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A meeting between the African National Congress (ANC) and ActionSA on Wednesday did not include discussions about a reconstituted Government of National Unity (GNU).

This was the statement coming out of both parties amid tensions within the GNU, following the passing of the Budget in March.

The GNU has been rocked by threats of reconstitution, with the ANC, Democratic Alliance and other parties at loggerheads over the proposed value-added tax (VAT) increase proposed in the Budget increase.

Rumours of ActionSA joining the GNU were dismissed by ActionSA leader Herman Mashaba on Tuesday when he affirmed that his party would not give any consideration to the proposal of reconstituting the GNU to include ActionSA until the issues of the VAT increase and income tax bracket creep had been resolved.

Wednesday's meeting between the ANC and ActionSA sought to address the Budget impasse, with both parties agreeing on the need for alternatives to the proposed VAT increase.

The ANC's negotiating team, headed by party secretary-general Fikile Mbalula, met with ActionSA's team, headed by Mashaba, and described the discussions as "frank and cordial".

"It reflected a shared recognition of the urgency required to resolve the current Budget impasse in a manner that safeguards service delivery, upholds the principles of sound fiscal governance, and protects the most vulnerable from any unjust burden. The ANC and ActionSA both reaffirmed the necessity of identifying viable alternatives to the proposed VAT increase, with a mutual commitment to avoid any such adjustment before 1 May 2025. The discussion was firmly anchored on the fiscal framework and budgetary issues, nothing beyond that was tabled," the ANC stressed.

ActionSA said both parties were committed to shielding South Africans from a VAT increase before May 1 and affirmed the ANC's statement that there was no discussion about a reconstituted GNU.

"At ActionSA's insistence, discussions were limited exclusively to the fiscal framework and the Budget. As a constructive opposition party, ActionSA is committed to play a critical role to ensure this budget crisis is ended without South Africans having to pay for the internal powerplays within the GNU," Mashaba's party said.

Both parties will hold another discussion in the coming week.

The ANC said it was ready to engage all parties in Parliament in the national interest and that it was committed to resolving the Budget deadlock "in a manner that preserves stability, protects the developmental mandate of the State, and fosters responsible cooperation in Parliament".

ActionSA president Herman Mashaba has affirmed that his party will not give any consideration to the proposal of reconstituting the Government of National Unity (GNU) to include ActionSA until the issues of the value-added tax (VAT) increase and income tax bracket creep have been resolved.

Last week, the Inkatha Freedom Party (IFP) and the African National Congress (ANC) voted for an ActionSA report that supported the fiscal framework, including a VAT increase, instead of amending or withdrawing the report, as suggested by the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF).

ActionSA was accused by the DA of selling out South Africans.

The party said it noted media reports arising from the ANC's National Working Committee (NWC) meeting held on Monday night, which he said suggested a move to reconstitute the GNU to include ActionSA.

"It must be stressed that ActionSA has received no communication from the ANC in this regard, but the party will remain available for constructive engagements around the Budget impasse," he said.

He defended that ActionSA took the "responsible step" to end the Budget impasse and protect South Africans on the strict condition that both the VAT increase and income tax bracket creep were removed.

Mashaba said following the approval of ActionSA's recommendations, a process had been initiated to assess revenue alternatives that could allow for the removal of these increases.

"Over the weekend, ActionSA made submissions of revenue alternatives exceeding R100-billion in this regard. For ActionSA, the removal of these increases alone is the focus of our engagements with other parties and the party would not consider any other matter until such time as these matters are addressed to the satisfaction of South Africans," he explained.

ActionSA parliamentary leader Athol Trollip said his party chose to recommend changes to the fiscal framework rather than amend it outright because an amendment would have required the Minister of Finance to redo the entire Budget process.

He said this would have caused delays, instability, and allowed the VAT increase to take effect on May 1 with little recourse, the very outcome he said ActionSA was fighting against.

Amid tensions in the Government of National Unity (GNU), the Democratic Alliance (DA) on Monday reiterated its commitment to growing the economy and creating jobs, but wants GNU partner the African National Congress (ANC) to express its own commitment to sharing power.

