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Impeachment committee opposes Ramaphosa's interdict

Parliament's Section 89 Impeachment Committee has resolved to formally oppose President Cyril Ramaphosa's urgent court application to halt its inquiry.

Following a crucial legal briefing, the committee confirmed it will file a notice to oppose the interdict ahead of the Friday deadline.

The decision sets up a high-stakes constitutional showdown in the Western Cape High Court, scheduled for July 15 and 16.

In a bid to present a unified legislative front, the committee has requested that National Assembly Speaker Thoko Didiza join them in defending Parliament's constitutional mandate.

Ramaphosa launched his urgent application last week, aiming to block the committee from proceeding with the impeachment process tied to the Phala Phala scandal.

Committee members emphasise that they remain legally bound by the Constitutional Court's directives until a competent court orders otherwise.

The committee's legal strategy will focus on explaining its constitutional obligations clearly to the court, protecting its institutional capacity to function independently and resisting any form of executive interference.

The committee will meet on Wednesday to consider its draft terms of reference and outline the process for appointing independent evidence leaders.

ActionSA said the committee's decision followed a formal letter it sent to Didiza and Impeachment Committee chairperson Makashule Gana, which urged Parliament to resist any attempts to frustrate the implementation of the Constitutional Court's judgment on the Phala Phala matter.

ActionSA parliamentary leader Athol Trollip hailed the committee's decision as a victory for constitutional accountability and parliamentary independence.

"Parliament has a constitutional duty to hold the executive accountable, to exercise oversight over the conduct of public office bearers, and to ensure that no person, regardless of their office, is placed beyond scrutiny," Trollip stated.

"The Section 89 Committee exists precisely to determine whether the conduct of the President warrants the serious constitutional consequences contemplated by Section 89 of the Constitution. That process must be allowed to proceed without interference, delay, or political shielding."

Trollip also aimed sharp criticism at certain political parties within the newly formed Government of National Unity (GNU). He accused them of "prevarication" and "speaking out of both sides of their mouths" by professing support for accountability while avoiding a clear position on the President's attempt to halt the inquiry.

ActionSA has called on Didiza to ensure that the National Assembly robustly defends its constitutional powers by reflecting the committee's opposition to the interdict.

Warning against legislative complacency, Trollip reminded the Speaker that the apex court had already found Parliament failed South Africans once in its handling of the Phala Phala matter, adding that Parliament must not place itself on the wrong side of the Constitution a second time.

Labour unions urge workers to shun anti-migrant protests

South Africa's biggest labour unions on Wednesday urged workers not to participate in anti-immigrant protests that have seized the country, and said they could face consequences if they skip work to attend.

South Africa is on edge ahead of a June 30 deadline which anti-immigrant groups have given for all undocumented foreigners to leave the country. Protests and potential civil unrest are expected, after weeks of sometimes violent xenophobic attacks.

Four major unions including the Congress of South African Trade Unions (COSATU), which represents around 2-million people, said in a statement that workers would not be protected if they do not go to work on June 30.

"We urge workers to report for duty and not place their employment at risk," they said.

The unions echoed President Cyril Ramaphosa's call on Tuesday not to scapegoat migrants for South Africa's problems.

"Removing foreign nationals from workplaces, communities or public spaces will not reopen factories, repair municipalities, strengthen public healthcare or create sustainable jobs," said the unions COSATU, FEDUSA, SAFTU and NACTU.

Africa's largest economy has more job opportunities than many other African countries and has long attracted large numbers of foreign workers. Some politicians have seized on the issue in recent months to blame such migrants for widespread poverty and crime.

South African media outlets reported on Wednesday that clashes had erupted between police and thousands of Malawians awaiting repatriation in the coastal city of Durban. Police fired stun grenades and teargas after a crowd became agitated, said News24.

Malawi said earlier in the week that 10 000 of its nationals were in distress and hoping to return from South Africa. While the country has been organising buses to bring them home, it put out a public call for donations to assist with the effort.

"Government is resolute in its commitment to bring home every Malawian who wishes to return from South Africa," the government said.

"However... the scale and urgency of the operation have created unprecedented financial, logistical, and humanitarian demands."

Other countries including Ghana, Nigeria and Mozambique have also repatriated citizens due to safety concerns.

