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Ramaphosa greenlights salary increases for MPs, judges

President Cyril Ramaphosa has decided to give his public office bearers a salary increment, from April 1.

Spokesperson to the President Vincent Magwenya explained that having considered the Independent Commission for the Remuneration of Public Office-Bearers' recommendations and its impact on the fiscus, Ramaphosa decided to increase the salary of public office bearers by 4.1% and 3.8%, in different categories.

The increase of 4.1% will apply to judges, magistrates, traditional leaders and members of independent constitutional institutions.

While members of the national executive, Members of Parliament, members of provincial executive councils and members of provincial legislatures will see a salary increase of 3.8%

Magwenya explained that the Independent Commission is constitutionally mandated to make yearly recommendations relating to salaries and/or the upper limits of salaries, allowances, and benefits for public office bearers.

The Independent Commission will take into account the role, status, duties, functions and responsibilities of the office bearers concerned, affordability of different levels of remuneration of public office bearers, and inflation.

It also considers current principles and levels of remuneration, especially in respect of organs of State, available resources of the State, and public service remuneration levels.

Illicit economy is eroding legitimate economy, Mavuso warns

The illicit economy is killing jobs, Business Leadership South Africa (BLSA) CEO Busisiwe Mavuso has said, citing the recent announcement by British American Tobacco (BAT) that it will shut its only cigarette factory in South Africa this year as demonstrative of how policy failures and enforcement gaps are destroying legitimate manufacturing.

The cigarette company noted last week that its factory has been operating at 35% capacity and can no longer sustain operations. As a result, 230 direct jobs will be lost, but Mavuso believed the ripple effects could affect as many as 35 000 jobs across the value chain, from the 100 tobacco farmers in Limpopo, North West and Mpumalanga, who produced more than seven-million kilograms of tobacco last year, through to distributors and retailers.

"How did we reach this point? In 2019, illicit cigarettes represented roughly one-third of the market. Today, BAT estimates that proportion has more than doubled to 75%. The acceleration came from policy missteps during Covid-19, when legal cigarette and alcohol sales were banned (which was later declared unconstitutional) while enforcement capacity was diverted elsewhere, allowing illegal networks to establish distribution chains that never closed."

"Subsequent steep increases in excise duties on legal products created even wider price gaps that illicit operators exploited. Illegal boxes now sell for less than the R26.22 in combined excise and value-added tax that should be collected, circumventing health warnings and age restrictions, while costing the fiscus roughly R30-billion annually in lost tax revenue," Mavuso pointed out in her weekly newsletter on January 19.

However, she emphasised that it would be shortsighted to believe this was happening only in the cigarette market, noting that the same dynamics were destroying legitimate businesses across multiple sectors.

She pointed out that illicit alcohol sales had grown 55% by volume since 2017, with one in five drinks now coming from illegal sources, according to the Drinks Federation of South Africa.

Counterfeit pharmaceuticals, fake branded clothing, electronics, cosmetics and even food products are also flooding the market, Mavuso said. The Consumer Goods Council of South Africa has estimated the total illicit economy now represents about 10% of GDP.

"[This is] a staggering figure that, while difficult to measure precisely, indicates the massive scale of the problem," she said.

Mavuso posited that these illegal operations fed organised criminal networks involved in illegal mining, construction mafia activity, and other serious crimes, with the profits funding everything from cash-in-transit heists to more sophisticated criminal enterprises.

"Beyond the immediate tax losses and job destruction, the illicit economy undermines the rule of law and erodes public trust in institutions when criminals operate openly with apparent impunity," Mavuso said.

She said the South African business community had proposed concrete solutions.

For example, minimum retail pricing would make it harder for retailers to sell cigarettes below the tax threshold, while unique product marking systems – such as tamper-proof verification stickers on legal products – would allow for easy identification of authentic goods and help enforcement agencies target illegal imports and local production.

"Technology exists to enable consumers to verify product authenticity through smartphone apps, crowdsourcing enforcement. Yet these proposals have sat with government departments for years without implementation," Mavuso said.

She noted that BLSA had joined the Illicit Economy Task Force established by the Consumer Goods Council to drive coordinated action. The task force would develop specific proposals for product authentication systems across multiple sectors, create public awareness campaigns about the economic and safety risks of illicit goods and work directly with t...

