Exploring the emerging trend of using cryptocurrency as a hedge against inflation, highlighting real-world applications and driving economic growth in South Africa.



Cryptocurrencies have had a tumultuous history, often marred by speculation and fraudulent activities. However, the recent decline in public interest has allowed for more realistic applications to emerge, along with appropriate regulation. This maturation of the crypto space has led to an exploration of cryptocurrencies as a potential hedge against inflation.



Ahren Posthumus, CEO of Momint, a tech startup based in Cape Town, believes the reduction in hype has allowed for a focus on real-world projects that are auditable and have a real background. &#8220;We&#8217;re seeing this [crypto as a hedge against inflation] quite a lot&#8230; But not only is it being used as a hedge, it’s also being used as a mechanism to drive the bottom line and solve real problems that South Africa is facing right now,” he says to FORBES AFRICA.



Another notable advantage of cryptocurrency as a hedge against inflation is stablecoins. Since stablecoins are backed by the US dollar, owning them is equivalent to saving in dollars. Storing funds in USDT or earning in other stable tokens like USDC can help keep finances protected from devaluation.



According to Peter Mureu, Marketing Director at Yellow Card, “The rand has dramatically lost its value over the past decade. From ZAR10 for $1 in 2010 to almost ZAR20 for the same amount now, the purchasing ability of the rand has nearly been cut in half. Investing in crypto, especially USDT will allow for that risk to be halved and increase the ability to purchase alternative power sources to deal with the current power issues/load-shedding. For those earning in USDT, even the lack of power is an easily surmountable problem because the USDT is constantly appreciating regardless of the state of the rand.”



One such problem is South Africa’s current energy crisis. The combination of large tax rebates for investments in renewable energy, coupled with platforms such as Momint, has seen large growth in realistic applications for cryptocurrencies. “Our tokenized, fractionalized solar investments qualify for Section 12 rebates… this is massive,” continues Posthumus.



Lerato Lamola, consultant and crypto specialist at Webber Wentzel, notes that South Africa’s legislative process seems to be in line with this, with the country classifying crypto as a financial product rather than a security. This allows crypto to be managed more easily within the framework of existing financial instruments.



“South Africa is really focusing on the man in the street,” says Lamola. “South Africa is now focusing more on how crypto is impacting retail consumers.”



Cryptocurrencies and blockchain technology are emerging as potent tools for socio-economic development in Africa, particularly South Africa. By facilitating low-cost remittances and microloans, they&#8217;re creating meaningful changes that uplift the economy.



Posthumus sees the burgeoning sector as a vehicle for innovation and economic growth, asserting that cryptocurrencies could engender a more equitable financial system by enabling secure and cost-effective transactions.



In Africa, cryptocurrencies and blockchain technology are no longer theoretical concepts; they have become practical tools driving tangible change. Platforms such as Momint are already realizing this – one such example is the ability for users to fractionally invest in renewable energy projects, allowing investors to generate returns, take advantage of renewable investment tax breaks, and invest in sustainable development.



Cryptocurrencies in South Africa and Africa are increasingly seen as more than just volatile investments, but as powerful tools.



&#8220;The biggest thing for us is about having a product that people can use and understand. It’s about education, and we need to be building that trust with the consumer,” adds Posthumus.

Bitcoin on digital circuit board and graph

Crypto As Inflation Hedge: South Africa’s Innovative Approach To Digital Assets

Africa’s secret weapon in the global energy race – green hydrogen. The continent has the potential to flip the script, transitioning from a fossil fuel consumer to a green energy titan.



The global energy transition has a burgeoning champion – green hydrogen. Often overshadowed by solar and wind, this renewable resource is increasingly crucial for a sustainable future.



The current global hydrogen market is over $130 billion. The World Bank predicts an annual growth of over 9%. Although the surge is likely niche until 2030, the growing demand for renewable energy means that green hydrogen could accelerate rapidly thereafter. Regions with low-cost markets and abundant renewable resources, like Africa, become attractive production markets.



The principle is straightforward. Use renewable energy sources to split water into hydrogen and oxygen. The result? A fuel source that releases only water upon consumption. The applications are limitless, from powering cars to heating homes.



<h3 class="wp-block-heading" id="h-what-is-green-hydrogen">What is green hydrogen?</h3>



At its core, green hydrogen is simple. It’s hydrogen, the universe’s most abundant element, produced environmentally friendly. But how do we make it, and why does it matter?



Green hydrogen is generated via electrolysis, which splits water into hydrogen and oxygen using electricity. But for the hydrogen to be ‘green’, the electricity must come from renewable sources, like wind or solar power. The only byproduct is oxygen, a harmless gas we breathe every day.



In contrast, most hydrogen produced today is ‘grey’ or ‘blue’. It’s derived from fossil fuels, mainly natural gas, and the process releases significant amounts of carbon dioxide, a harmful greenhouse gas. Green hydrogen represents a shift away from this environmentally damaging status quo. However, green hydrogen faces challenges. Currently, it accounts for less than 1% of all hydrogen production. The main obstacle is the production cost, which is not yet competitive compared to grey or blue hydrogen. Most green hydrogen is used in energy-intensive industries like steel and chemical manufacturing.



The path to economic viability for green hydrogen lies in a combination of technological advancements, increased global development investment, and legislative commitments. These factors are expected to make green hydrogen a serious market contender in the coming decades.



Africa is fast becoming a frontrunner in the green hydrogen race.



<div class="wp-block-media-text is-stacked-on-mobile"><figure class="wp-block-media-text__media"><img decoding="async" loading="lazy" width="1024" height="682" src="https://cms.forbesafrica.com/wp-content/uploads/2023/08/GettyImages-1240573620.jpg" alt="" class="wp-image-59195 size-full" srcset="https://cms.forbesafrica.com/wp-content/uploads/2023/08/GettyImages-1240573620.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2023/08/GettyImages-1240573620-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2023/08/GettyImages-1240573620-768x512.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure><div class="wp-block-media-text__content">
<blockquote class="wp-block-quote">
“FROM SOLAR TO BIOGAS, FROM WIND TO BATTERY STORAGE, THESE INVESTMENTS ARE LEADING ONE OF THE MOST IMPORTANT GROWTH INDUSTRIES IN OUR COUNTRY.&#8221;
<cite>—South African President Cyril Ramaphosa</cite></blockquote>
</div></div>



Blessed with an abundance of sunlight and wind, Africa is ideally positioned to exploit green hydrogen’s potential. Groundbreaking projects are taking shape across the continent.



From the ambitious SA-H2 venture announced recently in South Africa to a green hydrogen initiative between Namibia and Botswana, these projects signal profound economic opportunities for job creation, growth, and sustainable development.



The Africa Green Hydrogen Alliance (AGHA), established in 2022, emphasizes Africa’s competitive edge due to low production costs. Masopha Moshoeshoe, Green Economy Specialist at the Investment and Infrastructure Office in the Presidency of South Africa, stated in a press release issued by the United Nations Framework Convention on Climate Change on the launch of the alliance: “Green hydrogen has the potential to marry South Africa’s significant mineral endowment with its significant renewable revolutionize its energy sector. The SA-H2 fund, which aims to establish a hydrogen ecosystem in South Africa, is at the forefront of this exciting transition.



The $1-billion fund was announced in June as part of a joint effort between the Netherlands, Denmark and South Africa.



“From solar to biogas, from wind to battery storage, these investments are leading one of the most important growth industries in our country,” said South African President Cyril Ramaphosa at the announcement in Pretoria.



Blended finance is a key concept underpinning this project.



