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Renowned South African political commentator Justice Malala noted on Tuesday that disagreements within the Government of National Unity (GNU) will not break it, predicting that the GNU will possibly come to an end next year, closer to the local government elections.

Malala was speaking at financial services company PSG Financial Services' Think Big webinar, where he said the postponement of the 2025 Budget speech was a humiliation for the GNU and a "spectacular failure" in political management.

Last week Finance Minister Enoch Godongwana was forced to postpone the Budget speech following an uncanvassed proposed increase of two percentage points in value-added tax.

The Budget will now be tabled on March 12.

"What we saw with the Budget, I think it is important to remember that this is a coalition agreement, a coalition government, and that it will have bumps, it is not going to be smooth sailing. A lot of people will say 'they are fighting over the Budget it's the end of the GNU' - no it is not the end," Malala stated.

He said while this "fight" within the GNU might take parties to the brink, he did not believe that it would break the GNU.

He noted that this was the second crisis of the GNU, pointing to the Expropriation Bill, the Basic Education Laws Amendment Bill, and the National Health Insurance Bill.

"I think the GNU will come to an end possibly next year, towards the local government elections . . . however for now it is very important to analyse the crisis that happened and take lessons from that - this does not mean it is the end of the GNU," he stressed.

He believes that the "goodwill" will continue but added that it's clear from the Budget postponement that real work needs to be done if South Africa really wants to reap the fruits of this relationship.

Malala pointed out that parties could have discussed the Budget issues in Cabinet meetings, ahead of the Budget.

"…so, a huge impact on the credibility is on the public-facing aspects of what our country is doing. I think that will need a lot of work and a lot of repairs to happen because many people are looking at us across the globe. Right now, we must not underestimate the damage that this does to our country," he noted.

He said the GNU promised citizens that parties would work in unity and with accountability.

"…this Budget and this fiasco with the Budget postponement really says to us, they have not talked to each other, they do not have a plan," Malala noted.

Last year, he expressed positive sentiments about the formation of the GNU, but warned that there was a significant risk that parties could pull apart.

Meanwhile, President Cyril Ramaphosa pointed out that disagreements, contradictions and policy divergence were inherent in governments made up of several political parties.

Following a dismal showing at the polls in the last general election the African National Congress (ANC) reconfigured its Provincial Task Team (PTT) in KwaZulu-Natal with the hope that the new leadership will focus on inspiring hope, address electoral setbacks, and drive transformation and development in line with the ANC's renewal agenda.

Following the electoral losses suffered by the ANC in Gauteng and KwaZulu-Natal during last year's general elections, the party called for leadership in those provinces to be reconstituted, in terms of the framework of its constitution.

This forms part of the party's broader strategy to rebuild itself and prepare for the 2026 Local Government Elections.

ANC secretary-general Fikile Mbalula said reconfiguring the provincial leadership was "imperative" and marks a significant step in reaffirming the party's commitment to strengthening organisational unity and renewal in the province.

The party's National Executive Committee (NEC) was briefed by Mbalula on a National Working Committee report on the challenges the party faced in KwaZulu-Natal.

"The intervention approved by the NEC seeks to strengthen the movement by integrating experienced leadership with a renewed commitment to political education, organisational discipline, and grassroots mobilisation. This approach ensures that the ANC remains the vanguard of progressive change in the province and across the country," he said.

The newly reconfigured ANC KwaZulu-Natal Provincial Task Team is made up of Provincial Convenor:Jeff Radebe; 1st Deputy Provincial Convenor Weziwe Thusi; 2nd Deputy Provincial Convenor Siboniso Duma; Provincial Coordinator Mike Mabuyakhulu; Provincial Deputy Coordinator Nomusa Dube-Ncube; and Provincial Fundraiser Nomagugu Simelane.