Following the passing of the Budget in March, the GNU has been rocked by threats of reconstitution, with the ANC, DA and other parties at loggerheads over the value-added tax (VAT) increase.

Last week, GNU partners the Inkatha Freedom Party and the ANC voted for ActionSA's recommendations that supported the fiscal framework, including a VAT increase, without an amendment. ActionSA said it chose to recommend changes to the fiscal framework rather than amend it outright because an amendment would have required the Minister of Finance to redo the entire Budget process.

DA Federal Council chairperson Helen Zille filed papers in the Western Cape High Court to challenge the legality of the Budget process, seeking an interdict to stop the South African Revenue Service from implementing the VAT hike on May 1.

The DA accused ActionSA of selling out South Africans while the DA was accused of grandstanding.

ANC secretary-general Fikile Mbalula said on Monday that the party was "deeply concerned" by the conduct of the DA, whose participation in the GNU, he averred, had been "marred by double-dealing, negotiating and acting in bad faith, and open disdain for transformation".

However, DA leader John Steenhuisen hit back and said his party's aim was to join the GNU to grow South Africa's economy.

"To achieve this, the ANC must now demonstrate that it is equally committed to the spirit and substance of sharing power, which is a natural consequence of the last election. The electorate sent a clear message: single party rule is over and no one party gets to dictate our policy direction," he said.

The DA wanted shared governance over political convenience, said Steenhuisen, with pro-growth reforms.

He said the party had presented Cyril Ramaphosa with practical fiscal solutions that were ready to be implemented.

"We look forward to discussing a clear reform agenda for growth and jobs with the ANC," said Steenhuisen.

He added that the DA had remained consistent, in and out of government, on its position that there should not be a VAT increase and he denied the ANC's claims that the party had lobbied for support on this outside of the GNU.

Steenhuisen instead accused the ANC of doing just this, and of "defining itself outside the GNU" by supporting ActionSA's fiscal framework recommendations.

ActionSA said it noted media reports arising from the ANC's National Working Committee meeting held on Monday night, which suggested a move to reconstitute the GNU to include ActionSA.

However, ActionSA president Herman Mashaba has affirmed that his party would not give any consideration to the proposal of reconstituting the GNU to include ActionSA until the issues of the VAT increase and income tax bracket creep have been resolved.

African National Congress (ANC) secretary-general Fikile Mbalula said on Tuesday that his party is hopeful it will reach a consensus on the Budget within five days, having engaged all parties in the Government of National Unity (GNU), including the Democratic Alliance (DA), other political parties, as well as the religious sector.

Mbalula was briefing the media on the outcome of the party's National Working Committee (NWC) meeting, on Monday, where he pointed out that the ANC's negotiating team had been given a mandate to report to national officials in two weeks.

He said the ANC would engage the DA on their conduct in relation to the GNU.

Last week, the DA Federal Council chairperson Helen Zille filed papers in the Western Cape High Court to challenge the legality of the Budget process, seeking an interdict to stop the South African Revenue Service from implementing the value added tax (VAT) hike on May 1.

This after the National Assembly adopted the 2025 Fiscal Framework as tabled by Finance Minister Enoch Godongwana in March.

Last week, the Inkatha Freedom Party (IFP) and the ANC voted for an ActionSA recommendation that supported the fiscal framework, including a VAT increase, instead of amending or withdrawing the report, as suggested by the DA and the Economic Freedom Fighters (EFF).

The DA accused ActionSA of selling out South Africans.

ActionSA said it noted media reports arising from the ANC's NWC meeting held on Monday night, which suggested a move to reconstitute the GNU to include ActionSA.

ActionSA president Herman Mashaba affirmed that his party would not give any consideration to the proposal of reconstituting the GNU to include ActionSA until the issues of the VAT increase and income tax bracket creep had been resolved.

Mbalula said the ANC had agreed with several parties on a range of issues with regards to the Budget, noting that the remaining issue was the question of the VAT increase.

"We remain principled to the talks that we had with them, principled and loyal to the engagement and issues in those meetings," he said and stated that the ANC would continue to drive consensus on key pillars of the development fiscal policy, equitable and distributive tax policy, and progressive management of debt and deficit levels.

