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Trade conditions remained tight in June – Sacci

The crude oil price returning to about $72/bl at the end of June had positive effects on business and particularly on general trade conditions for the month and improved trade expectations, reports business organisation the South African Chamber of Commerce and Industry (Sacci).

Sales prices remained stable in June, although the general price level, or inflation, partially started to reflect the full fuel price impact in May, Sacci says in its 'Trade Conditions Survey' for June.

The lower sales volumes and new orders for May and June indicate the real effect of the rising fuel prices and their effect on spending patterns in the economy, it adds.

However, expected trade conditions moved firmly back into positive mode for the next six months according to the survey.

The gap between present and expected trade conditions remains wide, but the much lower crude oil and pump prices spurred positive expectations after the serious dip in the Trade Expectations Index in April, Sacci notes.

Further, trade conditions continued to be tight in June, with the Trade Conditions Index for June 2026 remaining subdued at thirty-six.

Meanwhile, inventories, backlog on orders and input prices – especially since the high crude oil prices in April – turned positive in June.

All the other components of trade declined marginally since May and stabilised in June, it says.

Consumer inflation increased to 4.5% in May while producer inflation measured 4.3%. Electricity tariffs rose by 12% year-on-year in May while the diesel price increased by 50% in June after the 64% increase in May.

Credit to households rose by 4.7% year-on-year and to non-households by nearly 12% year-on-year in May. Retail trade volumes remained suppressed and rose by only 1.3% year-on-year.

Notable depressed activities were also evident in manufacturing, which declined 2.8% year-on-year, construction, which declined 2.9% year-on-year, and merchandise export trade volumes that declined 6.4% year-on-year.

The current weaker trade conditions led respondents to employ fewer staff, although 31% still hired staff in June.

However, given expected improved trade conditions in the next six months, respondents intend to increase employment with the expected index increasing to 57 in June from 40 in April, at the peak of high crude oil prices.

The US-Israel and Iran war in the Middle East negatively affected trade conditions because it impacted fuel supply and rapidly rising crude oil prices. Crude oil prices peaked at about $119/bl at the end of April.

This had a marked impact, not only on fuel prices at the pump, but on escalated costs throughout the supply chain, with a pronounced effect on the inflation rate. This development had a direct effect on spending patterns of households and the costs of businesses.

Therefore, 75% of respondents to the April survey recorded a rise in input costs, Sacci notes.

Treasury confirms signing of govt's $1.5bn development policy loan with World Bank

The South African government and the World Bank have signed a $1.5-billion Development Policy Loan Agreement aimed at supporting the country's efforts to achieve inclusive growth by tackling infrastructure constraints, identified as the primary barrier to job creation.

This serves as the fourth development policy loan and continued partnership with the World Bank, aimed at addressing South Africa's economic challenges of low growth and high unemployment, National Treasury notes in a statement.

The loan is expected to assist South Africa with implementing the necessary interventions aimed at advancing reforms in the electricity, freight and logistics sectors, and addressing challenges in the water and sanitation sector.

The financing forms part of the government's broader efforts for continued momentum on structural reforms in the energy, logistics and water sectors, among others.

The loan support is anchored on three key pillars of structural reform, namely, strengthening energy competitiveness and security, upgrading freight transport services and delivering efficient water and sanitation services. These are reforms aimed at boosting economic growth and job creation.

The financing terms of the loan are in line with Treasury's borrowing strategy that aims to ensure long-term debt sustainability and affordability by raising funding at the lowest cost.

Specifically, the loan offers both favourable interest rate and flexible repayment terms, aimed at minimising the rise in debt service costs.

This loan, combined with financing secured from other multilateral development partners, has enabled government to meet its 2026/27 foreign currency borrowing requirement of $3.2-billion.

Holomisa calls for practical partnership plan to transform SANDF infrastructure

The Department of Defence and Military Veterans is shifting toward practical public-private partnerships (PPPs) to modernise its vast infrastructure and leverage strategic State assets.

However, Defence and Military Veterans Deputy Minister Bantu Holomisa wants an immediate transition from abstract policy discussions to a concrete "PPP Action Plan".

Speaking at the Defence Industry Lekgotla, this week, Holomisa said this roadmap must clearly define specific projects, funding models, risk allocations, private partners, and strict execution timelines.

South Africa maintains a comprehensive PPP framework governed by the National Treasury, which acknowledges the private sector's ability to inject capital, operational efficiency, and innovation into public infrastructure.

