Feature/OPED
South Africa Reshapes its Democracy, Shows Readiness for Economic Transformation
By Professor Maurice Okoli
South Africa’s historic election results in late May 2024 were another credible testament which, by simple guiding definition, explicitly illustrated democracy as the aggregate will of the people. It was held as stipulated by its constitution. The diverse political expressions were presented through political parties, the African National Congress (ANC) and its largest rivals the Democratic Alliance (DA), the hard-left Economic Freedom Fighters (EFF), the Inkatha Freedom Party (IFP), and uMkhonto weSizwe Party. Minority parties had their chance to participate, which made it fair and free for electoral progress in South Africa.
This is unlike what happened in Nigeria the so-called giant of Africa, where an election process was mired with ballot box snatching, rigging, violence, and irregularities thereby totally undermining the will of the people.
Despite heightened criticisms, South Africa has illuminated an exemplary template of good governance. In most significant practice, adherence of good governance is one fundamental principle that African leaders have to uphold, as a guiding principle combined with transparency and accountability, to shy away from the shame of being accused over functional political irresponsibility.
Worth reiterating that the political initiative taken by the African National Congress, headed by President Cyril Ramaphosa, to form a coalition has set the rhythmical parameters for the evolutionary processes, without much resistance to the obvious glaring weaknesses and shortfalls of the past administration. The creation of the new executive government emboldened the concept of “unity in diversity” and would have to float a common understanding towards ratifying and removing the existing complexities and contradictions within the framework of aspirations stipulated in the constitution. In another context, it has some relevance for the current shifting geopolitical situation and emerging multipolar architecture.
With its chequered history behind it, South Africa needs comprehensive result-oriented development initiatives, and this can only come through striking compromise and consequently be adopted by the coalition government. The political stalwarts such as the Democratic Alliance (DA) and Inkatha Freedom Party (IFP), now grossly involved in treading the tricky balanced act approved by the parliament on June 14, 2024, raised unswerving hopes for South Africa, the southern African nation of approximately 62 million.
It was a breakthrough to merge political forces marking the ‘great beginning’ of a new chapter, as Economic Freedom Fighters, uMkhonto weSizwe, and other parties have remained antagonistic, and have been termed as the game-losers of the century, marking a significant shift in South African political history after 30 years of ANC dominance. It has some implications, though.
The preceding political agitations culminating in the coalition agreement marked the most significant political change since Nelson Mandela led the ANC to victory in 1994, ending apartheid. “Today is a historic day for our country,” DA leader John Steenhuisen stated, highlighting a new chapter focused on the nation’s interests and future. Similarly acknowledging all these without the least doubts, Ramaphosa described the success as “a remarkable change” and “It will once again be a privilege and pleasure to serve this great nation … (as) president,” said the 71-year-old Ramaphosa, emphasizing a new era of hope and cautious inclusivity. (1)
Tackling Existing Tasks
The newly created executive government would necessarily have to determine the scope of transformation, and the contours for a broader strategic economic resuscitation to uplift South Africa back to its status as Africa’s economic power and an influencer on the global stage, starting from the regional bloc, Southern African Development Community (SADC) and to continental organization, the African Union (AU).
As President Cyril Ramaphosa secured the second term, the preliminary pathway must lead towards tackling the existing pertinent issues that were raised during the election campaign and resulted in a fall of supporters (42%), below the simple majority, for the ANC.
Several reports monitored for this article, the ANC’s decline primarily stemmed from persistent issues such as high poverty, inequality, crime, rolling power cuts, and internal corruption. The DA’s entry into national government signifies a watershed moment for South Africa, as the party advocates for scrapping some of the ANC’s Black empowerment programs, aiming for good governance and a strong economy to benefit all citizens.
Perhaps, South Africa’s newly instituted government has to acknowledge the undeniably challenging future tasks that would require adopting suitable strategies for implementing a set of result-expected policy directions. Across the board, however, experts and investors have already welcomed the coalition, expecting policy continuity and accelerated reforms. It is worth mentioning here that the coalition agreement also outlines priorities, inextricably linked to comprehensive sustainable development, such as economic growth, job creation, land reform, infrastructure development, and fiscal sustainability.
South Africa is the fourth-most populous country in Africa, 80 per cent of the population is black, located entirely south of the equator, after Tanzania. But the most paramount feature is that South Africa has a mixed economy. South Africa’s economy is the most industrialized and technologically advanced in Africa respectively, and has the second largest economy in Africa, after Nigeria. According to research reports, South Africa has a private wealth of $651 billion making its population the richest in Africa followed by Egypt with $307 billion and Nigeria with $228 billion. (2) Despite these, South Africa is still burdened by a relatively high rate of poverty and unemployment and is ranked in the top ten countries in the world.
Unlike most of the world’s industrialized countries, Energy power outrages have bugged down industrial production and domestic utilization. Electricity deficits in an increasing headache across Africa, and the majority of the African countries lack access to this vital component. African Development Bank and African Import-Export Bank reports said half the total of Africa’s population has no daily access to electricity. The impact is considered simply as immeasurable, though surmountable. South Africa is currently the only country on the African continent that possesses a nuclear power plant. The primary electricity generator is Eskom, the utility is the largest producer of electricity in Africa and also needs capital repairs as the equipment is obsolete and experiences frequent breakdowns, consequently limiting the power supply.