South African inflation rises less than expected in May

South African inflation rose by less than expected in May, which analysts said reduced the likelihood of another central bank interest rate hike next month.

Headline consumer inflation quickened to 4.5% year on year from 4.0% in April. That was the highest reading since July 2024. Economists polled by Reuters had expected 4.7%.

The rise was mainly driven by fuel price increases linked to the Iran war.

Annual core inflation, which strips out volatile items like food and energy, was 3.8% in May, in line with forecasts.

Standard Bank economist Elna Moolman said the downside surprise largely emanated from food prices, which were flat in month-on-month terms in May.

"This data, alongside the decline in oil prices in response to the imminent signing of an interim peace deal between the US and Iran, means that the upside risk to the inflation trajectory has subsided," Moolman added.

The South African Reserve Bank (SARB) targets inflation of 3%, with a 1 percentage point tolerance band either side.

At its last monetary policy meeting in May it raised rates for the first time in three years and is next scheduled to review its policy stance on July 23.

Independent economist Elize Kruger said the data showed no clear indication of second-round inflation impacts and with the US-Iran peace deal "there is a growing probability that the SARB could steer away from another interest rate hike in July".

DA reshuffles GNU team: Aucamp replaces Steenhuisen as Agriculture Minister

DA leader Geordin Hill-Lewis has officially requested that President Cyril Ramaphosa remove John Steenhuisen as Minister of Agriculture, in a reshuffling of the party's Government of National Unity (GNU) team, with Willie Aucamp proposed to take over Steenhuisen's role.

Aucamp moves from the Department of Forestry, Fisheries and the Environment to become the Minister of Agriculture.

Hill-Lewis said his immediate focus would be to resolve ongoing legal proceedings relating to Foot-and-Mouth Disease (FMD) and accelerate market expansion for agricultural exports.

Steenhuisen will assume the role of Deputy Minister of Trade, Industry and Competition.

Meanwhile, David Maynier will take up the position of Minister of Forestry, Fisheries and the Environment, stepping in to fill the vacancy left by Aucamp.

Alexandra Abrahams moves from Trade, Industry and Competition to take up a key position as Deputy Minister of Electricity and Energy.

Yusuf Cassim is appointed as the Deputy Minister of Higher Education and Training, bringing his extensive background in student politics to the post, while Jack Bloom, a veteran of the Gauteng Provincial Legislature, will take up the position of Deputy Minister of Water and Sanitation.

In his formal correspondence to Ramaphosa, Hill-Lewis emphasised that these structural adjustments followed a careful assessment of the DA's executive team performance.

"It is my judgement that the renewed team announced today will strengthen the DA's contribution to government and give better effect to the mandate received from 3.5-million voters," Hill-Lewis explained.

He added that public office required high performance, absolute integrity, and responsiveness to create an open, opportunity-filled society for all South Africans.

Fitch upgrades Eskom to B+, in line with South Africa's credit rating

Credit rating agency Fitch Ratings has upgraded State-owned Eskom's credit rating to B+ with a stable outlook, up from a B rating, in line with the recent improvement in South Africa's sovereign credit rating.

Specifically, Fitch upgraded Eskom's long-term Issuer default ratings to B+ with a stable outlook; its senior unsecured debt to B+ with its recovery rating of RR4 unchanged; and Eskom's guaranteed senior unsecured debt to BB from BB-.

Eskom continues to stabilise its operations and strengthen financial management under its ongoing turnaround plan, the utility says.

The relationship between Eskom and the South African government is strong across key support factors, including oversight, policy role, and the precedent of support, with Eskom's rating positioned below the sovereign in line with this framework.

Eskom views the upgrade as a positive signal of improving macroeconomic conditions and continued recognition of the utility's central role in South Africa's energy system.

The utility remains focused on strengthening operational performance, improving liquidity and access to funding, and delivering on its turnaround plan in support of long-term financial sustainability, it says.

It also focuses on how rating agencies view its risk profile, owing to its need to access the capital markets.

"Our focus remains on execution. We continue to implement our turnaround strategy at pace to restore operational and financial stability, maintain energy security and position Eskom for sustainable long-term growth that supports the economy," says Eskom Group CE Dan Marokane.