Mbalula highlighted that parties such as ActionSA demonstrated "maturity and patriotism" in supporting the fiscal framework, on the basis that alternative revenue proposals would be sought, including the replacement of the proposed VAT increase within 30 days.

He pointed out that the NWC adopted the position of the GNU and that nothing has changed.

"Should anything change in relation to the GNU, that will be the decision of the [ANC] National Executive Committee. The NWC is navigating the progress of the Budget in the context of the GNU and is making it a point that we succeed in passing the Budget," Mbalula stated.

He said the GNU remained a tactical instrument - "a shield against chaos and fragmentation".

"…however, its sustainability requires honesty, collective discipline, and loyalty to the people's mandate," he added.

He said the ANC was "deeply concerned" by the conduct of the DA, whose participation in the GNU had been "marred by double-dealing, negotiating and acting in bad faith, and open disdain for transformation".

The ANC believes that the DA had been acting as an opposition force, by opposing the BELA Act, the National Health Insurance and land expropriation amendments, and accused the DA of seeking to divide government, confuse the public, and claim credit without assuming responsibility.

"This dishonesty undermines the very essence of collective governance," said Mbalula.

The Business Delegation to the Government-Business Partnership, meanwhile, wrote to President Cyril Ramaphosa last week, urging that the core of the GNU - the ANC, DA and IFP - not be dismantled, stressing that South Africa had a lot to lose.

"We acknowledge the complexity of the current situation and the real...

The Inkatha Freedom Party (IFP) President Velenkosini Hlabisa said on Monday while the expected VAT increases is not desirable, the party supported the 2025 Budget under the current circumstances and with conditions.

The IFP was one of the parties that voted with the African National Congress (ANC) to pass the Budget.

Briefing the media, Hlabisa highlighted that the party would hold government accountable to ensure that VAT increases do not disproportionately burden the poor and working-class South Africans, saying it will continue to advocate for pro-poor economic policies.

He said the IFP's identity in the Government of National Unity (GNU) remains intact, and added that "the party is not in the GNU to carry the bags of the ANC or the Democratic Alliance".

"…we weren't there to conform to the views of one party or another, we have our own policy agenda and our own way of doing things. The IFP entered the 2024 elections accepting that it was the most crucial elections since the dawn of democracy," he said.

Hlabisa said the IFP remains committed to ensure the VAT is a short-term intervention for long term fiscal relief.

"…therefore, we must implement stricter oversight mechanisms within the GNU to prevent wastage and corruption, ensuring that VAT revenue is used efficiently and for the intended purposes," he stated.

The IFP supported the Budget on the basis that the VAT increase is temporary and will be done away as soon as more viable economic income streams are secured.

"As we support the Budget, we remain committed to accountability for effective and transparent fiscal management. We need to tighten the loopholes; one such loophole is the R800-billion that is not currently being collected by Sars. Everything must be done to ensure Sars is capacitated to collect these billions owed to the fiscals," Hlabisa said.

He said in the light of country's fiscal challenges, the IFP understands the VAT increase as a necessary measure to bolster government revenue and ensure continued service delivery.

He explained that his party recognised that the decision to increase VAT is not taken lightly as it impacts all South Africans.

However, he said given the dire state of public finances, revenue collection shortfalls and the need to maintain critical social programmes, the party believes this measure is a responsible step forwards economic stability.

"…the alternative would have been further borrowing. This, however, is unsustainable in the long term as the debt services cost are already at a staggering R425-billion. The IFP remains anti further borrowing," he said.

Hlabisa said had government chosen to borrow more money instead of adjusting revenue resources, it would have placed an unsustainable debt burden on future generations.

He stressed that the IFP is anti VAT increases.

Further, the IFP welcomed the expansion of zero-rated VAT food items alongside the increase of social grants.

Hlabisa said National Treasury must explore complementary revenue generation strategies such as improving tax collection efficiency and reducing government expenditure on non-essential items.

More broadly, the IFP believes the GNU must robustly focus on job creation, economic growth and investment.

