South Africa Roundup: Grey list, taxi industry, power cuts

Grey list

The South African rand remained muted this week as investors awaited news on whether the country could be removed from the Financial Action Task Force (FATF) “grey list.” Analysts say that a successful exit could strengthen the rand’s medium- to long-term performance and restore confidence in South Africa’s financial systems. The country was placed on the list in 2023 for deficiencies in its anti-money laundering and counter-terrorism financing frameworks. Since then, authorities have introduced a series of legal and institutional reforms to meet FATF standards. Market watchers argue that removal from the list would not only attract new capital inflows but also boost South Africa’s global financial credibility.

Taxi industry

Former Police Minister Bheki Cele delivered a stark assessment of South Africa’s taxi industry before Parliament, describing it as plagued by violence, criminal infiltration, and police corruption. “There are more guns than flowers in this industry,” Cele remarked, adding that deep-rooted criminality had turned many taxi associations into centres of fear and lawlessness. Cele distanced himself from controversial figures allegedly linked to the sector and said that persistent political interference had compromised policing efforts. His testimony reignited debate about the government’s capacity to restore order and accountability in one of the country’s most vital yet volatile transport sectors.

National Prosecuting Authority

National Prosecuting Authority (NPA) head Shamila Batohi continues to navigate one of South Africa’s toughest public service roles. Her tenure, marked by persistent challenges, has been hampered by political interference, internal divisions, and a chronic shortage of resources. Analysts suggest that the NPA’s dysfunction stems less from individual leadership failures and more from entrenched systemic weaknesses, including a legacy of state capture and administrative instability. Despite efforts to rebuild public trust, the agency’s slow pace in prosecuting major corruption cases has drawn criticism from civil society and opposition parties.

Government of National Unity

Former President Jacob Zuma has launched a scathing attack on South Africa’s Government of National Unity (GNU), calling it “illegitimate” and “a fragile, elitist pact” that protects those responsible for corruption and poor governance. Speaking on behalf of the uMkhonto weSizwe (MK) Party, Zuma accused the GNU of sidelining the working class and betraying the country’s democratic ideals. He vowed that his party would “demand accountability from all implicated officials” and push for a political system that serves “the people, not the elite.”Zuma’s comments come amid ongoing divisions within the ruling coalition and debates over the GNU’s stability and legitimacy.

Power cuts

State utility Eskom has warned that power cuts could return in the coming weeks due to rising electricity demand and ongoing maintenance at several generation units. The company said its system remained “vulnerable” despite recent improvements in generation capacity. Analysts caution that renewed load-shedding could undermine investor confidence and slow South Africa’s economic recovery. The warning comes as the government faces mounting pressure to stabilise the energy sector and accelerate the transition to renewable power.