Polity.org.za Audio Articles

Mixed reactions to Mothibi's NDPP appointment

Political parties on Wednesday expressed mixed reactions at the appointment of Special Investigating Unit (SIU) head Advocate Andy Mothibi as the National Director of Public Prosecutions (NDPP), criticising the advisory panel handling the selection process, chaired by Minister of Justice and Constitutional Development Mmamoloko Kubayi.

Mothibi is appointed with effect from February 1.

This after the advisory panel handling the selection process advised Ramaphosa that none of the interviewed candidates were suitable for the role of NDPP.

Democratic Alliance (DA) Spokesperson on Justice and Constitutional Development Glynnis Breytenbach said Mothibi's appointment must be intended to translate into better management of the NPA, more prosecutions, and a reduction in crime.

"The appointment process itself is not without serious deficiencies, leaving much to be desired," she said.

Breytenbach pointed out that Mothibi is well-suited to lead the NPA, however said a major stumbling block is his age.

"At 63 years of age, he has an extremely limited opportunity to make any impact at all and will have his work cut out for him. It is somewhat concerning that the President has seen fit to appoint someone of Mothibi's age, given the serious and systemic issues currently within the NPA. The job itself is a much bigger one than that of Head of the SIU," she explained.

The panel conducting the interviews to select a new NDPP was established in October by President Cyril Ramaphosa, ahead of the end of advocate Shamila Batohi's term of office later this month.

Breytenbach stated that the panel lacked any form of prosecution experience.

"…it was devoid of criminal justice experts, and its inclusion of disgraced former NPA boss Menzi Simelane showed just how incapable the panel was," she added.

Breytenbach also criticised Ramaphosa's handling of the process of finding a new NDPP, calling it "appalling".

"The president unnecessarily delayed the process for months, and when he finally initiated the process after sustained DA-led pressure, it had to be rushed due to time constraints. There is no doubt that this is a major reason why the ill-suited panel was unable to fulfil its mandate," she said.

The DA urged Mothibi to prioritise the appointments of Deputy National Directors, calling on Ramaphosa to immediately initiate a public and transparent process to deal with the appointments.

The Economic Freedom Fighters (EFF) said it had long cautioned that South Africa is subject to what can be defined as an "executive dictatorship" in terms of critical appointments in the judiciary and in chapter 9 institutions, pointing to Ramaphosa unilaterally appointing Mothibi.

"This unique instance where the panel saw no one fit among those they interviewed to be an NDPP, presents another concerning legislative loophole that gives undue discretion to the executive, which requires attention," the EFF said.

The party raised concerns regarding the way Mothibi's NDPP appointment was handled, arguing that the interview panel and the public interviews were established to promote transparency and accountability.

The EFF called for a mechanism, through a consultative process, in instances where panels fail to identify a credible candidate.

The party urged Mothibi to prove that the NPA will function independently and decisively.

"…cases, regardless of who may be involved, or their political exposure must be prioritised and prosecuted without fear, favour or political consideration," it said.

The uMkhonto we Sizwe Party (MKP) claimed that Mothibi's appointment appears to be "pre-orchestrated, politically deliberate and part of a systematic process" to place Mothibi in a "constitutionally critical position."

MKP national spokesperson Nhlamulo Ndhlela said the timing of the appointment was concerning as it coincided with Mothibi's own findings, during his tenure as head of SIU, that there was prima face evidence implicating Ramap...

South African rand steady ahead of producer inflation data

The South African rand was steady in early trade on Thursday, as investors await producer inflation data for clues on the health of Africa's most-industrialised economy.

At 0649 GMT, the rand traded at 16.7675 against the dollar, little changed from its previous close of 16.7750.

Traders will keep tabs on the November domestic producer inflation figures due at 0930 GMT, which will provide insights into price pressures in Africa's biggest economy.

Economists polled by Reuters expect year-on-year producer inflation to fall to 2.8% from 2.9% in October, in line with Nedbank's prediction.

"PPI is forecast to ease from 2.9% to 2.8%, contained by lower fuel costs. Food prices at the producer level likely remained steady, with the impact of high meat prices offset by moderation in other categories, which benefited from favourable weather, improving logistics and stable power supply," Nedbank economists said in a note.

Inflation in South Africa has been well contained this year, allowing the South African Reserve Bank to cut its main interest rate four times. At its last policy meeting, the central bank cut interest rates by 25 basis points, citing an improved inflation outlook.

Its next policy announcement is scheduled for January 29 and analysts anticipate further rate cuts in 2026.

"A strong ZAR, subdued global oil prices, and cheap imports from China have consistently eased domestic cost pressures. With these forces still in effect, inflation is expected to remain muted into 2026. This bolsters expectations for further SARB easing next year, with the first of two more anticipated cuts likely arriving in Q1 or early Q2," said ETM Analytics in a research note.