"The ANC has adopted a clear strategic posture to deploy its best resources to patiently rebuild the organisation root-and-branch in KZN, and we commend our structures and members in KwaZulu-Natal for their discipline and unwavering commitment to the movement while awaiting the resolutions of the National Executive Committe," Mbalula said.

The PTT is also mandated to revive relations with Amakhosi and faith-based communities, Amabandla.

"The ANC acknowledges the historical and moral authority of these structures in guiding our society and affirms the need to strengthen our collaboration to advance unity, social cohesion, and transformation. The ANC remains resolute in its mission to build and strengthen the organisation in this key province, ensuring that we are prepared for the battles ahead. Our movement has faced formidable challenges, yet through collective resolve and adherence to organisational discipline, we have consistently emerged stronger," Mbalula said.

Intergovernmental organisation the Financial Action Task Force (FATF), on February 21, upgraded four of the six outstanding action items South Africa must undertake to be considered for delisting from the FATF greylist.

South Africa is now deemed to have addressed or largely addressed 20 of the 22 action items in its action plan, leaving two items to be addressed in the next reporting period that runs from March to June, National Treasury said in a statement.

This would enable South Africa to be considered for delisting from the FATF greylist in October, it added.

The two outstanding action items are investigations and prosecutions of serious and complex money laundering and terror-financing activities.

The decision by the FATF Plenary to extend the reporting cycle for the two action reflects the fact that these are the most demanding goals of every country's systems for combating money laundering and terrorist financing, particularly since they require a country to demonstrate that the improvements made are sustained over successive reporting periods, Treasury noted.

Treasury further cited the ongoing efforts by all law enforcement agencies to demonstrate the significant progress in respect of the two remaining action items.

"South Africa continues to address both outstanding action items by June to enable an exit from greylisting by October. Our investigation and prosecution teams are working closely in terms of a prosecution-guided investigation strategy to ensure that we demonstrate the sustained progress as required by FATF."

"These improvements are necessary not just for getting off the greylist, but, critically, for strengthening the fight against crime and corruption," Treasury emphasised.

Further, Treasury welcomed the efforts of financial and non-financial regulators and beneficial ownership registries and its law enforcement users in securing upgrades for the four action items they were directly responsible for in the current reporting cycle.

"South Africa should continue to work on implementing its action plan to address its remaining strategic deficiency on demonstrating a sustained increase in investigations and prosecutions of serious and complex money laundering and the full range of terrorist financing activities in line with its risk profile," the FATF said in a statement.

"Since February 2023, when South Africa made a high-level political commitment to work with the FATF and Eastern and Southern Africa Anti-Money Laundering Group to strengthen the effectiveness of its anti-money laundering or countering of the financing of terrorism (AML/CFT) regime, South Africa has taken steps towards improving its AML/CFT regime including by demonstrating that all supervisors apply effective, proportionate and effective sanctions, ensuring competent authorities have timely access to accurate and up to date beneficial ownership information on legal persons and arrangements and applying sanctions for breaches of violation by legal persons to beneficial ownership obligations," the FATF said.

Following unauthorised expenditure worth R80-million forming part of the expanded fraud and corruption investigation against Minister in the Presidency Khumbudzo Ntshavheni, the Democratic Alliance (DA) said it will push for the urgent establishment of a Portfolio Committee to oversee the Presidency.

Over a month ago revelations emerged about Ntshavheni's alleged R2.5-million dealings during her time as municipal manager at the Ba-Phalaborwa local municipality in Limpopo.

"The fact that President Ramaphosa has dilly-dallied for so long on this most serious matter of a corruption accused and investigated Minister in his Cabinet, underscores how urgent it is that Parliament have a Portfolio Committee overseeing the Presidency," said DA spokesperson Dianne Kohler Barnard.

She pointed out that Parliament's Rules Committee decided last year on a committee to oversee the Presidency, as part of the recommendations of the Zondo Commission.

"A vote on this issue, for Parliament to vote it into being, will ensure such matters in the Presidency are not left without oversight," she said.