Andrew Johnstone, the CEO of Climate Fund Managers, explains to FORBES AFRICA that it refers to the strategic use of public



or philanthropic funds to mobilize private sector investment in sustainable development. In the context of SA-H2, this means bringing together private and public funding to make projects economically viable.



“They (the funds) act as a “spark” to ignite and mobilize belief, technology, and other forms of capital,” says Johnstone.



“The SA-H2 project should be seen as part of a larger effort across the region to leverage blended finance for sustainable energy development.”



The project is financed by a combination of different forms of capital, each with a different return requirement. This includes donor capital, commercial capital, and guarantees. By bringing these diverse sources of funding together, the project achieves a lower average cost of capital.



Johnstone explains, “Blended finance means in this context&#8230; to bring in capital in defined proportions in pursuit of a low average cost of capital.” Notably, this blended finance model also allows



for differential risk sharing. If a project underperforms, certain investors may not receive a return, thus sharing the risk in a structured and agreed-upon manner.



Once a project is up and running, it has an obligation to repay its funders, whether those are lenders through equity or energy loans, or others through dividends. Johnstone describes this repayment as a “waterfall”, with those who took the least risk and accepted a lower return being repaid first.



It’s important to highlight the transparency and regulation of these funds. They operate similarly to companies, are regulated by appropriate bodies, and are overseen by advisory boards and investment committees populated by investors or independent representatives. This governance structure ensures a high level of oversight and accountability.



Another key aspect of the SA-H2 project is the co-existence of different funds. The development side of the project is planned with public contracts and equity funds in mind. This co-existence helps redefine what “bankable” means in the context of these projects, potentially accelerating the implementation process.



These blended finance projects aim to create scalable, replicable, and improvable markets, serving as a catalyst for broader change in the energy sector.



South Africa’s SA-H2 initiative is not alone in its ambition.



Namibia is also making significant strides in the green hydrogen sector.



Noteworthy is a project in the Tsau Khaeb National Park, near Lüderitz, with the Namibian government proactively confirming a 24% equity stake in this $10 billion project, almost equivalent to the country’s gross domestic product.



This initiative, led by Hyphen Hydrogen Energy, is gaining momentum with several key partners signing a Memorandum of Understanding to collaborate on the necessary infrastructure for Namibia’s green hydrogen production ambitions.



“Namibia is perfectly positioned to produce low-cost green hydrogen and ammonia for domestic and international markets,” said Frans Kalenga, Technical Advisor to the Minister of Mines and Energy of Namibia on Namibia’s joining of the AGHA, in a press statement. “[It] provides a platform for us to collaborate with neighboring countries. AGHA’s report reaffirms the potential, and provides important recommendations on how we can work together to unlock the extraordinary potential.”



This potential is estimated to generate 15,000 jobs during the direct construction of the project, and a further 3,000 created permanently when the project is fully underway.



Namibia’s Vice President Nangolo Mbumba acknowledged the global transition toward green hydrogen, as well as the country’s abundant natural resources and landscape assisting in the suitability of its development as an industry.



“We are now approaching new fields of economy. Everybody is talking about green hydrogen. Three-four years ago, even the pronunciation was not known,” he said, speaking during the Forbes Under 30 Summit Africa in Botswana in April. “People need energy, and plenty of it,” he continued, acknowledging the international collaboration, local training and investment in education to develop the skills needed for green hydrogen initiatives.



“If we succeed, we will produce enough energy for the whole region of southern Africa,” added Mbumba.



<h3 class="wp-block-heading">Policy and profitability</h3>



A confluence of factors is propelling the growth of green hydrogen in Africa. The continent’s abundant natural resources, particularly sunlight and wind, provide an ideal setting for green hydrogen production. Escalating global demand for clean energy is creating opportunities for African nations to emerge as green hydrogen exporters. Moreover, policymakers are increasingly recognizing green hydrogen’s potential in achieving climate goals and fostering sustainable development.



The advent of green hydrogen presents a substantial opportunity for job creation across the African continent.



With Africa positioned as a potential global exporter of green hydrogen, the sector could become a significant contributor to the continent’s GDP. Moreover, the revenues generated from green hydrogen exports could be reinvested into local communities, improving infrastructure, education, and healthcare.



An analysis by McKinsey on behalf of AGHA identified a possible increase in GDP for member countries of between $66 billion and $126 billion by 2050, as well as up to 4.2 million new jobs as a result of green hydrogen investments.



The potential offers a pathway for nations to build a more resilient future, mitigating economic risks tied to unpredictable oil and gas prices. By developing a green hydrogen industry, nations could foster local technological innovation and enhance their manufacturing capabilities.



This prospect could shift Africa’s role in the global energy landscape, transitioning from a net importer of fossil fuels to a significant exporter of clean energy.



However, the promise of green hydrogen is not solely economic. It also offers a sustainable solution that addresses the pressing issues of economic development and climate change simultaneously.



<h3 class="wp-block-heading">Green Hydrogen is a tool for survival</h3>



As the world stands on the brink of a pivotal moment in its fight against climate change, green hydrogen emerges as a powerful ally. As a clean, carbon-free source of energy, green hydrogen can replace fossil fuels in various sectors, leading to a dramatic reduction in greenhouse gas emissions.



In Africa, where climate change threatens both people and ecosystems, investing in green hydrogen will not only enable nations to contribute to global emission reductions but also helps them build resilience against climate change impacts at home.



Even though Africa is responsible for only a fraction of global carbon emissions, the continent is actively taking steps to reduce its carbon footprint.



Green hydrogen can play a significant role in these efforts, replacing carbon-intensive fuels across the economy and leading to substantial emission reductions.



Moreover, exporting green hydrogen to other continents could further reduce global carbon emissions, enhancing Africa’s contribution to the global fight against climate change.



Renewable energy has been identified by many African countries as a key element of their climate change mitigation strategies. Incorporating green hydrogen into these strategies could hasten their progress towards achieving climate goals.



By offering a means to store and transport renewable energy, green hydrogen could solve one of the significant challenges of the energy transition: the intermittency of wind and solar power. This could facilitate a more extensive and efficient use of renewable energy, driving further emission reductions.



At the heart of the global energy transition, green hydrogen stands out as a beacon of hope. This renewable resource, making waves in the energy sector worldwide, has found a promising home in Africa. The continent, blessed with abundant wind and sunlight, is quickly gaining recognition as a potential global leader in green hydrogen production.



Pioneering projects across the continent signify Africa’s commitment to embracing green hydrogen.



Yet, the narrative of green hydrogen extends beyond economics. It is a tale of resilience and innovation in the face of climate change. Looking ahead, it’s clear that green hydrogen could reshape Africa’s energy landscape, transforming the continent from a net importer of fossil fuels to a major exporter of clean energy. Such a transformation could not only stimulate economic growth but also enhance Africa’s influence in global energy and climate policy discussions.



For Africa, the opportunity is now. It’s an opportunity that calls for further research, investment, and policy support, for the sake of the continent and the world.

Aerial view of hydrogen tank terminal at sea

The Rise Of Green Hydrogen In Africa

The recent coup in Niger has escalated tensions in West Africa as the junta defies ECOWAS&#8217;s deadline for reinstating President Mohamed Bazoum.



Niger has closed its airspace following the expiration of a deadline imposed by the Economic Community of West African States (ECOWAS) for the reinstatement of elected President Mohamed Bazoum. This comes after Bazoum was ousted in a coup by a military junta, marking a significant crisis in West Africa&#8217;s diplomatic landscape.



