MIL Africa Engine

The South African Reserve Bank’s Monetary Policy Committee (MPC) has increased the repo rate by 25 basis points to 7%, effective from 29 May 2026.

SARB Governor Lesetja Kganyago said four MPC members supported the increase, while two preferred to keep the rate unchanged.

At a media briefing on Thursday, Kganyago said the committee acted because inflation risks had intensified and overlapping shocks could trigger second-round effects. 

He explained that the decision was meant to manage those risks and help bring inflation back to target.

At this meeting, the MPC considered three main risk scenarios.

The first was a prolonged Middle East conflict, which could push up oil and food prices and weaken the rand.

The second was the possible emergence of El Niño, a weather pattern that often brings drought to parts of South Africa.

The third scenario considered non-linear effects, meaning large shocks could have an outsized impact on inflation as more costs are passed on to consumers.

Kganyago said all three scenarios pointed to higher inflation and weaker economic growth.

“The scenario with a longer Strait closure has inflation at about 5%, with two more hikes than the baseline. With El Niño added, rates stay high for longer. The most adverse scenario puts all the risks together, causing inflation to peak above 6%, requiring three extra hikes,” Kganyago said.

He said these scenarios highlighted the role of food and fuel in transmitting geopolitical shocks and showed the added risks posed by a severe El Niño.

The MPC has also raised its oil price assumptions and now expects renewed pressure on food prices, with the agricultural sector facing higher diesel and fertiliser costs.

“Looking forward, we have raised our oil price assumptions. In addition, we see renewed pressure on food prices, with the agricultural sector facing higher costs for both diesel and fertiliser. Our forecast now has headline inflation averaging 4.4% this year and 3.7% next year, before returning to the 3% target in 2028. Core inflation is also higher, peaking early next year,” he said.

Recent inflation data also reflected mounting price pressures. 

In April, consumer inflation rose to 4%, up from 3.1% in the previous month, mainly because of higher energy costs.

Kganyago said fuel prices, after falling by 8.7% in March, increased by 11.4% in April, making it one of the biggest jumps in fuel inflation on record. 

Services inflation also accelerated to 4.6%, well above the bank’s 3% target. 

He said this was partly due to transport costs, but also reflected broader price pressures in areas such as insurance and financial services. –SAnews.gov

Operation Shanela continues to make progress in addressing illegal immigration and related criminality with 1891 suspects having been arrested in the past week for contravening the Immigration Act.

In a statement on Thursday, Acting National Commissioner of the South African Police Service (SAPS), Lieutenant General Puleng Dimpane, reiterated that police will continue to intensify operations to ensure that those found to be in the country illegally are processed in accordance with the law.

“SAPS further calls on communities to work together with law enforcement agencies by reporting criminal activities and avoiding acts of vigilantism, intimidation, or violence against foreign nationals. Police remain committed to maintaining peace, stability, and the rule of law in all communities,” said the police.

The SAPS said it remains committed to enforcing the laws of the country without fear or favour while ensuring that all operations are conducted within the confines of the Constitution and applicable legislation.

“As part of ongoing high-density operations conducted across all provinces, a total of 1 891 illegal foreigners were arrested during the past week alone for contravention of the Immigration Act.

“These arrests form part of SAPS’ broader efforts to combat crime, maintain law and order, and address challenges associated with undocumented persons operating unlawfully within communities,” said the SAPS.

According to the police, since 01 January 2026 until 17 May 2026, a total of 29 371 illegal foreign nationals have been arrested during various intelligence-driven operations, tracing operations, roadblocks, stop-and-search operations, and multidisciplinary law enforcement initiatives.

“Operation Shanela remains one of the organisation’s key crime-combating initiatives and continues to yield positive results in the fight against serious and violent crime, including the apprehension of wanted suspects, recovery of unlicensed firearms, confiscation of drugs, and the arrest of undocumented persons,” said the police. –SAnews.gov.za

The KwaZulu-Natal Provincial Treasury has secured a R2 billion advance from National Treasury to assist the provincial Department of Education in meeting its critical obligation of transferring norms and standards funding to schools across the province.

KwaZulu-Natal MEC for Finance, Francois Rodgers, said the intervention demonstrates government’s unwavering commitment to protecting educational service delivery despite ongoing fiscal pressures.

“Through collaboration with National Treasury and the KwaZulu-Natal Department of Education, we have ensured that schools will receive the financial support required, with every rand directed towards supporting our learners,” Rodgers said.

The advance funding, approved on Tuesday, 26 May 2026, comes amid provincial cash flow constraints and is intended to prevent disruptions to payments owed to schools.