The party has again called on President Cyril Ramaphosa to fire Ntshavheni.

Barnard pointed out that Ntshavheni had not publicly defended herself, and the seriousness of the accusations.

"Minister Ntshavheni has full access into the most secret of secret dealings of the State Security Agency for so long as she stays in office. Having written to the President calling on him to fire her weeks ago, all that has emerged in reply is an acknowledgment of receipt," she said.

The party expressed concerns that Ramaphosa was well known to be very close to Ntshavheni, who served as the Cabinet spokesperson.

President Cyril Ramaphosa pointed out on Monday that the process of forging agreement among the political parties in the Government of National Unity (GNU) is still work in progress, but he is confident that parties are "getting there".

Ramaphosa wrote in his weekly letter to the nation that disagreements, contradictions and policy divergence are inherent in governments made up of several political parties.

Last week, for the first time in the country's history, the yearly Budget speech by Finance Minister Enoch Godongwana was postponed allowing further discussion on areas of disagreement among parties in the GNU. The budget will now be tabled in Parliament on March 12.

"The last-minute postponement was unfortunate. It gave rise to concern and uncertainty among South Africans, investors and the financial markets, who look to the Budget for important signals about the state and direction of our economy.

"This is the first time that the Budget is being presented by the GNU. It is understandable that this new arrangement would require a different approach in some respects. The process of forging agreement among the political parties in the GNU is still work in progress, but we are certainly getting there," Ramaphosa said.

He explained that the decision to postpone the Budget speech and to continue discussions should engender public confidence in the GNU and reassure citizens that despite differences of opinion, parties are pulling in the same direction.

"The events of last week present us with an opportunity to raise the level of understanding among South Africans around the Budget and what it means for them.

"The considerable public interest around the Budget speech, including from young people and on social media platforms, was greatly encouraging. It is our hope that this sparks a necessary national conversation on how we will fund our national priorities and the trade-offs that will need to be made," he said.

Ramaphosa said the GNU strived to implement national priorities in a context of slow growth, limited revenue, high unemployment and a large social wage.

The State was simply not able to fund every priority and ambition, he noted.

The critical issue of the public purse must be a subject of discussion and debate not just among political parties, but among all South Africans who aspired to lead lives of dignity, he pointed out.

He highlighted that the social contract between government and the citizenry relied heavily on "accountability and transparency" and said it was essential that the concerns raised by different parties around the Budget were properly addressed, in the interests of accountability, transparency and consensus-building.

Ramaphosa pointed out that it had been more than six months since the formation of the GNU, noting that despite disagreement between parties on a range of matters, the centre held.

"…it is a sign of a healthy and robust democracy that such differences may emerge from time to time and be ventilated in public. Such differences don't mean that the GNU is in crisis. It means that democracy is working," he explained.

He said there needed to be thorough deliberation and meaningful engagement.

Ramaphosa explained that the GNU partners were adapting and strengthening existing frameworks for cooperation, partnership and building consensus.

"We are learning, we are adjusting to new circumstances, and we are moving forward," he said.

South Africa's Government of National Unity Cabinet has urged all South Africans to rally in support of the country during a time of "misinformation, disinformation and propaganda" which it said is aimed at misrepresenting government and dividing the nation.

Earlier this month, US President Donald Trump signed an executive order to cut funding to South Africa, citing disapproval of the country's land policy and its genocide case against US ally Israel.

Cabinet said Trump's executive order lacked "factual accuracy and is rooted in misinformation and falsehood aimed at misrepresenting" the actual purpose of the law and sowing racial divisions.

This after President Cyril Ramaphosa signed into law the controversial Expropriation Bill, which was met with criticism from some opposition parties and civil society.

Cabinet rejected claims that the South African government is confiscating land and "treating certain class of people very badly", as Trump had claimed.

The Expropriation Act is a "constitutionally mandated" legal process that ensures public access to land in an "equitable and just" manner as guided by the Constitution of the Republic of South Africa of 1996, Cabinet said.