Meanwhile, Hlabisa believes that illegal immigration is a heavy financial strain on the country and that it takes away from the resources meant for poor and vulnerable South Africans.

Following last week's announcement by US President Donald Trump that South Africa will be subjected to 30% tariffs on all imports into the US, alongside the passing of the 2025 Budget that will see a 0.5 percentage point increase in value-added tax this year, Business Leadership South Africa (BLSA) CEO Busisiwe Mavuso says that South Africa must navigate these "turbulent waters" with resilience and strategic foresight.

In her weekly newsletter on April 7, she praised statements in recent days by International Relations and Cooperation Minister Ronald Lamola and Trade, Industry and Competition Minister Parks Tau in which they both largely agreed that the best way forward would be to work at improving relations with the US while still enhancing the focus both on stimulating domestic growth and improving South Africa's trade relations within Africa and elsewhere, diversifying the country's export markets.

Although Lamola on April 7 accused the US of spreading lies, misinformation and propaganda - this in response to US Congressman Ronnie Jackson's recent call for targeted sanctions against several high-profile South African politicians over alleged corruption, human rights violations and links to terrorist organisations - Mavuso expressed satisfaction that both Lamola and Tau had chosen to focus on how South Africa could mitigate the impact of the worsening bilateral relationship with the US.

South Africa is not the only country that was met with US import tariffs on April 2. More than 50 nations were listed, with some African countries, such as Lesotho, receiving much higher tariff rates, at 50%.

"Trump has made it clear that he wants concessions from each country if he is going to reduce or drop the tariffs. He emphasised that the tariffs put the US in a position of power in the series of bilateral negotiations that are to come," Mavuso said.

It should be noted that the countries targeted by Trump's tariff policy had, for years, imposed tariffs on US exports while facing little to no equivalent tariffs in return. This is an imbalance that the current US administration seeks to address.

"Given the transactional nature of US politics, we have to think hard on what is commercially available and viable for all parties. The US has exempted many of our key metal exports, including platinum, gold, manganese, copper, zinc and nickel, because these are considered critical to the US economy," Mavuso noted.

Tau said at a media briefing last week that South Africa was "exchanging notes" with other African trade Ministers, particularly on the African Growth and Opportunities Act (Agoa) trade deal, but also on how to engage with the US.

Mavuso commended Tau when, in reference to the unorthodox formula the White House used to arrive at its tariff level for each country, he said that African trade Ministers would seek to engage on how the US had adopted its trade policies.

The Financial Times has claimed to have "cracked the code" on the US tariffs formula. According to the news outlet, it took the US's goods trade deficit with each country, divided it by the total amount of goods imported from that country and cut that percentage in half to arrive at the "reciprocal"' tariff rate.

With this formula applied, the US put South Africa's tariffs on US goods at 62% to calculate a 31% tariff rate, which will be effective from April 9.

Mavuso claimed that the average tariff rate was closer to 7.5%.

"Emotional reactions are never helpful in negotiation and BLSA agrees with President Cyril Ramaphosa's example in avoiding inflammatory statements and events. South Africa is not exactly in the front of the queue of the many other countries that are trying to initiate trade talks with the US," she noted.

Contrary to Mavuso's claims, Ramaphosa called the US - and its leaders - bullies in his State of the Nation Address in February.

"Given South Africa's weak negotiating position on the trade front, it is even more important that we look at what we can in...

President Cyril Ramaphosa stated on Monday that the country's expenditure on the social wage can only be sustained if there are higher levels of economic growth, which he said will come through infrastructure development.

In his latest letter to the nation, Ramaphosa pointed out that the 2025 Budget allocated up to R1-trillion for infrastructure over the medium term.

"…this includes the allocation in this Budget of an additional R62-billion over the next three years for road maintenance, electricity transmission lines, water and sanitation projects, school infrastructure and to support the ongoing recovery of our rail networks," he said.

Once government's debt repayments have been taken out, 61% of spending over the next three years has been allocated to the social wage, Ramaphosa said.

"This includes the provision of free primary healthcare, basic and tertiary education and housing. Over the past 24 years we have implemented an indigent policy under which free water, electricity and sanitation services are provided to qualifying households," he said.

