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Taking COSATU Today Forward
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Our side of the story
4 August 2026
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Contents
Workers’ Parliament-Back2Basics #ClassWar
Message
of Support by COSATU General Secretary at the Chinese Business Employers Advocacy Session, 4 August 2026
Solly Phetoe, COSATU General Secretary, 4 August 2026
Greetings
to the Honourable Deputy Minister of Employment and Labour, Mr Jomo Sibiya, the Inspection and Enforcement team led by the Inspector General, Ms Aggy Moiloa and Ms Milly Ruiters,
The Chinese Business Community,
Workers and Comrades organized labour,
All protocol observed.
The Congress of South African Trade Unions (COSATU) commend the Inspection and Enforcement Services (IES) Branch for its proactive efforts to engage employers, raise awareness of labour legislation, and strengthen compliance within sectors identified as vulnerable
to labour rights violations.
This is a progressive step towards strengthening compliance and capacitating the Chinese Business Employers who conduct business in South Africa.
COSATU has, over many years, consistently raised concerns regarding instances of non-compliance with South Africa's labour laws by some employers operating within the Chinese business community.
These concerns have included allegations relating to working conditions, non-compliance with minimum wage provisions, excessive working hours, inadequate employment contracts, and violations of other basic worker rights.
While we acknowledge that many employers operate responsibly and within the law, it remains critical that all businesses operating in South Africa adhere fully to the country's labour legislation and constitutional values.
We are facing major challenges in our economy and society including high levels of poverty, unemployment and inequality.
As
we work to transform and grow and inclusive economy, we must be sure that all benefits and not just a few are respected, we must be sure that growth is not based on the exploitation of labour and the denial of workers’ rights.
Labour laws are not Optional, something that can be avoided to make more profits, It is the minimum floor of protection in a society that has known people what it means to treat human beings as disposal, it exists because working people organised, fought and
sacrificed so that no employer – whether local or foreign can build wealth by breaking the backs of workers.
I want to speak plainly about the importance of complying with the laws of SA Labour laws but also about the challenge we cannot ignore, our experience and findings that many of Chines owned business operating in South Africa do not comply with the labour law,
I want to be clear from our side, we are not against investment, we are not against any nationality, we stand against exploitation, we stand against lawlessness, we stand, against business model that depends on precarious and underpaying including overworking
workers in unsafe workplace.
Recent developments have reinforced the concerns long raised by COSATU regarding labour law violations and worker exploitation in certain businesses.
The Department of Employment and Labour itself has highlighted recurring challenges in some Chinese-operated enterprises, including non-compliance with the National Minimum Wage, long working hours without overtime compensation, lack of employment contracts,
inadequate occupational health and safety measures, and the employment of undocumented workers.
These challenges have informed the Department's ongoing advocacy and enforcement initiatives with the Chinese business community.
COSATU notes that these concerns are not merely theoretical. In June 2026, a joint inspection operation in Newcastle, KwaZulu-Natal, reportedly uncovered undocumented workers and poor living and working conditions at a Chinese-owned textile factory, leading
to arrests and further investigations into possible labour and immigration violations.
Furthermore, the February 2025 conviction of seven Chinese nationals and their company on numerous counts related to human trafficking, child labour, occupational health and safety violations, and failure to comply with labour legislation serves as a stark
reminder of the devastating consequences of worker exploitation.
The
court found evidence of workers being paid below statutory minimum standards and being subjected to unacceptable working conditions.
This landmark case demonstrated the importance of coordinated enforcement efforts by the Department of Employment and Labour, the South African Police Service, and other state institutions.
It is against this backdrop that COSATU particularly welcomes the Department's continued efforts to combine advocacy, education, inspections, and enforcement.
We believe that genuine partnerships between government, organised labour, compliant employers, and the Chinese diplomatic and business community can help address these challenges, improve compliance levels, and ensure that all workers in South Africa enjoy
the protection and dignity guaranteed by our Constitution and labour laws, raising with effective inspection and enforcement measures, thereby promoting decent work, fair labour practices, and harmonious labour relations.
COSATU firmly believes that compliance with labour laws is not only a legal obligation but also a foundation for sustainable business growth, social stability, and economic transformation.
We encourage all employers participating in this engagement to view labour compliance as a shared responsibility that protects workers, promotes fair competition among businesses, and contributes to the broader development of South Africa.
