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High Court judgment requires Nersa to give more time for public comment on municipal tariff applications

The National Energy Regulator of South Africa (Nersa) is assessing the full impact of a High Court of South Africa (Gauteng division) judgment, which found its municipal tariff applications process was inadequate and invalid.

Civil society organisation AfriForum had brought the application, which challenged the adequacy of Nersa's consultation process.

The High Court also imposed specific timelines on Nersa processes in considering municipal tariff applications, the regulator says.

The proposed timelines include Nersa communicating the Eskom bulk tariffs to municipalities by January 31 each year and that municipalities must submit their tariff applications by March 30 each year.

The proposed timelines also require Nersa to finalise all municipal tariff applications by May 5 each year.

The Court has issued an interim order in respect of these proposed timelines. It has also set a return date to allow all cited parties to submit affidavits for or against the order before a final ruling is made, Nersa says.

Meanwhile, Nersa had published the municipal tariff applications for the 2025/26 financial year for public comments for a period of 30 days.

Some municipalities submitted their tariff applications close to the decision deadline imposed on Nersa in line with the Municipal Finance Management Act.

It also sought assistance from the Department of Cooperative Governance and Traditional Affairs, the National Treasury and the Department of Electricity and Energy in encouraging municipalities to submit their tariff applications within the prescribed deadline, as well as to ensure the applications are supported by cost of supply studies.

The tariffs for all 177 municipal tariff applications received were calculated based on each municipality's cost of supply in compliance with the Electricity Regulation Act.

In response to the consultation process, about 131 written comments were received and considered during the decision-making process, Nersa says.

Meanwhile, AfriForum says the court ruling found that Nersa's approval for the implementation of municipal electricity tariffs without the use of proper cost studies and public participation processes was unconstitutional.

"The new timelines in the municipal electricity increase process will ensure that there is no shortage of opportunities for the public to provide input on the proposed electricity tariff increases," AfriForum says.

Nersa had previously argued that cost studies should not be published with applications in every case, as they are confidential, but the judge ruled against this and found that all applications must also have a cost study attached to them.

If an application is submitted without one, Nersa must stipulate it as such, the organisation adds.

"This ruling ensures that Nersa follows a process where consumers can have a proper and fair say in municipal electricity tariff increases and that Nersa and municipalities cannot pull the wool over consumers' eyes. AfriForum is confident that these fixed timelines will bring renewed stability to electricity tariff adjustments," says AfriForum local government affairs manager Morné Mostert.

"As a regulator, Nersa should ensure that municipalities act within the framework of the relevant legislation and also continuously take into account the interests of consumers," says AfriForum local government affairs adviser Deidré Steffens.

South Africa's commodity boom set to spill into wider economy

South Africa's commodity windfall is expected to seep into the broader economy, boosting banks, retailers and property stocks as stronger prices improve the fiscal outlook and support lower interest rates, according to Old Mutual Investment Group.

"The surge in precious metals prices has already lifted corporate tax receipts and dividends, creating positive second-round effects for the consumer economy," OMIG Chief Investment Officer Siboniso Nxumalo said at an event in Johannesburg on Tuesday. "Historically, when there's been a commodity boom, there are spillover benefits into the economy, which then benefit consumer markets."

South Africa, the world's biggest source of platinum-group metals and the 12th largest gold producer, is riding a commodities upswing fueled by metal shortages, heavy central-bank bullion buying and safe-haven flows, and improving domestic rail-and-port export capacity.

The jump has contributed to FTSE/JSE Africa All Share Index heading for its best annual performance since 2009, led by mining stocks. In the last commodity upcycle in 2021, the mining industry made up roughly half of South Africa's corporate tax revenues, Nxumalo said.

"We've benefited from holding precious-metals companies," Nxumalo said. "Now we're looking at clothing retailers," as the wealth effect spills over and gross domestic product typically rises about 0.6% within 12 to 18 months of a commodity upswing, he added.

The improved fiscal outlook could pave the way for monetary easing and possible credit rating upgrades, according to Alexander Forbes Group Holdings Ltd. Chief Economist Mpho Molopyane.