ECOWAS, a regional political and economic union of fifteen West African countries, has been pushing for democratic stability in the region, and military action to reinstate the president is now a possibility. The situation has attracted international attention, with the coup igniting tensions in an already fragile part of the continent.



The coup, which was declared last month by the head of the Presidential Guard, General Abdourahamane Tchiani, blamed a lack of economic growth and continuing insecurity for the ousting of Bazoum. However, the country has long seen divisions between the democratic political sphere and the military, with the last coup attempt being mere days before Bazoum’s inauguration in 2021.



Niger under Bazoum has served as a critical strongpoint for the European Union in an attempt to block illegal migration from Africa, and an important ally from which France has based its military operations on the continent after relations with Malian authorities soured last year. The United States also considers Niger an ally, and has supported the country with foreign aid, some of which has been paused in light of the coup.



African heads of state as well as European and American bodies have condemned the coup, and ECOWAS’ stated deadline for Bazoum’s reinstatement reflected the body’s hard stance against his deposition.



However, the closure of Nigerien airspace yesterday indicates that the junta will not comply with demands, increasing tensions, as it remains to be seen whether this non-compliance will result in a military invention by ECOWAS in the already unstable region.

Demonstration of coup supporters in Niger

Niger Airspace Closure Signals Deepening Crisis As ECOWAS Deadline Passes

From being the 12th-largest beer-consuming nation to pioneering Rooibos-infused brews, South Africa&#8217;s beer industry shows no signs of slowing down, as we explore on International Beer Day.



Today marks International Beer Day and South Africa raises its glasses to an occasion that epitomizes its passion for beer. Marked every first Friday of August, this day brings together enthusiasts to revel in the endless creativity that characterizes the world of beer.



South Africa&#8217;s love for beer is legendary, a sentiment reflected in its status as the world&#8217;s 12th largest beer-consuming nation, with an annual consumption of roughly 34.47 million hectoliters. But beyond the impressive numbers lies a landscape brimming with innovation and cultural resonance. No longer confined to mass-produced lagers, South African beer has transformed into a dynamic palette of craft breweries, unique flavors, and a consumer base eager for new experiences.



Adele du Toit, SA Rooibos Council spokesperson, expressed her excitement about this trend: &#8220;The way we drink beer is changing because of how beer-makers are looking to innovate in the market. We&#8217;re seeing an uptake in craft breweries and brewing at home, allowing more personalization and bringing the experience of beer-making and enjoyment to the forefront,” she says to FORBES AFRICA.



South Africa&#8217;s brewing innovation is deeply rooted in its culinary heritage. Craft beer has taken center stage, with breweries experimenting with local spices, fruits, and particularly Rooibos, resulting in blends that are both intriguing and reflective of the nation&#8217;s rich culinary traditions.



Homebrewing is flourishing, adding a personal touch to the beer experience. Beer&#8217;s influence even extends into the culinary world, making surprising appearances in casseroles, desserts, and unique pairings like pickles and cheeses. From restaurants to microbreweries, tastings guide enthusiasts in discovering the perfect blend.



Rooibos-infused beer has become South Africa&#8217;s signature contribution to the global beer scene. Du Toit elaborates on why this combination is so compelling: &#8220;Rooibos and beer taste profiles are a great match and complement each other really well. The Rooibos taste profile, naturally sweet, mild, earthy, with fruity notes like peach and apricot, and most having caramel and vanilla notes, pairs beautifully with beer, especially light and malt beers, as well as ales and lagers. Nowhere else can it be duplicated in the world.”



Reflecting on the experimentation with Rooibos in breweries, she adds: &#8220;A lot of breweries are experimenting with Rooibos. It can be incorporated in different ways, even in cooking, and its taste pairs well with both sweet and savory dishes. Not just in South Africa; it&#8217;s gaining popularity with small and large breweries overseas as well.&#8221;



The future of South Africa&#8217;s beer industry looks bright, with the growing appeal of Rooibos-infused brews and a spirit of innovation that shows no signs of slowing down.



Whether enjoying a classic lager, savoring a Rooibos-infused craft brew, or indulging in a beer-and-cheese pairing, the options are as rich and diverse as South Africa itself. On International Beer Day, South Africa will not only be toasting to its favorite beverage but also celebrating the unique flavors and innovations that place it on the world beer map.

Finnish Brewer Launches NATO Beer As Finland Seeks NATO Membership

Ale Is Well: Why South Africa’s Unique Rooibos-Infused Craft Brews Are Gaining Popularity

In the wake of a military coup in Niger and condemnation from international bodies, the uncertainty raises concerns about regional stability.



As dawn broke over Niamey, the capital city of Niger, a startling announcement was made yesterday on national television – soldiers had detained President Mohamed Bazoum and declared an end to the current regime. A cascade of reactions from regional and international bodies followed, denouncing the move as an attempted coup. This situation not only exacerbates an already turbulent political landscape in Niger but also portends significant economic implications set to reverberate across the region.



Moussa Faki, Chairperson of the African Union Commission, condemned the military &#8220;acting in total betrayal of their republican duty,&#8221; urging the &#8220;felon soldiers&#8221; to return to their barracks in a statement late yesterday. Despite the plea and international condemnation, the president remains in custody, leaving the country teetering on the precipice of uncertainty. The regional bloc, ECOWAS, also decried the situation, imploring the soldiers to release the president immediately.



The coup is reportedly led by the presidential guard, who have taken Bazoum and several ministers captive. According to AFP sources, the president and the ministers are safe and unharmed. The situation remains fluid, and information is limited.



Beyond the immediate political upheaval, the long-term economic implications could be damning. If the situation further deteriorates, Niger, which ranks near the bottom of the United Nation’s (UN) Human Development Index and grapples with two jihadist campaigns, could face even more significant challenges. Already struggling with widespread poverty and insecurity, an unstable government could further discourage foreign investment and aid, potentially stifling the nation&#8217;s growth prospects.



Moreover, the country&#8217;s crucial mining sector, which includes uranium and gold, could face dire consequences. A destabilized government often leads to supply disruptions, which could send shockwaves through global commodity markets and impact Niger&#8217;s revenue streams, considering mining accounts for a significant chunk of the nation&#8217;s GDP.



US Secretary of State Antony Blinken, in a media briefing on the situation yesterday, observed: “Whether this constitutes a coup technically or not, I can&#8217;t say… but what it clearly constitutes is an effort to seize power by force and to disrupt the constitution.&#8221; This disruption could signify a regression from the democratic principles the nation has been striving to uphold since its last coup in 2010.



In a regional context, the fallout from this coup attempt can further destabilize the Sahel region. Neighboring countries of Mali and Burkina Faso, which have both experienced military coups in recent years due to escalating jihadist insurgencies, contribute to the region&#8217;s instability.



UN Secretary-General António Guterres emphasized the need for democratic governance, peace, and stability, denouncing any efforts to seize power by force. In a statement yesterday, the UN pledged unwavering support to the government and people of Niger: &#8220;The Secretary-General calls on all actors involved to exercise restraint and to ensure the protection of constitutional order,&#8221; Guterres said.



As Niger teeters on the brink, the region and the world watch closely, hopeful for a swift and peaceful resolution.

Niger presidency confirms coup attempt, says President Bazoum and his family safe

Coup In Niger: Leaders Condemn Seizing Power By Force

Unexpectedly holding rates at 8.25%, South Africa&#8217;s central bank surprises economists. Despite temporary relief for households and potential property market impact, SARB Governor Kganyago signals this is just a pause. Rate hikes hinge on economic data and inflation risks, painting a complex future for South Africa&#8217;s economy.



