Two important new laws sent to Ramaphosa to sign
Two new laws, passed by the National Council of Provinces (NCOP), are now awaiting President Cyril Ramaphosa’s signature.
These are the 2025 Appropriation Bill and the Eskom Debt Relief Amendment Bill, which were tabled earlier this year as part of South Africa’s national budget process.
Once signed into law, they will significantly change how the government manages its finances and supports the struggling power utility.
The council described the Appropriation Bill as a critical part of South Africa’s public finance framework. It authorises the government to finance various departments and programmes using public funds.
Without it, departments cannot legally spend money. In line with Section 27(1) of the Public Finance Management Act, the Minister of Finance must table the budget.
This includes the Appropriation Bill, before the start of each financial year or as soon as possible thereafter in exceptional circumstances.
The Minister of Finance tabled the National Budget in May for the 2025/26 financial year. After the National Assembly passed the Appropriation Bill, it was referred to the Select Committee on Appropriations for review.
The NCOP then adopted it in a plenary sitting on 30 July 2025. The Bill outlined how funds will be distributed among national departments and public entities, supporting the delivery of services and development programmes across the country.
According to the Bill, it prioritises healthcare, education, social grants, infrastructure development, and job creation while aiming to stimulate economic growth and address high levels of unemployment.
Once signed by the President, departments can begin using the allocated funds to carry out their planned activities.
Parliament then exercises oversight through portfolio and select committees to ensure that public money is used appropriately and efficiently.
Alongside the Appropriation Bill, the NCOP also passed the Eskom Debt Relief Amendment Bill. This amendment seeks to update the Eskom Debt Relief Act of 2023 to better suit the power utility’s current financial needs.
On Ramaphosa’s desk
Parliament said the the Eskom Debt Relief Amendment Bill’s main aim is to reduce Eskom’s financial obligations for the 2025/26 financial year and give the entity more breathing room to stabilise its operations.
Under the new provisions, the full amount allocated to Eskom in 2025/26 will be treated as a loan. Once Eskom meets specific conditions, this loan may be converted into equity, effectively turning it into a financial contribution from the state.
This structure is intended to give the power utility strong incentives to meet reform targets while giving the state some financial control over the process.
Another key element in the amendment is the introduction of a market-related interest rate on the debt relief package.
Parliament said this interest is designed to balance the need to support Eskom while still reflecting realistic financial costs and managing the impact on the utility’s cash flow.
The goal is to make the relief package more sustainable and to ensure that Eskom is held accountable for how it uses the funds.
Eskom has faced years of financial and operational difficulties, contributing to South Africa’s energy crisis.
The amendments are part of broader government efforts to stabilise Eskom, enabling it to invest in infrastructure and improve its ability to deliver a reliable electricity supply.
Both Bills have now passed the NCOP and have been sent to President Ramaphosa for assent, as required by the Constitution.
Once signed into law, they will enable the government to implement its budget plans and support Eskom’s ongoing recovery efforts.
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