Holomisa highlighted that the defence portfolio held a massive advantage in this space: ownership of vast, strategic real estate.

The South African National Defence Force (SANDF) controls roughly 500 000 hectares of State-owned land.

Holomisa emphasised that these assets must be used more cost-effectively and rationally. Carefully structured partnerships would allow the State to retain ultimate ownership and control, while private partners contributed essential capital, technological innovation, and operational capacity.

Subject to rigorous feasibility studies and all relevant legal and security protocols, the proposed PPPs could unlock development across multiple areas, such as military housing; health and hospital infrastructure; logistics and maintenance facilities; training and support infrastructure; modernisation of selected military bases and other essential infrastructure supporting the SANDF.

Holomisa stressed that South Africa's existing PPP framework, outlined by National Treasury, served as an ideal mechanism to leverage private sector efficiencies in an era of constrained public budgets.

He firmly reiterated that the SANDF was "not going anywhere", stating that a sovereign South Africa would always require a capable defence force.

Holomisa wants the department to develop a clear outline of the requirements, aligned with the National Treasury framework, and present it to the defence industry so that potential investors can identify areas for contribution.

The objective was to move from broad discussions to specific, structured and implementable opportunities, he said.

He highlighted that the Defence Minister had made it clear that the department must urgently ensure that this Lekgotla did not become another talk shop.

"Following this engagement, the defence leadership must convene a focused roundtable to finalise priority areas so that, when industry approaches us, we are ready to direct them towards clear and well-defined opportunities," he said.

He urged the department to develop a practical partnership roadmap, which would identify the major infrastructure and capability backlogs that required urgent attention and which of these areas were suitable for PPP or other partnership models.

He wants the roadmap to identify what role should be played by the Department of Defence, the Department of Public Works and Infrastructure, Armscor, Denel, the defence industry, institutional investors, research institutions and other stakeholders.

It must also identify what regulatory and policy interventions may be required, how the department protects national security and sovereign capabilities and how it ensures local industrial participation, skills development, youth opportunities and technology transfer.

World Bank facility extended to support water, sanitation sector reforms in South Africa

The new $1.5-billion loan from International Bank for Reconstruction and Development (IBRD) to South Africa, the fourth stand-alone Development Policy Loan to the country since 2022, aims to support reforms in the country's water and sanitation sectors, alongside supporting continued reforms in electricity and freight transport.

Water and sanitation reforms are not expected to directly create large numbers of jobs, as major users such as agriculture and mining already rely on alternative sources, but they are projected to bring concrete improvements for millions of households, including less time spent collecting water, lower health risks and better access for the poorest female-headed households, global finance institution the World Bank Group says.

In water and sanitation, the programme strengthens regulatory oversight, opens the door to private water service providers, and gives the newly established National Water Resources Infrastructure Agency greater autonomy to invest in bulk water infrastructure.

Additional key reforms supported by the operation include the launch of a competitive wholesale electricity market and scaled-up private investment in transmission, with a target of 300 000 new household electricity connections by December 2027.

In freight transport, the programme supports competition among private rail operators and the country's first-ever port terminal concession in Durban.

Policy reforms will improve management efficiency and scale up private investment in rail, ports and energy infrastructure, lower business costs and support additional investment and employment in other sectors, the World Bank Group says.

"This programme reflects our government's determination to remove the infrastructure constraints that have held back growth and job creation for too long," says Finance Minister Enoch Godongwana.

"Working with the World Bank Group, we are deepening reforms already delivering results in energy and transport, while for the first time tackling the governance and investment gaps in our water sector that affect millions of households, particularly the poorest," he adds.

The reforms supported by the new financing are expected to help create the equivalent of almost 600 000 more and better-paid jobs by 2032, the group adds.

This is based on economic modelling by the World Bank Group that aims to show how the reforms ripple through the broader economy.

Most of the nearly 600 000 projected jobs impact will come from the reforms in the electricity and transport sectors which together are expected to support the equivalent of around 280 000 jobs by 2027, rising to more than 560 000 by 2032.

The operation builds on reforms that are already showing results, with loadshedding virtually eliminated for a year and a half, private investment in renewable energy increasing sixfold, and rail and port freight volumes rising by more than 50% since 2023.

"South Africa has shown that sustained reform can turn around even deep-seated infrastructure crises," says World Bank Group Division Director for South Africa Satu Kahkonen.

"By extending this support to water and sanitation for the first time, we are helping ensure the benefits of reform reach every household, while these efforts together are expected to help create almost 600 000 jobs and attract much-needed private investment."