"This law is not unique to South Africa, as many countries around the world have always had expropriation laws that balance the need for public usage of land and the protection of rights of property owners," it said.

Cabinet said citizens must not allow "false narratives" to divide the country.

"…we are a resilient nation that has more in common and our history has demonstrated that there is no challenge we cannot overcome when we pull together. We are called on to stand for the love for our country, which is rooted in our democratic values of non-racialism, tolerance, compassion, peace, justice, equality, freedom and human dignity," it stated.

It pointed out that the country's Constitution was designed to create an environment for all South Africans to work together to address the legacy of the divided past, including land disposition that took place under apartheid.

"Given our past, we cannot turn a blind eye to human rights violations perpetuated around the world, nor can we ignore the less fortunate people who require our voice to ease their suffering. Cabinet reiterated President Ramaphosa's firm position that our nation would not be bullied," Cabinet said.

It stressed South Africa's commitment to finding diplomatic solutions to any misunderstandings or disputes.

"Our country looks forward to engaging with the Trump administration over land reform policy and bilateral issues," it said.

President Cyril Ramaphosa has extended an invitation to Ukrainian President Volodymyr Zelenskyy for a State visit to South Africa, following a range of engagements Zelenskyy held with global leaders and officials on Thursday.

The conversation between Ramaphosa and Zelenskyy comes as both nations face tension with US President Donald Trump.

Most recently, Trump hit out against Zelenskyy, labelling him a "dictator" and implying that Ukraine started the war with Russia.

Ukraine was also excluded from talks this week between the US and Russia on the conflict.

On Thursday, Ramaphosa spoke with Zelenskyy, and stressed the need for an inclusive peace process.

"I welcome the constructive engagement I had with President @ZelenskyyUA and I look forward to hosting him in South Africa soon for a State visit. South Africa remains committed to supporting the dialogue process between Russia and Ukraine," Ramaphosa said.

Zelenskyy thanked Ramaphosa for lending South Africa's support in protecting Ukraine's sovereignty and territorial integrity.

"It is important that our countries share the same position: nothing about Ukraine without Ukraine. We all hope to achieve a just and lasting peace this year. South Africa's voice matters, and we count on its support," Zelenskyy said.

Police Minister Senzo Mchunu announced on Friday that the South African Police Service (Saps) has dedicated next week Thursday to reviewing policing in high murder zones, while he observed an overall decrease in several categories of crime in the quarterly crime statistics.

Mchunu released the crime statistics for the third quarter of 2024/25, in Pretoria, where he pointed out that the issue of gang violence required a rethink in approach.

The crime statistics showed a 9.8% decrease in murder cases; a 3.3% reduction in rape cases; a 3.2% drop in attempted sexual offences and a notable decline in carjackings and robberies at both residential and non-residential premises.

The statistics cover the period from October 1, 2024 to December 31, 2024.

Mchunu highlighted that the Western Cape had the highest number of gang-related murders, with 263 counts reported in this quarter alone.

"This is completely unacceptable and it must change. A large number of these murders (collectively amounting to a figure of 135) occurred in Bishop Lavis, Mitchells Plain, Kleinvlei, Delft and Elsies River," he said.

He explained that upcoming discussions would focus on murders and firearms, after which a decision on the concrete steps needed would be taken.

He highlighted that partnerships with communities and others would be a critical element in the rethink in approach.

Saps has noted concerns from the public about extortion, kidnappings and drugs, with Mchunu pointing out that these matters would receive attention on Thursday.

"We note that most of these kidnappings are said to be orchestrated from St Albans Prison, and the mastermind of these kidnappings still has access to a number of cell phones," he said.

For the third quarter, all provinces recorded a decrease in murder cases, marking a significant milestone in the national crime reduction efforts.