South Africa's benchmark 2035 government bond was also steady in early deals, with the yield at 8.375%.

SADC deploys panel of elders in support of inclusive process in lead up to new electionsWord ID:

South African President Cyril Ramaphosa welcomed the restoration of calm in Madagascar during the closing ceremony of the Southern African Development Community virtual extraordinary Summit of heads of State and government held on Wednesday.

As interim chairperson of SADC, he also reaffirmed the bloc's commitment to remain actively engaged with the political and security situation in Madagascar until a government was established through an electoral process.

SADC would deploy a 'Panel of Elders and Mediation Reference Group' to Madagascar "to engage with all the stakeholders to ensure there is an inclusive process leading up to the holding of free, fair and credible elections".

Ramaphosa urged the Malagasy people to choose a path of peace, unity, reconciliation and development, while noting the national consultation processes launched by the transitional government last week.

Madagascar is currently under a transitional government, established in October, after mass protests and the ousting of President Andry Rajoelina.

The transitional government had set a goal of national refoundation, the crafting of a new constitution, and the holding of new elections within a two-year period.

Ramaphosa said the summit urged the transitional government led by Colonel Micheal Randrianirina to initiate an inclusive national dialogue that was Malagasy-owned and led.

"This will pave the way for fresh elections and facilitate the peaceful return of political exiles," he said.

"We have further called on the transitional government of Madagascar to ensure that the reform processes are timely, inclusive of all stakeholders, and create a conducive environment in which political exiles can contribute meaningfully," he added.

Ramaphosa also used the platform to congratulate Zambian President Hakainde Hichilema on his election as incoming chairperson of the SADC.

Hichilema was elected on Wednesday, during the closing ceremony of the SADC virtual extraordinary Summit of heads of State and government.

"I look forward to working closely with you, my dear brother as we advance the mandate of SADC in pursuit of peace, security and shared prosperity for our region and all its peoples," said Ramaphosa.

White South Africans could get Trump biography for kids in refugee welcome packet

White South Africans coming to the US as refugees could get a biography of President Donald Trump for children as part of a welcome packet proposed last week by an administration official, emails reviewed by Reuters showed.

The book - "Donald Trump Biography for Kids: An Inspirational Story of One of America's Most Famous Presidents" - was suggested by Fred Cooper, a Trump appointee serving as deputy assistant secretary in a division of the US Department of Health and Human Services, according to a December 8 internal email reviewed by Reuters.

The 89-page biography, designed for children ages 8 to 12, portrays the Republican president as an inspirational figure whose life "is a masterclass in determination, resilience, confidence, and dreaming big."

Cooper also suggested the welcome packet include a biography of Andrew Jackson, the seventh US president. Trump has praised Jackson, a fellow populist, although Jackson has faced historical criticism for owning slaves and driving Native Americans from their lands.

"I imagine these books wouldn't be an issue?" Cooper said in the email, linking to the Trump and Jackson biographies. The email did not say what the US government might pay for the biographies.

HHS and Cooper did not respond to requests for comment.

The planned welcome packet, if finalised, would support Trump's effort to bring thousands of white South Africans to the US as refugees. The program has provoked backlash from the South African government and refugee groups.

Trump froze refugee admissions from around the world after taking office in January but weeks later launched an effort to bring in European-descended Afrikaners from majority-Black South Africa. Trump has said these people were victims of race-based violence and discrimination, claims the South African government strongly denies.

On Wednesday, South African authorities said they would deport Kenyans who were contracted to work on the US refugee program, saying they were using improper visas.

Refugees in the past have received materials explaining US history and culture, but they do not normally promote specific presidents or ideologies, three veteran refugee workers said.

The Trump biography recounts his childhood in New York City and successes and failures as a businessman, including the bankruptcy of his lavish Taj Mahal casino and hotel in Atlantic City.

The book includes prominent moments from Trump's 2017-2021 presidency, from construction of a wall along the US-Mexico border to efforts to combat Covid-19.

In a chapter entitled "Challenges and Controversies," it broaches Trump's two impeachments by the US House of Representatives, including his message to supporters to "fight like hell" before they stormed the US Capitol on January 6, 2021.

"The events of January 6 and the subsequent impeachment trial were among the most contentious moments of Donald's presidency, sparking debates about accountability, free speech, and the future of American democracy," it reads.

The book is published by EverNest Press, whose only online presence Reuters could find was on Amazon, with no available contact information. EverNest Press is also listed as the author. Amazon did not immediately respond to a request for comment.

Cooper also proposed the welcome packet include "The 1776 Report," published in January 2021 as Trump ended his first term in office. The report, the product of a presidential commission convened by Trump, criticises policies that promote diversity.