"Eskom, and South Africa, now has a stable electricity platform to operate and grow from, which has advanced grid stability, market liberalisation and the integration of renewable energy," he says.

Xenophobic attacks are hurting South Africa's image abroad, says minister

A surge in attacks on foreign nationals in South Africa is damaging the country's global image and fuelling a backlash against businesses and artists, the justice minister has warned.

Speaking at a briefing on Sunday, Mmamoloko Kubayi called for South Africans to reject vigilantism and let the government handle illegal immigration through the proper channels.

South Africa has in recent weeks seen a wave of protests and attacks against other African nationals, some of whom are in the country legally, as anti-immigrant groups blame them for high unemployment and crime.

"A majority of South African artists perform on the continent, and many of them are seeing their gigs being cancelled," Kubayi said, without naming specific artists.

She also said the government was offering support to South African companies abroad that have been affected by the backlash.

"We do believe that it can not only hurt the brand, but can hurt our social cohesion," she said, noting that even some South African citizens had been targeted by anti-immigrant groups because of how they looked or spoke.

Xenophobic sentiment is a recurring issue in South Africa, and has been amplified by politicians seeking support ahead of local elections in November.

Several countries, including Ghana, Malawi and Mozambique, have repatriated nationals over safety concerns. Malawi said on Monday it was bringing hundreds more citizens home by bus from the city of Durban.

"It is profoundly heartbreaking to witness another surge of xenophobic violence in #SouthAfrica," wrote World Health Organization chief Tedros Adhanom Ghebreyesus on X, calling it a "tragic betrayal" of the African nations that supported South Africa during the struggle against apartheid.

He said that five Ethiopians and five Mozambicans had been killed in attacks.

South Africa's foreign ministry disputed that account, saying that the deaths of the Ethiopians were due to organised crime, not xenophobic violence. The deaths of the Mozambicans are under investigation, it said.

"We deeply regret the tragic loss of life in these recent incidents, as one life lost is simply one too many," said foreign ministry spokesperson Chrispin Phiri.

Traders cut South Africa rate-hike bets after Iran peace deal

Traders have scaled back bets on additional South African interest-rate hikes after a US-Iran peace deal sent oil prices tumbling, potentially reducing inflationary pressures.

Forward-rate agreements are now pricing in 15 basis points of tightening at the South African Reserve Bank's July 23 policy meeting, down from 30 basis points a week ago. The contracts are pricing in a total of 32 basis points of rate hikes this year, compared with 70 basis points a week ago.

Policymakers last month raised borrowing costs by 25 basis points to 7%, delivering their first increase in three years as inflationary pressures intensified because of the Iran war. They also signalled that further tightening may be warranted if the conflict drags on.

Inflation in Africa's biggest economy probably quickened to 4.7% in May from 4% a month earlier, according to the median estimate of 18 economists in a Bloomberg survey. The central bank targets inflation at 3%.

Ramaphosa declares special funeral for amaNdebele King

President Cyril Ramaphosa has declared a Category 1 Special Official Funeral for the amaNdebele King Makhosoke II, Enock Makhosoke Mabhena.

The monarch passed away on Tuesday at the age of 65, concluding a historic 40-year reign on the throne.

The traditional leader of the amaNdebele akwaManala will be laid to rest on Sunday, with the funeral service taking place at the Solomon Mahlangu Stadium in KwaMhlanga, in Mpumalanga.

As part of the Category 1 status, the South African National Defence Force will provide full military honours during the ceremony. Additionally, Ramaphosa has directed that the National Flag be flown at half-mast across the country from Saturday morning until Sunday evening.

Ramaphosa extended his deepest condolences to the Royal Household, Queen Sekhothali, the amaNdebele people, and the Basotho nation, from whom the Queen is descended.

Government and traditional leaders are expected to gather alongside thousands of mourners to pay their final respects to the long-serving leader.

Treasury says upgrades show path to investment grade

South Africa's recent credit-rating upgrades are a strong endorsement of government policy and show the nation can restore its coveted investment-grade status if it stays on track, said the National Treasury chief.

"This is a clear change of direction in our ratings trajectory after more than a decade of negative ratings news," Duncan Pieterse wrote in an op-ed published on News24 Thursday.