Meanwhile, the operation was prepared in coordination with development partners active in South Africa's infrastructure sector, including Germany, Japan, the Organisation of the Petroleum Exporting Countries Fund and development finance institution the African Development Bank.

Mashaba appeals to Treasury for strict oversight amid Joburg liquidity crisis

ActionSA leader and the party's Johannesburg mayoral candidate Herman Mashaba has formally requested the intervention of Minister of Finance Enoch Godongwana to oversee and monitor National Treasury funds bound for the cash-strapped City of Johannesburg.

In a letter sent on Monday, Mashaba recommended the immediate deployment of a technical support team to track the implementation and usage of any funds transferred to the municipality.

The move comes as the city faces a liquidity crisis, reportedly operating with a mere nine days of cash reserves left in its coffers.

The city is currently relying heavily on the reinstatement of its R3.6-billion equitable share allocation to remain operational.

National Treasury withheld the allocation earlier this month, citing the city's persistent failure to adhere to fiscal discipline alongside escalating rates of unauthorised, wasteful, and irregular expenditure.

In his correspondence, Mashaba questioned whether the City of Johannesburg has submitted a satisfactory financial recovery plan before the frozen funds are released.

He further requested clarity on the specific mechanisms Treasury intends to deploy to guarantee that the allocations are used strictly for their intended purposes.

The current financial strain follows previous warnings to the city from Godongwana regarding a controversial R10-billion wage agreement with municipal unions.

National Treasury has deemed that agreement illegal owing to the city's clear inability to afford it.

Mashaba emphasised that the city has reached a "breaking point" that is placing service delivery, infrastructure investment, and investor confidence at extreme risk.

Defending the intervention request, Mashaba stated that the appeal was not a matter of political posturing.

"Neither is it intended to interfere with the constitutional autonomy of National Treasury and the City's administration," Mashaba said.

"It is in the interest of residents who deserve leaders who adhere to lawful financial administration and safeguarding the long-term sustainability of Africa's economic mecca."

ActionSA has blamed the city's current leadership, including Mayor Dada Morero, alleging a systemic failure to uphold the basic governance and fiscal management competencies required under the Municipal Finance Management Act.

South Africa's financial resilience built up by fiscal reforms; broader reforms must continue – BLSA

The resilience shown by the South African economy since re-escalation of the US-Israel and Iran war, with the rand holding up better than it has during past global shocks, is a direct result of a deliberate build-up of policy credibility, says business organisation Business Leadership South Africa (BLSA) CEO Busisiwe Mavuso.

This build-up includes a lower inflation target, a primary budget surplus that has been widening since 2023/24 after 15 years of deficits and a planned fiscal trajectory that will see government debt peak at 78.9% of GDP this year before falling towards 75% by the end of the decade, she points out in her latest weekly newsletter.

The fiscal discipline has also brought credit rating upgrades, with ratings agency S&P upgrading South Africa's long-term foreign currency credit rating by one notch in November 2025, which was its first upgrade in two decades.

Similarly, ratings agency Moody's revised its outlook from stable to positive in late May and ratings agency Fitch upgraded South Africa's long-term credit rating on June 5, which was its first upgrade in 21 years.

Reforms in the financial sector have added to this resilience, particularly those related to the global antimoney-laundering and combating the financing of terrorism initiative Financial Action Task Force requirements, says Mavuso.

Deposit insurance is now operational through the Corporation for Deposit Insurance and the country has built out its emergency liquidity and resolution frameworks.

These reforms have strengthened an already sophisticated and well-respected financial services sector with strong companies and institutions, including the South African Reserve Bank (SARB), the National Treasury and regulator the Prudential Authority, she says.

Prudential Authority CEO Fundzi Tshazibana said this strength acted as a buffer during the US-Israel and Iran war, and that South Africa is now more resilient to external shocks than it was during the Covid-19 pandemic or during the market turmoil that followed Russia's invasion of Ukraine, Mavuso reports.

SARB chief economist and head of economic research Dr Konstantin Makrelov said South Africa has improved its fiscal resilience metrics. He stated that South Africa was better placed to absorb shocks with sound fiscal and monetary policy than with a rising debt-to-GDP ratio or high inflation.

He also said the market's punishing reaction to the 2015 removal of Finance Minister Nhlanhla Nene served as proof that credibility, once lost, was costly to win back.