As the dust settles in the second half of 2023, the South African Reserve Bank (SARB) has decided to maintain interest rates at 8.25% in what was a closely-contested decision. This move puts a temporary hold on the hiking cycle that&#8217;s been in place since November 2021, granting a short breather in an otherwise upward economic climb.



“It was a close call,” says Dawie Roodt, Director and Chief Economist of financial services company Efficient Group to FORBES AFRICA. “Of the five members of the Monetary Policy Committee (MPC), three voted to keep the rate the same and two voted for an increase. It was very touch and go.”



The pause in rate increments hinged on an array of factors, including the recent downward movement in inflation rates and an optimistic economic forecast. Nevertheless, SARB Governor, Lesetja Kganyago, has urged caution, highlighting this pause does not signal the end of the rate hiking cycle.



&#8220;The longer-term outlook mirrors the uncertainty of the global environment. Prices for commodity exports continue to weaken, energy supply remains unreliable, and stronger El Nino conditions threaten the agricultural outlook,&#8221; said Kganyago in a press statement, reflecting the complex economic terrain ahead.



The maintained rate has been greeted as a temporary reprieve by many South African households, unshackling them from the threat of heightened interest repayments on loans and mortgages. However, there is a flip side, with potential ripples in the property market as the unchanged rate could push up the cost of buying homes.



“Interest rate repayments remain the same,” adds Roodt. “What is important is the actual inflation rate declined before the announcement [by the SARB], and inflation expectations are slowly leveling off.”



The SARB&#8217;s decision factored in the recent dip in inflation, which stood at 5.4% in June, and an uplifted GDP growth projection of 0.4% for 2023, an increase from 0.3% last year, according to Statistics South Africa. Moreover, persistent challenges such as power cuts, logistical bottlenecks, and sustained food price pressures were considered, given their potential to exacerbate inflation and stunt economic growth.



Despite the pause, Kganyago did not rule out future rate hikes, emphasizing that forthcoming rate decisions would be data-dependent and attuned to inflation risks.



&#8220;Serious upside risks to the inflation outlook remain. In light of these risks, the Committee remains vigilant and decisions will continue to be data-dependent and sensitive to the balance of risks to the outlook,&#8221; said Kganyago.



As households enjoy the brief lull, the shadow of potential future rate hikes looms ominously. For now, South Africans can savor the hiatus from escalating borrowing costs. Yet, the knock-on effects of the decision could potentially cool the property market, as it could inflate the cost of home buying.



This rate decision paints a mixed picture – a sigh of relief for those in debt but potentially unwelcome news for prospective homeowners. With a split decision within the MPC and the high likelihood of a future rate hike, this respite for consumers could be fleeting.

South African Reserve Bank Rate Decision News Conference

South African Reserve Bank Holds Rates Amid Close Call: Temporary Sigh Of Relief For Those In Debt

South Africa is confirmed as the host country for the 15th BRICS Summit in August, featuring Brazil, Russia, India, China, and South Africa, however, the event will not be attended by Russian President Vladimir Putin, which alleviates the complex diplomatic challenge faced by South Africa in enforcing an arrest warrant against him.



South Africa&#8217;s readiness to welcome leaders from influential nations has been demonstrated through diligent preparations and consultations. The decision not to arrest President Putin, who faces an International Criminal Court (ICC) indictment for war crimes in Ukraine, has posed a conflict of interest for South Africa, being a member of the ICC. The country&#8217;s historical relationship with Russia, particularly its support for the ruling African National Congress (ANC) during apartheid, adds further complexity to the situation.



To navigate these challenges, President Cyril Ramaphosa has engaged in talks with Chinese President Xi Jinping, highlighting South Africa&#8217;s active diplomacy in addressing this delicate matter. The focus is on finding a balance between enforcing the arrest warrant and maintaining important diplomatic and trade relations with Russia and other non-aligned countries such as China.



In an announcement by South Africa&#8217;s Presidency Spokesperson Vincent Magwenya, it was confirmed that Putin will not be attending the BRICS summit. Instead, Russia will be represented by Foreign Minister Sergey Lavrov. This “mutual agreement” avoids the need to enforce the arrest warrant and eases the diplomatic quandary for South Africa.



“President Ramaphosa is confident that the Summit will be a success and calls on the nation to extend the necessary hospitality to the many delegates who will arrive from various parts of the continent and the globe” said Magwenya in a statement issued today.



The decision not to arrest Putin raises questions about South Africa&#8217;s non-aligned status in the Russia-Ukraine conflict. As a signatory to the ICC&#8217;s Rome Statute, South Africa is obligated to follow the court&#8217;s rulings, including arrest warrants. However, not arresting Putin could strain relations with the United States, adding to the already tenuous diplomatic landscape.



The South African government has taken diplomatic actions to navigate this complex situation. Previous discussions with China have been initiated to explore the possibility of a change in the summit&#8217;s venue. Ramaphosa&#8217;s talks with Jinping also focused on an African-led peace proposal for Russia and Ukraine, demonstrating South Africa&#8217;s commitment to finding peaceful resolutions.



The BRICS alliance holds significance for South Africa, fostering investment, economic cooperation, and financing through institutions like the New Development Bank. However, maintaining positive relations with the US is crucial, as South Africa benefits from tariff-free trade under the African Growth and Opportunity Act (AGOA), which generates substantial annual revenue.



Allegations of arms sales to Russia have strained the AGOA agreement and could have domestic implications. South Africa&#8217;s position is not entirely clear, and decisions made in the coming weeks will have far-reaching implications for the country&#8217;s global standing and economy. Balancing international justice, historical relationships, trade ties, and membership in BRICS is a delicate task that South Africa must navigate to maintain its diplomatic equilibrium.

President Putin Meets Attends Forum By Agency For Strategic Initiatives In Moscow

Putin will Not Attend BRICS Summit, Alleviating Complex Diplomatic Challenge For South Africa

Former South African Minister in the Presidency Essop Pahad, renowned for his anti-apartheid activism, dies at age 84.



Essop Pahad, a revered figure in South African politics and the former Minister in the Presidency, passed away peacefully at the age of 84 this morning, confirmed by his family in a statement. Pahad&#8217;s close association with former President Thabo Mbeki and his influential role in shaping policies made him a trusted confidante and strategic thinker.



Pahad&#8217;s political journey began as an anti-apartheid activist in the late 1960s when he joined the Transvaal Indian Youth Congress. His unwavering commitment to the cause led to his arrest by the apartheid regime, after which he sought refuge in exile and became an active member of the African National Congress (ANC).



President Cyril Ramaphosa paid tribute to Pahad, acknowledging his contributions to the development of a democratic South Africa. “Essop Pahad was a thinker and strategist who brought his understanding of the human condition, injustice and inequality at the national and international level to bear on our transition to democracy and in introducing a democratic, non-aligned and activist South Africa to the global community,” said Ramaphosa in a statement.



The ANC and Congress of South African Trade Unions (COSATU), organizations with which Pahad was closely associated, also expressed their condolences.



Pahad&#8217;s burial, scheduled for later today in Johannesburg, will be conducted in accordance with his Muslim faith, honoring his beliefs and legacy.

0000430062

South African Anti-Apartheid Veteran Essop Pahad Passes Away

South Africa&#8217;s National Health Insurance bill aims to bridge the gap between private and public healthcare sectors. However, concerns about impact on private medical aid coverage and potential for reduced innovation and employment within the healthcare sector have sparked confusion around its implementation.



