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South Africa must balance the need to cut emissions with increasing electricity access and developing its natural resources, according to the nation’s energy minister.

“We can’t be only about decarbonisation,” Minister of Mineral Resources and Energy Gwede Mantashe said in a televised speech in Johannesburg on Friday. “We must deal with energy poverty.”

South Africa’s transition from a reliance on coal to cleaner sources of power is a massive undertaking that includes changing a significant social aspect centered on mining of the dirtiest fossil fuel. Mantashe’s position has complicated the implementation of a $8.5-billion pledge by rich nations to help South Africa move to green energy.

Mantashe, a former mine worker and labor-union leader who has previously said he doesn’t have a problem with being identified as a “coal fundamentalist,” has overseen a stop-start programme to boost renewable power generation.

South Africans must “never allow ourselves to be encircled by the developed nations who fund lobbyists to pit our country’s developmental needs against their own self-serving protection of the environment,” he said. “Our country deserves an opportunity to transition at pace and scale determined by its citizens.”

The country has a number of offshore oil and gas prospects, proven by recent discoveries in neighbouring Namibia, but searches for the resources have been blocked by environmental groups, according to Mantashe. “Every time we touch that, we go to court. Touch it, go to court.”

The environmental concerns should be balanced with development, he said.

While the office of the Public Protector has cleared President Cyril Ramaphosa of wrongdoing in the Phala Phala scandal, it found that Presidential Protection Service head Major General Wally Rhoode was not authorised to conduct an investigation into the burglary on the farm.

Acting Public Protector Kholeka Gcaleka held a media briefing on Friday afternoon where she released the much-anticipated report on allegations of misconduct by Ramaphosa relating to the Limpopo farm, which is owned by a company that the president is the sole director of.

The matter relates to a burglary on the farm on the night of 9 February 2020, where at least two burglars stole an undisclosed amount of dollars stuffed under a sofa cushion.

News24 previously reported that Ramaphosa claimed the $580 000 in cash was paid to his former farm manager, Sylvester Ndlovu, by Sudanese businessman Hazim Mustafa on Christmas Day in 2019.

The president has maintained the cash was in exchange for a group of buffaloes, even though the buffaloes remained on the farm more than three years later.

After the theft, Ramaphosa is said to have reported the matters to Rhoode, who allegedly conducted his own investigation.

In her report, Gcaleka dealt with the following allegations against Ramaphosa:

Whether Ramaphosa acted in a manner that is inconsistent with his office in dealing with the alleged housebreaking and thus abused state resources, exposed himself to any situation involving a risk of a conflict between his constitutional duties and obligations and his private interests arising from or affected by his alleged paid work in violation of the Executive Ethics Code.

Whether the President failed to report the crime and abused his power in utilising state resources by causing the Presidential Protection Services (PPS) to be deployed to Phala Phala farm and to investigate a housebreaking thus the Executive Ethics Code; and whether such conduct constitutes improper conduct as contemplated in the Constitution and abuse of power as contemplated in the Public Protector Act.

Whether members of the South African Police Service attached to the PPS acted improperly by investigating the alleged housebreaking and if so, whether such conduct constitutes improper conduct as contemplated in the Constitution and maladministration as contemplated the Public Protector Act.

Gcaleka said they could not investigate tax matters, or foreign exchange control regulations, as that fell under the mandate of the South African Revenue Service (Sars) and the South African Reserve Bank (SARB).

The Public Protector's office also did not investigate whether Ramaphosa had correctly reported the burglary to law enforcement in terms of Prevention and Combating of Corrupt Activities Act (Precca). Gcaleka said this formed part of the Hawks investigation.

Findings on Ramaphosa

The acting Public Protector found there was no evidence that Ramaphosa was involved in the day-to-day running of the farm, or that he received and remuneration from the farm.

"No evidence could be found indicating that the president either works at Phala Phala farm or receives remuneration from Phala Phala farm," Gcaleka said.

