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South Africa consumer inflation quickens to 4.0% y/y in April

South African inflation accelerated sharply in April, increasing the likelihood that the central bank will hike interest rates when it meets to assess its monetary policy stance next week.

Headline inflation came in at 4.0% year on year, up from 3.1% in March and reaching its highest level since August 2024, data from the statistics agency showed on Wednesday.

Economists polled by Reuters had expected annual inflation would speed up to 3.9%.

South Africa's central bank targets inflation of 3%, with a 1 percentage point tolerance band either side.

Statistics South Africa said the increase was driven mainly by sharp fuel price rises linked to the US-Israel war against Iran.

The statistics agency's fuel index rose 18.2% from March, and passenger transport services by 3.1%.

Africa's largest economy is highly exposed to rising global energy costs as it imports most of its fuel.

The central bank's next interest rate announcement is on May 28, and even before Wednesday's data many economists were predicting a rate hike after two consecutive "hold" decisions in January and March.

After the data Stanlib chief economist Kevin Lings said he expected a 25-basis-point hike next week as the central bank would want to show that it is serious about hitting its 3% target.

"They probably have to send a message around that," Lings told Reuters.

Investec chief economist Annabel Bishop also predicted a 25-basis-point hike.

But Standard Chartered's Razia Khan said she saw little immediate pressure for the central bank to tighten policy given a relatively modest increase in core inflation in month-on-month terms.

Core inflation came in at 0.5% month on month in April, slower than the previous month's 0.8% reading.

DA, EFF slam cancelled NSFAS briefing, demand urgent Parly intervention

The Democratic Alliance (DA) and the Economic Freedom Fighters (EFF) have expressed concerns over the cancellation of a Parliamentary Portfolio Committee on Higher Education meeting, in which the National Student Financial Aid Scheme (NSFAS) was to be discussed.

Both parties are demanding urgent parliamentary intervention following Higher Education and Training Minister Buti Manamela's decision to place NSFAS under administration owing to ongoing governance and financial failures.

The portfolio committee was scheduled to convene at NSFAS headquarters, where Manamela was expected to brief Parliament on his decision to place the embattled scheme under administration.

However, the critical engagement was abruptly called off. According to correspondence, the Department of Higher Education and Training and NSFAS failed to submit presentations ahead of the meeting.

Manamela formally requested additional time to finalise and "quality assure" his presentation.

DA spokesperson on Higher Education and Training Dr Delmaine Christians criticised the delay, arguing that Parliament could not be sidelined in exercising oversight over a multibillion-rand public entity.

Christians noted that placing NSFAS under administration had "quickly escalated into court action and administrative chaos, making parliamentary oversight more vital than ever".

The DA wants NSFAS to be replaced with a new decentralised student funding model, where accredited and competent higher education institutions administer their own funding, removing failing intermediaries and reducing governance, procurement and payment failures.

The EFF has similarly condemned the situation, calling for Parliament's immediate, urgent intervention to ensure that the executive and NSFAS leadership are held accountable to the public and to students who depend on the scheme.

"Parliamentary processes are, yet again, being manipulated to shield the Executive from scrutiny whenever accountability becomes politically inconvenient.

"The authority, credibility, and constitutional standing of Parliament depend on the consistent application of its rules, irrespective of political convenience or executive discomfort," the party said.

The EFF rejected any attempt to convert parliamentary committees into protective shields for "delinquent" Ministers and politically connected individuals.

The party pointed out that for the first time, a meeting formally agreed to by majority members and officially scheduled on Parliament's programme was being withdrawn outside of a formal committee sitting.

"… this undermines institutional consistency and raises serious concerns about the erosion of Parliament's procedural integrity.

"If allowed to stand, this conduct will establish a dangerous precedent where oversight meetings can simply be cancelled at the last minute through informal communication whenever accountability becomes uncomfortable for the Executive. This constitutes an attack on accountability itself," the EFF warned.