2025 matric results show steady improvement in education – Ramaphosa

President Cyril Ramaphosa said on Monday that while the 2025 Matric results showed a steady improvement in quantity and of quality, enhancing the acheivements of recent years, challenges remain.

Last week, Basic Education Minister Siviwe Gwarube announced that the Matric Class of 2025 achieved the highest pass rate in the country's history.

More than 650 000 learners passed the National Senior Certificate, achieving a pass rate of 88%. This is an improvement from 87.3% in 2024.

"They have contributed to a dramatic increase in the number of South Africans older than 20 who have a matric qualification, increasing from 30% in 2002 to 52% in 2024," Ramaphosa said in his weekly letter to the nation.

He said this showed the value of government's investment in education and the efforts made to level the playing field for all children when it came to quality education.

He said global experience had shown that one of the most effective ways to reduce poverty was to ensure that female children received a good education.

"It is therefore significant that in 2025 more girls sat for the matric exams than boys, and that the pass rates of boys and girls were much the same. A higher proportion of girls attained admission to bachelor studies than boys, and nearly twice as many obtained distinctions. This bodes well for the continuation of their studies at universities and colleges," he noted.

Ramaphosa said it was also significant that more than two-thirds of all bachelor passes came from schools in the most disadvantaged communities, classified as quintiles 1-3.

He said this was a testament to the determination of the learners and their teachers, and to policies such as no-fee schools and the child support grant.

"Taken together with the expansion in recent years of funding for tertiary students from poor backgrounds, these results give us encouragement that many of these young people will be able to lift themselves and their families out of poverty," he said.

He said government was encouraged that 90% of learners with special education needs passed matric and 52% achieved bachelor passes, both higher than the national average.

"Our task is now to ensure that more learners with special needs are able to write matric exams," he said.

Meanwhile, he stated that of the 1.2-million children who started grade one in 2014, only 778 000 made it through to grade 12 in 2025.

He said this was nearly half a million young people who left school before grade 12.

"As we strive to improve the quality of our matric results, we must work harder to ensure that more children complete their schooling," he said.

Ramaphosa explained that another challenge was the drop in performance in subjects such as mathematics.

He highlighted that while more learners were taking these subjects, government had seen a drop in the pass rates for mathematics and accounting.

"These are subjects that our learners need to excel at if they are to succeed in a rapidly changing economy.

"In working to address these challenges, we are starting with the foundations of learning. In the same week that the results came out for the class of 2025, the class of 2037 started their first day of grade one," he said.

South Africa's rand set for longest winning streak since 2002

South Africa's rand is on a weekly winning run not seen in more than two decades as elevated precious-metal prices and an improving economic backdrop drive gains.

The currency is on track for its eighth straight weekly advance against the dollar, which would be the longest streak since December 2002, according to data compiled by Bloomberg. It's strengthened 6.1% over the period.

While record gold and silver prices have supported rand gains, economic reforms and a cautious central bank have also helped. Policy makers adopted a lower inflation target last year, boosting confidence that the country will maintain its interest-rate advantage over the US.

"Possibly, the main cyclical factor is the commodity tailwind,", said Burak Baskurt, chief emerging markets strategist at BNP Paribas. "But structural factors mostly explain the sharp appreciation."

Data next week may confirm that inflation has peaked, according to Bloomberg Economics. With the policy rate at 6.75% and annual inflation seen at about 3.6%, South Africa's real interest rate is above 3%, offering an attractive real return.

"We see further gains for the rand and expect rates and bonds to rally further due to low inflation," Societe Generale strategists including Phoenix Kalen and Marek Drimal wrote in a note Friday.

The gains extended beyond the currency. South Africa's benchmark equity index has risen over 2% this week, hitting a record high as mining shares rallied.

US accuses South Africa of cosying up to Iran with naval drills

The US criticised South Africa for allowing Iran to participate in naval drills off the coast of Cape Town, after conflicting reports about the Islamic Republic's involvement in the exercises.

Iran's "inclusion in joint exercises – in any capacity – undermines maritime security and regional stability," the US Embassy said in a post on X Thursday night. "South Africa can't lecture the world on justice while cosying up to Iran."

Warships from some members of the BRICS group of developing nations, including Iran, Russia and China, arrived in South African waters last week for a naval exercise that continued until Friday.