However, she did note that evidence arising from the inspection of the president’s register for financial interests revealed that he retained financial interests in Ntaba Nyoni, the holding company of the Phala Phala farm.

Gcaleka said that, while not conclusive, there were also facts that pointed towards Ramaphosa being more actively involved in the "management of the affairs of the closed corporation than he appears to let on in his general submissions".

"The evidence revealed that the president held discussions with farm managers, notably, regarding the disposal of certain animals due to them being substandard.

"There are, of course, other facts which point away from the president being involved in paid work. For one thing, he neither draws a salary from the Ntaba Nyoni CC nor receives any distributions (o...

South Africa said on Thursday it will host the Brics bloc summit in August as planned, amid speculation that it may move to China so Russia's President Vladimir Putin can attend in a nation not obliged to arrest him on war crimes accusations.

South Africa has a duty as a signatory to the International Criminal Court (ICC) to arrest Putin if he attends the talks between the leaders of Brazil, Russia, India and China, due to an arrest warrant over the deportation of children from Ukraine.

Putin denies the charges.

South African President Cyril Ramaphosa met with him on June 17 in Russia, historically a strong ally of the governing African National Congress (ANC) since it was a liberation movement fighting white minority rule decades ago.

"South Africa will host the 15th Brics Summit at the Sandton Convention Centre in Sandton, Johannesburg, from 22 to 24 August 2023," the Department of International Relations said in a statement.

Presidency spokesperson Vincent Magwenya confirmed to Reuters in a text message that this meant the whole summit, including the main part involving the Brics heads of state, would take place in South Africa.

He and a spokesperson for the international relations department declined to comment on whether or not Putin will attend.

South African officials had at the end of last month said the Brics countries were considering moving the summit to China, which is not a member of the international court. They could still decide to change the venue at the last minute.

On Tuesday, South Africa's Minister of International Relations Naledi Pandor said Putin had not yet replied to an invitation, sent before the ICC charged him on March 18.

Chinese President Xi Jinping, India's Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva are all planning to attend, Pandor said.

South Africa says it is neutral in the Ukraine conflict, but has been criticised by Western powers for being friendly to Russia, including hosting Foreign Minister Sergey Lavrov and conducting joint naval exercises.

South Africa's consumer confidence fell further in the second quarter, according to a survey released on Thursday, as the country struggled with soaring fuel and food prices and higher interest rates.

The consumer confidence index, sponsored by the First National Bank (FNB) and compiled by the Bureau for Economic Research, fell to a reading of minus 25 points, from minus 23 points in the first quarter of 2023.

South Africa has been battling high inflationary pressures and local power cuts that have led to a rise in diesel consumption by households relying on back-up generators.

The June-quarter reading is the second-lowest on record since 1994 and indicative of concerns among consumers about economic prospects in South Africa and household finances, according to the survey.

"Further interest rate hikes, rand depreciation and concerns about South Africa's diplomatic relations with the rest of the world in all likelihood compounded the negative impact of the electricity crisis on high-income confidence," said FNB chief economist Mamello Matikinca-Ngweny.

A vast majority of consumers expects a deterioration in South Africa's economic growth over the next 12 months, and considers present time as highly inappropriate to purchase durable goods such as furniture, vehicles and household appliances.

The confidence levels of high-income households fell to a record low of minus 40 in the quarter, and they were far lower compared to low- and middle-income confidence, and even below the extraordinarily depressed levels attained during the height of the Covid-19 pandemic.

"The further deterioration in the confidence levels of high-income consumers does not bode well for the retail sector, as affluent consumers have the greatest spending power among the different income groups," the survey added.

The South African central bank in May revised its headline inflation estimate for 2023 up to 6.2% from 6%, and raised its bank rates by 50 basis points to a 14-year high, as domestic food price inflation remains elevated.