Rodgers acknowledged that the provincial fiscus remains under pressure but said the front-loaded allocation would provide some immediate relief to the education sector.

“National Treasury has indicated that the funds are earmarked for norms and standards transfers to schools. Priority is to be given to settling historic debt due to funding limitations. KwaZulu-Natal Treasury will continue to work towards ensuring financial stability to protect the future of our children and the province,” he said.

Norms and standards funding is critical for the day-to-day operations of schools, including the procurement of learning materials, payment of municipal services, maintenance, and other essential operational needs.

The intervention reflects ongoing collaboration between Provincial Treasury, National Treasury and the Department of Education to safeguard educational service delivery and financial support for schools across KwaZulu-Natal. – SAnews.gov.za

The Commissioner of the Border Management Authority (BMA), Dr Michael Masiapato, confirmed that the BMA has successfully processed 300 Ghanaians who were repatriated back to Ghana at OR Tambo International Airport.

According to the BMA, out of the 300, 25 of them came from the Lindela holding facility and were brought by the Immigration Inspectorate of the Department of Home Affairs. 

Furthermore, 275 were brought by the Ghanaian High Commissioner.  

Following a check-in process, the travellers proceeded to BMA immigration, wherein about 90% of them were found to be undocumented and the Ghanaian Embassy had to issue them with Emergency Travel Certificates. This is a one-way single-page document which allows a traveller to return to their country of origin.

Most of the travellers were found to have overstayed with more than 30 days while some overstayed by a year or more. As a result, they were declared undesirable in terms of Sec 30 of the Immigration Act, read regulations 27(3)(c) of the Immigration Regulations. 

At the end of the processing, 295 passengers were found eligible to depart, they then boarded the chartered flight arranged by the Ghanaian government through its High Commission in Pretoria and eventually departed. 

However, five travellers were refused departure for the following reasons:

• One passenger had a valid asylum seeker permit. As such, he could not be allowed to depart without cancelling his application for protection in South Africa as that would have been tantamount to refoulement. All asylum seekers are required to cancel their application for protection if they are to return to their country where they were fleeing from.
• One passenger did not have a valid travel document as he was in possession of expired passport and the Embassy had not issued him with the Emergency Travel Certificate.
• One woman was attempting to depart the country with two minor children who are understood to belong to her sister. However, she did not have any document to proof any relation nor the required consent documentation from the alleged sister.

These decisions are in line with the BMA’s mandate to facilitate the legitimate movement of persons and goods.

The travellers who were denied departure due to the above reasons, were handed back to the Ghanaian High Commissioner for future repatriation should they meet the relevant immigration requirements for departure. 

These Ghanaian nationals were repatriated through the facilitation of the Ghanaian government through its High Commission in Pretoria using a chartered aircraft. 

“This decisive action underscores the BMA’s uncompromising implementation of the South African legislative framework in its facilitation and management of people and goods movement in and out of the country,” Commissioner Masiapato said. – SAnews.gov.za

The 17th Africa Regional Round of the Manfred Lachs Space Law Moot Court Competition concluded this week with Kenya’s Strathmore University crowned overall winners following two days of intense simulated court proceedings.

The competition brought together university law students from South Africa, Nigeria, Kenya, Uganda and Zimbabwe to argue complex hypothetical disputes in international space law before a simulated International Court of Justice.

South Africa’s University of Pretoria was awarded 1st Runner-Up, whilst Augustine Mudzodza from Zimbabwe’s Midlands State University received the Best Oralist Award. Kabarak University of Kenya was awarded the Best Memorial Award.

 The 2026 edition focused on strengthening Africa’s legal, policy, regulatory, scientific, and institutional capacity within the global space economy.

The event was hosted by the Department of Trade, Industry and Competition (the dtic) in partnership with the South African National Space Agency (SANSA) and industry stakeholders, including Dragonfly Aerospace Systems, NewSpace Systems, Petrawell, and Newcraft.

It took place at the Casa Toscana Convention Centre in Pretoria from 25 – 26 May under the theme: “Empowering Africa’s Future in Space Governance for Sustainable Space Activities.”

Presiding over the final round, the President of the Court of Appeal in Kenya, Honourable Justice Daniel Kiio Musinga, praised the high standard of advocacy and legal reasoning displayed throughout the competition.

“I am persuaded that the future of African international lawyering is in very good hands. It is not elsewhere, it is right in this room,” Musinga said. 

He further emphasised the importance of Africa asserting its voice within global governance systems.

“For most of its history, that architecture has been built by hands other than ours. The work of this generation is to convert our seats at the table from courtesy into authorship,” he said.

Addressing the finalists, Musinga said the students represented not only their institutions, but the broader African continent.

