Star 2025-11-24

The South African Local Government Association (Salga) has said the Distribution Agency Agreement (DAA) aimed at addressing the ballooning R105 billion debt to Eskom is not sufficient in itself, pointing to inefficiencies with Eskom's systems and lack of capacity of the National Energy Regulator of South Africa (Nersa) to efficiently regulate 167 municipalities with only a 400 staff complement. Salga told Parliament on Friday that it was seeing a surge in the repeated deterioration and aging of infrastructure, the decline in financial sustainability in municipal distribution businesses, the poor asset management and outdated technologies, the rising operational costs and severe revenue losses, escalating vandalism theft and illegal connections at the municipal level. Salga said there was inherent danger of fragmentation on distribution with Eskom, along with 167 municipalities licenced to…

Despite deep ruptures in the global trading system caused by sweeping US tariffs and escalating geopolitical tensions, Africa’s trade has remained far more resilient than many feared. That was the message from World Trade Organization (WTO) director-general Ngozi Okonjo-Iweala, who said the continent has been insulated from the worst impacts of the tariff battles reshaping economic relations among major powers. Speaking on the sidelines of the G20 Leaders' Summit in Johannesburg on Sunday, Okonjo-Iweala acknowledged that the United States’ aggressive tariff actions, including high unilateral duties and a growing number of bilateral trade deals outside the WTO, have disrupted global commerce. But despite the turmoil, she said the global system has held together more than expected — and Africa, in particular, has not suffered the kind of trade contraction that…

Italy has unveiled an ambitious debt-relief plan aimed at easing the financial burden on low- and middle-income countries, declaring that sustainable development cannot be achieved without addressing the crushing debt many nations face. Africa faces growing financing pressures as rising debt service costs severely constrain development. By the end of 2024, public debt to countries and multilateral financial institutions had reached $1.815 trillion, while annual debt servicing climbed to $163 billion, leaving 57% of Africans living in countries where debt payments exceed health or education spending. The high level of debt is unsustainable and undermines efforts towards sustainable development and poverty alleviation. The G20 Ministerial Declaration on Debt Sustainability has signaled the intent of the G20 to do more to tackle unsustainable levels of debt alongside the rising cost of…

South Africa successfully champions critical issues facing low and middle income countries The G20 Leaders' Summit held for the first time on African soil in Johannesburg over the weekend has come and gone, but South Africa has successfully championed to put critical issues facing low- and middle-income countries at the center of global debate. This is in spite of the United States boycotting the global summit and attempting to influence Heads of States not to adopt the Leaders' Declaration, which somewhat caused a minor diplomatic row over the incoming G20 Presidency. President Cyril Ramaphosa used his closing remarks on Sunday to deliver a clear message: the world’s ability to secure prosperity, stability and climate safety hinges on helping developing nations escape crushing debt, accelerating climate action, and ensuring that the…

South Africa’s pension system has absorbed two shocks that speak to the pressures shaping household financial life today. The first is the reported R3.6 billion impairment reported by the Government Employees Pension Fund (GEPF) for 2024/25 after delays in the recovery of unlisted investments. The second is the R57 billion that members withdrew in the first ten months of the two-pot system, a release that was meant to be gradual but quickly became a measure of how stretched families really are. These numbers reveal more than financial strain. They expose a system built on expectations that no longer match the realities of how people work, earn and save. For many South Africans, the path into stable work is not linear. People enter the formal labour market late, often around their…

As G20 leaders gather in Johannesburg, discussions will centre on energy, trade and employment - issues that shape global economic activity. Alongside these familiar pillars, however, sits a less frequently examined driver: Sport. Not as charity or soft power but as a developing category of infrastructure that supports consumer demand, service industries and fiscal capacity in multiple markets. Bank of America Institute highlights the economic potential. Our Market Landscape Insights work finds that households globally spend roughly $1,122 annually on sports-related goods and experiences. Transaction-level card data show that major events reliably lift local spending. During the most recent FIFA Club World Cup, host areas recorded a 7% year-on-year increase in hospitality and retail activity. These effects are modest individually but meaningful when repeated and scaled. Different regions illustrate this…