Author: Ariana Steenkamp

Higher Costs for Using Less Electricity Eskom’s recently approved Retail Tariff Plan (RTP) for 2025 introduces fixed charges that could increase electricity costs for households that consume less power. While the National Energy Regulator of South Africa (Nersa) claims the new structure will improve affordability, many consumers may face higher bills due to increased fixed charges. What Changes Are Coming? The RTP brings a major shift in Eskom’s tariff structure. The key change is the introduction of a fixed Generation Capacity Charge (GCC), applied daily per point of delivery. This means that even if a household reduces its electricity usage, they will still face higher…

South Africa’s Government of National Unity (GNU) is grappling with intense disagreements over the national budget, with political parties clashing over how to address the country’s financial challenges. Central to this dispute is the proposed increase in Value-Added Tax (VAT), which has faced fierce opposition from several influential political figures. Malema Denies ANC Involvement in VAT Discussions Julius Malema, leader of the Economic Freedom Fighters (EFF), has rejected claims that the African National Congress (ANC) approached his party to discuss a proposed VAT increase of 0.75 percentage points. During his birthday celebration in Tembisa, Malema refuted reports in the Sunday Times, asserting…

The proposed 2%  increase in VAT is currently on hold, pending a parliamentary session on 12 March. However, data suggests that if implemented, the impact could be devastating—especially for low-income households. A 2% VAT increase will significantly affect the cost of essential goods and services, making daily living even more expensive for struggling families. Why VAT Matters The Treasury’s attempt to push through a VAT increase has led to delays in the 2025/2026 Budget approval. Finance Minister Enoch Godongwana downplayed the situation, but history shows that VAT increases are met with strong opposition. In 2018, VAT rose from 14% to…

A weather warning has been issued as heavy storms continue to batter parts of South Africa, bringing destruction and disruption to inland provinces. The South African Weather Service has issued warnings for more extreme weather conditions throughout the week. Tornado Hits Tshwane, Causing Extensive Damage A powerful tornado tore through Tshwane on Tuesday, leaving a trail of destruction. Several buildings sustained damage, traffic lights were knocked out, and fallen trees obstructed roads in multiple areas. Emergency services are working to clear debris and restore normalcy. Pretoria – #Tornado hits the Montana area around 16:30 today pic.twitter.com/saHrqatSdN — TrafficSA (@TrafficSA) February…

Potential tax hikes could bring financial strain to South Africans this week as Finance Minister Enoch Godongwana prepares to present the 2025 budget on Wednesday, 19 February. Reports suggest that the National Treasury is considering multiple tax hikes to address a massive budget shortfall, potentially exceeding R300 billion. Possible Tax Increases on the Horizon According to the Sunday Times, Treasury is evaluating various tax adjustments, including increases in VAT, fuel levies, and sin taxes. A potential wealth tax may also be introduced. While taxpayers are already burdened, the government is seeking ways to close the funding gap amid rising costs…

The National Health Insurance (NHI) plan has been declared fundamentally flawed and beyond repair by a coalition representing a majority of South Africa’s healthcare professionals, medical workers, and patient advocacy groups. Despite ongoing discussions within the Government of National Unity (GNU) about potential amendments to improve the system, experts warn that the NHI fails to solve the country’s healthcare issues and may even exacerbate them. Medical Experts Oppose the NHI The Universal Healthcare Access Coalition (UHAC), comprising 28 organisations—including the South African Medical Association (SAMA), Progressive Health Forum, and the South African Private Practitioners Forum—has urged the government to abandon…

The recent enactment of South Africa’s Expropriation Act has ignited a legal battle within the country and heightened diplomatic tensions with the United States. The Democratic Alliance (DA), a key party in the coalition government, has taken the legislation to court, arguing that it grants excessive powers to the state by allowing land expropriation without compensation in specific cases. Meanwhile, US President Donald Trump has responded by freezing financial aid to South Africa and introducing an executive order aimed at resettling white South African farmers in the United States. The DA’s Legal Challenge: Echoes of Apartheid? Helen Zille, federal council chair of…

The Department of Employment and Labour has officially announced the new National Minimum Wage (NMW) for 2025, increasing the hourly pay for workers across various sectors. As of 1 March 2025, the minimum wage will be R28.79 per hour, reflecting a 4.4% increase from the 2024 rate of R27.58 per hour. This adjustment is in line with inflation and aims to ensure fair compensation for workers. Who Does the New Wage Apply To? The updated wage applies to all workers, including domestic and farm workers. However, there are exceptions: Workers in the Extended Public Works Programme will receive a reduced…

The South African Revenue Service (SARS) has officially launched a dedicated cryptocurrency unit, set to aggressively tackle crypto trading and investments both within South Africa and abroad. With far-reaching powers, the unit is designed to clamp down on non-compliance, making it increasingly difficult and expensive for taxpayers to avoid their obligations. Global Reach: SARS Expands Crypto Oversight The new unit not only targets local crypto activity but also extends its reach globally, thanks to international cooperation and the automatic exchange of information. Tax experts at Tax Consulting SA emphasise that SARS can monitor crypto assets held both locally and offshore,…

Johannesburg, South Africa – February 5, 2025South African President Cyril Ramaphosa has addressed concerns about the land expropriation law raised by Elon Musk after the billionaire entrepreneur criticized the country’s new legislation. Musk, who was born in South Africa, echoed former U.S. President Donald Trump in opposing the law. Why do you have openly racist ownership laws? https://t.co/tHWVsmB04F— Elon Musk (@elonmusk) February 3, 2025 Ramaphosa Pushes Back In a statement shared on X (formerly Twitter), Ramaphosa’s office confirmed that he had spoken with Musk to address “misinformation and distortions” regarding South Africa. The president reaffirmed the nation’s commitment to the rule…