We further pledge our support for initiatives that strengthen collaboration between organised labour, employers, and government in addressing labour market challenges.
Through
constructive engagement and consistent enforcement of labour standards, we can ensure that all workers, regardless of sector or nationality of their employer, enjoy the rights and protections guaranteed by South African law.
COSATU therefore applauds the Department of Employment and Labour, under the leadership of the Inspection and Enforcement Services Branch, for taking decisive steps to engage the Chinese business community.
We
trust that this advocacy session will contribute meaningfully towards ending exploitative labour practices, promoting decent work, and fostering a culture of compliance that benefits workers, employers, and the South African economy alike.
Amandla!
___________________
NUM
Responds to President Cyril Ramaphosa’s Approval of the Eskom Restructuring Task Team (ERTT) Phase I Report
Khangela
Baloyi, NUM Energy Sector Coordinator, 04 August 2026
The National Union of Mineworkers (NUM) notes President Cyril Ramaphosa’s approval of the Eskom Restructuring Task Team (ERTT) Phase I Report, which recommends establishing an independent Transmission System Operator (TSO) separate from Eskom.
While
the Presidency asserts this move aims to foster competition, attract investment, and enhance energy security, NUM remains deeply concerned about its impact on workers, local communities, and Eskom’s long-term sustainability as a strategic state-owned enterprise.
While NUM recognizes the urgent need to expand South Africa’s transmission infrastructure, restructuring must not come at the cost of jobs, working conditions, collective bargaining rights, or public ownership. Eskom workers have borne the weight of keeping
the grid stable, and their livelihoods must be protected.
Prioritizing Municipal Debt and Core Governance
NUM
welcomes the report’s recognition that Eskom’s financial sustainability must be safeguarded and that mounting municipal debt poses a severe threat to the utility. We maintain that government must prioritize resolving municipal debt, improving revenue collection,
and strengthening governance before introducing structural changes that risk operational stability and create worker uncertainty.
Firm Opposition to Asset Transfers and Private Sector Fragmentation
NUM strongly opposes any proposal to transfer strategic assets, infrastructure, employees, or operational functions from the National Transmission Company of South Africa (NTCSA) to a newly created TSO. Transferring transmission assets away from Eskom carries
significant risks of fragmentation, increased private sector influence, and the gradual erosion of public control. NUM rejects any asset separation or transfer undertaken without the full consent and comprehensive consultation of organized labour.
International experience shows that market liberalisation often leads to workforce reductions and compromised labour standards. NUM demands explicit guarantees from the government that no worker will loose their job or suffer degraded employment conditions
as a result of these reforms.
Demand for Genuine Consultation and a Just Transition
As government enters Phase II to finalize an implementation plan over the next three months, NUM demands full and meaningful consultation at every stage. Labour must not be treated as passive observers in decisions that affect thousands of livelihoods.
Furthermore, any electricity sector reforms must adhere strictly to the principles of a Just Transition—prioritizing energy security, affordable power, industrial growth, localization, and public interest above private profit.
NUM Prepared to Mobilize and Pursue Legal Action
NUM unequivocally rejects the gradual privatization and liberalisation of South Africa's electricity grid. Electricity is a strategic national asset. We call on government to halt all steps toward market liberalisation until a comprehensive social compact is
reached with labour and key stakeholders.
Should government proceed with reforms that threaten public ownership, undermine Eskom's strategic mandate, or compromise workers' rights without genuine consultation, NUM will utilize all available legal, constitutional, and organizational avenues—including
judicial intervention and worker mobilization—to defend public ownership, protect jobs, and safeguard the nation’s energy sovereignty. Restructuring must place workers, communities, and national development at its center.
___________________
DENOSA NW welcomes the ruling by Labour Court on the payment of 8% Rural Allowance to assistant nurses in rural facilities.
Reuben Molete, DENOSA North West Provincial Secretary, 04 August 2026
MMABATHO – The Democratic Nursing Organisation of South Africa (DENOSA) in North West warmly welcomes yesterday’s ruling by the Johannesburg Labour Court on the review application by Department of Health in North West of the Public Health Social Development Bargaining Council (PHSDSBC) arbitration award to DENOSA to have an assistant nurse paid 8 percent Rural Allowance, backdated to April 2018 when she commenced her employment for government.