"The surge in commodities, particularly gold" will bolster revenues, she said. "We anticipate a positive medium-term budget policy statement, with deficits declining faster than previously expected. With inflation moderating, there could be an additional 100 basis points of interest rate cuts ahead."

Finance Minister Enoch Godongwana will deliver his budget update on November 12.

Lower borrowing costs would lift rate-sensitive sectors such as banks and property, while a stronger fiscal position and potential rating upgrades could support the rand and local bonds, Molopyane said.

Molopyane and Nxumalo also said the positive outlook is being reinforced by reforms and a more stable macroeconomic backdrop.

A report from National Treasury last week outlined that nearly half of the government's 30 priority reform measures, such as restoring passenger rail services and expanding the transmission network, were either completed or on track.

"This year seems to be different," Nxumalo said. "We're beginning to see progress on structural reforms, and the macro policy space is improving."

G20 taskforce calls for global panel to tackle 'inequality emergency'

A G20 taskforce established by South African President Cyril Ramaphosa has called for the creation of an international panel to tackle inequality, warning that extreme wealth disparities disrupt democracy and cause economic instability.

"The world understands that we have a climate emergency; it's time we recognise that we face an inequality emergency too," said Joseph Stiglitz, who heads the Extraordinary Committee of Independent Experts on Global Inequality.

The committee's report - commissioned as part of South Africa's G20 presidency - found that the richest 1% of the global population captured 41% of new wealth since the year 2000.

By contrast, the poorest 50% increased their wealth by only 1%, according to data from the World Inequality Lab.

"It isn't just unfair and undermining societal cohesion - it's a problem for our economy and our politics too," added Stiglitz, a Nobel prize-winning economist.

The taskforce said in a statement that a new panel on inequality should be modelled after the Intergovernmental Panel on Climate Change (IPCC). It would be responsible for monitoring the causes and impacts of inequality, and providing insights to governments and policymakers.

Its report also warned that 83% of all countries, accounting for 90% of the world's population, meet the World Bank's definition of inequality and that countries with high inequality are more likely to experience democratic decline.

The authors cited a "perfect storm" of global shocks such as Covid-19, the war in Ukraine and trade disputes, for worsening poverty and inequality. They noted that one in four people in the world regularly skip meals and that billionaire wealth has hit the highest level in history.

The inequality taskforce was a first for the G20 and is expected to present its findings to G20 leaders convening in Johannesburg in November.

The United States is set to take over the rotating G20 presidency at the end of this year.

EFF displeased with appointment of Moepya, Pillay as IEC commissioners

The Economic Freedom Fighters (EFF) has expressed its displeasure at the appointment of Mosotho Moepya and Judge Dhaya Pillay to serve as commissioners of the Independent Electoral Commission (IEC), calling the decision an "irrational majoritarian resolution" of the National Assembly.

On Tuesday, President Cyril Ramaphosa appointed Pillay, Moepya and Joyce Pitso to serve as commissioners for seven years.

Moepya and Pitso will serve as full-time members, while Pillay will serve part-time.

The EFF pointed out that despite Chief Justice Mandisa Maya's report identifying shortcomings in the candidates, Parliament chose to endorse them.

The party also expressed concerns with the Parliamentary Portfolio Committee on Home Affairs' report on the filling of vacancies in the IEC.

Last month, the committee announced its intentions of recommending to the National Assembly Pillay, Moepya and Pitso serve as commissioners, upon the term of office for IEC chairperson Moepya, IEC commissioner Pillay and IEC commissioner Dr Nomsa Masuku expiring.

The EFF explained that the panel chaired by Maya raised specific concerns about Moepya, stating that he appeared defensive, unwilling to acknowledge weaknesses within the IEC, and dismissive of suggestions to improve the commission's systems.

The party further believes that he lacks the necessary "soft skills of empathy and sensitivity required of a leader", and that he has failed to present credible ideas on how to address institutional weaknesses, including the growing voter apathy in the country.

The EFF further expressed dissatisfaction with her views on diversity.

"This decision driven by the African National Congress (ANC) and its Government of National Unity (GNU) partners, the Democratic Alliance (DA) and the Inkatha Freedom Party (IFP), disregards the findings and recommendations of the panel chaired by chief justice Mandisa Maya, which raised serious concerns about the competence, temperament and suitability of Mosotho Moepya and Judge Pillay to serve in the IEC," the party said.

