Skip to content
Search

Latest Stories

What We're Watching

Budget clash puts South African government on brink of collapse

​African National Congress (ANC) members of parliament react after South African lawmakers passed the budget's fiscal framework in Cape Town, South Africa, April 2, 2025.

African National Congress (ANC) members of parliament react after South African lawmakers passed the budget's fiscal framework in Cape Town, South Africa, April 2, 2025.

REUTERS/Esa Alexander
Make us preferred on Google

The second largest party in South Africa’s coalition, the business-friendly Democratic Alliance, launched a legal challenge on Thursday to block a 0.5% VAT increase in the country’s new budget, raising concerns that the fragile government could collapse.

The background: Absent the support of their coalition partner, the ruling African National Congress on Wednesday relied instead on support from smaller parties to narrowly pass a budget framework.


The ANC and the center-right DA, historical rivals, agreed to work together after last year’s elections, when the ANC failed to win a majority for the first time since it entered government in 1994, after the fall of apartheid.

Your call, DA. The lawsuit is unlikely to derail the budget, so the party must decide if it wants to stay in government despite its misgivings. Without the DA, the ANC would hold exactly half of the legislature’s 400 seats. Investors view the DA as a key source of market-friendly policy discipline.

It’s a dilemma. Experts say that if the DA bolts, it will lose the chance to shape key legislation, such as the controversial Expropriation Act, a land reform bill, but staying would mean facing political humiliation after they voted against the budget.

More For You

A person casts a vote at a polling station during Zambia's general elections, including a presidential election, in Lusaka, Zambia.

A person casts a vote at a polling station during Zambia's general elections, including a presidential election, in Lusaka, Zambia, August 13, 2026.

REUTERS/Jean Mandela
Zambians want their slice of the copper piePolls closed in Zambia’s presidential election on Thursday as voters in one of Africa’s most stable democracies weighed whether the country’s economic turnaround has actually affected their wallets. President Hakainde Hichilema, who is seeking a second term, has overseen a successful debt restructuring, [...]
Nearly 5,000 protesters took part in a march against illegal immigration in Pretoria.

June 30, 2026 , Pretoria, South Africa: Nearly 5,000 protesters took part in a march against illegal immigration in Pretoria. The demonstrations were reportedly organized by more than 20 anti-migrant organizations and civil society groups, including the March and March movement.

© Manash Das/ZUMA Press Wire
South Africa bills other nations for deportationsSouth Africa is asking other African countries to reimburse them for the costs of deporting their citizens, after spending nearly $18 million on a massive deportation campaign. In recent months, the government has deported or helped other nations repatriate more than 80,000 migrants as it responds [...]
Oil tankers pass through the Strait of Hormuz, December 21, 2018.

Oil tankers pass through the Strait of Hormuz, December 21, 2018.

REUTERS/Hamad I Mohammed
The Strait escape Iran refused again on Tuesday to reopen the Strait of Hormuz unless the US meets its demands, flexing its leverage over the world’s most important artery for oil and gas shipping. But now, that leverage is prompting a rethink of global shipping routes. Saudi Arabia, one of the top oil producers in the world, plans to increase [...]
Residents dig through the debris of a collapsed building after an earthquake.

Residents dig through the debris of a collapsed building after an earthquake, in Cali, Colombia August 10, 2026.

REUTERS/Juan Pablo Arbelaez
Earthquake rocks Colombia days into new president’s termA 7.4 magnitude earthquake struck Colombia yesterday – at least 160 people have died, though officials expect the toll to rise as rescue efforts continue. The quake’s epicenter was in the Chocó region – one of Colombia’s poorest areas that has also been wracked with clashes in recent years [...]