Upholding the previous ruling by the PHSDSBC Arbitration, that the nurse must be paid Rural Allowance retrospectively, proves that DENOSA has been right all along that PHSDSBC Resolution 2 of 2004 has been implemented inadequately as it has been excluding Enrolled Nurses (ENs) and Enrolled Nursing Assistants (ENAs), when in fact the Resolution includes them.
DENOSA took this matter on behalf of the nurse in December 2020. The nurse works in one of the rural healthcare facilities in the North West, and has not been receiving Rural Allowance since she commenced her employment, leaving her 8 percent poorer in terms of salary every month.
At the centre of the matter is the wrong interpretation of PHSDSBC Resolution 2 of 2004 by the Department of Health in North West, and by extension other health departments in the country. The Department interprets the Resolution as saying only a category “Professional Nurse” should be paid the 8 percent Rural Allowance if they are working in a clinical area in areas that are designated as rural areas, whereas this term in the Resolution is used to describe a nurse that is registered at the South African Nursing Council, the country’s regulatory authority for nursing, not to a nursing rank.
The Resolution is clear that those who are excluded from the Resolution are student nurses.
Since 2004 when the agreement was signed in the public sector, the Enrolled Nurses and Enrolled Nursing Assistants have been excluded from getting Rural Allowance. The ruling by the court will have far-reaching effects as thousands of other Enrolled Nurses and Enrolled Nursing Assistants are in the same quagmire countrywide.
DENOSA will enforce the implementation of this ruling by the Department of Health so that justice and fairness are served on the affected nurses.
DENOSA is happy that, finally, justice has been served.
End.
Issued by DENOSA in North West.
__________________
National
Treasury on publication of the 2026 draft tax bills for comment
30
Jul 2026
The National Treasury and the South African Revenue Service (SARS) today publish, for public comment, the 2026 draft Taxation Laws Amendment Bill (2026 draft TLAB) and the 2026 draft Tax Administration Laws Amendment Bill (2026 draft TALAB). These draft tax
bills contain the tax proposals that were made in the 2026 Budget on 25 February 2026.
2026 draft TLAB
The 2026 draft TLAB provides the necessary legislative amendments required to implement the tax announcements made in Chapter 4 and Annexure C of the 2026 Budget Review, as well as technical corrections.
Key tax proposals contained in the 2026 draft TLAB include the following:
Determining the application of the de minimis limit for multiple living annuities
To expressly provide that the prescribed de minimis limit must be determined on a cumulative basis where an annuitant holds multiple living annuities with the same insurer or fund. This ensures consistent application of the rule and supports the broader policy
objective of protecting retirement income.
Limiting the donations tax exemption rules where a spouse is a non-resident
It is proposed that a limitation be introduced on the inter-spousal donations tax exemption. Specifically, the exemption will apply only to donations made to a spouse who is a South African tax resident. This proposal aims to stop spouses from deliberately
staggering their cessation of tax residence to avoid paying donations and capital gains tax.
Special economic zones: introduction of domestic transfer pricing rules
It is proposed that the anti-profit shifting rule be replaced with the arm’s length principle in respect of domestic transactions between SEZ companies qualifying for the 15% corporate income tax rate and related companies outside the SEZ.
Leasehold improvements
It is proposed that the VAT Act be amended to extend the claw-back mechanism to lessors who are not registered vendors. This would be achieved through a specific declaration process designed to close the current gap that arises when a landlord is not registered
for VAT.
Refunds for carbon budget compliance
It is proposed that the current reference to the immediately preceding tax period be deleted. To add clarity, it is proposed that refunds for the first two tax periods can be claimed in the third year. For the remaining tax periods, years three to five, a refund
can be claimed in the sixth year, which will also accommodate any technical adjustments needed for the initial two tax periods.
2026 draft TALAB
The 2026 draft TALAB provides legislative amendments dealing with tax administration announcements made in Annexure C of the 2026 Budget Review, as well as technical corrections.
Key tax proposals contained in the 2026 draft TALAB include the following:
Providing an enabling provision relating to Admission Temporaire/Temporary Admission carnets
The ATA Carnet system, established under the ATA and Istanbul Conventions, enables the temporary admission of certain goods without the payment of duties or taxes. The World Customs Organisation and the International Chamber of Commerce launched an electronic
ATA Carnet Project which mandates fully digitised carnets. Carnets were historically issued in paper format and manually processed at border posts. This amendment is proposed to ensure that South Africa can implement the new electronic requirements.