President Cyril Ramaphosa has placed Justices Tshifhiwa Maumela and Nomonde Mngqibisa-Thusi on suspension following allegations of misconduct by excessively delaying the handing down of a significant number of judgments.

The Judicial Service Commission took a decision during a meeting in April to advise the President to suspend the judges pending a tribunal process as laid out in the Judicial Service Commission Act.

The President informed Chief Justice Raymond Zondo and the suspended justices of his decision in accordance with the Constitution, which empowers him to suspend a judge on the advice of the Judicial Service Commission (JSC).

In January, the JSC accepted a recommendation by the Judicial Conduct Committee that there were reasonable grounds to suspect that the judges were guilty of misconduct in delaying the handing down of a significant number of judgments.

Both judges are suspended subject to the condition that they finalise their part-heard matters.

Deputy President Paul Mashatile’s spokesperson Vukani Mde argued that Mashatile has never awarded, influenced, or in any way caused any State or public sector contract to be awarded to the individuals and companies mentioned by recent expose.

On Monday, an investigation by a local news publication revealed that Mashatile lives a “life of luxury, living in expensive homes owned by businessmen benefitting from State contracts”.

One of Mashatile's largest benefactors, according to the news report, is Edwin Sodi, the politically connected businessman currently on trial on charges of corruption and fraud linked to a R255-million Free State asbestos eradication tender, together with former Free State premier, Ace Magashule, who was recently expelled from the African National Congress.

Mde stated that Mashatile does not have ownership or permanent use of any properties bought by these individuals or mentioned companies.

He said the Deputy President would challenge anyone to prove otherwise.

Mde highlighted that Mashatile has, throughout his life as an activist and public representative, met many people from different walks of life, including the individuals mentioned in the investigative news report.

“Naturally, some of the people he has interacted with throughout that long time have become close personal associates. There is nothing wrong or unusual about this, and the attempt to scandalise such associations is unfortunate,” he said.

Mashatile assured the nation that he is committed to his oath of office and the principles of the Constitution, reiterating his commitment to fight corruption and build an ethical and competent developmental state.

“In line with these commitments, the Deputy President has always conducted himself in ways that comply with the letter and spirit of the law and executive disclosure requirements throughout his career spanning nearly 30 years of service to the people of South Africa. Any allegation or insinuation that he has ever betrayed this commitment is categorically denied,” said Mde.

The Deputy President’s spokesperson added that “the most unfortunate parts” of the news report, is the “gratuitous suggestion” that Mashatile is “working hard behind the scenes to ascend to the office of president”, supposedly by some underhand means. Mde stated that this is strenuously denied.

“The primary mandate of The Presidency is to provide support to the President and Deputy President in leading the Executive and to assist them in the coordination and supervision of Government. The Presidency translates and implements the commitments of the President as outlined in the State of the Nation Address,” he said.

Mde noted that while the Deputy President denies any and all allegations of wrongdoing, the Presidency note that the investigating news publication failed to offer any real evidence of misconduct on the part of the Deputy President, and chose to rely on innuendo, suggestion, and guilt by association.

He added that this is a regrettable approach to journalism and it has the potential to hinder rather than help the cause of accountability in public life.

South Africa’s central bank will keep monetary policy tight for longer to tame persistent inflation, Governor Lesetja Kganyago said.

The central bank’s monetary policy committee has raised the benchmark rate by a combined 475 basis points at its 10 past meetings with the aim of bringing inflation back to the 4.5% midpoint of its target range, where it prefers to anchor expectations.

“What is in no doubt is that policy is going to have to remain tight for a little bit longer than actually the market had been pricing,” Kganyago said in an interview on Bloomberg TV on Wednesday. “And the reason has been that inflation has been more persistent than we had actually thought.”

Last month inflation slowed more than projected to a 13-month low of 6.3%. Still, inflation has been above the South African Reserve Bank’s target range for a year. The key repurchase rate stands at 8.25%, the highest level in 14 years.