Unlocking opportunities for South Africa's economy depends on pushing hard on the reforms that make them possible, says Mavuso.

However, the BLSA Reform Tracker for April to June shows that, while there is some good news, there are areas of concern.

A difficulty South Africa's ambitious reform programme faces, particularly in the key areas of energy, transport, water and local government, is that the reforms are complex, often involving multiple layers, which take time to implement fully, and the results will, therefore, only be felt over the longer term, she says.

The more parts of the wide reform programme that are successfully implemented, the further along South Africa will be in developing an efficient backbone to the economy, on which businesses can operate efficiently and drive faster economic growth.

"It is the best way to create jobs and make a meaningful impact on the unemployment rate. We are on the right path in the fiscal space and heading in the right direction with reforms," Mavuso says.

Meanwhile, automotive manufacturer Toyota's decision to launch the ninth-generation Hilux at its Prospecton plant, in Durban, is a reflection of the confidence in South Africa's economy, as other markets are competing for such investment, she notes.

Production of the new-generation model is supported by a R10.4-billion investment to retool the pl...

MKP wants NDPP to suspend IDAC head over interference allegations

The MKP has given the National Director of Public Prosecutions (NDPP) Advocate Andy Mothibi seven days to provide written confirmation of steps taken in the suspension of Investigating Directorate Against Corruption (IDAC) head Advocate Andrea Johnson, warning that it will take further action if the NDPP fails to do so.

This follows testimony at the Madlanga Commission of Inquiry, where witnesses have accused Johnson of interfering with a criminal investigation concerning suspended Crime Intelligence's Major General Feroz Khan.

The allegations suggest she improperly obtained information about a police assault docket and forwarded it to Khan.

Furthermore, Johnson's repeated failure to appear before the commission, most recently excused owing to an urgent hospital visit on the day of her scheduled testimony, has drawn heavy criticism from the commission chairperson and political observers.

MKP national spokesperson Sifiso Mahlangu said his party is demanding a substantive response regarding Johnson's immediate suspension, warning that should this call go unanswered, the party will pursue parliamentary and legal avenues.

The party highlighted that the IDAC occupies the most sensitive anti-corruption position within the criminal justice system, and it maintained that the IDAC cannot be compromised, either in perception or in fact, while these allegations against its head remain unresolved.

ActionSA files court bid to overturn Phala Phala 'police whitewash'

ActionSA has initiated legal proceedings in the Pretoria High Court to review and set aside the South African Police Service's (SAPS's) disciplinary findings clearing Major-General Wally Rhoode and Brigadier Hennie Rekhoto in the Phala Phala matter.

The party announced its legal challenge on Friday, following an analysis of the Record of Decision obtained through a Promotion of Access to Information Act request.

ActionSA has fiercely condemned the internal disciplinary process, labelling it a "poorly constructed whitewash" that lacks rationality and what it says are stark contradictions between the SAPS internal findings and the previous conclusions of two independent oversight bodies: the Independent Police Investigative Directorate (IPID) and the Public Protector.

Both IPID and the Public Protector concluded that Rhoode breached Section 13 of the SAPS Act when he failed to report the Phala Phala burglary through the prescribed chain of command and did not ensure a criminal case was officially registered.

The internal process effectively absolved Rhoode, shifting the responsibility to external individuals, including the Phala Phala farm manager.

The Public Protector found that Rhoode assembled and directed an unofficial criminal investigation without an open SAPS case file. IPID similarly ruled that the officers acted well outside their lawful mandate.

ActionSA said the internal inquiry accepted the explanations offered by the implicated officers, completely rejecting the allegations of misconduct.

The internal disciplinary findings also produced what ActionSA says are deep contradictions regarding the team's controversial trip to Namibia. Furthermore, the party said the inquiry failed to properly address Rekhoto's specific responsibilities and completely ignored the bulk of the evidence gathered by external investigators.

ActionSA maintained that the internal SAPS mechanism was used to protect high-ranking officials rather than enforce accountability.

By taking the matter to the High Court, the party aims to legally nullify the disciplinary outcomes and force a rational, evidence-based reassessment of the officers' conduct.

"Two organs of State cannot investigate substantially the same conduct and reach fundamentally different conclusions without a full public explanation. South Africans deserve confidence that police disciplinary processes are lawful, impartial and evidence-based, particularly where the conduct under scrutiny concerns the investigation of alleged criminality involving the President of the Republic," the party said.