He noted that social grants were another tool for alleviating poverty, explaining that this year, the value of these grants would increase at above inflation.

He said the Social Relief of Distress Grant, which has played an important role in poverty alleviation, will also be extended for another year.

"As part of improving access to healthcare, there will be a higher allocation of funding to clinics and community health centres. We are investing in the recruitment and retention of health personnel, particularly doctors and nurses, and to employ newly qualified doctors after their community service ends," Ramaphosa highlighted.

Support is also provided to other growth-enhancing measures in the medium term, such as incentive programmes in automotive, business process outsourcing, special economic zones, electric vehicle production, clothing and textiles and other sectors.

The 2025 Budget also adjusts allocations to municipalities to allow them to address their infrastructure needs, improve service delivery and improve their revenue collection systems.

"In a challenging economic environment - both locally and globally - this year's Budget supports measures to drive growth and relieve the effects of poverty. At the same time, it aims to stabilise public finances and continue to reduce our national debt," Ramaphosa said.

While the Budget reflects the priorities of the Government of National Unity's (GNU's) Medium Term Development Plan, substantial funds are also allocated to other frontline services such as teachers, police, emergency personnel and the Border Management Authority.

"Improving educational outcomes is key to community upliftment, development and producing the skills needed by our economy. Budgetary allocations have been made to support teacher training, for expanded mother-tongue bilingual education and for early reading programmes. This year sees a substantial investment in early childhood development, reflecting our commitment to establishing a solid foundation for the development of every child," Ramaphosa said.

Additional funds had been allocated to public employment programmes, which he said helped in providing work opportunities during constrained economic growth.

Ramaphosa said funds had also been allocated to support small businesses, and that adjustments were being made to the Employee Tax Incentive to further incentivise businesses to hire more young people.

Amnesty International South Africa executive director Shenilla Mohamed on Friday expressed disappointment with the Department of Basic Education's (DBE's) missed deadline to eradicate 100% of pit toilets at schools, calling for clarity and transparency about the actual number of schools that are still using pit toilets.

The DBE announced that it had managed to eradicate 96% of pit toilets in schools which are part of its Sanitation Appropriate for Education (SAFE) initiative.

The department had had until March 31 to eradicate all pit toilets in these schools.

Speaking at a national event in Limpopo, Minister of Basic Education Siviwe Gwarube pointed out that in 2018, 3 372 schools with unsafe pit toilets were identified. Now, 141 of those identified remain.

She said no schools in Gauteng, the Western Cape, and the Northern Cape were identified in 2018, while North West, Free State, and Mpumalanga had seen a 100% eradication.

Limpopo is sitting at 99.74% with 390 of 391 schools completed. KwaZulu-Natal is at 96.4% eradication, with 1 209 of 1 254 schools completed.

And the Eastern Cape is at 93.3% eradication, with 1 343 of 1 439 schools completed.

"While this is significant progress, it is not a victory until every learner has access to safe and dignified sanitation," said Gwarube.

She added that urgent measures would be taken to complete the remaining 141 schools, with 90 of these scheduled to be completed by July.

She pointed to delays in donor-funded projects, revealing that only 74% of commitments were met and said stalled donor projects will be transferred to provincial education departments for direct oversight.

She said other delays were caused by severe weather conditions, inaccessible rural roads, construction mafia disruptions, and poor contractor performance.

"The Department is taking decisive action, including terminating underperforming contractors and strengthening security for project sites. Recognising that some schools may have been missed in the 2018 audit, the DBE will conduct a new national sanitation audit. The public is also encouraged to report any remaining pit toilets through the Safe Schools App (safeschools.gov.za), which has already received 166 reports," Gwarube said.

Meanwhile, Mohamed said it was disappointing and unacceptable that the deadline to eradicate pit toilets in schools had been missed, again.

"The DBE has been promising since 2016 that it would eradicate all plain pit toilets from schools, but each year it has broken this promise and shifted the goal posts, violating the human rights of thousands of learners," said Mohamed.

Amnesty International also raised concerns with the department's transparency in the toilets it had eradicated, calling on the DBE to provide the actual number of schools still using pit toilets, including those not part of the SAFE initiative, and how it plans to eradicate pit toilets in those schools that are not part of this initiative within clear timelines.

