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Kganyago says rand resilience cushioning South Africa from shock

South African Reserve Bank Governor Lesetja Kganyago said the rand has held up well despite the shock caused by the Iran war, reflecting more confidence in the country's economic outlook.

"Rand resilience has cushioned, but not shielded us from the shock," Kganyago told Bloomberg TV on the sidelines of the International Monetary Fund and World Bank meetings in Bangkok on Friday.

"The important thing is that the currency had been less volatile than it had been in the past, and it is a combination of push factors and a combination of pull factors."

Policymakers voted unanimously last month to raise their benchmark interest rate by 25 basis points to 7.25%, after growing wary of inflationary risks stemming from wars in Iran and Ukraine. Officials said they were adopting a more restrictive monetary policy to prevent elevated energy prices from triggering second-round effects that entrench higher inflation.

Kganyago repeated that line while stressing that rate decisions would be taken meeting-by-meeting, adding that "the environment is uncertain. We will continue to assess the situation."

Ramaphosa reinstates suspended police chief

South Africa's President Cyril Ramaphosa said on Friday he was reinstating the country's police chief, six months after he was suspended over charges he broke public finance rules in the irregular awarding of a tender.

Fannie Masemola, national commissioner of the South African Police Service since 2022, will resume his duties on Monday after prosecutors withdrew charges linked to a R228 million police health services contract.

The presidency said prosecutors ordered the withdrawal of charges against Masemola last month, with a local court in Pretoria formally withdrawing the case shortly thereafter.

Prosecutors had accused Masemola of failing to comply with financial oversight and procurement controls linked to a police health services contract awarded to Medicare24, allegations he denied.

The contract became a focal point of the Madlanga Commission, which is investigating allegations that criminal syndicates infiltrated parts of South Africa's law-enforcement and criminal justice system.

ANC calls for mobilisation, unity following landmark ConCourt ruling in IEC candidate nominations case

The ANC has launched a powerful call to action, urging all party structures, leagues, and alliance partners to close ranks for a "decisive victory" in the upcoming local government elections.

With the election just 19 days away, ANC secretary general Fikile Mbalula directed provinces, national structures, and "every capable member" to immediately deploy resources to assist the regions and districts in the six municipalities affected by the landmark ruling of the Constitutional Court upholding the ANC's appeal and directing the Independent Electoral Commission of South Africa (IEC) to include previously rejected ANC candidates on the ballot.

The apex court's order restores 181 ANC candidates across six municipalities, namely Sundays River Valley, Walter Sisulu, Ngquza Hill, and Port St Johns, in the Eastern Cape; uMshwathi in KwaZulu-Natal and Mangaung metropolitan municipality in the Free State.

The dispute originated in September when the ANC approached the Electoral Court after the IEC had rejected 181 of its nominations (comprising 130 PR ballot and 51 ward ballot candidates). The technical glitch occurred when electronic submissions failed to clear the final step on the IEC's system before the strict August deadline.

Mbalula acknowledged the heavy emotional and administrative toll of the events, noting that it inevitably disrupted the local campaign machinery.

"Those structures have carried a heavy thing since the end of August," Mbalula explained. "It took its toll on comrades and on communities, and it will have disorganised machinery that must now be fired up and driven hard. They are not to be asked to recover those weeks alone."

He emphasised that the anxiety of losing candidates chosen democratically by local branches resonated deeply across the entire movement, invoking the foundational liberation principle: "An injury to one is an injury to all."

Addressing the residents of the affected municipalities directly, Mbalula expressed "deep regret that their democratic choices were thrown into doubt" but he praised their unwavering loyalty.

"For seven weeks you were made to wonder whether the choice you made in your own communities would appear on your ballot paper... We thank you for your patience and for a trust that did not waver," he stated.

Mbalula extended gratitude to the ANC's legal team, the party staff, and the leadership structure, praising ANC President Cyril Ramaphosa for his "unwavering insistence" on following the law to defend the fundamental rights of voters.

The ANC formally thanked the Justices of the Constitutional Court for treating the urgent application with the "seriousness it deserved".

Mbalula noted that while the party awaits the Court's full written reasons, the ANC is committed to studying them closely to help build a future electoral framework that is inherently "pro-enfranchisement".

The party also commended the IEC for its steadfastness, praising the body for discharging its duties under immense pressure, openly defending its regulatory mandates, and moving swiftly to implement the court's restorative order.

NPA denies issuing arrest warrants for March and March leaders

The National Prosecuting Authority (NPA) has categorically denied issuing warrants of arrest against advocacy group March and March Movement leader Jacinta Ngobese Zuma and her husband Xolani Zuma.