Adding to the uncertainty, NSFAS administrator Professor Hlengani Mathebula raised formal objections regarding the participation of former board members in the parliamentary meeting.

The administrator argued that the dissolved board's involvement posed governance and financial complications.

National Dialogue paused to 'protect neutrality' ahead of election

The National Dialogue process will enter a temporary pause from September to December to safeguard its neutrality ahead of the upcoming local government elections.

Scheduled for November 4, the election date was recently officially announced by President Cyril Ramaphosa.

The steering committee resolved to implement the "pause and reflection period" on the National Dialogue to "protect the non-partisan credibility, integrity, and independence of the dialogue during a time of heightened political campaigning".

The country is currently celebrating three decades of constitutional democracy under the national theme: "One Constitution; One Nation: Reflect, Renew, Recommit".

The steering committee stressed that despite the pause, the mission of the National Dialogue remains to advance a "shared national vision built on accountability and ethical leadership, social justice and human dignity and democratic participation and social cohesion".

Meanwhile, last week, it formally adopted the Pilot Dialogue Implementation Framework.

This critical working guide outlines the path for the national pilot process, marking a historic transition from strategic planning to direct citizen engagement across South Africa.

The newly adopted framework maps out an approach to building the governance, operational and participation architecture of the dialogue, with the goal of creating a credible, inclusive and citizen-led process.

The operational rollout of the pilot phase is scheduled to commence in June and conclude in August. During this phase, 39 sectors of the National Dialogue will coordinate a total of 195 pilot dialogues, including ward-based, digital, media-based and sectoral dialogues across all nine provinces of South Africa.

The steering committee emphasised that the Implementation Framework remains a working operational guide that will continue to evolve through implementation learning processes, sectoral coordination and ongoing institutional refinement.

FUL warns of 'severe' ConCourt backlog, urges structural reforms

A new Freedom Under Law (FUL) report has proposed urgent structural reforms for the Constitutional Court, to address what it reveals are severe case backlogs and lengthy delays.

On Tuesday, FUL launched its report titled "A review of the Constitutional Court's jurisdiction and operating practices in light of its increased workload and consequential delays".

The document examines how a dramatic rise in appeals, growing backlogs, and procedural inefficiencies have placed the country's apex court under increasing pressure.

The research report recommended implementing stricter procedural rules and smaller judicial panels to efficiently manage mounting caseloads and ease the burden on South Africa's highest judicial body.

The Constitutional Court's jurisdiction was significantly expanded more than a decade ago, however its institutional design and operating procedures remain largely unchanged.

Every application for leave to appeal must still be considered by all 11 justices, with a minimum quorum of eight judges required even for preliminary decisions.

This has led to mounting delays, with at least half of all petitions pending for more than six months and an average of 210 days required to hand down a judgment following an initial hearing, according to the FUL report.

The report followed mounting public anxiety over delays at the Constitutional Court, including concerns in 2024 surrounding a short-lived proposal to use retired Constitutional Court justices to assist the bench in clearing applications.

FUL executive officer Judith February says how the court functions is a critical concern for South Africa's constitutional democracy.

"As the country's highest court, it determines legal principles that all other courts must follow and has the power to strike down legislation and government action. If the Court is unable to fulfil its role effectively as the ultimate guardian of the rule of law, the consequences extend far beyond the legal community and affect society as a whole," she says.

February notes that the court's growing workload, outdated processes and structural constraints are compromising its ability to decide matters efficiently and timeously.

"If judgments are increasingly delayed and the court is seen to be struggling to manage its workload, public confidence in the judiciary itself may begin to erode," she warns.

To modernise and ensure the court remains accessible and efficient, FUL recommended implementing streamlined procedural rules, structural reforms, and professional screening processes modelled after international apex courts.

FUL research consultant Chris Oxtoby highlights that the court's open-ended "interests of justice" test unintentionally encourages speculative appeals.

Because litigants and lawyers cannot reliably predict when leave to appeal will be granted, the system is frequently clogged with frivolous cases.