The governor said it is too early to say whether the MPC will follow the Federal Reserve and pause interest rate hikes at its meeting next month.

For how long it will be higher is a function of whether inflation declines to target, Kganyago said. “If inflation declines to target and is sustained at target and thus inflation expectations become anchored then you would say that it is time to recalibrate policy.”

Inflation is forecast to return within its target range this quarter or next, Kganyago said. “There are still risks to the inflation outlook and we have seen that inflation has been sticky, but we are confident that inflation is coming down.”

Forward-rate agreements starting in a month — used to speculate on borrowing costs — show traders are pricing in a more than 63% chance of the MPC increasing the repurchase rate by 25 basis points on July 20. Of the 16 economists polled in a Bloomberg survey earlier this month, 10 expect the central bank to pause and the rest forecast a quarter-point hike.

Presidential spokesperson Vincent Magwenya on Wednesday rejected the narrative that President Cyril Ramaphosa is not engaged with his job, saying the President remains deeply motivated with leading reforms and resolving the many challenges facing the country, particularly those facing the economy.

Magwenya was briefing the media on the President's weekly agenda, where he explained that the Presidency had noted with concern the ongoing narrative that sought to suggest that the President was not fully engaged with his job and the task of leading South Africa.

Magwenya said the Presidency rejected this impression, and called it cheap political point-scoring and an attempt to distract from the difficult task of reforming the economy.

He noted that over the last six months Ramaphosa had focused on resolving multiple challenges and advancing the economic growth agenda.

Magwenya highlighted that on Tuesday government finalised the partnership with organised business on three joint work streams – electricity; logistics; and crime and corruption.

He went on to explain that ongoing interactions with business in different sectors, organised labour and the disability sector, continue.

Magwenya highlighted that Ramaphosa had convened the fifth South African investment conference, which exceeded its five-year investment target.

He said on employment the President had established and continued to champion the Youth Employment and Service initiative, which Magwenya said had placed about 1 000 youth in one-year work experience opportunities.

“The Presidential Employment Stimulus created 1.2-million public employment opportunities since 2020," he added.

"On electricity, President Ramaphosa has taken a hands-on approach to solving the crisis by chairing the National Energy Crisis Committee which was established last year in July,” he continued

Magwenya noted that reforms had led to a pipeline of over 100 private sector projects totalling 10 000 MW.

He noted that the President was also actively involved with Operation Vulindlela, which had driven reforms in water, electricity, ports and rail, telecommunications and visas.

Magwenya said Ramaphosa had met with the Presidential Coordinating Council (PCC) three times between June 2 and June 20.

The PCC is the President’s platform for consultation and crucial engagement with provinces and organised local government to raise matters of national interest, coordinate alignment of priorities, strengthen strategic priorities, and discuss performance.

The PCC transcends local boundaries and coordinates responses in a transversal and holistic manner.

SOUTHERN AFRICA CUSTOMS UNION

Ramaphosa will, on Thursday, participate in the eighth Southern Africa Customs Union (Sacu) Heads of State and Government Summit in Eswatini.

The President‘s working visit at the Sacu Summit is at the invitation of the current Chair of SACU, King Mswati III, and the iNgwenyama of the Kingdom of Eswatini.

Ramaphosa will lead a delegation comprising Minister of Trade, Industry and Competition Ebrahim Patel; Minister of Agriculture, Land Reform and Rural Development Thoko Didiza; Minister of Finance Enoch Godongwana; and South African Revenue Service commissioner Edward Kieswetter.

The African National Congress (ANC) in KwaZulu-Natal, along with its alliance partners, the South African Communist Party (SACP) and the Congress of South African Trade Unions (Cosatu), have agreed on the need for an Alliance Energy Summit to help solve the ongoing power cuts affecting the province’s economic gains.

The partnership calls itself the ‘political alliance council’.