South Africa stands on the brink of a significant transformation in its healthcare sector with the passing of the National Health Insurance (NHI) bill on June 14, surpassing the first legal obstacle to implementation. The legislation aims to bridge the gap between the private and public healthcare sectors, promising to bring equity to a system that has long been divided.



However, the bill has not been without its detractors, who express concerns about potential government inefficiency, the impact on private medical aid coverage, and the potential for reduced innovation and employment within the healthcare sector.



“Technically, I don’t think it’s feasible,” says Professor Alex Van den Heever, an expert on healthcare governance at the University of the Witwatersrand in Johannesburg, to FORBES AFRICA. “The aim is to ensure that somehow that both the public and private services are of an equivalent standard of care… and that is beyond the capacity of this government at this point in time.”



The South African healthcare system has been grappling with a stark divide for decades. Public healthcare infrastructure has been marred reportedly by poor service delivery and corruption, as evidenced by challenges in Tembisa Hospital procurement, the closing of Charlotte Maxeke Academic Hospital, and continued staffing and supply issues at Chris Hani Baragwanath Academic Hospital, to name a few.



In contrast, private medical aid services have filled this gap, collaborating with private hospitals to provide world-class medical care, albeit at exorbitant rates. The cost of private healthcare has become a significant burden on the South African economy, with the average South African medical aid subscriber paying over $100 per month in a country where the average person earning minimum wage makes around $400 per month.



The NHI, first announced as part of the ANC ruling party’s national conference in 2007 and later introduced to Parliament in 2019, passed earlier this year. The legislation seeks to address the disparities between public and private health, envisioning a state-run medical insurance scheme that leverages both public and private facilities and resources, thereby ensuring that individuals seeking healthcare have access to the same facilities and benefits as those enrolled in private medical schemes.



“The issue we have with the current proposal of the NHI… is Section 33 of the bill, which states that once the NHI is fully implemented, medical schemes would no longer be allowed to provide any cover that is provided by the NHI,” said Discovery Health CEO Ryan Noach in an interview with BizNews last week.



Discovery Health accounts for 40% of South Africans with medical insurance. “It’s not because we have an aversion to government business, but rather because we believe their chosen contracting model doesn’t align with our fully integrated approach to administration and managed care services.”



The bill has raised several concerns among critics and private sector medical providers.



Further critiques include the vague wording of the bill itself, with little clarity as to the &#8220;basic healthcare services&#8221; to be rendered, and how it will be funded as per &#8220;mandatory prepayment&#8221;, neither of which are officially defined.



However, a government factsheet recently surfaced indicating that funding for the NHI might be sourced from a mandatory private income tax as well as payroll tax, without specifying what taxation rates might be levied. The 2015 whitepaper on the NHI provides possible indicative tax rates of payroll and personal income, ranging from 1% to 4% for payroll and a surcharge on taxable income across different scenarios over the next five years.



Van den Heever drives home the challenges of this method of financing for the NHI, stating that the 2015 whitepaper is threadbare and lacks crucial financial analysis. Moreover, payroll taxes and income surcharges are likely to place a further burden on an already strained tax base, the middle class – not high-income tax earners, who primarily earn through dividends and other instruments. “Tax dymanics come in to play,” says Van den Heever. “When you overburden your tax base and you increase tax rates too high, you actually get less revenue.”



Healthcare in South Africa is in need of improvement – the country currently spends around 8.5% of its Gross Domestic Product on healthcare, with the lion&#8217;s share of this funding going to private medical insurance–while such insurance services less than 20% of the population according to recent Council for Medical Schemes Data. This trend runs counter to global movements towards universal care and mirrors circumstances in countries such as the United States, where healthcare has become a prohibitive expense.



The NHI aims to correct this imbalance, aligning with the country&#8217;s commitment to Universal Health Care as part of the 2030 National Development Plan. However, experts such as Van den Heever do not believe that the NHI is the place to begin. “Nothing in the NHI proposals is going to change what’s going on… what the government wants to do is raise taxes and allocate that into the system, while they’ve done nothing about corruption.”



The South African government’s position remains firmly committed to the NHI’s implementation; “Government considers the passing of the NHI Bill by the National Assembly as a key milestone to ensure all the people of South Africa have access to the same clinic or hospital,” said Minister of Health Joe Phaahla in a recent press release.



However, there is as yet little clarity as to how this implementation will occur.



With historical inequality deeply ingrained in healthcare along economic and racial lines, it’s no question that the issue of health services in the country needs redress, as per rights declared in the country’s constitution. However, with a lack of clarity in law, the future of the bill once it becomes practice remains uncertain.

Cholera Outbreak In Hammanskraal

A Step Towards Equitable Healthcare In South Africa But Concerns Around Implementation

South Africa, Denmark, and the Netherlands have launched SA-H2, a $1 billion fund to bolster green hydrogen projects in South Africa. The fund, backed by major financiers, signifies a shared commitment to sustainable energy and a belief in green hydrogen&#8217;s critical role in a future low-carbon economy.



In an unprecedented alliance, South Africa, the Netherlands, and Denmark have unveiled a joint fund – the SA-H2 – dedicated to bolstering green hydrogen initiatives in South Africa, tapping into its abundant wind and solar resources. The fund, totaling $1 billion, was launched in Pretoria, South Africa yesterday, with an initial seeding of $50 million from the Dutch investment body, Invest International.



The remainder of the fund is set to be raised over the subsequent two years, with numerous stakeholders including the Development Bank of Southern Africa, Industrial Development Corporation, and insurance firm Sanlam stepping up to support the cause. The fund will be expertly managed by the Dutch Climate Fund Managers.



In his address, delivered beside the Prime Ministers of the Netherlands and Denmark, Mark Rutte and Mette Frederiksen respectively, President Ramaphosa acknowledged the urgent need to tackle South Africa&#8217;s electricity crisis and stressed the critical role of renewable energy in achieving long-term energy security. While acknowledging that the current loadshedding crisis in the country necessitates reliance on its current coal fleet, the fund is nevertheless a move toward more sustainable source of energy.



“From solar to biogas, from wind to battery storage, these investments are leading one of the most important growth industries in our country” said Ramaphosa.



The fund is expected to stimulate significant advancements in the green hydrogen sector, offering early investment opportunities in a technology set to play a transformative role in achieving global emission reduction targets. These investments are likely to be lucrative, given that South Africa’s COP27 presentation revealed the country is targeting $250 billion in green hydrogen investment by the year 2050.



Emphasizing the spirit of collaboration underpinning the fund, Ramaphosa highlighted the diversity of the SA-H2&#8217;s support base, extending beyond state entities and private sector players to include organized labor and NGOs, with all parties hoping for productive social and economic gains, alongside the environmental benefits.



“… that is the true architecture of our cooperation in our country” continued Ramaphosa, “… and it reinforces our view that these developments need to be inclusive, and needs to benefit all within society.”



While the Netherlands and Denmark are not presently part of the Just Energy Transition Partnership (JETP), they have indicated a supportive stance toward its objectives, and discussions to join the alliance are underway.



The launch also witnessed the signing of a memorandum of understanding on green hydrogen between South Africa and the Netherlands. Additionally, an agreement was inked to expand an existing energy partnership between Denmark and South Africa. A finance package for water-related public infrastructure, announced by Invest International, rounded off the day&#8217;s commitments.



These collaborative efforts signify a collective commitment to combating climate change and a shared belief in green hydrogen&#8217;s potential to revolutionize the future energy landscape, with the launch of the SA-H2 fund represents a significant leap toward a sustainable energy future for South Africa.