To address these inefficiencies, FUL's research compares South Africa's Constitutional Court with apex courts in the UK, Germany, Canada, the US, Singapore, Australia, and India.

The study finds that most of these comparable courts effectively manage massive caseloads through smaller panels of judges, professional screening systems and stricter procedural rules.

Based on this comparative study, the report outlines that practical procedural measures could be introduced relatively easily, such as imposing page limits on applications to the Court, developing a more rules-based approach to the interests of justice test, and delivering reasoned judgments explaining why applications for leave to appeal are refused.

These include reducing the size of the panel of judges who deal with new applications.

FUL pointed out that these would involve more fundamental structural reforms, such as establishing separate chambers to deal with constitutional and general matters, merging the Constitutional Court and the Supreme Court of Appeal into ...

ConCourt deals blow to NHI

Opposition parties and trade unions overwhelmingly welcomed the recent Constitutional Court ruling, which they viewed as a crucial defence against State control and professional coercion.

The government's Certificate of Need (CoN) scheme was widely considered a foundational mechanism for implementing the centralised control required by the National Health Insurance (NHI).

On Monday, the Constitutional Court struck down key sections of the NHI Act governing the CoN, delivering a major blow to the government's NHI plans.

The Constitutional Court invalidated Sections 36 to 40 of the NHI Act, which required doctors and healthcare facilities to apply to the State for a CoN to operate, effectively determining where they can practice.

The court found the scheme irrational and unconstitutional, noting there is no proof that denying certificates in certain areas would force professionals to relocate to underserved communities.

The CoN was viewed by the government as a cornerstone of the NHI, meaning its removal critically undermines the state's capacity to control and redistribute health sector resources.

The Democratic Alliance's (DA's) health spokesperson Michéle Clarke argued that by requiring government-issued permits and allowing the State to impose strict conditions on a practitioner's services and equipment, these provisions were widely criticised as an infringement on property and occupational rights.

The Constitutional Court's confirmation that these clauses are invalid ensures that health practitioners retain their right to practice freely, she said.

She pointed out that while the NHI Act does not explicitly detail CoNs, they have long been regarded as a fundamental mechanism for implementing the NHI's centralised control.

She explained that the court's ruling establishes a major legal precedent that opposes this centralisation, protecting healthcare providers from government dictation on where they are permitted to work.

"This ruling underscore the necessity of balancing constitutional rights with government policy," she said.

The DA maintains a strong commitment to achieving universal quality healthcare for all South Africans. However, the party said it remained fiercely opposed to the NHI in its current form.

The DA argued that the NHI serves as a vehicle for the severe centralisation of healthcare control, an approach it says that risks undermining the private and public healthcare systems rather than improving them.

ActionSA described the ruling as a vital constitutional check against State overreach.

"By invalidating the CoN, the judiciary has safeguarded the autonomy of doctors, dentists, nurses, and other medical professionals from unnecessary and excessive government interference," said ActionSA Member of Parliament Kgosi Letlape.

Medical practitioners are already bound by rigorous oversight and registration through existing statutory bodies, he said and added that the court's decision provides a "timely victory" as further legal challenges against the NHI Act proceed.

ActionSA said quality healthcare cannot be achieved through bureaucracy, coercion, and centralised control. It blamed South Africa's healthcare crisis on government failure, poor infrastructure, and corruption, and not because of a lack of willingness by medical professionals to serve their communities.

"Attempting to restrict the autonomy of healthcare practitioners would only exacerbate the strain on the national medical system and deter skilled workers from remaining in the country. ActionSA views this judgment as a crucial constitutional precedent that reaffirms fundamental rights," said Letlape.

Following this judgment, the party is calling for a broad rethink of the government's approach to healthcare reform. Meaningful reform must be constitutional, patient-centered, and focused on tangible health outcomes rather than the expansion of political control, the party said.

Lobby group Solidarity hailed the decision as a...

DA appoints Glynnis Breytenbach as party's Parliamentary Chief Whip

Advocate Glynnis Breytenbach is the Democratic Alliance's (DA's) new Chief Whip in Parliament, taking over from George Michalakis, who is now the DA's Parliamentary Leader.