Mohamed pointed out that the use of plain pit toilets in schools violated a learner's right to health, sanitation, education, dignity and in some cases, life.

Meanwhile, GOOD national youth chairperson Kaden Arguile said the remaining 4% of pit toilets underscored that the goal of 100% eradication was an elusive target, especially in the absence of accurate and up-to-date data.

"In fact, the Minister herself admitted today in Limpopo that, even if the 100% mark is reached, pit toilets will persist. As GOOD we demand that this goal be taken seriously through a nationwide school audit of pit latrines," Arguile stated.

He pointed out that since 2018, no nationwide school audit hasd been carried out, highlighting that one of the primary obstacles to complete eradication had been the discovery of previously unaccounted-for schools and educational facilities.

"…this has led to the need for additional funding, planning, and time - all of which delay the progress further. The children in these unaccounted facilit...

The Department of Home Affairs (DHA) has teamed up with the Border Management Authority (BMA), Government Printing Works (GPW) and the South African Revenue Service (Sars) to integrate Home Affairs services with banking platforms to expand Smart ID and passport services to hundreds of bank branches as well as to banking apps.

The agreement will also see the upgrading of the Movement Control System at all ports of entry, and the introduction of Smart IDs for naturalised citizens and permanent residents.

The agreement was jointly signed on Friday by Sars Commissioner Edward Kieswetter, Home Affairs director-general Tommy Makhode, BMA Commissioner Michael Masiapato, and GPW CEO Alinah Fosi.

Minister of Home Affairs Dr Leon Schreiber said the agreement marked a new era that would fundamentally reform and improve the way that the South African government works.

Under the agreement, Home Affairs, the BMA and GPW will leverage the technology capacity within Sars to modernise all civics and immigration services.

Schreiber pointed to the launch of a new Electronic Travel Authorisation (ETA) system to digitalise and automate immigration procedures to eliminate inefficiency and fraud.

The option to opt in for the secure courier delivery of documents will eliminate the need for document collection at Home Affairs offices.

The DHA will announce its activation on an ongoing basis.

"…this list of reforms also represents only the most immediate priorities for the next 12 months, with many more to follow over the term of the seventh administration in pursuit of our vision to deliver 'Home Affairs@home'," Schreiber said.

He said it is difficult to overstate the significance of what the department and these organisations have achieved jointly.

"The beauty of this shared approach is that delivering on our vision to digitally transform Home Affairs services will yield major benefits to both us and Sars. For example, the creation of a biometrically secured digital identity platform will enhance the ability to crack down on fraud and collect outstanding revenues, while the digitalisation and automation of immigration processes through the ETA will improve customs collection. It is our privilege to contribute in this way to fulfilling Sars's revenue targets," Schreiber stated.

Two US lawmakers introduced a bill to review South Africa's ties with Washington, alleging that it supports America's adversaries.

Ronny Jackson, a Texas Republican, said his proposed legislation would mandate a full assessment of the bilateral relationship between the countries. Michigan Republican John James, who brought forward a similar bill last year, co-sponsored the proposal.

"South Africa has brazenly abandoned its relationship with the United States to align with China, Russia, Iran, and terrorist organisations, a betrayal that demands serious consequences," Jackson said in a statement. The law would provide the tools "necessary to impose sanctions on corrupt South African government officials who choose to support America's adversaries."

Relations between Washington and Pretoria have deteriorated, with President Donald Trump freezing US aid to South Africa after claiming the nation seizes the land of White farmers and over its genocide case against Israel in the International Court of Justice. South Africa has not confiscated any private land since the end of apartheid in 1994.

Pretoria's close ties with China and its refusal to condemn Moscow's invasion of Ukraine has also raised concern in the US.

This is US lawmakers' second attempt to pass such legislation in a year: the House in June approved a bipartisan bill with an amendment calling for a review of South Africa's national-security risks to the US, but former President Joe Biden signed a final version of the law that didn't contain the proposal.

Under the Trump administration, the Republican Party holds majority seating in both the House and Senate.