The NPA issued an official statement on Thursday, directly dismissing assertions made by the group.

This follows a statement released by the March and March Movement on Wednesday, alleging that its top leaders faced imminent detention on or before Friday.

NPA national spokesperson Kaizer Kganyago clarified that the authority operates independently and does not take instructions from political parties, public office-bearers, or external entities regarding its prosecutorial functions.

"The NPA makes independent and impartial prosecutorial decisions, guided only by the Constitution, legislation and evidence," Kganyago stated.

He explained that as a general principle, the authority avoids commenting on operational matters, such as potential arrests and active investigations, before the necessary law enforcement processes are completed.

He emphasised that if a matter is eventually enrolled in the courts, the specific charges and reasons for prosecution will become transparent through normal judicial processes.

The NPA has strongly urged individuals and organisations to refrain from spreading "unfounded allegations that misrepresent and undermine South Africa's criminal justice system".

South Africa's central bank governor Kganyago sees upside risks to inflation

Rising global energy prices and food costs continue to pose upside risks to inflation in South Africa, the central bank head said on Thursday, with consumer prices expected to return to the 3% target only in 2028.

Speaking to Reuters in an interview on the sidelines of the International Monetary Fund and World Bank annual meetings in Bangkok, Governor Lesetja Kganyago said inflation is expected to average 4.4% this year, before easing to within the central bank's tolerance band in 2027 and returning to target in 2028.

The comments suggest the central bank may need to keep monetary policy tight, after it raised rates by 25 basis points to 7.25% last month to combat inflation.

"The risks to the outlook, of course, they have to do with the geopolitical uncertainty, which feeds into the oil price, what's happening with fertiliser prices and what that could mean for the food outlook, there's the risk of El Niño and there is risk to the grain supply chain through the Black Sea," he said.

"So far, the measures of underlying inflation point to an upturn in inflation, and that is a concern."

Latest data showed headline inflation in South Africa picked up slightly to an annual 4.4% in August, mainly driven by the housing and utilities, transport, and insurance and financial services categories.

The rate increase in September was a unanimous decision following a pause in July. The next monetary policy decision is due in November.

Kganyago declined to comment on the prospect of further rate hikes, saying only that the current rate was "moderately restrictive" and that future monetary policy decisions would be taken "meeting by meeting".

Some inflationary pressures had been offset by a steady exchange rate, Kganyago said, with the South African rand little changed so far this year despite a stronger dollar.

"In the past, when you had the oil price rise, we would have had a depreciation of the currency as well. It has been fairly stable (this year), but still that is no case for us to be complacent," he added, citing fiscal consolidation and an appropriate monetary policy stance as factors underpinning the currency's resilience.

ConCourt rules in favour of ANC over candidate lists, DA raises 'serious precedent concerns'

The ANC has won its case against the Independent Electoral Commission (IEC), which must now include all the party's candidate lists on the ballot for the local government election.

Last month, the ANC claimed that the IEC's candidate-capture system experienced technical disruptions on the final submission day, resulting in the candidate lists for six municipalities being rejected by the IEC.

The Electoral Court ruled in favour of the IEC, after which the ANC appealed to the Constitutional Court to have the ruling overturned.

The apex court set aside the IEC's decision and ruled that it must include all the ANC's lists on the ballot.

While the win bolsters the ANC ahead of the election, the DA is warning that the judgment raises "serious concerns" about the precedent it sets for complying with the IEC's deadlines and requirements.

"The ANC has now succeeded in court to undoing their own failure to submit candidate lists in 6 municipalities. However, this will not change their electoral fortunes. The ANC is in terminal decline, and across South Africa its support is at record lows," said DA Federal Council chairperson Ashor Sarupen.

He further said the DA was focused on winning wards outright in this election.

"The reality is that the DA is not in the GNU to go along to get along, and we will vigorously defend the rule of law and the equal application of the law," he added.

Mashatile warns of 'new generation of challenges' as AI, unemployment impact S African workers

Deputy President Paul Mashatile declared on Wednesday that while South Africa celebrates its progress in overcoming apartheid, the country and the global stage now face a "new generation of challenges".

Speaking at the eighth national congress of the Federation of Unions of South Africa (Fedusa), Mashatile warned that geopolitical tensions, shifting trade policies, and a severe financial crisis at the International Labour Organisation are actively disrupting economic stability, export markets, and industrial competitiveness.

At the core of these modern challenges, he said, is the rapid ascent of AI.

