Ramaphosa responds to calls for Godongwana’s head, and hundreds of teachers in trouble

The rand declined at the end of trading on Wednesday, 30 April, ahead of local trade and budget data, a briefing by the finance minister regarding the country’s contentious budget and a public holiday.

The rand was trading at 18.63 against the dollar, roughly 0.4% weaker than its closing level on Tuesday. 

The dollar was up about 0.25% against a basket of currencies after a report from the Commerce Department indicated that U.S. gross domestic product (GDP) fell by 0.3% in the first quarter. 

This data was worse than market expectations but better than the severe predictions made by some major U.S. banks. 

Domestically, South Africa reported a trade surplus of R24.77 billion in March, while the budget deficit for the same month stood at R13.11 billion.

On Friday, 2 May, the rand was trading at R18.46 to the dollar, R24.57 to the pound and R20.88 to the euro. Oil was trading slightly lower at $62.50 a barrel.

Here are five other important things happening in and affecting South Africa today:

Ramaphosa defends Godongwana: Godongwana has faced harsh scrutiny after two failed attempts at tabling the 2025 budget, which included proposals for a VAT increase. However, Ramaphosa defended the finance minister during COSATU’s Workers’ Day event on Thursday. Ramaphosa said that the situation has led to a more transparent budget process. “Unlike before, where it was a one-way process, now institutions, political parties, and citizens can provide input,” he said. “We have learned valuable lessons from this, and it does not require the Minister of Finance to resign.” [TimesLive]

Teachers in trouble: About 500 teachers in four provinces are teaching at state schools without the required certification from the South African Council for Educators (SACE). The SACE Act prohibits the employment of unregistered teachers. Some provinces are helping these teachers obtain certification, but those who do not comply risk termination by the end of April. [News24]

Calls for tax-free two-pot withdrawals: COSATU has called for tax-free withdrawals from retirement funds. SARS reported collecting over R11 billion in taxes from two-pot retirement withdrawals by more than two million members. COSATU has called the tax unfair and is negotiating with the Treasury to eliminate taxes on the two-pot system to protect workers. [EWN]

Blow to some Capetonians with solar: Solar power users in Cape Town with low grid consumption may see significant bill increases starting in July 2025. According to MyBroadband, households using less than 300 kWh from the grid could face hikes of 7% to 38%, while those consuming between 300 kWh and 600 kWh might experience increases of 3% to 7%. [Moneyweb]

Where Treasury can find funds to fill the VAT hole: Michael Sachs, an adjunct professor at Wits University and former head of the National Treasury’s budget office, suggests cutting expenditure to offset the VAT reversal. Key suggestions include reducing the cabinet size, VIP protection, diplomatic missions, restructuring the RAF and Setas, closing underperforming state-owned enterprises, reviewing public procurement, and addressing public servant remuneration, corruption, and inefficiency. [Business Day]