South Africa's EFF party seeks to block fuel tax increase
JOHANNESBURG - South African ultra-left opposition party, the Economic Freedom Fighters (EFF) went to court on Tuesday to try to block a fuel tax increase that the finance minister proposed in last month's budget.
The 4% increase in the levy South Africans pay on petrol and diesel is due to kick in on Wednesday, but the EFF wants the High Court to suspend it on the basis that it is unjust and that the minister did not follow proper parliamentary process.
"This increase places an unjust burden on the working class and the poor, who are already reeling from rising costs of living, stagnant wages, and ongoing economic hardship," the EFF said in a statement before a court hearing in Cape Town.
In a sworn statement, Minister Enoch Godongwana said he had the right to raise the fuel levy and that the EFF's case appeared aimed at blocking passage of the budget, which he already had revised twice due to disagreements in the coalition government.
Godongwana said that if the court blocks the tax increase, it would leave a revenue shortfall of at least 3.5 billion rand ($196 million), which would have to be recovered through additional borrowing, taxes or spending cuts.
He has already backtracked on a contentious plan to raise value-added tax, under pressure from the second-biggest political party in the coalition, the Democratic Alliance, and others outside it.
Investors want to see evidence that Africa's biggest economy can rein in spending and hit revenue targets after a steep rise in public debt over the past two decades.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
15 hours ago
- Zawya
Petralon Energy Set to Shape Conversations on Nigeria's Oil Future at African Energy Week (AEW) 2025
African Energy Week (AEW) 2025: Invest in African Energies is honored to welcome Ahonsi Unuigbe, Founder and CEO of Petralon Energy, as a distinguished speaker at this year's edition in Cape Town. A driving force behind one of Nigeria's leading indigenous upstream oil and gas companies, Unuigbe will offer valuable perspectives on the role of independent operators in Africa's energy future, as well as the opportunities arising from sector reforms, new fiscal incentives and major IOC divestments. Since its founding, Petralon Energy has positioned itself at the forefront of Nigeria's upstream sector, with a mission to create value through indigenous ownership and technical excellence. In 2025, the company continues to make significant strides at the Dawes Island Field, where drilling and completion of a new well added 2,500 barrels of oil per day to Nigeria's daily production, directly supporting national energy security and economic growth. Petralon is also pursuing strategic offshore investments through its non-operated interests in OML 127 and OML 130, part of a broader plan to strengthen its asset portfolio amid the shifting dynamics of Nigeria's upstream sector. Beyond its operational achievements, Petralon Energy is focused on long-term capacity building. The company launched its Future Leaders Program in 2024, aimed at equipping young Nigerian engineers with the technical, leadership and problem-solving skills necessary to drive the sector forward. Petralon's strategic partnership and joint investment agreement with engineering firm Julius Berger Nigeria, announced earlier this year, further reflects its commitment to delivering infrastructure solutions that support sustainable field development and enhance project delivery. At AEW 2025, Unuigbe will join key discussions on how African independents can leverage new fiscal frameworks, attract investment and form partnerships that maximize the potential of both mature and frontier assets. His participation will contribute to high-level dialogue around indigenous firms' expanding role in shaping the continent's energy landscape. 'Companies like Petralon Energy represent the future of Nigeria's oil and gas sector — a future where African companies take the lead in driving production, creating jobs and delivering energy security. We are proud to welcome them at AEW 2025, where we will celebrate and support the success of local firms like Petralon that are building Africa's energy industry from the ground up,' states NJ Ayuk, Executive Chairman of the African Energy Chamber. Petralon Energy's participation in AEW 2025 embodies the conference's core theme of African solutions for African energy challenges, and reflects the growing leadership of indigenous companies in delivering the continent's energy future. Distributed by APO Group on behalf of African Energy Chamber. About African Energy Week (AEW): AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event.
Zawya
16 hours ago
- Zawya
Call for Entries: Africa Property Investment Awards 2025 Submit Your Applications by 30 June!
