqualifying manufacturing process. Thus, on a purely textual reading, Lueven’s supply of recycled gold cannot benefit from zero-rating,” Makhubu said.

He said the judgment provides long-awaited clarity for the gold, refining and banking sectors by confirming that recycled or second-hand gold remains subject to VAT at the standard rate, supporting compliant businesses and fair competition.

“Voluntary compliance is built on trust, and trust depends on certainty. This ruling removes ambiguity as it reinforces that when taxpayers know precisely where the law stands, they can comply with confidence,” the Commissioner said.

Makhubu added that the judgment also aligns directly with SARS’ strategic intent to promote voluntary compliance.

It also helps protect the tax base while ensuring that all revenue due to the State is collected.

“Fair tax administration means that no taxpayer gains an unintended advantage at the expense of others. This outcome ensures that compliant businesses are not undercut by aggressive practices that erode fairness and distort competition. 

“As SARS, we have a constitutional and statutory responsibility to protect the revenue base for the benefit of all South Africans. Every rand improperly lost through misinterpretation or non-compliance is a rand unavailable for schools, healthcare, infrastructure and social protection,” he said. –SAnews.gov.za

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