Expanding documentary requirements for second-hand goods
To mitigate the risk of fraudulent notional input tax claims, it is proposed that the documentation requirements for second-hand goods vendors be extended to align with those prescribed under the Second-Hand Goods Act and its regulations.
Permitting pre- or post-deposit screening of refunds by banks
Banks are required to report suspicious tax refunds to SARS and hold the refunds for up to two business days while SARS investigates. The proposed amendment aims to explicitly permit pre- or post-deposit screening of refunds by banks to enable a smoother refund
process.
Interest relief on defaults disclosed during voluntary disclosure application
To assist potential applicants, it is proposed that provision be made to specifically permit applicants for voluntary disclosure relief to simultaneously apply for the separate remission of interest in respect of the defaults disclosed in the voluntary disclosure
application.
Proposals listed in Annexure C but excluded from the 2026 draft tax bills
The proposal relating to the “Supply of gold to banks”, as announced in the 2026 Budget Review, has not been included in the 2026 draft TLAB as it requires further consultation and consideration.
Locating the 2026 draft tax bills and accompanying draft explanatory memoranda
The 2026 draft tax bills and the accompanying draft explanatory memoranda containing a comprehensive description of the proposed tax amendments contained in the draft tax bills can be found on the National Treasury website at
www.treasury.gov.za
and the SARS website at www.sars.gov.za.
More general information underlying the changes in rates, thresholds or any other tax amendments can be found in the 2026 Budget Review, available on the National Treasury website.
Due date for public comments on the 2026 draft tax bills
National Treasury and SARS hereby invite comments in writing on the 2026 draft TLAB and 2026 draft TALAB.
Written comments must be forwarded to the National Treasury’s tax policy depository at AnnexCP...@zatreasury.onmicrosoft.comand SARS at acol...@sars.gov.zaby close of business on 28 August 2026.
Issued by National Treasury
South Africa #ClassSolidarity
COSATU stands with workers and the Tulbagh community to defend Rhodes Processing Plant
Malvern De Bruyn, COSATU Western Cape Provincial Secretary, 4 August 2026
The Congress of South African Trade Unions (COSATU) reaffirms its unwavering solidarity with the workers, farmers and the broader Tulbagh community in their united campaign to stop the proposed closure of the Rhodes processing plant.
Premier Foods announced the plan to close the Rhodes processing plant last week, following the merger with Rhodes Food Group Holdings in March this year. The merger was sanctioned by the Competition Commission with conditions attached, including Premier’s undertaking of no retrenchments for three years.
COSATU extends its appreciation to the community of Tulbagh for inviting the Federation to participate in the public meeting and prayer service on Sunday. The overwhelming unity displayed by workers, farmers and residents demonstrates that the future of the Rhodes processing plant is not merely a workplace issue but a matter affecting the survival of the entire local economy.
The closure of the processing plant would destroy an estimated 80 000 jobs in the value chain, weaken agricultural production and devastate businesses throughout Tulbagh and surrounding areas. Retailers, suppliers, transport operators and many other enterprises depend on the continued operation of the plant. This reckless decision threatens the economic future of the entire region.
COSATU rejects any attempt by Premier Foods to sacrifice workers and communities in pursuit of short-term profits for shareholders. The people of Tulbagh helped build this industry over generations and deserve a meaningful voice in determining its future.
The Federation supports the following immediate demands:
COSATU is equally concerned that the company appears to be ignoring alternative market opportunities by insisting the decision to close was prompted the USA agreement, but they say nothing of the offer by China to take on SA exports and how this can benefit the company. South Africa's canning industry requires growth and innovation, not contraction.
The Federation believes the future of the canning industry cannot be determined through unilateral corporate decisions. A national master plan for the industry must be developed through engagement between government, organised labour, producers, processors and affected communities.
As part of the campaign to save the plant, COSATU, together with its affiliate Southern African Clothing and Textile Workers' Union (SACTWU) and other recognised trade unions, will continue to participate in negotiations and legal processes, particularly those involving the Competition Commission. The Federation also welcomes the intervention made by local farmers and will support every lawful effort to prevent the closure.
COSATU will further engage Premier's shareholders, the Department of Trade, Industry and Competition, the Office of the Western Cape Premier and all relevant stakeholders to secure a sustainable solution that protects jobs and preserves industrial capacity in Tulbagh.