The HHS official also recommended including a report on religious freedom by the Family Research Council, a conservative group. That report highlights legal battles by American business people who refused to serve same-sex couples, including a Colorado baker who won a case before the US Supreme Court in 2018.

South African rand flat ahead of leading economic indicator, local inflation data

The South African rand was flat in early trade on Tuesday, ahead of the release of local central bank data and inflation data that will shed light on the country's economic outlook.

At 0512 GMT, the rand traded at 16.75 against the dollar, little changed from its previous close of 16.7550.

At around 0700 GMT, the South African Reserve Bank will publish the country's leading business cycle indicator for October, which collects data on vehicle sales, business confidence, money supply, and other factors.

It will help domestically-focussed investors to gauge the health of Africa's most industrialised economy.

Then traders will turn their attention to November consumer inflation data, due at 0800 GMT.

Economists polled by Reuters expect annual inflation to come in at 3.6% for November, unchanged from October's print.

Economists at Nedbank anticipate annual inflation to ease to 3.4% in November, mainly due to lower fuel prices.

"During the month, Brent crude price fell by 2% and the rand strengthened by 1.2% against the U.S. dollar, resulting in a 2.4% decline in local fuel prices. This pulled the annual increase in fuel costs down sharply from 3.3% to 0.9%," said Nedbank in a research note.

However, the bank's economists expect food inflation to remain elevated, driven by double-digit increases in meat prices amid ongoing outbreaks of foot-and-mouth disease.

South Africa's benchmark 2035 government bond was also muted in early deals, as the yield fell 1 basis point to 8.385%.

South African inflation eases, economists see more rate cuts ahead

South African inflation slowed for the first time in three months in November, bolstering expectations that the central bank will cut interest rates further next year even with its new, lower inflation target.

Headline consumer inflation slowed to 3.5% year on year in November from 3.6% in October, within the 1 percentage point tolerance band of the 3% target announced last month.

Economists polled by Reuters had predicted that inflation would remain unchanged at 3.6% last month.

A breakdown by Statistics South Africa showed categories like transport and recreation recorded cooler rates in November, but others like food and restaurants saw increases.

Annual core inflation, which strips out volatile items like food and energy, came in at 3.2% in November.

"The softer-than-expected South African headline inflation reading and weak core inflation will give the Reserve Bank plenty of confidence that it can meet its new, lower 3% inflation target," William Jackson, chief emerging markets economist at Capital Economics, said in a research note.

"We expect 100 basis points of cuts in the repo rate in 2026," Jackson added.

At last month's rate-setting meeting the South African Reserve Bank lowered its main lending rate by 25 basis points to 6.75%, citing an improved inflation outlook.

Since then a quarterly survey commissioned by the Reserve Bank showed business people, trade union officials and analysts expect much lower inflation levels under the new target.

The Reserve Bank's next interest rate announcement is scheduled for January 29.

South Africa arrests Kenyans working on US refugee applications

South Africa on Wednesday said its authorities had arrested and would deport seven Kenyan nationals illegally working on processing refugee applications for the US government.

President Donald Trump's administration aims to bring thousands of white South Africans to the United States under a resettlement programme it started this year, on the basis of claims that they are victims of racial persecution. South Africa's government strongly denies this.

According to the US embassy website, processing for the refugee programme in South Africa is being done by Amerikaners, a group led by white South Africans, and RSC Africa, a Kenya-based refugee support centre operated by Church World Service.

The Kenyans had entered South Africa on tourist visas and illegally taken up work at a processing centre, despite the fact that earlier visa applications for Kenyan nationals to do this work had been denied, South Africa's Ministry of Home Affairs said in a statement.

The seven were arrested during an operation on Tuesday and issued with deportation orders, it said.

CNN reported on Tuesday that two US government employees were also briefly held, then released. The South African statement said no US officials were arrested.

The incident is likely to worsen already bad relations between Washington and Pretoria. During his second term, Trump has repeatedly made false claims about South Africa's treatment of its white minority, and used this as a justification for cutting aid and excluding South Africa from G20 meetings.

"The presence of foreign officials apparently coordinating with undocumented workers naturally raises serious questions about intent and diplomatic protocol," the South African statement said.

"The Department of International Relations and Cooperation has initiated formal diplomatic engagements with both the United States and Kenya to resolve this matter."

The US State Department did not immediately respond to a request for comment. RSC Africa could not be immediately reached for comment.

A State Department spokesperson was quoted by CNN as saying that "interfering in our refugee operations is unacceptable" and that the US government would be seeking immediate clarification from the South African government.

A spokesperson for Kenya's foreign ministry said she was not aware of the incident but would look into it.