President Ramaphosa Welcomes Prime Minister Mark Rutte And Mette Fredeiksen In Pretoria

Going Green Together–Netherlands, Denmark and South Africa’s Landmark Green Hydrogen Fund

South Africa&#8217;s Youth Day commemorates past struggles faced by a generation under apartheid striving for better education and opportunity. While much has changed, continuing challenges in education and economic opportunity mean that the country still relies far too much on the resilience of its youth.



<blockquote class="wp-block-quote">
Today’s South African youth are not mere victims of circumstance; they are innovators, pioneers, and activists. They echo the activism of their predecessors, pushing boundaries and creating globally recognized projects and technologies.
</blockquote>



The 16th of June holds a prominent place in South Africa&#8217;s national narrative. It marks the 1976 student uprisings, a watershed moment in the resistance against apartheid, when over 20,000 students stood up against the Bantu education system&#8217;s segregation and inferiority. Fast forward to today, and echoes of these struggles continue to reverberate. Today&#8217;s South African youth grapple with a faltering education system and limited economic opportunities, suggesting that the promises of 1976 remain only partially fulfilled.



In the apartheid era, the Bantu education system notoriously provided substandard education to students of color, preparing them predominantly for manual labor and a life of segregation. The imposition of Afrikaans as the language of instruction sparked the historic Soweto protests, culminating in a tragic police crackdown that left at least 176 students dead and thousands injured. Youth Day now commemorates this resolute spirit of resistance, honoring the role of the youth in overcoming apartheid.



Unfortunately, the battle for quality education continues to this day. The 2021 Progress in International Reading Literacy Study (PIRLS 2021) reveals that South Africa’s Grade 4 learners rank last in reading comprehension among 42 countries. Particularly concerning is the stark disparity between students tested in English and Afrikaans and those assessed in the nine African languages, indicating an education system still failing black youth.



Centre for Development and Enterprise (CDE) Executive Director Ann Bernstein states: “The truth is we face a silent crisis in our schools: South Africa has one of the worst performing education systems in the world. Are you prepared to condemn another generation of young South Africans to an appalling education?” The CDE published a detailed report on the state of the country’s education system this year, highlighting policy, teaching skills and resources as major contributing factors to declining levels of education and literacy.



Graduation offers little reprieve. As per Statistics South Africa, the youth unemployment rate stands at a staggering 63.9% for those aged 15-24. That’s over 7.7 million young people, many of whom have abandoned hope of finding suitable employment due to sheer discouragement.



Yet, amidst these bleak statistics, the spirit of 1976 lives on. Today’s South African youth are not mere victims of circumstance; they are innovators, pioneers, and activists. They echo the activism of their predecessors, pushing boundaries and creating globally recognized projects and technologies. South African youth in particular have made strides in social activism and renewables, with notable examples being chronic medication delivery as with Sizwe Nzima’s Iyeza Express, or recycled schoolbags in the case of Rethaka–just two examples of thousands of entrepreneurs that are testament to the enduring spirit that marked the youth of 1976.



In recognizing this resilience, both the government and the private sector are stepping up efforts to invest in South Africa&#8217;s youth. Recent efforts have included several provincial job drives, with the Gauteng Provincial Government promoting a new job search platform today, which saw a bustling cohort of young learners signing up and submitting their CVs for opportunities to work within provincial projects.



In this vein, Youth Day is not just a commemoration of past struggles; it&#8217;s a celebration of the ongoing resilience and resourcefulness of South African youth. It&#8217;s also a call to action for all sectors of society to invest in their potential. The challenges of the past and present are formidable, but if the history of 1976 teaches us anything, it is that South Africa&#8217;s youth are capable of extraordinary things when given the opportunity.

Youth Day Is Celebrated in South Africa

South Africa’s Youth Day–Echoes Of 1976 And A Reliance On Resilience

South Africa grapples with a diplomatic quandary as it hosts this year&#8217;s BRICS summit amidst legal and trade tensions involving Russia, the US, and the International Criminal Court.



South Africa appears to be considering the possibility of transferring its role as the host of this year&#8217;s BRICS (Brazil, Russia, India, China and South Africa) summit. This effort emerges from a need to avoid enforcing an arrest warrant against the Russian Federation&#8217;s President Vladimir Putin.



The upcoming summit, slated for August, has thrown into relief South Africa’s non-aligned status in the con-flict between Russia and Ukraine. South African President Cyril Ramaphosa has been engaged in talks with China&#8217;s President Xi Jinping, showcasing the country&#8217;s active diplomacy in this delicate situation.



The historical relationship between South Africa and Russia is noteworthy in understanding the current sce-nario. The ruling party of South Africa, the African National Congress (ANC), has had long-standing ties with Russia due to Russia&#8217;s support of the ANC against the previous apartheid government. This shared history of resistance against Western hegemony, economic ties, and shared stances on global issues have deepened their bond over the years.



“I do think that there’s a certain puzzlement regarding South Africa’s position,” says Ivor Chipkin, analyst and Executive Director of the New South Institute, a policy think-tank based in Johannesburg, to FORBES AFRICA. “It places us in an awkward position economically… That said, Russia too is placing us in an awk-ward position by very boldly and very loudly proclaiming this relationship.”



Many South African signatories including the commander of the military’s ground forces as well as multiple senior government ministers have visited Russia in recent months.



As a signatory to the Rome Statute, South Africa is obligated to follow the rulings of the International Crimi-nal Court (ICC). The ICC has issued an arrest warrant for the Russian President, who is expected to attend the BRICS summit in Johannesburg. Should Putin attend, it is possible that opposition parties in South Af-rica might seek legal means to compel the South African government to arrest him, thereby further compli-cating the situation.



A failure to arrest President Putin would not only be a breach of the ICC mandate but could also strain the already tense relations between South Africa and the United States (US). Despite these complexities, the practicalities of enforcing such an arrest remain elusive, adding another layer to the diplomatic conundrum.



In response to this diplomatic quandary, the South African government has taken a flurry of diplomatic ac-tions in recent weeks. The ANC sent a delegation to China last week, reportedly to discuss a possible change of venue for the summit.



President Ramaphosa also hosted talks with President Xi Jinping. The discussions included an African-led peace proposal between Russia and Ukraine, as well as the upcoming BRICS summit.



The BRICS alliance is particularly beneficial to South Africa. It fosters further investment and economic co-operation and provides financing through the New Development Bank. However, maintaining good relations with the US is also a priority, given that the country benefits from tariff-free trade under the African Growth and Opportunity Act (AGOA), valued at more than $2.58 billion in annual revenue.



<div class="wp-block-media-text alignwide is-stacked-on-mobile" style="grid-template-columns:64% auto"><figure class="wp-block-media-text__media"><img decoding="async" loading="lazy" width="1024" height="683" src="https://cms.forbesafrica.com/wp-content/uploads/2023/06/GettyImages-1182442467.jpg" alt="" class="wp-image-58487 size-full" srcset="https://cms.forbesafrica.com/wp-content/uploads/2023/06/GettyImages-1182442467.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2023/06/GettyImages-1182442467-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2023/06/GettyImages-1182442467-768x512.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure><div class="wp-block-media-text__content">
<blockquote class="wp-block-quote">
(From R) Brazilian President Jair Bolsonaro, Russian President Vladimir Putin, Chinese President Xi Jinping, Indian Prime Minister Narendra Modi and South African President Cyril Ramaphosa wave at the press corps during the BRICS summit in Brasilia on Nov. 14, 2019. 
<cite>(Photo by Kyodo News via Getty Images)</cite></blockquote>
</div></div>



However, this agreement is under pressure due to allegations of arms sales by South Africa to Russia after the secretive docking of the Russian Lady R vessel at a South African naval base last year. These allegations, if proven, could have serious domestic implications. For instance, should South Africa take any action that frustrates the US, it could suffer massive financial losses if AGOA is overturned, or if the Rand value drops significantly.