Michalakis announced Breytenbach's appointment on Monday, noting her 12-year role as the party's spokesperson on justice.

"During ten of those years, I was her DA counterpart in the National Council of Provinces. Through this, the DA is sending a clear message that safety and security is a top priority for us in Parliament, in line with the Federal Leader, Geordin Hill-Lewis' vision… She will be the custodian of Parliament's rules and procedures on the part of the DA. She will also, alongside myself, be the party's chief negotiator within the [Government of National Unity] in Parliament," Michalakis said.

Breytenbach will oversee the DA's 13 National Assembly whips, 87 National Assembly members, and 12 National Council of Provinces members, alongside her deputy Chief Whip Bax Nodada.

Ramaphosa calls for 'sustained effort' to bridge SA's investment-to-growth gap

President Cyril Ramaphosa on Monday emphasised that transforming investment pledges into large-scale growth and job creation takes time, noting that achieving the National Development Plan's target to raise gross fixed capital formation (GFCF) to 30% of GDP by 2030 will require "sustained, collective effort and productive" domestic investment.

In his weekly letter to the nation, Ramaphosa highlighted that while recent infrastructure summits and the South Africa Investment Conference (SAIC) have yielded massive pledges, a significant gap remains between these promises and implementation.

He said GFCF currently sits at around 14% of GDP, well short of the 30% target.

"Our GFCF reached around 21% in 2008, driven by a sustained commodity boom, the start of Eskom's build programme and infrastructure expansion ahead of the 2010 FIFA World Cup. There has been a steady decline since then, as the global financial crisis and the period of state capture progressively undermined private investment and business confidence," he stated.

Ramaphosa pointed out that since 2018, government has moved to arrest this decline by stabilising public finances, resolving the energy crisis, and advancing structural reforms.

However, he said there remains a disconnect between improved investor sentiment and actual investment on the ground.

Ramaphosa said government and the private sector must bridge the gap to encourage the substantial private capital currently sitting in reserve, such as the R1.8-trillion held by non-financial companies, to be utilised productively.

DOMESTIC INVESTORS LEADING THE CHARGE

The task of building an inclusive society relies on productive investment at scale, and Ramaphosa pointed out that domestic investors led the charge at the sixth SAIC, contributing roughly three-quarters of the record R890-billion in pledges.

These commitments, he said, are actively translating into new factories, mines, and expanded operations, reinforcing the foundation for sustained job creation and growth across the country.

In forging ahead with efforts to attract new investment, government wants the local private sector to be at the forefront of rebuilding investment momentum in the economy.

"Their confidence will encourage more international capital to follow. It is now abundantly clear that the engagements and commitments made in conference halls are steadily and increasingly translating into the economic activity that creates jobs and opportunities for South Africans," Ramaphosa said.

Meanwhile, since the launch of the first national investment drive in 2018, South Africa has attracted investments across energy, telecommunications, infrastructure, automotive, mining, and advanced manufacturing, he pointed out.

Of the R1.5-trillion in pledges secured across 317 projects, a cumulative R634-billion has successfully flowed into the productive economy, translating directly into job creation, he said.

He referenced the R4.2-billion investment by BMW to electrify its Rosslyn plant in Gauteng and to support new energy vehicle production; the R500-million investment by Tetra Pak to upgrade its plant in KwaZulu-Natal; Corobrik's R500-million investment to build its Kwastina plant in Gauteng; and the Newlyn PX terminal in the Port of Durban that began operating in 2024.

He explained that beyond construction and production, these projects are equipping young South Africans for the evolving world of work through critical skills development.

"… for instance, Microsoft has committed more than R5.4-billion to expand its hyperscale cloud and AI infrastructure in South Africa. As part of this initiative, the company partnered with the Youth Employment Service to fund globally recognised certifications in high-demand AI skills," he said.