The sharply worded US statement is the latest criticism of South Africa from its second-biggest trading partner, with whom it has been struggling to repair relations since the return of President Donald Trump to the White House last year. Pretoria's ties to Iran are among the issues that have elicited anger in Washington.

Trump has threatened to attack Iran over a violent crackdown against protesters, and said this week the US will impose a 25% tariff on goods from countries "doing business" with the Islamic Republic.

South Africa is "following the developments in Iran with concern," the presidency said in a statement on Thursday, calling on authorities in Tehran "to ensure that citizens exercise their right to protest in peace."

While local news outlet News24 reported that Pretoria had persuaded Iran to withdraw from the war games, pictures on the South African National Defence Force's Facebook page showed captains of participating vessels docked in the South African naval base in Simon's Town, with Iranian officials present.

"The United States notes with concern and alarm reports that the Minister of Defence and SANDF defied a government order regarding Iran's participation in the ongoing naval exercises," the statement said.

South African government officials didn't immediately respond to requests for comment on Friday.

World Bank's South African GDP growth forecast shows local reforms working – GCIS

The World Bank's outlook projects that GDP growth in South Africa will increase to 1.4% this year and 1.5% in 2027, which reflects the positive impact of continued reform momentum, particularly in the energy and logistics sectors, alongside rising public investment, says the Government Communication and Information System (GCIS).

According to the World Bank report, private consumption and private-sector investment are expected to remain the main drivers of growth, supported by ongoing efforts to improve public expenditure efficiency and ease supply-side constraints.

The World Bank's outlook affirms that sustained reforms are beginning to yield positive results, it says.

Government remains committed to accelerating inclusive growth that translates into jobs, economic opportunity and improved living conditions for all South Africans.

Government will continue to work with social partners, the private sector and international development institutions to strengthen reforms, unlock investment and build a resilient, inclusive and sustainable economy, the GCIS says.

Further, South Africa's government has welcomed the World Bank's assessment that shows economic growth in South Africa strengthened to 1.3% in 2025, supported by a more reliable electricity supply, a strong agricultural harvest and improved business confidence toward the end of the year, it adds.

South Africa launches inquiry into Iran's participation in BRICS+ naval drills

South Africa's defence ministry has launched a probe into Iran's participation in the BRICS+ naval exercises held near Cape Town this week, after reports that President Cyril Ramaphosa had asked Iran to withdraw to avoid antagonising the United States.

There has been confusion over the past week over Iran's role in the drills, which also included Russia and China. A Reuters witness saw three Iranian ships in the False Bay area every day with the other vessels, but the defence ministry has not clarified what they were doing.

South African news outlets Daily Maverick and News24 reported that Ramaphosa had ordered Iran to be withdrawn from the exercises due to concerns about the damage its participation could do to South Africa's shaky relationship with Washington.

The inquiry will seek to determine whether Ramaphosa's instructions were misrepresented and/or ignored, the defence ministry said in a statement on Friday.

Defence Minister Angie Motshekga told Reuters it was untrue that the defence force had defied presidential orders, without giving further details. Ramaphosa's office has declined to comment.

The exercises came at a particularly sensitive time as US lawmakers were considering whether to extend the African Growth and Opportunity Act, a preferential trade programme for some African countries. The US House of Representatives passed the bill on Monday, though there is still a possibility that South Africa could be excluded.

The US Embassy in South Africa posted on social media on Thursday that it had noted with "concern and alarm" the reports about Iran's participation in the exercises.

US President Donald Trump has been threatening to intervene in Iran if a deadly crackdown on mass protests, which appear to be abating, continues.

BRICS+ is an expansion of a geopolitical bloc originally comprising Brazil, Russia, India, China and South Africa - and seen by members as a counterweight to US and Western economic dominance - that now includes several other countries including Iran, Egypt and the United Arab Emirates.

The exercises were described by South Africa as an operation to "ensure the safety of shipping and maritime economic activities".

SA urges 'restraint' in Iran amid violent crackdown

The South African government on Thursday expressed concern at developments in Iran, urging maximum restraint from all parties.

Tensions are running high as anti-government protests over rising living costs across Iran intensify and turn violent.