“You do not represent only your institutions tonight; you represent five African nations, and through them a continent,” he added.

The winning team will now represent Africa at the global finals later this year in Türkiye during the International Astronautical Congress.

Speaking after the announcement, Megan Wanjiru Nsuguna from Strathmore University described the competition as both demanding and rewarding following months of preparation and rigorous training.

“The preparations for this started in December last year. It has been quite crazy, with lots of sleepless nights, but today was a validation that your work pays at the end of the day. Nothing goes unnoticed,” Nsuguna said.

She said competing against talented students from across the continent was one of the highlights of the competition.

“It became an exchange of ideas and perspectives, which was very interesting,” she said.

Nsuguna, who has developed a growing interest in air and space law, also encouraged young people aspiring to pursue careers in law to remain determined.

“Do it scared, do it when you do not know anything, just do it. If you put your mind into something, do it, and if you are doing it, be the best at it,” she said.

Throughout the two-day competition, students demonstrated advanced legal reasoning, advocacy, diplomacy, and interpretation of international law, including Space Treaty law, while arguing hypothetical disputes involving outer space governance and regulation.

The competition forms part of broader efforts by the dtic and SANSA to strengthen and capacitate Africa’s participation in international space governance processes and develop future African legal experts, policymakers, negotiators, and regulators within the global space sector.

Participating students will also attend the African Space Policy and Law Conference, hosted by University of Pretoria and McGill  University supported by the Department of International Relations and Cooperation (DIRCO), the dtic and SANSA from 28–29 May 2026, where international and continental policymakers, academics, regulators, and industry leaders will deliberate on developments in international space governance and sustainable industrial development and Africa’s strategic role within the global space economy.

The continued success and growth of the Africa Regional Round reflects the continent’s increasing commitment to strengthening human capital, legal scholarship, institutional capacity, and international cooperation within the field of outer space governance and sustainable development. – SAnews.gov.za

Trade, Industry and Competition Minister Parks Tau says the South African government has a central role in the successful implementation of country’s industrial policy.

However, the implementation requires close collaboration between government, business, labour, and civil society for it to succeed. 

He was speaking at a Ministerial Post–Budget Vote Media and Stakeholder Roundtable that he hosted in Cape Town last night.

The discussions focused on inclusive economic growth and key priorities identified in the 2026/2027 National Assembly Budget Vote Speech that he delivered yesterday.

“We certainly believe that if implemented in the right way, supported by the correct policies, fiscal, trade and industrial instruments, we should be able to undertake a significant shift in our industrialisation process. 

“The implementation mechanisms of the industrial strategy include issues around energy pricing in the country, industrial financing, and defining the respective roles of the public and private sectors, as well as how we incentivise partnerships around these initiatives,” Tau said.

“We have spoken about scaling up export credit support and partnering with financial institutions to underwrite exports from the country. 

“We have identified the need for partnerships, because not all the required resources will come from government. Consequently, we need to mobilise private-sector participation, financial institutions, and international partners,” he said.

Tau also emphasised that he believed South Africa should continue working closely with the United States of America.

“We regard the United States of America as an important trading partner and one of the most influential economies globally. It is therefore important that we maintain and strengthen that relationship. We will continue to engage with our international partners and stakeholders consistently and firmly where necessary,” he added.

“Despite concerns and external pressures, South Africa’s exports have continued to grow, including exports to the United States even amid difficult global conditions. This suggests that, notwithstanding the challenges, South Africa still has significant opportunities to expand and strengthen its position in global markets,” proclaimed Tau.

Group Senior Executive, Strategic Trade at Aspen Pharma Group, Dr Stavros Nicolaou said there was a need for stronger alignment across society, government, business, labour, academia, and civil society around a shared set of national priorities. 

“We need all sectors to speak with one voice on the importance of industrialisation and economic development. What is lacking, in many respects, is a sufficiently strong national consensus around our economic direction and priorities.

“Industrial policy must be about ensuring that the country itself benefits more meaningfully from its resources, production capacity and economic activity,” added Dr Nicolaou.

A South African writer, lawyer and entrepreneur, Ms Christine Qunta, observed that transformation was essential for achieving equality, and when it is resisted, equality cannot be achieved. With only 4.4% of the population managing the economy, transformation was crucial.

“For this reason, we must be resolute and unapologetic about transformation,” Qunta said.

Chairperson of the Portfolio Committee on Trade, Industry and Competition, Mr Mzwandile Masina, urged the Department of Trade, Industry and Competition (the dtic), all levels of government and other stakeholders to cease operating in separation, for the benefit of the economy and the public.

He said the dtic has a vital role in coordinating all aspects of the economy to achieve economic transformation. – SAnews.gov.za