"…however, Gauteng and KwaZulu-Natal remain the highest contributors to overall national murder figures, accounting for 25.0% and 21.4% respectively, followed by the Eastern Cape at 18.9% and the Western Cape at 17.4%," he said.

He noted that while there was an overall reduction in contact crimes against women, the Saps was concerned by the increase in attempted murder cases against children aged 0 to 17 years.

This, he said was an alarming development that called for a concerted effort to protect the most vulnerable members of the society.

Mchunu noted that rape cases had increased in KwaZulu-Natal, Mpumalanga, and the Free State, whereas other provinces have recorded decreases.

"…this data serves as a stark reminder that gender-based violence remains a critical issue requiring intensified interventions," he said.

He highlighted that a 4.5% reduction in stock theft, was a welcome relief for farmers, communities and the agricultural sector as a whole, saying the positive shift highlighted the importance of continued collaboration between law enforcement, local leaders and communities to safeguard the industry.

"…although the percentage appears to be relatively small, we note the outcry of communities that farm livestock, particularly in the eastern Free State, north-western parts of KZN and in the northern Eastern Cape, hence our plan to combine these three provinces in a meeting to discuss this challenge," Mchunu said.

He said there was an increase in cases of assault with intent to cause grievous bodily harm and malicious damage to property, highlighting that these crimes continued to disrupt communities and demanded a reinforced response from law enforcement.

Finance Minister Enoch Godongwana presented highlights of his upcoming budget to colleagues two weeks ago, but skipped a crucial detail to stop it from leaking - triggering a major fallout in the nation's coalition government.

Godongwana flagged plans to hike value-added tax, without saying it would raise the rate by two percentage points to 17%. That information, shared with the cabinet hours before the budget was set to be delivered on Wednesday, caused a backlash that forced its last-minute delay.

President Cyril Ramaphosa's coalition partner, the Democratic Alliance (DA), and even some members of his African National Congress (ANC) balked at the increase, which would have curbed consumer spending and output in a nation reeling under a 32% unemployment rate and sluggish economic growth.

The National Treasury's intention was to bolster revenue by R191-billion over three years, helping contain national debt and fund infrastructure projects. A walkback would set back Godongwana's efforts to bolster government finances, given that he has very little room to manoeuvrer.

It was "disingenuous" to say cabinet members weren't informed of the broad details of the Treasury's plans, and it was standard practice to withhold some key information to prevent it from leaking, the minister said on Wednesday after postponing the budget until March 12. "We said this was the direction we are likely to take and everyone was in jitters."

Some of the information the minister did disclose in advance to the cabinet made its way into the public domain, with the Johannesburg-based Sunday Times newspaper reporting that the government was planning to raise VAT by 1 percentage point, and Business Day revealing what the Treasury planned to do to mitigate the impact of the tax increase on the poor.

The issue came to a head after the extent of the hike was unveiled to the full cabinet at a stormy meeting shortly before Godongwana was due to deliver his speech. The delay was announced by parliament Speaker Thokozile Didiza, when it became apparent that insufficient consensus had been reached for the budget to pass.

The unprecedented postponement was announced eight hours after the budget documents were distributed to journalists under embargo. The Treasury later gave clearance to release the information, with the understanding that a revised document will be presented to lawmakers next month.

The furore rattled investors and weighed on South Africa's currency and bonds.

The rand fell as much as 1% against the dollar in the immediate aftermath of the postponement, and closed 0.6% weaker on Wednesday at 18.5216. The currency retraced some of those losses on Thursday. The yield on 10-year government finished the day 8 basis points higher at 10.59%.

'Significant concern'

Lobby group Business Unity South Africa said the delay was "a significant concern" and sent a negative message about the so-called government of national unity's ability to collaborate effectively and fulfil its crucial role in determining how to allocate resources..

"It should have been apparent much earlier that the parties in the GNU were struggling to reach an agreement on the budget, and the postponement should have been announced sooner to avoid compromising the credibility of the National Treasury," said Khulekani Mathe, the group's chief executive officer.