The death toll from the violent crackdown by the Iranian government, led by Ayatollah Ali Khamenei, is reportedly nearing 3 000.

South Africa said peaceful protests, freedom of expression, and freedom of association were universal human rights that must be upheld "without exception".

"We therefore call on the Iranian authorities to ensure that citizens exercise their right to protest in peace," the South African government said.

It stressed the need for solutions that centre the agency of the Iranian people.

Earlier this week, opposition party, the Democratic Alliance formally wrote to Minister of International Relations and Cooperation Ronald Lamola, demanding that he report Iran to the United Nations Human Rights Council for blatant human rights abuses in the deadly suppression of civilian protests.

IFP says it will engage NFP to ensure stable governance in KZN amid coalition turbulence

The Inkatha Freedom Fighters (IFP) said on Thursday it distanced itself from "political gamesmanship", and said it will engage the National Freedom Party (NFP) after the latter announced it was pulling out of the Government of Provincial Unity (GPU).

The IFP is seeking a meeting to understand better the NFP's concern as it noted speculation and commentary suggesting uncertainty in the GPU including claims about the possible withdrawal of partners.

"Let us be clear: such narratives are misinformed, misguided, and risk undermining public confidence in a government that is working to stabilise institutions and restore credibility," explained IFP National Media and Communications Officer Fanele Mhlongo.

Mhlongo said the IFP have not been officially informed of the NFP's decision to leave the GPU.

"… and in light of their unfolding internal processes, including disciplinary matters, we will await the outcomes," he added.

He pointed out that the party's NEC has directed that the GPU partners, including the NFP, must be engaged to ensure stability, good governance and service delivery in KwaZulu-Natal (KZN).

He highlighted that these engagements by the party are currently underway.

Mhlongo affirmed the IFP's position that the NFP is "fairly and adequately" represented in the GPU.

The IFP reaffirmed its own commitment to the GPU, saying it believes cooperation across political lines is not a weakness of democracy, but one of its greatest strengths.

The GPU represents an opportunity to demonstrate that diverse political traditions can work together in the public interest, guided by the Constitution, accountability to the Legislature, and responsiveness to communities, Mhlongo said.

He highlighted that the party's participation in the GPU is rooted in tangible outcomes.

"Stability must translate into improved service delivery wherein we have functioning hospitals and clinics, safer communities, reliable transport and infrastructure, clean governance in municipalities, and economic recovery that creates jobs," he said.

The IFP called on all partners in the GPU to recommit themselves to the founding principles of the coalition and stressed the need for dialogue, discipline, and adherence to agreed processes.

"… and not through public posturing or destabilisation which plays into the hands of the uMkhonto we Sizwe Party (MKP), which does not have the interests of the people of KZN at heart," the party said.

The IFP rejected what it said was desperate efforts by the MKP, with its motion of no confidence in KZN Premier Thami Ntuli.

"This motion and its accompanying violence and threats of instability and Gender Based Violence have no place in KZN, South Africa or anywhere else in the world."

DA 'disappointed' with Dion George's resignation ahead of inquiry

The Democratic Alliance (DA) on Thursday expressed disappointment with Dr Dion George's resignation ahead of its Federal Legal Commission's (FLC's) probe into alleged violations of the party's constitution.

The party's Federal Executive will on Monday begin with the FLC processes.

Last year, the party's Federal Executive referred the internal dispute between party leader John Steenhuisen and George to the FLC to institute a full investigation, with particular focus on alleged violations of the DA's constitution.

The internal dispute was primarily centred around Steenhuisen and the removal of George as Forestry, Fisheries and the Environment Minister, which had exposed deeper fractures ahead of the party's 2026 leadership contest.

In November last year, the party said Steenhuisen requested that President Cyril Ramaphosa replace George with Willem Aucamp.

"It is unfortunate that Dr George has resigned before answering a pending disciplinary before the DA's FLC," said DA Federal Council chairperson Helen Zille.

Zille pointed out that George was supposed to answer allegations that staff appointments to his Ministerial office were done in a way that unjustifiably raised their salaries, at public expense.

He was supposed to also answer as to whether staff in his Ministry sought departmental information to pursue internal party-political matters; and whether he brought the party into disrepute through the media.

Zille said it would have been preferable for George to go through the FLC process to test the veracity of these allegations.