Rand gains as gold shines and investors eye year's final economic data

The South African rand gained in early trade on Monday, supported by higher gold prices as local investors look towards the year's last bit of economic data for clues on the health of Africa's most industrialised economy.

At 0701 GMT the rand traded at 16.84 against the dollar, about 0.2% firmer than its previous close.

Gold held near a more than seven-week high on Monday on a weaker dollar and lower US yields, and as a major producer of precious metals, South Africa often benefits from firmer bullion prices.

"Through the past week, the ZAR was able to capitalise on weaker USD sentiment. As the USD remained in a weaker trend, the ZAR was able to sustain the break below 16.90/dlr and open the door for even more ZAR appreciation," ETM Analytics said in a research note.

"Technically speaking, the ZAR could now test levels in the 16.60s before the end of the year, which would play a significant role in reinforcing the virtuous cycle that has resulted in the ZAR appreciating as much as it has this year," ETM Analytics said.

Domestically-focused traders will examine the South African Reserve Bank's bulletin for the third quarter which is expected to be released at 0800 GMT, offering insight into quarterly foreign direct investment and portfolio flows.

Later in the week investors will look to November consumer inflation data and producer inflation figures.

South Africa's benchmark 2035 government bond was firmer in early deals, as the yield fell 5 basis points to 8.39%.

South Africa set for biggest cash-system overhaul in decades

South Africa's central bank plans the biggest overhaul of the nation's cash system in decades, moving to create a cash-management company, roll out white-label ATMs and tighten oversight of how money circulates to make it cheaper and easier to access.

Cash moving through Africa's biggest economy tops R180-billion, or 2.5% of gross domestic product, and accounts for about two-thirds of all transaction volumes even as digital payments grow. Managing, transporting and securing physical money cost about R90-billion last year, a burden shouldered by consumers. Crime accounts for 13% of that.

The so-called Cash Smart Strategy aims to ensure physical funds remain accessible for low-income and rural communities that have limited digital-payment options and often face costs as much as five times higher than wealthier urban users. The reforms - likely to be the largest change in how cash is circulated since ATMs were introduced more than 40 years ago - are intended to ease that burden.

The central bank expects cash usage to drop by 30% to 40% when the nation reaches digitization levels comparable to India, Brazil and the European Union.

"It's a very radical transformation of the industry," Pradeep Maharaj, the head of the South African Reserve Bank's Payments Ecosystem Modernization Programme, said in an interview.

Key to the proposed strategy is establishing a cash utility co-owned by entities including banks and retailers. The company would mirror the Netherlands' Geldmaat - a joint venture between ABN AMRO Bank, ING Groep and Rabobank that operates a unified ATM network.

The utility would model cash demand and distribute it accordingly, removing the 480 million-rand indirect subsidy currently received by a few private companies that hold and circulate physical money on the central bank's behalf.

'WORTHWHILE SHAKE-UP' ATMs, which are mostly owned and operated by lenders such as Capitec Bank Holdings and FirstRand, would be rolled into the company and converted to white-label facilities that any bank's customers can use at little or no cost.

"There'll be complete interoperability and therefore we'd be able to reduce the fees to almost zero," Maharaj said.

While the changes may affect commercial bank revenue, "we hope that doing this would reduce the costs they incur by even more and make up for that," he said.

The strategy won't "come without cost but it will be a worthwhile shake-up if we can make cash cheaper, more accessible and safer," said Jannie Rossouw, an honorary professor at the University of the Witwatersrand's business school.

Declining cash in circulation would also weigh on the central bank's seigniorage income, or the interest it earns on deposits placed with it in exchange for notes, he added.

The central bank is also considering extending cash regulations beyond lenders and may introduce operating licenses for cash-in-transit companies, retailers and some payment-service providers. A draft regulatory framework is expected early next year.

The Reserve Bank further plans to engage major grocers including Shoprite Holdings Ltd. and Pick n Pay Stores - which recycle as much as 100 billion rand in cash a year - about taking stakes in the planned utility and operating as licensed cash wholesalers with direct access to cash, a move that could benefit their businesses, he said.

It presented the plan to banks this month and will engage with industry experts starting January. Rolling out the strategy could take as much as three years.

South Africa records smaller FDI outflows in Q3

South Africa recorded foreign direct investment outflows of R21.0-billion in the third quarter of 2025, down from outflows of R73.5-billion in the second quarter, central bank data showed on Monday.

The South African Reserve Bank said in its Quarterly Bulletin that the outflows were mainly due to Anglo American's sale of its remaining equity in Valterra Platinum.

The outflows were partially offset by an increase in foreign shareholding in a media and entertainment company. French media group Canal+ took control of South African broadcaster MultiChoice in the third quarter.

Portfolio investment inflows slowed to R40.7-billion in July-September from inflows of R69.4-billion in April-June.