The EFF said the ANC, DA and the IFP ignored "highly competent" and recommended candidates such as Granville Abrahams and instead opted for "individuals whose performance and leadership have already raised questions about the IEC's ability to conduct free and fair elections".

"Parliament's decision to overlook the chief justice's report confirms that the GNU's so-called unity is not about protecting democracy but about preserving political power through the capture of independent institutions," The EFF said.

It claimed that the appointments were part of a "deliberate strategy" by the "ruling elite" to weaken the independence of the IEC and manipulate electoral outcomes.

Court interdicts Operation Dudula from intimidating, harassing foreign nationals

The Gauteng High Court has interdicted the Operation Dudula movement from demanding that any private person produce identification before accessing health facilities.

Members of Operation Dudula have been picketing at hospitals and clinics in Gauteng and KwaZulu-Natal, checking identity cards and stopping non-South Africans from entering.

The court judgment ruled that only immigration officials and South African Police Services (Saps) officers have the power to demand identification from persons.

The court interdicted the movement from intimidating, harassing and/or assaulting any individuals that they identify as being foreign nationals, and making of public statements that constitute hate speech on the grounds of nationality, social origin or ethnicity at public gatherings, on social media platforms or in any other way.

The movement is interdicted from interfering with the access of foreign nationals to health care services and/or their right to such access, and interfering with access to, or the operations of, schools and intimidating or harassing learners, teachers or parents at schools.

The court interdicted and restrained Operation Dudula from unlawfully evicting foreign nationals from their homes and unlawfully removing foreign nationals from their trading stalls or interfering with the employment of foreign nationals in shops and businesses.

It is also restrained from instigating, encouraging or inciting any other person to perform any of the acts prohibited by this order, on social media, at gatherings in terms of the Regulation of Gatherings Act 205 of 1993.

South African factory mood sours in October

South Africa's manufacturing sentiment deteriorated in October, dragged down by subdued domestic demand and sluggish exports, a purchasing managers' index (PMI) survey showed on Monday.

The seasonally-adjusted PMI sponsored by South African bank Absa fell to 49.2 points in October from 50.8 in September, highlighting "the fragility of the manufacturing recovery," Absa said in a statement.

A reading below 50 indicates decreased activity.

The business activity sub-index dropped by 5 points to 49.4, marking the ninth month this year it has been in contractionary territory.

Another sub-index tracking expected business conditions in six months dropped more than 3 points to 46.1.

"Business confidence remains low as the sector continues to navigate external trade constraints, supply-side uncertainty, and cost volatility," Absa said.

South Africa's government is trying to convince US President Donald Trump to lower the 30% tariff he imposed on South African exports to the United States in August, but so far there has been no breakthrough.

Southeast Asian countries want to operate in S Africa for AfCFTA access - Ramaphosa

Returned from his Southeast Asian trip, President Cyril Ramaphosa said on Monday that amid global economic uncertainty, South Africa must diversify its trade and investment relations.

Ramaphosa returned from visits to Indonesia, Vietnam and Malaysia, whose companies want to locate their operations to South Africa to take advantage of the African Continental Free Trade Area.

He pointed out that in each country, the South African delegation met with companies that were keen to invest.

"…some of these companies already have a presence in our country. All of them recognised the great potential of our economy, our well-developed infrastructure, our world-class financial sector, our independent judiciary and stable institutions," Ramaphosa said.

He stated that several companies discussed their plans to build new manufacturing plants in South Africa for the domestic market and other markets in the Southern African region and on the African continent.

"As we continue to expand trade with traditional partners, we see great value in strengthening links with other countries of the Global South," he said.

Ramaphosa explained that already, South Africa exports many agricultural products to these Southeast Asian countries.

"During our visits, we discussed how to expand the range and the quantity of agricultural products we supply these countries, ranging from beef to soybeans to fruit. Among other things, we agreed to look at some of the regulatory barriers to market access," he said.

He pointed out that South Africa's ties to Indonesia and Malaysia go back more than 300 years, when the Dutch East India Company brought people from what were then known as the Dutch East Indies to South Africa as slaves.