The Federation also calls on companies throughout the agricultural value chain to oppose decisions that undermine local production and threaten thousands of livelihoods.
Should Premier insist on exiting the operation, COSATU believes the facility should instead be sold as a going concern to a consortium capable of preserving production, protecting jobs and advancing worker ownership. Government development finance should be explored to support such an initiative, while workers must have an equitable stake in the future ownership of the enterprise.
The unity demonstrated by workers, farmers and the community sends a powerful message that Tulbagh will not stand by while corporate greed destroys its economic future.
COSATU pledges to stand solidly with the workers and the people of Tulbagh until this closure is defeated and the Rhodes processing plant remains a thriving contributor to the local economy.
Issued by COSATU Western Cape
__________________________
Electoral
Commission on successful registration drives
03
Aug 2026
Voters’ Roll surpasses 29 million following successful registration drives
Over the past registration weekend on 1 and 2 in August, 1.7 million citizens interacted with the Electoral Commission by either visiting one of the 23 699 registration stations or using the online voter registration portal.
Of the 1.7 million transactions, 291 806 or 16% were persons registering as first time voters. Additionally, 1 502 245 or 84% of persons already registered, inspected and updated their registration details. This is in line with the message that a voter must
register and vote in the voting district within the ward where they reside. In local government elections there no provision to vote outside of the voting station of registration.
Provincial Performance
In terms of provincial outcomes, KwaZulu-Natal recorded the highest volume of registration transactions at 427 592, followed by the Gauteng with 314 856, while
Eastern Cape third with 313 797.
|
Rank |
Province |
New
Reg |
Re-Reg
Same VD |
VD Move |
Grand
Total |
||||||
|
1 |
KwaZulu-Natal |
71 932 |
220 000 |
135
660 |
427
592 |
||||||
|
2 |
Gauteng |
55 879 |
128 776 |
130
201 |
314
856 |
||||||
|
3 |
Eastern
Cape |
37 897 |
197 577 |
78 323 |
313
797 |
||||||
|
4 |
Limpopo |
32 021 |
122 700 |
54
795 |
209
516 |
||||||
|
5 |
Western
Cape |
27 432 |
49 498 |
57 361 |
134 291 |
||||||
|
6 |
Mpumalanga |
24 958 |
64 829 |
43
591 |
133
378 |
||||||
|
7 |
North West |
17 237 |
62 270 |
36 597 |
116
104 |
||||||
|
8 |
Free State |
14 621 |
51 955 |
30
635 |
97
211 |
||||||
|
9 |
Northern Cape |
9 829 |
24 682 |
12 795 |
47 306 |
||||||
|
Grand Total |
|
291 806 |
922 287 |
579 958 |
1 794 051 |
Channels of Application
Registration station- based applications continue to be the leading mode of registration with 1 555 318 of the total 1,7 million applications.
Provincially, KwaZulu-Natal comprises the largest number at 386 258 registration station-based activity, followed by Eastern Cape at 295 655 and Gauteng at 228 364.
The online portal contributed 238 733 transactions over the two days. The highest usage of the online voter registration platform was recorded in Gauteng (86 492), followed by KwaZulu-Natal (41 334) and the Western Cape (33 783). Unsurprisingly, these are provinces
with highest concentrations of urban populations.
Youth participation
Of the total 1,7 million transactions recorded, young people in the age cohort 16 to 29 account for 485 757 or 26%. Even more encouraging is that 46% of the new registrations are by voter under the age of 29.
KwaZulu-Natal again leads with young person’s registration at 137 046, followed by Eastern Cape at 79 417, followed by Gauteng at 78 405.