He described the rise of AI, automation, and digital platforms as a double-edged sword capable of boosting productivity but also displacing human labour.

"The rise of artificial intelligence presents organised labour with a historic challenge and opportunity. Those who anticipate change and prepare workers with the skills, protections and voice needed in the digital economy will help shape the future," said Mashatile.

He warned that failing to adapt to technological changes will worsen inequality and exclusion. To counter this, Mashatile argued that trade unions must position themselves at the forefront of the digital transition, aggressively bargaining over workplace data, technological restructuring, and reskilling, while expanding representation to informal and digital platform workers.

The Deputy President balanced his forward-looking technological warnings with grim figures reflecting South Africa's current economic climate, highlighting that the national economy shrank by 0.2% in the second quarter of 2026, putting intense pressure on the mining, manufacturing, and trade sectors.

He noted the official unemployment rate, which has climbed to 33.6%, means 8.5-million South Africans are without work.

Mashatile stressed that these percentages represent human suffering, such as graduates locked out of the market and entire communities declining when local factories close.

He insisted that retrenchments should never be treated as an unavoidable side effect of corporate restructuring. Instead, he called for mandatory, good-faith engagements between government, employers, and unions before any retrenchment notices are issued.

Furthermore, he urged the Temporary Employee/Employer Relief Scheme to operate with greater speed and transparency to swiftly protect distressed companies and worker incomes.

Mashatile also addressed ongoing transformation deficits, noting that despite progressive labour laws, South Africa's labour market still mirrors historical inequalities across race, gender, and disability – particularly within senior management.

He noted that formal compliance and legislation are no longer enough, suggesting that employers actively correct unequal recruitment practices and pay disparities, while urging unions to monitor employment equity plans.

Acknowledging that relations between the government and social partners are "at times under strain" owing to slow reforms and inadequate consultations, Mashatile stated that pretending these frustrations do not exist serves no one.

He reaffirmed that driving inclusive growth and job creation remains the apex priority of the Government of National Unity.

Government is currently targeting industrial reforms to secure electricity supply, upgrade freight logistics, boost infrastructure investment, and scale up the Labour Activation Programme through expanded apprenticeships and artisan development, he ended.

Moody's says South Africa is on right track for rating upgrade

South Africa is heading in the right direction for its first credit-rating upgrade by Moody's Ratings since 2009, provided the country's fiscal performance continues to improve.

The agency, which rates South Africa Ba2 — two notches below investment grade — revised South Africa's credit outlook to positive from stable in May. It says the country has reached an inflection point after stabilising its debt and delivering pro-growth economic reforms.

"We could upgrade South Africa's rating if fiscal performance continues to improve," Evan Wohlmann, a vice president at Moody's, told a virtual media briefing on Tuesday. The assessment would hinge on confidence in how the credit profile will evolve, he said.

Finance Minister Enoch Godongwana delivers his mid-term budget review on October 21 and is expected to show continued growth in the country's primary budget surplus – a gauge of how much revenue exceeds non-interest expenditure – amid higher income.

Wohlmann said the baseline forecast was for debt that peaked in the last fiscal year at 87% of gross domestic product to gradually decline to 84% of GDP by the end of the decade, supported by an uptick in economic output.

Africa's largest economy has expanded by less than 1% on average over the past decade. But structural reforms are beginning to deliver, with Nedbank Group predicting growth will edge up to 1.9% in the next two years with 2.5% possible by 2030.

The country holds municipal elections on November 4 that may result in a further loss of support for the African National Congress, bringing pressure to bear on President Cyril Ramaphosa who is due to step down as the party's leader at the end of next year before general elections in 2029.

Still, Moody's sees a low risk of politics pushing South Africa away from its reform path.

"We see the risk of a reversal in policy from the forthcoming electoral cycle as limited," Wohlmann said, citing South Africa's shift to a coalition government in 2024 after the ANC lost its parliamentary majority amid public anger over high unemployment and poor service delivery.

Moody's track record shows it upgrades about 60% of the sovereign credits that it assigns with a positive outlook.

Still, restoring South Africa's investment-grade rating may take some time. There were eight years between Moody's initially downgrading South Africa, when it was lowered to Baa2 from Baa1 in 2012, and the cut that took it below investment grade in 2020.

Lucia Villa, Moody's senior vice president for ratings, said that based on past experience, there were roughly twice the number of annual notches in a downgrade cycle, or consecutive negative rating actions, versus in an upgrade cycle on average.