He said alongside Indonesia and Malaysia, Vietnam was a firm supporter of the struggle against apartheid. Vietnam's struggle for independence and self-determination was an inspiration to many South African freedom fighters, he added.

He highlighted that over time, each of these countries had expanded their advanced manufacturing capacity, with some taking the lead in semiconductors, batteries and electric vehicles.

Ramaphosa noted that South Africa, with its substantial reserves of critical minerals, was well placed to supply the products that these industries needed.

"We are keen to develop partnerships with these countries to ensure that we add value to these minerals before exporting them. This is part of our ambition to move away from being an exporter of raw materials to producing finished goods," he explained.

While much of the visit focused on expanding trade and investment ties, Ramaphosa said the South African delegation shared with all three countries a common approach to international matters.

"We are all firm advocates of multilateralism and international law, the reform of the United Nations and cooperation between the countries of the Global South. We therefore agreed to work together to promote peace and security, climate action and sustainable development," he said.

GNU more 'cohesive, determined' than ever before, say leaders

Leaders of the Government of National Unity (GNU) said the coalition is now "more cohesive, determined and focused", agreeing to further engagement on South Africa's international relations to develop a common understanding of the national interest.

The leaders of the 10 political parties that constitute the GNU on Monday concluded what they say was a "highly productive" two-day retreat in Johannesburg.

The leaders said they recognised difficulties at times in the functioning of the GNU, most notably around the 2025 budget process.

"…however, it has drawn important lessons from these experiences and will ensure more effective consultation in developing fiscal priorities and frameworks," they said.

They assured that the GNU is focused on urgency and action and remains true to its fundamental purpose: to serve the interests and meet the needs of all South Africans.

The meeting was attended by African National Congress President Cyril Ramaphosa and Deputy President Paul Mashatile; Democratic Alliance leader John Steenhuisen; Inkatha Freedom Party leader Velenkosini Hlabisa; Patriotic Alliance leader Gayton McKenzie; Freedom Front Plus leader Corné Mulder; United Democratic Movement leader Bantu Holomisa; Rise Mzansi leader Songezo Zibi; Al Jama-Ah leader Ganief Hendricks; Pan Africanist Congress of Azania leader Mzwanele Nyhontso; and GOOD Party secretary-general Brett Herron.

The meeting agreed that the forum of party leaders would meet regularly to provide strategic political direction to the work of the GNU.

All parties reaffirmed their full commitment to the GNU as a reflection of voter's wishes.

Over the 16 months since the parties signed the Statement of Intent, the leaders said the GNU has provided "stability and leadership" to the country.

"It remains focused on resolving the concerns of the South African people: unemployment, poverty, the cost of living, crime, corruption and delivery of services," they stated.

While there has been progress over the last 16 months, they agreed that work needs to be accelerated.

The leaders promised they will ensure "greater urgency and action" in the implementation of government programmes, the streamlining of processes and structures and the further professionalisation and depoliticisation of the public service.

One of the focuses for the GNU is the development of a food security plan, and a comprehensive strategy for skills development.

Further, they promised that law enforcement and security services will be mobilised and that key stakeholders will intensify the fight against the rise in gangsterism and organised crime.

The leaders also noted the appointment of "capable, ethical leadership" in the criminal justice system, while also equipping national and provincial government to intervene more effectively where municipalities fail to fulfil their mandates.

A comprehensive response to illegal immigration will also be undertaken, including strengthening border management and expanding economic opportunities for South Africans.

They further promised to improve oversight and coordination of State-owned enterprises and setting minimum standards for board appointments.

HSF commits to justice for more apartheid-era crime victims after Luthuli ruling

The Helen Suzman Foundation (HSF) said it remained committed to justice for the families and victims connected to unprosecuted apartheid-era crimes and wants the public's help.

The HSF is urging those with relevant information to old cases to make submissions to the Commission of Inquiry into Delays in Investigation and Prosecution of Truth and Reconciliation Commission cases.

The HSF welcomed this week's KwaZulu-Natal High Court ruling which found that Chief Albert Luthuli was murdered by operatives of the Apartheid Security Branch in 1967.

The original inquest had ruled that Luthuli died in a train accident.

"His family, however, maintained for nearly six decades that he was killed and fought for the truth to be uncovered," said the foundation.