The drama unfolded as South Africa prepared to host foreign ministers from the Group of 20 nations in Johannesburg. The meeting - scheduled for Thursday and Friday - is a precursor to a heads-of-state summit in November that Ramaphosa will use to lobby for efforts to curb the excessive debt burden of developing nations and a greater commitment to dealing with climate change.

Godongwana played down the risk of any damage to the country's reputation before the G-20 gatherings, saying "these people that are going to be here, they've got their own problems."

Alliance Tensions

The ANC and the DA and eight smaller rivals teamed up after l...

Note: Some of the information in this article has been written on the basis of documents provided to the media during the 2025 Budget lock-up prior to the cancellation of the Budget Speech on February 19. The National Treasury has lifted the embargo imposed on the information, but a new Budget is now due to be tabled on March 12.

In an unprecedented development, the speaker of Parliament Thoko Didiza was forced to postpone the 2025 Budget address by Finance Minister Enoch Godongwana on Wednesday.

This, after Cabinet failed to agree on a two percentage point value-added tax (VAT) hike included in the Budget.

The Budget will now be held on March 12.

In a shock move that went against the wishes of both the parties participating in the Government of National Unity (GNU) and powerful civil society groupings, Godongwana proposed hiking VAT to 17% from April 1.

Had the Budget been tabled, it would have been accompanied by a rates bill confirming the VAT hike, and which would have been implemented on April 1 regardless of whether parties decided to vote it down in the weeks that followed.

The hike was higher than the one percentage point increase signalled in leaks ahead of the Budget, which provoked vocal opposition days before Godongwana's speech, including from key GNU member the Democratic Alliance, as well as African National Congress allies such as the Congress of South African Trade Unions and the South African Communist Party.

Godongwana decried the leak, which he attributed to a Cabinet member.

He also stressed that the VAT hike had not been dropped on Cabinet out of the blue, indicating that members had been made aware of the National Treasury's directional thinking regarding the VAT increase two weeks prior to the special Cabinet meeting on February 19.

However, the size of the increase had not been disclosed.

The VAT hike, should it be agreed, would raise R58-billion in additional revenue in 2025/26 and was proposed against a backdrop of a R19.3-billion downward revision to the 2024/25 tax revenue estimate when compared with the 2024 Budget and a wider government deficit of 5%.

NOW BEFORE CABINET

Godongwana said he was in favour of the high level of interest being shown in the trade-offs by Cabinet, which would now need to decide collectively how best to fund the GNU's priorities.

The options, he said, included expenditure cuts, tax hikes or increased borrowing; the latter would represent a break from the National Treasury's current fiscal strategy, which is aimed at containing debt and reducing the fiscal deficit.

Godongwana said Cabinet had decided to postpone the release of the 2025 Budget to allow for further discussions, but said these discussions would not be broadened to other stakeholders, nor would it be feasible to conduct a wholesale expenditure review before March 12.

He also said there was no deadlock-breaking mechanism when it came to approving a Budget, which was a Cabinet document.

President Cyril Ramaphosa subsequently issued a statement assuring South Africans that Cabinet's continuing deliberations on the Budget would "deliver outcomes that will protect vulnerable citizens and lay a platform for economic growth".

He confirmed that the postponement was the result of disagreement, but added that there was also "collegial and mature consensus within Cabinet that Budget proposals be worked through comprehensively and productively to secure the wellbeing of the economy and individual citizens".

WHY VAT WAS CHOSEN

Ahead of the postponement, Godongwana had moved to justify the VAT hike on the basis that it was preferable to the other options of increasing borrowings, cutting expenditure, or raising other taxes.

The Budget Review document, which was provided to journalists under embargo, added that VAT was selected as raising personal income tax rates was likely to be inefficient because individuals would find ways to reduce their liabilities.

It added that hiking the corporate tax rate could impede competiti...