Ramaphosa declares 'end to patronage', sets new vision for metros

Declaring that the era of patronage, factional politics, and municipal looting is over, President Cyril Ramaphosa has called for the renewal of South Africa's local government, emphasising its role as the essential engine of national development.

Speaking during the closing session of the National Council of Provinces's (NCOP's) 'Taking Parliament to the People' programme in Stilfontein, on Friday, Ramaphosa urged citizens to actively participate in the consultation process for the reviewed draft White Paper on Local Government, currently underway.

"Local government is critical in ensuring that people have water and sanitation, electricity, roads, clinics and community services," Ramaphosa said. "Our task is to make it work for the people. Not for vested interests."

Following the official gazetting of the reviewed draft White Paper by Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa, the Presidency is pushing for massive structural reforms.

The review, which began in 2025, aims to modernise municipalities, fight corruption, and improve service delivery.

Ramaphosa warned against political leaders colluding with "corrupt" businesspeople to destroy infrastructure for private gain, particularly in water provision.

He said the review draft paper aimed to address "decades of confusion" between district and local municipalities, explaining that the new framework aimed to eliminate duplicate functions and clarify roles to stop municipalities from "blaming each other" for failures.

Intergovernmental coordination would become legally binding, in line with the Constitution, forcing different spheres of government to work together in solving local problems instead of operating in silos, he added.

Ramaphosa explained that the White Paper proposed a total overhaul of municipal billing and revenue collection, holding leaders to stricter account regarding expenditure.

He noted that the new reforms would also prioritise the professionalisation of municipal appointments and tackle the "treasonous" tendency of underspending allocated budgets.

"We are going to be focusing on digitisation and strengthening data systems that are able to facilitate and monitor service delivery," Ramaphosa promised.

He said municipal infrastructure could not be allowed to be deliberately ruined so that preferred private companies could take over critical functions such as providing water.

"For too long municipalities have gotten away with saying that they are committed to public participation because they placed an ad in a newspaper, had a public hearing or because they have a complaints line," Ramaphosa said.

He sees meaningful public participation in local government as a structured partnership.

"We are going to be looking at the different ways in which all of society can play a more direct role in shaping how local government is administered. Our country has entered a new era of hope and promise. Our economy is recovering. Investors are increasingly seeing South Africa as a favourable place in which to do business," he said.

ECONOMIC AXIS

Meanwhile, he declared that local government would serve as the critical enabler of the most ambitious infrastructure build programme in South Africa's history.

Ramaphosa confirmed that over the next three years, government will be investing R1-trillion to build energy, water, transportation, logistics, IT and essential other infrastructure.

He emphasised that for South Africa to successfully attract investment and create jobs, its municipalities must be "functional, reliable, and secure".

He noted that investors were not only interested in national policy, but in whether they could bring their investments to areas with functioning basic services.

"Local government doesn't just support development. It is the axis on which our entire economy turns," Ramaphosa said, acknowledging that the current state of many municipalities was a direct...

DA announces Impeachment Committee team

Following the recent Constitutional Court judgment and the subsequent move to establish a Section 89 Impeachment Committee, the Democratic Alliance (DA) has formally submitted the names of those who will represent the party on the committee.

The names of five of its members in the National Assembly have been sent to Speaker Thoko Didiza.

The members will represent the party on the committee, which is tasked with investigating the 2020 Phala Phala farm incident and determining whether President Cyril Ramaphosa committed an impeachable offence.

Last week, the Constitutional Court ruled that the National Assembly acted unconstitutionally and invalidly in December 2022 when it blocked impeachment proceedings against Ramaphosa over the Phala Phala farm scandal.

It ordered that the independent panel's report be officially referred to a parliamentary impeachment committee.

The DA has maintained that where there is a finding of wrongdoing against the President, it will hold him accountable, mirroring the action taken against various members of his cabinet.

"We respect the rule of law and have a constitutional duty to hold the executive accountable in a constructive manner, in the best interest of all South Africans," the party stated.