|
Rank
|
Province |
16-17 |
18-19 |
20-29 |
Grand
Total |
||||||
|
1 |
KwaZulu-Natal |
19
255 |
14
797 |
102 994 |
137
046 |
||||||
|
2 |
Eastern Cape |
12
157 |
8
574 |
58 686 |
79
417 |
||||||
|
3 |
Gauteng |
11 217 |
8
419 |
58 769 |
78
405 |
||||||
|
4 |
Limpopo |
9
937 |
5 623 |
37 148 |
52
708 |
||||||
|
5 |
Mpumalanga |
5
829 |
4
016 |
27 958 |
37 803 |
||||||
|
6 |
Western
Cape |
5 750 |
4
283 |
25 888 |
35
921 |
||||||
|
7 |
North West |
3
830 |
2
879 |
21 026 |
27 735 |
||||||
|
8 |
Free
State |
3
265 |
2 322 |
16 556 |
22 143 |
||||||
|
9 |
Northern
Cape |
2
535 |
1
599 |
10 445 |
14 579 |
||||||
|
Grand Total |
|
73 775 |
52 512 |
359 470 |
485 757 |
Gender
The total registration activity for the final registration weekend, female voters account for 1 005 790, representing 56% of total activity, while male voters account for 788 261or 44% of total activity. This is consistent with the well-established trend of
there being more females than males on the voter’s roll. Of the 291 806 new registrations 50% are female.
Cumulative impact of Registration weekends
The combined impact of the two voter registration weekend drives resulted in close to 4.7 million interactions with voters (4 666 547) compared to the 1.7 million transactions recorded during the comparable 2021 Local Government Elections (with one registration
weekend) due to the Covid 19 reduced election timetable.
Collectively, the two voter registration weekends held in June and August 2026 contributed 754 332 new voters, adding to the continued growth of the voters’ roll ahead of the 2026 Local Government Elections.
Properly understood, 2.1 million new voters have been added to the voters’ roll since the last general elections in 2024. This is despite the fact that we regretfully 884 000 voters from the roll owing mainly to mortality estimated at 34 000 persons per month.
Continuous voter registration
The Commission advises eligible voters who were unable to visit a registration station during the registration weekends to make use of the Online Voter Registration portal before proclamation on Friday 7 August.
To maximise the remaining registration period, the Commission is expanding the online registration modality to make it even more accessible and convenient.
WhatsApp registration: The Commission announces the introduction of voter registration on the WhatsApp platform. The modality provides intuitive, convenient and mobile-friendly way to register or update voter details given the ubiquitous nature of the platform.
The platform uses secure identity verification measures, including OTP authentication, ID document uploads, address verification, and voting station confirmation, to protect the integrity of the voters’ roll. While WhatsApp registration forms part of a broader
voter registration offering, accurate address validation remains critical to a successful registration process. To support this, some voters may be redirected to the interactive map on the Online Voter Registration (OVR) platform to locate and confirm the
rooftop location of their home address.
By leveraging a platform used daily by millions of South Africans, the Commission is expanding access to voter registration, improving convenience and ensuring that more eligible voters can register or update their details before the close of the registration
period at midnight on 7 August 2026.
Next Phase of Electoral Programme
With the successful conclusion of the two voter registration weekends, the Electoral Commission now turns its full attention to preparations for Election Day. The next phase of the electoral programme will focus on the formal election timetable, which will
commence once the election is proclaimed.
This will usher in key electoral milestones, the dates and timeframes for critical processes, including candidate nominations, certification of the voters' roll, and other activities leading up to voting day on 4 November 2026.
The Commission is encouraged by the uptake of the Online Candidate Nomination System (OCNS) by potential independent candidates and political parties, with over 93 independents and 87 political parties having started using the system respectively. We continue
to encourage all contestants to use the system to capture candidates or details of supporters.
Call to Action
The Commission reiterates that eligible voters should not wait until the last minute to register or update their details. Experience has shown that a surge in registration activity often occurs closer to key deadlines, creating avoidable pressure on registration
channels.
We remind the nation to use the SMS 32810 line to check their registration status. Our Contact Centre on 0800 11 8000 remains available for registration assistance. Our “WhatsApp” line 0600 088 000 is also available to assist voters.
The Commission extends its sincere appreciation to all voters, the 48 212 electoral staff, political parties, community organisations and stakeholders who contributed to the successful conduct of the registration weekend. Every registration strengthens South
Africa's democracy and ensures that communities have a voice in shaping the future of local government.
The Commission also thanks the Minister responsible for Cooperative Governance and Traditional Affairs for the public announcement related to the date of proclamation.
On Proclamation Day, Friday, 7 August 2026, the Electoral Commission will brief the media on the Election Timetable, outlining key electoral activities, statutory deadlines and milestones leading up to the Local Government Elections on 4 November 2026.
