Author: Agency

A combination of high debt servicing costs and a higher budget deficit has led to the introduction of a new reform of the Gold and Foreign Exchange Contingency Reserve Account (GFECRA). The reform is aimed at mitigating fiscal risks by reducing government borrowing in the medium-term and will allow government to draw down from its GFECRA held at the Reserve Bank. This was announced by Finance Minister Enoch Godongwana during the tabling of the 2024 Budget Speech held in Cape Town on Wednesday. GFECRA is a Reserve Bank held account which captures gains and losses on South Africa’s foreign currency…

Finance Minister Enoch Godongwana says although structural reforms have made “good progress”, load shedding and freight rail challenges remain an obstacle. He was speaking during the Budget Speech held at the Cape Town City Hall on Wednesday. “We have embarked on a broad structural reform agenda that aims to address the challenges that have held back our growth. “This agenda has included areas like electricity, logistics, water, telecommunications and visa reforms. The Budget Review details the good progress that has been made in these areas over the past few years. But, obstacles remain and let me focus on the two…

New retirement reforms that will allow access to a portion of one’s retirement savings before retirement will be effective from 1 September 2024, says Finance Minister Enoch Godongwana. “Progress has been made on the two-pot retirement system since I last addressed you during the Medium Term Budget Policy Statement (MTBPS).  Contributions to retirement funds will be split, with one-third going into a ‘savings component’ and two-thirds going into a ‘retirement component.’ “The two-pot system ensures that we strike a balance between preserving contributions to safeguard a better retirement for members, while addressing the plight of the people to access some…

Some R765 billion has been allocated to the security cluster to up the ante in Government’s fight against crime and to support the defence forces. This was revealed during Finance Minister Enoch Godongwana’s Budget Speech delivered in Cape Town on Wednesday. “In the coming financial year, 10 000 new police recruits will be trained. As part of the country’s responsibility to promote regional peace and stability, this budget will also allocate funding for the deployment of soldiers in Mozambique and the DRC. “Work on costing and identifying the needs for these critical missions will continue throughout the year and funding…

Over the next few years, government plans to implement a global minimum corporate tax to limit the negative effects of tax competition. “Multinational corporations with annual revenue exceeding €750 million will be subject to an effective tax rate of at least 15%, regardless of where their profits are generated. The proposed reform is expected to yield an additional R8 billion in corporate tax revenue in 2026/27,” Finance Minister Enoch Godongwana said on Wednesday in Parliament. Delivering the 2024 National Budget Speech, Godongwana encouraged interested parties to provide comments on the draft Global Minimum Tax Bill published today. The draft Global…

With weak performance by South Africa’s economy resulting in a sharp deterioration in tax revenue collection for 2023/24, government has proposed tax measures to alleviate immediate fiscal pressure and support faster debt stabilisation. Delivering the 2024 National Budget Speech, the last Budget Speech of the sixth administration, Finance Minister Enoch Godongwana said at R1.73 trillion, tax revenue for 2023/24 is R56.1 billion lower than estimated in the 2023 Budget. “The shortfall is largely due to the decline in corporate profits and revenue from taxes on mining. Over the medium term, revenue projections are R45.6 billion higher than the 2023 MTBPS…

Police in Berea, in KwaZulu-Natal, have opened cases of impersonating a police officer, possession of drugs and fraud against a 38-year-old foreign national on Vause Road in Musgrave on Saturday. The suspect was also found in possession of rock cocaine and a fraudulent police identification card. The police were executing their crime prevention duties when they stopped and searched the man. A subsequent search at his place of residence on Okleigh Drive led to the recovery of fraudulent fishing permits, more fraudulent police identification cards, fraudulent refugee asylum work permits, a police date stamp, as well as 15 rounds of…

South Africans can look forward to a “unique” State of the Nation Address (SONA) this evening, as the important event is being held against the backdrop of the country preparing to commemorate 30 years of democracy. This according to President Cyril Ramaphosa’s spokesperson, Vincent Magwenya, who was addressing the media in Cape Town on Wednesday. SONA will be held at the Cape Town City Hall from 7pm. “This [SONA] is different and unique in so many ways. It is important that it is allowed its own expression and that South Africans can take out of it the celebratory element.  We…

Eskom is rolling out its load limiting project – aimed at optimising electricity consumption – across Gauteng following the project’s successful implementation in Fourways, Johannesburg. According to the power utility, load limiting aims to better balance the supply and demand of electricity during Stages 1 – 4 of load shedding. “Through load limiting measures during Stages 1 to 4 of load shedding, customers’ electricity capacity will be reduced from 60/80 Amps to 10 Amps. This will allow customers to continue with the minimal use of electricity for essential appliances such as lights, TVs, Wi-Fi routers, fridges and security systems. “An…

Higher Education, Science and Innovation Minister, Dr Blade Nzimande, has hailed the late Professor Mochichi Samuel Mokgokong, as one of our country’s most decorated academics and scholars. Nzimande joined the nation and the academic fraternity in mourning the passing of Mokgokong, who passed away last week following a battle with cancer. Mokgokong was well known for heading the team responsible for separations of craniopagus conjoined twins and has trained and mentored more than 20 neurosurgeons. Nzimande highlighted that Mokgokong has a long and distinguished academic career in the medical field, which has seen him form part of some of the…