The party has appointed Parliamentary leader George Michalakis; Deputy Chief Whip Bax Nodada; advocate Glynnis Breytenbach; National Spokesperson Karabo Khakhau and DA Spokesperson on Social Development Nazley Sharif.

The DA said its selected team brings "significant" experience in parliamentary oversight, particularly in holding the executive accountable.

It highlighted that Khakhau gained prominence after exposing the scandal involving the appointments of African National Congress-linked chairpersons to Sector Education and Training Authority boards, which ultimately led to the removal of former Higher Education and Training Minister Nobuhle Nkabane, while Sharif recently spearheaded the accountability campaign against former Minister of Social Development Sisisi Tolashe.

Ramaphosa fired Tolashe on Thursday.

The 31-member impeachment committee will begin its work following the submission of names by all political parties, which were required to be submitted by Friday.

ANC rallies behind Ramaphosa, backs High Court review of Phala Phala report

The African National Congress (ANC) has moved to shut down speculation regarding President Cyril Ramaphosa's future, with secretary-general Fikile Mbalula clarifying on Friday that the ANC's National Executive Committee (NEC) did not consider, nor was it asked to consider, a recall of the President.

Addressing the media at Luthuli House following a special NEC meeting in Cape Town, Mbalula stated that Ramaphosa's resignation was not on the table.

"The National Executive Committee reaffirmed, in clear and unambiguous terms, its full and continuing support for the President of the African National Congress, Comrade Cyril Ramaphosa, as the leader of this movement and, in that capacity, as the leader of the Government of National Unity," Mbalula said.

The special NEC meeting was convened following last week's Constitutional Court judgment, which revived the Phala Phala saga. The court declared that the previous parliamentary process used to shield the President was unconstitutional and ordered Parliament to establish an impeachment committee.

Despite this, the NEC has thrown its weight behind Ramaphosa.

Mbalula addressed the judgment with high praise for the judiciary, noting that Chief Justice Mandisa Maya delivered the May 8th judgment with "an even tone and an admirable, teachable temperament that this country can and must learn from."

"Hers is the leadership of a stateswoman of the law. Hers is the example to which every officer of our courts, every Member of Parliament, every public servant, and indeed every cadre of our movement can aspire," he added.

Mbalula clarified that Ramaphosa, as a citizen, had the right to a fair hearing and the right to seek a judicial review of the independent Section 89 panel report, a move the President has indicated he will take.

Mbalula dismissed calls for the President to step aside, emphasising that the party will not vote to impeach its own President.

Mbalula stated that after receiving and carefully considering the counsel's opinion, the party's national officials have recorded their full support for Ramaphosa's legal strategy.

"The [Constitutional] Court did not find the President guilty of anything. The Court did not direct that Ramaphosa be removed from office," Mbalula said, clarifying the party's position on the ruling.

"The judgment... is concerned with the procedural conduct of the National Assembly and the rules under which it acted. It is not, in any respect, a finding on the merits of the matter," he explained.

Mbalula reaffirmed that Ramaphosa would continue to perform his duties as head of State, noting that the Constitutional Court judgment did not interrupt the work of the government.

"The parliamentary process that the judgment has activated will run its course," Mbalula said, while stressing that the ANC respected the constitutional independence of National Assembly Speaker Thoko Didiza and the programming of the House.

He committed the party to participating constructively in the process.

Didiza confirmed that Parliament would fully comply with the apex court's ruling and was initiating the process of establishing an impeachment committee.

She said the Independent Panel report, which suggested the President may have a case to answer, would be formally referred to this new committee, and a copy would be provided to Ramaphosa to allow him to exercise his legal rights.

The committee is expected to consist of 31 members drawn from all political parties represented in the National Assembly, with the ANC securing nine seats, followed by the Democratic Alliance, MK Party, and Economic Freedom Fighters.

While the ANC maintains its support for the President, the parliamentary process mandated by the Constitutional Court will proceed independently.

The ANC indicated that the "impeachment committee is expected to continue its work unless the Section 89 panel report is set aside by the courts".