Due to severe mismanagement and corruption at Eskom, the company is R392bn ($22bn) in debt and is unable to meet the demands of the South African power grid. Due to this, Eskom implemented load-shedding, which is periodically switching off electricity to specific power grids in specific time frames. In South Africa, load shedding is done to prevent a failure of the entire system when the demand for electricity strains the capacity of Eskom’s power-generating system. Load shedding is characterized by periods of widespread national-level rolling blackouts.
Dr Kelvin Kemm, a nuclear physicist and former chairman of the South African Nuclear Energy Corporation (NECSA), and current Chairman of Stratek Global, a nuclear project management company based in Pretoria, suggested in a report that the ultimate pathway forward, possibly the “energy mix” can effectively fill certain functions in electricity provision, but “much financial arm-twisting has taken place, in the forms of supposedly soft loans and other inducements to save mankind from the sins of the Industrial Revolution and modern day industrialists.” (4)
Under former President Jacob Zuma, the power crisis in South Africa steadily worsened, as the authorities tried to make up their minds on which direction to follow, according to Kemm. In reality, Zuma pushed for more nuclear power. However, this initiative was vehemently opposed by anti-nuclear green groups who are significantly funded by the countries exporting their green solutions. Zuma-era project to build an additional 9600 MW of nuclear power was torpedoed by the anti-nuclear greens. Then President Cyril Ramaphosa deposed President Jacob Zuma. A hallmark of the tenure of President Ramaphosa has been dithering and uncertainty. The country hoped for a show of strong leadership under President Ramaphosa, but that did not materialize. Thankfully, South Africa is now advancing the nuclear agenda not only by announcing the planned building of a new large nuclear power station but also by supporting the introduction of Small Modular Reactors.
Combined with the energy question discussed above, South Africa is widely infected by corruption. It scored 41 points out of 100 on the 2023 Corruption Perceptions Index. Notwithstanding that, more examples of corruptible governments are abounding in Africa. Critics noted that African leaders are fond of making unilateral decisions, and bartering natural resources without cabinet approval and parliamentary discussions. And according to critics, Africans consistently blame their poor performance on external factors. Corruption is a global phenomenon, but that socioeconomic cancer should be tackled seriously in South Africa.
Senior Writer Kate Whiting indicated, in her report on Transparency International’s Global Corruption Barometer, that Corruption is hindering Africa’s economic, political, and social development… More than this, it affects the well-being of individuals, families, and communities.” The report attributed the deterioration of the rule of law and democratic institutions, as well as a rapidly shrinking space for civil society and independent media to corruption in Africa.
Over the years from the apartheid era until today, there has been tremendous growth in multifaceted crimes across South Africa. Reasons could not be far-fetched, as, blacks are unemployed. The entire economy creates highly limited employment places, and again due to porous official policies. From April 2017 to March 2018, on average 57 murders were committed each day in South Africa. More than 526,000 South Africans were murdered from 1994 to 2019. As of February 2023, South Africa unbelievably has the sixth-highest crime rate in the world.
In an article headlined “Coalition Government: A Test For South Africa’s Democracy” published in June 2024, (5) Samir Bhattacharya, a research associate at Observer Research Foundation (ORF) in New Delhi, India, pointed to the possible impact on its future foreign policy and aspects of its implications. Moving forward, the next administration would need to give the country’s foreign policy issues serious attention, chief among them being the delicate balancing act between the West, China, and Russia. At a deeper level, the incoming administration must develop a realistic foreign policy agenda that inspires confidence among investors, both local and foreign. Due to its close ties to all of the superpowers and the BRICS countries, South Africa’s non-alignment approach to international affairs is unlikely to alter in the current environment.
However, there arises a firm need to keep in mind that South Africa still finds strength in its democratic system, which remains a cornerstone of stability and inclusivity. Due to its participation in numerous international issues and membership in groups such as the G20 and BRICS, South Africa is a significant global player. It has lately surpassed Nigeria to become the largest economy on the African continent. South Africa’s latest developments are closely watched not only in the continent but also globally.
Logical Glimpse into the Future
South Africa boasts of an excellent reputation on the global stage. It is also a member of the Southern African Development Community and the African Union. It is a founding member of the AU’s New Partnership for Africa’s Development. After apartheid ended, South Africa was readmitted to the Commonwealth of Nations. Chronicling history, Johannesburg hosted the latest XVI BRICS summit and continues to play a pivotal role in the BRICS association. China supported by Russia, in 2011, South Africa was enrolled into the informal association BRICS (Brazil, Russia, India, China, and South Africa). Jacob Zuma asserted that BRICS member countries would also work with each other through the UN, G20, and the India, Brazil South Africa (IBSA) forum.