Judge us on what we have done, DA says as it eyes majority win in election

As South Africa prepares for the November Local Government Elections, Polity is engaging with political parties contesting the elections in a series of interviews to examine their manifestos, policy priorities and plans for local government.

The DA is feeling positive ahead of the November local government election, with national spokesperson Jan de Villiers urging voters to judge the party on its current achievements in the Western Cape and in State departments under the Government of National Unity.

Speaking with Polity about the policies outlined in the party's manifesto before South Africans head to the polls, De Villiers stressed the party slogan "Working for All".

"We are the only party that has shown that where we have governed, we get clean audits, where we govern, there are taps with water, electricity is working, we fix potholes, we put professionals into administration, and we get your towns and your cities working. We are the only party that has this track record and that has this depth of experience. So our manifesto is really all about that," he said.

"Our promises are based on evidence. Other parties tell you to give them a chance. We say, judge us according to what we have done and what we want to do in your town."

When asked how the party plans to deal with the complex issues facing municipalities in Gauteng and in eThekwini in KwaZulu-Natal, De Villiers laid blame for decaying infrastructure on the ANC government.

He further pointed to the DA's governance in Cape Town, saying it would serve as a blueprint for the rest of the country.

"We know what the blueprint is. We have the skills and the depth to do it. The proportion of the budget in Cape Town is bigger than the entire capital budget of Johannesburg, which is a clear indication of how we view what local government is about. [It is] about getting services to people, which you cannot do without restoring the infrastructure and creating those basic services," he said.

Avoiding day zero during the 2016/2017 drought in the Western Cape forms part of the DA's track record, De Villiers said.

He noted that water lost to leaking water pipes is one of the more significant challenges in the broader water issue.

Additionally, lack of investment in major water infrastructure adds to the challenges facing Gauteng metros, he noted.

"A recipe for success which we've developed in the DA, which we are promising voters if they give us the opportunity to govern in their towns, is that we will ring-fence water income for water infrastructure," De Villiers said.

He argued that money collected for water and electricity is not being used for those respective infrastructures, exacerbating the challenges facing many municipalities in Gauteng.

A DA government also plans to include "sensible" private expertise in its plan to improve service delivery.

COALITIONS

While the DA is seeking over 50% in the local election and beyond, it acknowledges the reality where that might not be possible.

While the DA won't negotiate coalitions before an election, De Villiers said it will choose coalition partners based on stability and value alignment.

"And we will have to have serious trust in our partners that if we take in a partner to go into a coalition, that they will not try and hold us hostage, that they will not try and be the tail that wags the dog and try to negotiate us off against any other party.

"Those are the factors we need to consider because the reality is, we've talked about water infrastructure and electricity infrastructure. If you take control of a municipality that has not been governed correctly, you have to sink a lot of money and time and expertise into fixing that municipality," he said.

However, De Villiers noted the party's positivity going into the election.

"I mean, they say the trend is your friend, and we are trending up, steady growth. Not a lot of parties can say that. Most parties are ...

Joburg Water depot upgrade to strengthen service delivery

The Johannesburg Water Depot upgrade in Randburg, being undertaken by the City of Johannesburg's infrastructure implementing agency, the Johannesburg Development Agency (JDA), is nearing completion, as it enters its final close-out phase.

The project, located in Region C, will strengthen the operational capacity required to support reliable service delivery to communities across Region C and parts of Regions B, D and F, as well as enable Johannesburg Water to respond more effectively to community needs and improve the reliability of municipal services across the city.

The project comprises the upgrade of the administration block, three workshop buildings, the standby building, training centre, ablution block and security guard building, along with external works such as paving and landscaping.

A significant portion of the project involved upgrading and installing electrical, mechanical, fire-detection, plumbing, and information and communications technology services to support a safer, more reliable and efficient working environment.

The building works implemented by the JDA included painting, tiling, suspended ceilings and carpentry, while external infrastructure improvements have included paving, water pipelines, sewer lines, stormwater infrastructure and drainage.

The scope has also included roof waterproofing and painting, bird-proofing, air-conditioning installations and upgrades to various building services.

The project's overall progress is more than 89% completed, with several components completed or substantially complete.

Current close-out activities include final ceiling works, painting, paving and minor external works, as well as the completion of outstanding electrical, mechanical and plumbing work.

Testing and commissioning of building services are also being finalised, along with the issuing of the required certificates of compliance.

Further, the project team is undertaking deep cleaning and final housekeeping in preparation for securing the facility and returning it to operational use.

Furniture is ready for delivery and assembly once the remaining building works are complete and the audio-visual equipment will be installed after the construction works and final inspections have been concluded.