The countdown is on for the prestigious 9th Africa Property Investment (API) Awards 2025, part of the highly anticipated API Summit themed 'Growth Through Adventure' taking place on 18 and 19 September 2025 at The Westin Hotel, Cape Town. The deadline for submissions has been extended to 30 June 2025, giving developers, consultants, suppliers, professional teams, and property owners across Africa an exciting opportunity to showcase their excellence in the continent's dynamic real estate sector. Why enter the API Awards? The API Awards are the continent's definitive recognition platform celebrating outstanding achievements in African real estate. Open to a wide range of participants —from developers and consultants to suppliers and property owners— the awards highlight innovation, sustainability, and impactful growth in the industry. Judged by a distinguished panel of over 20 industry experts and thought leaders, the awards ensure impartiality and credibility, making being named a finalist or winner a coveted accolade that significantly boosts brand exposure and credibility. This year, the judges will evaluate submissions across three key categories: Development; Personnel; Service, Technology, and Innovation. These categories reflect the multifaceted nature of the real estate ecosystem. Spotlight on 2024 winners: Success stories that inspire The impact of winning an API Award is profound and far-reaching. Last year's winners have not only gained industry recognition but have leveraged their awards to accelerate growth, attract investment, and amplify their influence across Africa's property landscape. AlleyRoads: Best Affordable Housing Development 2024 AlleyRoads, a South Africa-based developer, won the Best Affordable Housing Development award for their innovative Inkanyezi Village project in Katlehong, Gauteng. Ivan Pretorius, Founder and CEO of AlleyRoads, shared how the award has been transformative: 'Winning the Best Affordable Housing Development award has highlighted that AlleyRoads plays an important and instrumental role in affordable housing development across South Africa. It has attracted select investors to invest in our group and demonstrated our dedication to improving all aspects of affordable housing.' Pretorius also emphasized the broader social impact of the Inkanyezi Village project that was recognised by the API Awards. Inkanyezi Village in Katlehong boasts 378 apartments that cater to lower-to-middle income households. The apartments are powered by solar panels and a battery system, ensuring supply of electricity even during load-shedding. 'The award raised significant awareness about affordable housing in Katlehong, particularly the innovative use of off-grid power systems. Traditionally a feature of high-end residential projects, off-grid power solutions designed for affordability have improved quality of life in the lower end of the affordable housing market,' says Pretorius. This recognition has not only enhanced AlleyRoads' reputation but also underscored the potential for sustainable, affordable housing solutions across the continent. REdimension Capital: Dealmakers of the Year 2024 REdimension Capital, led by Peter Clark and Matt Marshall, was honoured as Dealmakers of the Year for their outstanding deal-making prowess in the South African property investment market. REdimension Capital is a South Africa based investment firm that funds early-stage technology companies improving real estate through innovation and sustainability. The API accolade has had a tangible impact on REdimension Capital. Says Clark and Marshall: 'Receiving the Dealmakers of the Year award was a meaningful milestone recognizing the significant work we have undertaken. It has enhanced our visibility and credibility within the property and venture investment ecosystem, reinforcing our position as a trusted partner for real estate stakeholders and technology founders.' The pair says the award has also opened new doors for REdimension Capital, helping the company with its capital-raising efforts and expansion of strategic networks. 'Since receiving the award, we have executed additional deals, deepened our pipeline, and been able to provide credible support for our portfolio companies as they add scale. It has also helped strengthen our position as a leader in driving innovation in the built environment—something we are deeply committed to as we continue to bridge the gap between traditional real estate and the next generation of technology-enabled solutions.' Submit Your Entry Today – Deadline Extended to 30 June 2025 The API Awards 2025 are your platform to showcase excellence and innovation in African real estate. Whether you are a developer pushing boundaries in sustainable housing, a consultant delivering cutting-edge solutions, or a supplier enabling transformative projects, your achievements deserve to be celebrated on the continent's biggest stage. Don't miss this chance to join the ranks of Africa's most respected property leaders. Visit the official API Summit Awards page for detailed criteria and submission guidelines: The API Summit is Africa's premier real estate investment event, bringing together industry leaders, investors, government officials, and innovators to explore opportunities and challenges shaping the continent's property market. Distributed by APO Group on behalf of API Events. Distributed for API Events by Dmix: API Events Murray Anderson-Ogle Email: Murray@ Contact: +27 71 890 77 39 Social Media: Website: Facebook: Instagram: @ APIsummit LinkedIn: API Events
Zawya
18 hours ago
- Zawya
World Bank Group considers $500mln boost for South Africa's transmission expansion
The World Bank Group is considering financing $500 million of South Africa's participation in a new credit guarantee facility meant to unlock private financing for a massive transmission grid expansion plan, a senior bank official told Reuters. South Africa is courting private investment for an ambitious plan to add 14,500 km of new lines and enhanced transformer capacity over the next decade, at an estimated total cost of $25 billion, as it looks to emerge from a decade of crippling power cuts that have battered the economy. The proposed credit guarantee vehicle aims to help overcome transmission infrastructure bottlenecks that have held back some 20 gigawatts of renewable energy from connecting to the national electricity network, according to Standard Bank. Many of the renewable projects are situated in the sun-baked Northern Cape or windswept Western and Eastern Cape regions, far from existing transmission corridors linking most of South Africa to the coal-powered generation plants in the north. Operating as a stand-alone entity, the credit guarantee vehicle would issue guarantees instead of South Africa's treasury and would cover payment defaults, for instance, should something go awry during the roll-out. "We could cover or be committed to finance half a billion U.S. dollars of the government of South Africa's first loss or junior capital participation," Yadviga Semikolenova, a senior World Bank manager, said late on Thursday. South Africa has sought not to put further pressure on its strained finances by offering additional sovereign guarantees, as it faces lacklustre growth, high debt-servicing costs and the failure to agree a VAT hike within the government coalition this year. The treasury has committed to providing junior or first loss capital of 20%, which will be an initial $100 million before moving up to $500 million. The credit guarantee vehicle aims to eventually grow to $2.5 billion, an April 4 treasury document shows. The document, seen by Reuters, details a package under discussion with the World Bank Group that includes a loan from the International Bank for Reconstruction and Development to finance the treasury's junior capital and a potential $100 million direct injection from the International Finance Corporation. The bank's Multilateral Investment Guarantee Agency is also considering reinsurance and political risk cover. Approval from the World Bank Group board was expected later this year, treasury officials said. The treasury said in April it had sought backing for the facility from several development financiers, including the Development Bank of Southern Africa, African Development Bank, Germany's KfW and British International Investment. The DBSA said it was considering participating while BII said it could not comment on any transaction that it has not made a commitment to or announced. (Reporting by Wendell Roelf; Editing by Tim Cocks and Alison Williams)