Luthuli, who led the African National Congress (ANC) from 1957 to 1967, was awarded the Nobel Peace Prize in 1961 for his commitment to non-violent resistance and the struggle for freedom.

The foundation pointed out that Helen Suzman and Luthuli shared a deep respect for one another.

"Luthuli once described Helen as 'a bright star in a dark chamber'. Despite his banning order, Helen visited him in Groutville, Zululand, to seek his counsel on the formation of the Progressive Party, and the two remained in correspondence. She later attended the unveiling of his tombstone in July 1972," the foundation recalled.

The HSF said there is a heightened obligation for the State to investigate and prosecute ongoing crimes such as enforced disappearances.

In May, President Cyril Ramaphosa signed a proclamation for the establishment of a judicial commission of inquiry to determine whether attempts were made to prevent the investigation and prosecution of apartheid-era crimes.

The commission is chaired by retired Constitutional Court Judge Sisi Khampepe, assisted by retired Northern Cape Judge President Frans Diale Kgomo and Advocate Andrea Gabriel.

Earlier this month, the HSF made a submission to the inquiry.

The Court also recommended that the National Prosecuting Authority investigate the kidnapping or enforced disappearance of witnesses linked to the case.

Govt commits to equip youth with entrepreneurial skills, launches land programme

Deputy President Paul Mashatile wants government and the private sector to adopt a proactive stance to address the disparity between labour supply and demand, while he also announced government's commitment to expand youth access to land.

Mashatile was speaking during the National Youth Development Agency (NYDA) Youth Investment Indaba, where he said the youth voice - inside workplaces, in civic engagements and in the public and private sectors - needed to be elevated by policies, programmes and interventions that were impactful.

According to Statistics South Africa's first-quarter release of 2025, 34% of all youth aged 15 to 24 - more than 3.5-million young people - are disconnected from the labour market and the education system.

On Thursday, NYDA deputy chairperson Bonga Makhanya said South Africa would, from Friday, roll out loans from a R2.5-billion Youth Fund to support small businesses, as part of government's plan to tackle unemployment.

"We must create a labour market that will effectively create employment opportunities for young people, including those with no skills," Mashatile said.

A national compact, he said, should be a deliberate and collaborative process intended to unite various sectors of society.

"…we should all work towards shared objectives, particularly to address significant social, political, or economic challenges that our nation is currently facing.

"We should develop practical solutions to the challenges that young people face, such as high unemployment, unequal educational access, and high rates of substance abuse and criminal activity," he stated.

He said government was also committed to expanding youth access to land.

"We want to see young people leading in agriculture, agro-processing, and rural enterprise. I am excited to hear of the NYDA's Rapid Land Release Programme which complements this effort by being a purchaser of land holdings and making land accessible to young people," he stated.

He said working with the Inter-Ministerial Committee on Land Reform and Agriculture, which he chaired, could unlock practical opportunities for young people to build viable commercial enterprises.

Mashatile said government should also concern itself with school violence, the technological access disparity and the skills mismatch between education and employment.

He said the Human Resource Development Council could play a role in addressing the disparity between labour supply and demand by improving workforce skills, creating jobs and fostering economic growth.

"This is an entrenched challenge that directly calls for innovation and leadership. We assert that equipping the youth with entrepreneurial skills is essential for societal success, particularly considering our efforts to amend post-apartheid legislation that excluded the majority from economic participation," he said.

He added that private companies must be encouraged to invest in township and rural regions to establish hubs to create employment and boost local economies. "I must underline that economic development requires young people, especially those unemployed and not in education or in training, to explore entrepreneurship as a means of self-reliance and employment," he said.

POLICY SUPPORT

Meanwhile, he said government must implement policy support and access to capital and markets for goods and services.

He stated that legislation and regulation must not be a burden but rather an enabler.

"When crafted and implemented with purpose, they provide powerful frameworks that ensure fairness, protection, and opportunity for growth," he said.

Mashatile said transformation laws must be implemented and could not be changed because some disagree.

The Democratic Alliance wants the broad-based black economic empowerment policy rolled back through implementation of its own suggested Economic Inclusion for All Bill, and is urging the African National Congress to support it.

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