Tag: Government of National Unity (GNU)

From the Government of National Unity (GNU) to Trump 2.0. From A2I to penguins, potholes to political soapies. Cyril goes to Washington and the great Floyd and Julius breakup… and let’s not forget the hadedas. Last year’s Madam & Eve collection has it all! Madam Impossible captures the chaos, contradictions and comedy of South African life with sharp precision. The jokes land quickly. The observations linger. As a result, laughter comes easily, even when the subject matter cuts close to home.

Over short periods, markets can be unpredictable, and 2025 confirmed that reality. We anticipated volatility, and the year delivered it. Few expected stability from the US administration or swift resolutions to geopolitical tensions. Nevertheless, several fiscal and monetary developments surprised markets, both locally and globally. These shifts provide important signals about future direction and potential volatility.

South Africa’s major banks maintained steady growth in 2024 despite a challenging operating climate and macroeconomic uncertainties. Combined headline earnings grew by 5.9%, reaching R119 billion. This surpassed FY23 results. The combined ROE stood at 17.5% (FY23: 17.6%). The net interest margin was 451 bps (FY23: 459 bps). The credit loss ratio improved to 89 bps (FY23: 102 bps).

After the false start of 19 February, Finance Minister Enoch Godongwana tabled the 2025 Budget on 12 March. The main tax policy proposals include raising the Value Added Tax (VAT) rate by 0.5% in each of the next two years. This will bring VAT to 16% in 2026/2027. It will be accompanied by no inflationary adjustments to personal income tax brackets, rebates, or medical tax credits.

The shocks, surprises and shortfalls in the initial budget on 19 February 2025 made way for a reworked National Budget. This new budget is marked by cuts, compromises and curveballs. Although Finance Minister Enoch Godongwana’s first budget attempt was unexpectedly stopped three weeks ago, a higher VAT rate is still on the table.

The updated South African National Budget for 2025, tabled on 12 March, tries to balance the need to address the country's fiscal challenges. At the same time, it aims to stimulate economic growth and improve public services. Over and above these priorities, it also balances political pressure from the Government of National Unity (GNU).

Markets are unpredictable, and 2025 has started with extreme volatility. Aggressive tariffs and abrupt national announcements have forced investors to navigate constant surprises. These events have increased uncertainty and volatility across financial markets. However, uncertainty can create opportunities for active managers with a long-term investment horizon.

Those in the know say building a house can cost anything from R10,000 to R20,000 per square meter. Factors such as location, quality of the material used, and design complexity can significantly raise costs. High-end houses can cost upwards of R25,000 per square meter. It is a hefty price to pay, but one well worth it.

The first notable initiative in government by the Inkatha Freedom Party (IFP) – South Africa’s second oldest existing federalist institution – has been to centralise spaza shop regulations under the central government. The xenophobic dimension is less surprising.

Have I Got GNUs For You is the 29th annual collection from South Africa’s legendary cartoonist Zapiro. Every one of his incisive annuals has been a best-seller and this one will be no exception as it captures yet another white-knuckle ride of a year for South Africa and the world. With his eagle eye, his sharp pen and his biting humour, Zapiro has a unique place in our culture and he has, once again, found plenty to cartoon about.