“South Africa’s position here is not clear to me at all,” continues Chipkin. “Other than a general suspicion of Western motives on the one hand… and then a historical relationship–not with Russia, but with the Soviet Union… It might well be that in order to placate some of the opposition to himself within the ANC, President Ramaphosa is making concessions on this front in order to stabilize and strengthen this position.”



South Africa’s Minister of Trade, Industry and Competition, as well as its Finance Minister, have expressed concern over the potential risk to the AGOA agreement. They have noted the damage these allegations could inflict on the South African economy. &#8220;It strengthens the position of South African exporters in the US mar-ket and, of course, helps create more jobs locally,&#8221; said Minister Ebrahim Patel during a press briefing ahead of his budget vote last month.



Discussing the prospect of President Putin attending the upcoming BRICS conference, US Ambassador Reu-ben Brigety noted South Africa’s obligations during a media briefing last month, stating that the US did not understand why “the government of South Africa will not publicly and fulsomely commit to the obligations that it has voluntarily taken upon itself”.



Looking ahead, South Africa finds itself at a crossroads. Its commitment to the principles of international justice as embodied by the ICC, its long-standing relationship with Russia, its membership in BRICS, and its trade ties with the US are all at play, with the decisions to be made in the weeks ahead likely to have far-reaching implications for both the country’s global standing and economy.

Russian President Vladimir Putin and Chinese President Xi Jinping attend the BRICS Summit in Brasilia

South Africa At Crossroads As It Attempts To Navigate Hosting BRICS Summit Amid Global Tensions

Zimbabwe&#8217;s Parliament recently passed the controversial Patriotic Bill, raising concerns about its impact on democratic freedoms and international relations. Critics argue that the law, which penalizes actions seen as undermining national interests, curtails freedom of speech, association, and assembly, and could isolate Zimbabwe on the global stage.



Zimbabwe’s Parliament passed the controversial Patriotic Bill into law on the evening of March 31, 2023. President Emmerson Mnangagwa&#8217;s ruling Zanu-PF government has long sought to enact this bill, claiming it strengthens aspects of the criminal code protecting national interests. However, critics within and outside Zimbabwe view it as one of the most oppressive laws yet, intended to stifle criticism and free speech, particularly during a sensitive time as the country approaches general elections in late August.



The Bill was first proposed after the controversial 2018 general elections, which saw Mnangagwa elected amidst contested results and protests that resulted in at least six fatalities, seemingly in response to opposition to Mnangagwa’s rule.



Broadly, the Bill criminalizes actions deemed to &#8220;willfully damage the sovereignty and national interest of Zimbabwe&#8221;. These include, among other offenses, planning state boycotts, sanctions, or any acts deemed as &#8216;subversion&#8217; of the state. Penalties for these transgressions include deprivation of citizenship and possibility of the death penalty, which the government had previously committed to repealing (REF).



Activists, journalists, and civil society organizations have denounced the passing of the Bill as another act by the ruling Zanu-PF under Mnangagwa to repress free speech and opposition, particularly as the country moves toward the upcoming general elections.



A risk and political analyst who specializes in sub-Saharan Africa, Marisa Lourenco believes that critics of the bill have a point. “Since the dawn of independence in Zimbabwe has been guided by principles of authoritarianism rather than any effort towards democracy…” says Lourenco to FORBES AFRICA. “Not only does it give the government more tools with which to suppress the opposition and civil society with its vague clauses—which nations are hostile, for example, is there a defined list?—but it also seems to be a way for the Mnangagwa administration to control the narrative around its performance as the government attempts to get some of its debt pardoned and access international financial markets.”



A cooperative of civil society members, including the Media Alliance of Zimbabwe, Zimbabwean Congress of Trade Unions, and the Zimbabwean Election Support Network, issued a media statement opposing the bill&#8217;s passage.



&#8220;A very sad day for Zimbabwe today as that country&#8217;s parliament has passed the Patriot Act bill into law,&#8221; tweeted prominent Zimbabwean journalist Hopewell Chin’ono. &#8220;It seeks to destroy freedom of association and assembly. Free speech is now dead, and any Zimbabwean holding a meeting with a foreign government official will be jailed.&#8221;



The primary opposition party, the Citizens’ Coalition for Change (CCC), was similarly critical. &#8220;Democracy is in distress as a report from Parliament confirms that the Patriotic Bill, which is considered unlawful and perilous, has been approved after amending the Criminal Code,&#8221; tweeted the party&#8217;s official account.



The ruling Zanu-PF and President Mnangagwa originally took power in 2017 during a military coup that ousted long-reigning Robert Mugabe.



The country currently scores 28/100 regarding political rights and civil liberties among countries worldwide, according to research organization Freedom House. On Tuesday afternoon, Zimbabwe summoned a top United States diplomat over a tweet the official US Embassy Zimbabwe account posted, encouraging citizens in the country to register to vote.



“We are likely to see heavy-handedness [from the state] and also the banning of demonstrations, disruption of opposition campaigns, etc,” continues Lourenco on the upcoming elections. “Having said that, widespread political and social instability is unlikely. I also expect voter turnout to be the lowest in post-independence



Zimbabwe. People have lost all faith in a ZANU-PF-led government to effect any kind of real change, and the hope that accompanied Mnangagwa’s ascension to the presidency faded soon after the 2018 elections and has been completely snuffed out by now.”



The bill&#8217;s passage, say experts, seems to align with protecting the ruling party ahead of the elections on August 28.



June 2 was the last day for citizens to register to vote. A report earlier this year by electoral advocacy group Team Pachedu flagged evidence of the Zimbabwean Electoral Commission’s (ZEC) delimitation report for signs of gerrymandering, among other irregularities.



Questions are being raised anew about whether the Patriotic Bill will hamper further critique of the ruling Zanu-PF in the run-up to what is likely to be a strongly-contested election, and whether it might be used to suppress the media and reporting of the event.

Zimbabwe’s New Parliament Building, Funded By China, Readied For Its Debut

Elections Ahead In Zimbabwe, And Criticism For Country’s New Patriotic Bill

Over 6,000 murders in three months. Recent crime statistics point to underlying social tensions, wealth inequality, organized crime, and scrutinize the government&#8217;s response, including police reform and crime intelligence in South Africa.



South Africa’s Minister of Police, Bheki Cele, recently presented the country’s quarterly crime statistics to the public, and the results reveal a bloody conflict being waged in one of Africa’s central hubs. In just three months, over 6,000 people were murdered in the country, almost three murders every hour. Increases in attempted murder, assault, and vigilantism were also observed. Delving deeper into the numbers reveals a population under immense pressure from social tensions, wealth inequality, and organized crime. “We established that 872 of the murders were attributable to arguments, misunderstandings, road rage, and provocation,” said Major General Sekhukhune, the head of Police Crime Research and Statistics, during a presentation of the statistics on May 30. Opposition parties and human rights organizations across the country responded with fury to the numbers, citing a failure of the government to reverse a steadily increasing tide of crime.