"It could ultimately see South Africa regain its investment grade status — if it continues to do the right things on fiscal and economic policy."

Fitch Ratings raised its credit assessment of South Africa on June 5 to BB, two notches below investment grade, delivering the upgrade before putting the rating on a positive outlook as it often does before taking such a step.

The move brought it in line with Moody's Ratings and S&P Global Ratings, which also have the nation on a positive outlook — a significant marker of confidence against the backdrop of dimming global growth prospects and heightened inflation risks due to the Iran war.

"South Africa is only the second Group of 20 country to be upgraded by Fitch this year," Pieterse said. "It is one of only two G20 countries on positive outlook at S&P and the only one at Moody's."

After years of weak economic growth, rising debt and deepening concern over crime, mismanagement and corruption — which saw South Africa's credit rating downgraded to junk by all three agencies between 2017 and 2020 — investors have taken note.

While the rand has weakened slightly since the Middle East conflict began in late February, it remains about 9% stronger against the dollar versus a year ago. The yield on the benchmark 10-year South African government bond are roughly 148 basis points lower.

In addition to improving public finances, South African assets have also benefited from the country's removal from a dirty-money watch list and the adoption of a 3% inflation target by the central bank last year, whose announcement delivered a sharp drop in government bond yields.

Pieterse said that being two notches below investment grade means there is still a way to go, "but the momentum is now positive" and the government is committed to lifting economic growth and continuing to lower public debt.

South Africa's coalition government, formed after the African National Congress lost its parliamentary majority in 2024 elections for the first time since 1994, has made economic growth a core goal under the leadership of President Cyril Ramaphosa.

Still, the future of the nation's reform agenda, which has numerous critics in a country still blighted by inequality 30 years after the end of White-minority rule, will face questions in coming years.

South Africa next holds national elections in 2029. But a municipal ballot in November could deliver further voter setbacks for the ANC that weakens Ramaphosa's position at the head of the party — a post which he must relinquish anyway at the end of next year.

The development could weaken his influence over the succession process, raising questions about the durability of his reforms and even his ability to remain as president of the nation.

The ANC has forced its last two leaders to step aside as the head of state after relinquishing the party leadership position.

Foundation condemns 'reckless' national shutdown calls, warns of xenophobic anarchy

The Ahmed Kathrada Foundation (AKF) has strongly condemned recent calls for a "national shutdown", labelling it "reckless" and warning of the risk of it descending into anarchy and xenophobic violence.

Calls for a shutdown follow a June 30 deadline issued by the anti-illegal immigration group March & March, which is demanding that undocumented foreign nationals leave South Africa.

The AKF urged government to fast-track its immigration and employment plans to maintain public confidence, and wants the immediate rollout of promised workplace inspectors to crack down on unscrupulous employers, and the execution of labour laws to prevent the exploitation of vulnerable workers.

The foundation urged citizens to reject the shutdown and use constructive dialogue to deal with the issue.

The foundation noted a "cautious optimism" following President Cyril Ramaphosa's recent address on border security and migration.

Major federations such as COSATU, FEDUSA, and SAFTU welcome the enforcement of immigration laws, and organised business, faith-based organisations, and political parties support the human-rights-based approach.

The AKF noted that previous State inaction directly fuelled community frustrations and vigilantism.

The AKF said law enforcement must act firmly against lawlessness, calling on the South African Police Service and Border Management Authority to proactively stop vigilantism.

"Security forces must prevent any economic or transport blockades. The State must relentlessly pursue internal corruption within the immigration system and political parties must resist using migration for populist electioneering and xenophobic rhetoric," it said.

The foundation pledged to closely monitor the government's migration plan to ensure order is restored while strictly respecting human dignity.

Meanwhile, more than 2 400 foreign nationals have been processed and repatriated from South Africa. Countries such as Nigeria, Ghana, Malawi, Mozambique, and Zimbabwe have initiated government-funded emergency evacuations and voluntary repatriation flights.

The Home Affairs Department confirmed the processing of 586 Nigerian nationals for repatriation after they were found to be residing in the country illegally.

The first repatriation flight left on Thursday morning, carrying 268 passengers back to Nigeria. The remaining individuals from the processed group are scheduled to leave on a second flight on Monday.