Sanisha Packirisamy, Group Economist, & Tshiamo Masike, Economist; at Momentum Investments

South Africa

South Africa’s (SA) institutional reform agenda advanced alongside renewed scrutiny of political accountability, law enforcement and municipal governance. National Treasury and the SA Reserve Bank (SARB) published draft rules bringing cross-border crypto transactions into the
capital-flow framework. Offshore transfers would have to pass through authorised providers, remain within individuals’ foreign-currency allowances and be reported to the SARB’s Financial Surveillance Department. The proposals extend oversight to digital assets without yet  abolishing exchange controls.

Political accountability also returned to the foreground in SA. Proceedings in the Phala Phala impeachment inquiry remained suspended pending President Cyril Ramaphosa’s legal challenge, while the Economic Freedom Fighters (EFF) pursued an appeal against the court-ordered pause.

Meanwhile, the Madlanga Commission intensified its investigation into alleged criminal influence over policing and procurement. It resolved for the first time to lay charges against a witness for defying a summons, while testimony from alleged crime boss Vusimuzi “Cat” Matlala continued to expose
links between business, police contracts and political networks. Governance pressures extended to local government ahead of November’s municipal elections.

Parliament introduced legislation to formalise coalition agreements, while Johannesburg’s settlement of its R5.25 billion Eskom debt averted electricity restrictions yet underscored the ongoing financial fragility of municipalities.

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