“We can no longer allow violent crimes to continue with impunity. The justice system has to act as a deterrent, and the first step is ensuring that the police can conduct thorough, efficient, and transparent investigations into all killings, and ensure that the perpetrators are charged in accordance with the law,” Amnesty International South Africa Executive Director Shenilla Mohamed said in a press statement. The Democratic Alliance (DA) Shadow Minister for Police was similarly biting. “Criminals have declared war on the people of South Africa. Crime is spiraling out of control,” said the DA’s Andrew Whitfield in a statement responding to the statistics. While much of the crimes reported represent interpersonal conflict, experts point to a confluence of issues such as lack of trust in the police and a normalization of violence as salient factors in the high numbers.



“People are often exposed to violence [in South Africa], whether it’s in their homes or the communities… a higher level than in many other parts of the world,” says Gareth Newham, Head of Justice and Violence Prevention at the Institute for Security Studies (ISS), to FORBES AFRICA. “And so we kind of get caught in this way in which people generally think that violence is normal–and when you think about this is normal, you could use it.” This normalization is clear both in normative criminal acts, and the increasing rates of vigilantism or mob justice, also seen in the recent crime statistics. Newham makes it clear that this is also indicative of a high level of distrust in the willingness and capability of the South African Police Service to police crime, resulting in citizens taking the law into their own hands. This vigilantism was most prominently visible in the July 2021 Unrest in the country which saw many community policing forums, private security members, and ordinary citizens band together to protect their homes and businesses against rioters, an action which begot both criticism of such vigilante justice as well as further highlighting public mistrust in the police service. “The state has the legal authority to use violence in order to enforce the accepted rules and regulations of the country,” says Newham. “And when that breaks down, other actors start using violence for their own interests, whereas the state suppresses rights in the public interest.” Also under scrutiny are the country’s intelligence and crime intelligence capabilities, with the last few weeks seeing the murder of an eyewitness outside of a courthouse as well as the murder of a wanted Bulgarian fugitive in the suburbs of Constantia, in Cape Town. While the published statistics don’t deal directly with the actions of police crime intelligence, these recent visible crimes highlight the need for proper action, and formed part of President Cyril Ramaphosa’s budget speech yesterday, May 31, emphasizing that reform of the intelligence service more broadly was underway as part of the implementation of the recommendations by an



Expert Panel on the July 2021 Unrest commission. Newham, however, highlights that despite this political posture from the Presidency, there has been little clarity or accountability in these structures. “We only have his word that he&#8217;s reforming the intelligence services because there&#8217;s been zero plans presented publicly in any forum about what those reforms look like,” he continues. “But nowhere in the public sphere, not before parliament or anywhere else are there clear plans on what’s to be done in terms of Intelligence.” Increases in the rate of kidnapping underscore the need for performance within the Police Crime Intelligence services, says the DA’s Whitfield. “The 51.2% spike in kidnappings over the last quarter points to a failure of crime intelligence and a well-entrenched culture of impunity among criminals who no longer fear consequences for their criminal actions,” he said. Despite the dire nature of South Africa’s crime statistics, police claim to be taking strong steps to combat the rising numbers, with Minister Cele having recently deployed 3,000 new law enforcement officers in Gauteng, and 10,000 new police recruits having joined as constables at the end of 2022. The Police Service also had some noted successes, with a major Rwandan genocide suspect arrested last week. Fulgence Kayishema was alleged to have participated in a massacre in 1994 that caused over 2,000 deaths in Rwanda, and was arrested after an intelligence-driven operation.



Several men believed to have been part of an Israeli syndicate were also arrested and face extradition after an intelligence-driven operation late last year, both instances pointing to continuing function within the Police Service. An additional $3.5 million has also been allocated to high-risk jurisdictions and specialized units are being further developed to deal with high-risk actions, said the minister Cele. &#8220;The SAPS is also enhancing specialized tracking teams who will be trained further at provincial and district level, to effectively track and apprehend offenders.” Experts believe that the challenges, primarily structural, are not likely to be rectified within the short term.



“For the last five to 10 years, certainly the crime statistics indicate that there hasn’t been an improvement,” says Newham. “It’s not that we don’t have the resources or the people… what we lack is political leadership… and policy and strategy around reducing crime.” However, with South Africa approaching a cold winter suffering from low levels of service delivery, high costs of living, and an unreliable electricity supply, the specter of the previous 2021 July Unrest raises its head, and it’s clear South Africans increasingly require strong action from the state and the police. “If the government continues failing to create a safe environment for all, it is violating the right to life and security of the person, and must be held accountable. The buck stops with the government,” added Mohamed.

Members of SAPS and SANDF enforce lockdown regulations in Sea Point and Parklands

‘Spiraling Out Of Control’: Recent Stats Reveal South Africa’s Crime Conundrum

Consumer research indicates that South Africans are suffering under high levels of inflation, with food products amongst the most affected. Consumer retailers are also feeling the knock-on effect. Loadshedding, repo rate increases and global politics are a confluence of pressures upon South Africans, which has seen many look to where non-essential expenses can be cut.



Since the inception of the Covid-19 pandemic, South Africans have been beleaguered by escalating cost-of-living increases, with food items experiencing considerable inflation. In response, consumers are altering their spending habits and consumption patterns, slashing non-essentials.



A monthly report known as the Household Affordability Index reveals that the average food basket of staple goods has surged by 10% from May 2022 to May 2023. Assembled by the Pietermaritzburg Economic Justice &amp; Dignity Group (PMBEJD), the report demonstrates the shocking escalation in costs for consumers since the start of the pandemic, with the average cost of a household food basket per month rising by 57.4% from March 2020 to May 2023.



Consumers are not passively accepting this. Recent research by InfoQuest, an online research agency, suggests that luxuries such as television service subscriptions, gym memberships, and insurance were among the first expenses to be eliminated as South Africans strive to endure challenging economic times.



The squeeze is not solely affecting consumers but is also keenly felt further up the chain. Tiger Brands, the country&#8217;s largest food producer, recorded a 19% drop in share price by Wednesday after unveiling interim results. The two main factors propelling the decline were decreased sales volumes due to strapped consumers and loadshedding, with the only growth being spurred by price hikes.



&#8220;Tiger Brands&#8217; performance&#8230; was affected by a challenging operating environment due to extended periods of loadshedding, while high levels of inflation and lower disposable income adversely impacted consumer behavior in terms of volumes and basket,&#8221; the report noted.



Other retailers such as retail conglomerate Pepkor observed similar losses, further emphasizing the consumer squeeze. Pepkor, which owns retailers Ackermans and Pep, saw its share price tumble 10%, noting in its investor presentation that consumers &#8220;have no choice but to prioritize spending on necessities to cope with high levels of inflation, particularly the increased cost of food and transport.&#8221;



Recent hikes in the South African Reserve Bank (SARB) repo rate have also put pressure on consumers, with a growing number of people resorting to credit facilities to get by. The increase marks the 10th hike by the SARB since 2022.



The diplomatic conflict between the United States and South Africa over the secretive docking of a Russian vessel last year, coupled with the ongoing electricity crisis, have also witnessed the South African Rand depreciate to record lows against the US dollar, further constraining the spending capacity of the South African consumer, especially concerning fuel costs.



With President Cyril Ramaphosa having tabled the Presidency&#8217;s budget vote today, he acknowledged the hardship of South Africans, particularly regarding the persistent loadshedding crisis. &#8220;We face a difficult winter ahead,&#8221; said Ramaphosa.



Some warmth might be on the horizon however, with Stats SA recording a decline in annual consumer inflation as of the end of April, this despite some notable increases in the Consumer Price Index basket, indicating there might be some relief for consumers in the months to come.

Author: Yeshiel Panchia

FORBES AFRICA SOCIAL MEDIA