Addressing the media ahead of a meeting with its alliance partners in Durban on Tuesday, ANC provincial secretary Bheki Mtolo said an energy strategy that would ensure energy security would be developed by the organisations.

Mtolo said the Alliance Energy Summit, which would be coordinated by the Richards Bay Industrial Development Zone, would be championed by KwaZulu-Natal Economic Development, Tourism & Environmental Affairs MEC Siboniso Duma, on behalf of the ANC government.

Mtolo said through the Energy Summit, the alliance partners wanted the ANC government to establish a cohesive plan, involving all stakeholders, to ensure the availability of sustainable energy resources in the province, to meet its future economic and domestic growth requirements.

RISING FOOD COSTS

The ANC and its alliance partners blamed the intermittent energy crisis for the rising cost of living.

“The rapid increase of the repo rate by the Reserve Bank [and an] exorbitant increase [in] electricity tariffs, reflect the neo-liberal offensive that subjects the majority of our people to abject poverty as a result of credit impairments and unaffordability of basic necessities,” Mtolo said.

ACCOUNTABILITY

The political alliance council said it took seriously the task of holding all leaders deployed by the ANC accountable.

It said the party had a responsibility, more than opposition parties, to ensure that the ANC-led government delivers.

“The political alliance council believes that the conditions of freedom and democracy mean that the ANC as a ruling party, representing the majority of the people of our country, has the responsibility to preside over the resources of the public to improve their lives. This makes the poor people and the majority of all South Africans to be the main and the only focus for the ANC as the leading party in government,“ the political alliance council said and added that narrow and individual interests must be a thing of the past.

GOVERNMENT MATTERS

The political alliance council noted the collapse of service delivery in various municipalities owing to corruption, maladministration and the abuse of political offices.

It said municipalities under the ANC must be at the forefront of service delivery and ensure good governance.

The council is also concerned by the political instability created by coalitions which have also stalled service delivery.

It said alliance partners in these regions must work as a collective to ensure that local government remained the centre of popular participation in the ANC's programme of action aimed at strengthening service delivery.

Democratic Alliance (DA) leader John Steenhuisen noted that the Quarterly Employment Statistics (QES) released on Tuesday provided damning proof that South Africa is in the midst of a “jobs bloodbath” at the hands of failed African National Congress (ANC) policy and rampant corruption.

Stats South Africa highlighted that total employment in the formal non-agricultural sector decreased by 21 000 in the first quarter of 2023, bringing the level of unemployment to almost 10-million. The report indicated a tragic loss of 97 000 jobs between March 2022 and March 2023, which equated to more than 8 000 jobs per month or 260 jobs each day, said Steenhuisen.

He explained that the QES was proof that South Africa was edging closer to a failed State and the collapse of the country’s society.

“This is an indictment on the ANC and a clear sign of a failing State and an uncaring government. ANC policy has created both the world’s highest youth unemployment rate, as well as one of the worst performing public education systems,” said Steenhuisen.

He noted that between a stagnating and receding economy, and a growing population “that is ill-equipped for the working world”, the ANC is solely responsible for South Africa’s job losses and the state of despair millions of South Africans find themselves in.

“To add insult to injury, the ANC’s introduction of race quotas in the South African labour market will hammer the final nail in the coffin for the South African economy, further entrenching poverty and misery into the lives of the South African people,” he said.

Steenhuisen said if the ANC’s race quotas were enforced, 600 000 currently employed South Africans stood to lose their jobs based on the colour of their skin.

He added that until “these draconian” race quotas were removed, South Africa could expect more catastrophic employment statistics in quarters to come.

“It is truly baffling that in a country where jobs numbers are already disastrous, the ANC would seek to introduce race quotas to make finding a job even more difficult for millions of citizens,” Steenhuisen stated.

Earlier this month the DA approached the Gauteng High Court in Pretoria to declare various sections of the Employment Equity Amendment Act unconstitutional and invalid.