For media queries:
Kate Bapela
Cell: 082 600 6386
For media interviews: Email requests to spokes...@elections.org.za
Issued by Independent Electoral Commission
Internationalism-Solidarity
New study: Nearly half the world's population live in countries which spend more on debt than health and education
31 July 2026
Rising debt burdens across much of the world are forcing developing countries to cut back on education with alarming consequences, according to a new United Nations report.
The 2025 study by the UN Conference on Trade and Development found that over 3.4 billion people—nearly half the world's population—live in countries that spend more on debt repayment than public expenditures like health and education, putting the right to education
at risk for millions of children.
Speaking to Education International members at a Go Public event in Johannesburg this past week, EI President Mugwena Maluleke emphasized that this public funding crisis is not accidental; rather the result of political decisions:
"The question is not whether money for education and public services exists. The question is: what are governments choosing to fund? Acrossthe Global South, countries spend far more on debt repayments than on education. Money that should be building schools,
employing teachers and supporting learners is instead flowing to creditors. At the same time, billions of dollars leave our continent every year through illicit financial flows, tax avoidance and profit shifting."
A harmful double standard
The UN report document show the number of countries facing high debt levels has increased rapidly in recent years, from22 countries in 2011 to 59 in 2022. Much of this rise can be attributed to costs associated with theCovid-19 pandemic response. However, for
developing countries, this burdenis compounded by private creditors charging unnecessarily high interestrates, leading African countries to pay on average four times the borrowing cost compared to the United States, and eight times more than many European
countries.
UN Secretary General Antonio Guterres spoke to the damaging effects of these disparities,noting the dire consequences they hold for the world economy:
"Because such a “crushing debt crisis” is concentrated mostly in poor developing countries, it is not judged to pose a systemic risk to the global financial system. This is a mirage. Across the world, rising debt burdens are keeping countries from investing
in sustainable development."
At the current moment, the International Monetary Fund categorises 36 countries on"so-called 'debt row'- either in, or at high risk of debt distress," Guterres went on to explain. An additional 16 countries are also paying unsustainable interest rates to creditors,
bringing the total to 52, or almost 40 percent of the developing world. As long as they are bound to these repayment obligations, none of these countries have the ability to properly invest in health, education, and other areas that are necessary to sustainable
development, the UN report contends.
Outdated financial systems in need of upgrading
This report is in line with a recent study by Education International and Action Aid which found that the International Monetary Fund continues to advise countries to prioritise debt repayments over funding public services.
This study revealed that, despite claiming to support better education outcomes, the IMF has not adjusted its country-level advice to reflect these new priorities, and fails to take each country's unique context into account. The UN report only strengthens
these claims, as its findings reflect the fact that global financial architecture has not moved beyond debt repayment as a primary goal.
To truly shift away from this outdated framework and towards a model that prioritises investment in public services, the global financial system must become more inclusive and development-oriented, the UN report contends. Developing countries must be invited
to participate in the governance of these institutions, to ensure that their interests are included, not just those of the Global North.
EI President Mugwena Maluleke echoed these recommendations:
"The IMF of today is still serving the interests of Global North governments, creditors and multinational companies. It is designed to enable their exploitation.It’s notable and outrageous that IMF austerity recommendations do not extend to rich countries."
A way forward
In addition togiving developing countries a greater voice within global financial institutions, better models of technical assistance must be adopted. One potential method involves debt-for-education (Debt4Ed) swaps, a tool which has been promoted by UNESCO.
In a Debt4Ed swap, a portion of a country's debt is cancelled if it agrees to invest the money saved into education. This allows a country's education sector to receive priority funds over the course of several years, and could prove especially critical to
the nations highlighted in the UN report.
However, as stressed by UNESCO, these swaps are not meant as a substitute for broader debt relief. The more structural factors behind the debt crisis, such as private creditors and colonial systems of extraction, must not be forgotten, as President Maluleke
emphasized:
"Let us reject the politics of scarcity. Let us expose the myth that there is no money. Let us challenge the priorities that fund weapons before schools, creditors before children, and tax breaks before teachers. We must continue building a movement powerful
enough to ensure that quality public education is not merely promised, but fully funded and realised for every child around the world."
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Norman Mampane (Shopsteward Editor)
Congress of South African Trade Unions
110 Jorissen Cnr Simmonds Street, Braamfontein, 2017
P.O.Box 1019, Johannesburg, 2000, South Africa
Tel: +27 11 339-4911 Direct line: 010 219-1348