ActionSA will formally request that the complete disciplinary record be placed before Parliament's Section 89 Impeachment Committee as evidence relevant to its inquiry into the President's conduct in relation to the Phala Phala matter.

ActionSA will further request that both IPID and the chairperson of the SAPS disciplinary proceedings appear before that committee to explain how different conclusions were reached.

Additional parliamentary questions will also be submitted to Acting Minister of Police Firoz Cachalia regarding the disciplinary process, the evidence considered, and whether the National Commissioner accepts the clear inconsistencies between the SAPS's findings and those of IPID.

Operation PROSPER deals heavy blow to illicit mining, organised crime

In a massive nationwide crackdown, the South African Police Service (SAPS) and the South African National Defence Force (SANDF) have intensified joint, multi-disciplinary efforts under Operation PROSPER.

The high-density operations targeted illegal mining, organised syndicates, and gang violence, resulting in the arrest of 1 149 suspects and the seizure of 25 illegal firearms along with 238 rounds of ammunition.

The apprehended suspects face a wide array of charges including illicit mining-related offences, murder, assault with intent to cause grievous bodily harm, unlawful possession of firearms and ammunition, and unlawful possession of gold-bearing material.

Other charges involve contravention of the Immigration Act, possession of suspected stolen property, and various other serious offences.

The multi-disciplinary teams executed highly coordinated raids across Gauteng's mining belts. In Westonaria a raid at the Losberg Kloof mine led to the arrest of 217 suspects, and in Randfontein an intelligence-led operation resulted in 121 arrests for illegal mining and the confiscation of specialised mining equipment.

In Mohlakeng 70 suspects were tracked down and arrested within the West Rand district last week and during these provincial operations, law enforcement also impounded two motor vehicles, seized more than 20 generators, and confiscated over 100 bags of gold-bearing material.

Simultaneous disruptive operations took place in the Free State province's Lejweleputswa district. Working alongside private mining security, the SAPS and SANDF operatives targeted Thabong (G-Hostel).

The teams successfully demolished several makeshift gold-bearing material contraptions and gravity separation tables, resulting in the arrest of four foreign nationals.

Three foreign nationals were caught unlawfully digging for materials, at the St Helena 08 Old Shaft.

Through cordon and search operations 12.5 kg of suspected gold-bearing material was confiscated along with specialised processing equipment, including strainers, sieves, and digging tools.

At the Harmony Country Club, 27 suspects were apprehended for trespassing and possession of housebreaking implements, while 17.10 kg of stolen copper cable was successfully recovered.

In North West province, the SAPS and SANDF worked with Home Affairs to execute sweeps in the Bojanala 1, Bojanala 2 and Dr Kenneth Kaunda districts, dismantling significant processing sites and recovering 25 bags of gold-bearing material, steel balls, a jack hammer, two generators, chains and illicit gambling machines.

A total of 19 suspects were arrested for violating the Immigration Act while alcohol was confiscated for being illicitly traded.

The joint operations were also conducted in gang violence hotspots in the Western Cape, Gauteng and Eastern Cape.

The joint security forces maintain that Operation PROSPER will continue to systematically dismantle illegal mining networks and reclaim affected areas across the country.

Power outage hits Eikenhof booster station operations

A widespread power outage following an explosion on the 11 kV power lines supplied from City Power's Orlando switching station is impacting the pumping operations of Rand Water's Eikenhof booster station, which experienced a power failure in the early hours of Thursday morning.

Rand Water on Thursday said that the power outage, which is impacting several areas in the South of Johannesburg alongside the Eikenhof booster station, interrupted pumping operations, as the station receives its electricity supply from a City Power substation.

The interruption in pumping operations may lead to the depletion of water levels at several Rand Water reservoirs, including Meredale; Waterval; Roodepoort; Krugersdorp; Weltevreden; Witpoortjie; Libanon; Driefontein; Rustenburg and Barnardsvlei.

Areas supplied by these reservoirs are likely to experience low water pressure or intermittent water supply until pumping operations resume.

As a result, customers in the City of Johannesburg, as well as the local municipalities of Mogale city, Merafong, Rand West city, Rustenburg, Madibeng and the Royal Bafokeng Administration, may experience water supply disruptions. Various industries, mines and direct customers may also be affected.

City Power technical teams are on site attending to the fault and investigating the cause of the outage. Rand Water operators remain at the Eikenhof booster station to support the restoration process and facilitate the safe resumption of pumping operations as soon as the power supply is restored.

According to City Power, electricity supply is expected to be fully restored during the course of the day.