According to local African and foreign critics, despite its widened bilateral relations with many foreign countries, and yet South Africa suffers from high youth unemployment, grappling with energy supply deficits, and many other economic obstacles discussed earlier in this article. Ramaphosa consistently attributes weak economic performance to external factors. In his speeches after the second inauguration on June 19, 2024, Ramaphosa unswervingly promised to embark on a swift and vigorous economic resuscitation of South Africa, and within the new geopolitical reality. Nonetheless, the past was seemingly a difficult time. Ramaphosa has to ‘walk the talk’ as illustrated by well-coined linguistic phrases to win the hearts of the working-class, entrepreneurs, and middle-class population. The logic behind his re-election and re-appointment signalizes a complete turning point and a new chapter, at first with steadfastness, cooperating and collaborating in a close-knitted manner with the broad coalition and stakeholders in readiness to adopt radical measures in dealing with the existing economic deficiencies, striving further to improve the economic status of South Africa. The new chapter brings in its fold the necessity to make contentious steps toward achieving visible economic progress and ensuring ultimate economic sovereignty, creating an inspiring bright future for the generations as stipulated within the constitution of South Africa.
References
- Official speeches by DA leader John Steenhuisen and ANC Cyril Ramaphosa made available on the websites (June 2024).
- “World Bank: South Africa” (PDF). Archived (PDF) from the original on 20 April 2023.
- Transparency International’s Global Corruption Barometer, April 2023 report.
- Ramaphosa’s Administration and the Electricity Challenges in South Africa. Dr Kelvin Kemm (May 2024) interview published by Eurasia Review.
- Samir Bhattacharya, Coalition Government: A Test For South Africa’s Democracy (June 2024), interview published by Global Research.
Professor Maurice Okoli is a fellow at the Institute for African Studies and the Institute of World Economy and International Relations, Russian Academy of Sciences. He is also a fellow at the North-Eastern Federal University of Russia. He is an expert at the Roscongress Foundation and the Valdai Discussion Club. As an academic researcher and economist with a keen interest in current geopolitical changes and the emerging world order, Maurice Okoli frequently contributes articles for publication in reputable media portals on different aspects of the interconnection between developing and developed countries, particularly in Asia, Africa and Europe. With comments and suggestions, he can be reached via email: markolconsult@gmail.com.
Over the past two years, Nigeria has implemented key policies and reforms to revitalize its mining industry, attract investment and strengthen the sector’s contribution to GDP.
Recent government-led initiatives have streamlined licensing processes, removed bottlenecks and simplified market entry for international investors, enhancing production across the country’s 44 solid mineral types.
As Africa’s premier mining investment event, African Mining Week (AMW) 2025 will convene Nigerian and African stakeholders with global investors and industry leaders to drive deal-making and accelerate sector growth.
Launch of Mineral Resources Decision Support System
In May 2024, the Nigerian Geological Survey Agency unveiled the Mineral Resources Decision Support System to provide global investors with easy access to geological and policy data.
The platform markets Nigeria’s vast mineral resources and critical infrastructure, assisting investors in making informed decisions about the country’s mining sector. By enhancing data transparency and accessibility, the system aims to streamline investment processes and boost investor confidence in Nigeria’s mining industry.
Restructuring of Ministry
To improve efficiency, Nigeria restructured the Ministry of Mines and Steel Development in August 2023, creating two separate entities. The Ministry of Solid Minerals Development focuses on upstream activities and investment facilitation, while the Ministry of Steel Development oversees the development of steel and metallic resources to drive industrial growth. This restructuring aims to enhance sector-specific governance, attract targeted investments and accelerate the country’s mineral and steel value chain development.
Approval of Nigerian Minerals & Mining Bill
Approved in April 2023 and currently under public review, the Nigerian Minerals & Mining Bill aims to introduce incentives for foreign investors while strengthening local content requirements. Once enacted, it will become the sector’s primary legal framework, enhancing transparency and investor confidence.
The bill is also expected to modernize regulatory oversight, ensuring sustainable resource management and aligning Nigeria’s mining sector with global best practices.
Implementation of Nigeria Mineral Value Chain Regulations
Implemented in July 2021, the Nigeria Mineral Value Chain Regulations mandates local processing of raw minerals such as gold and lithium, encouraging downstream investment.
Following this policy, China’s Avatar Energy Materials Company launched a 4,000-ton-per-annum lithium processing facility in Nasarawa State in May 2024, while Ming Xin Mineral Separation Nig Ltd. is developing a lithium processing plant in Kaduna State to support EV e battery production.
These investments mark a significant step toward positioning Nigeria as a key player in the global critical minerals supply chain. Against this backdrop, AMW 2025 will provide a platform for industry leaders to explore Nigeria’s evolving mining landscape and engage with global investors.
Abba Dukawa
Despite the position of the Court of Appeal in the case of the Speaker of Bauchi State House of Assembly Vs Hon Rifkatu Samson Danna (2017) 49 W.R.N that a lawmaker is a representative of his people whose membership of the House is guaranteed by the Constitution and not by any other person or persons, the Senate and its leadership have continued to use suspension as an instrument to oppress, intimidate and whip lawmakers into line.
Sadly, the National Assembly has continued to ignore the position of the courts on suspension of lawmakers as the Senate Committee on Ethics, Privileges and Public Petitions recommended a six-month suspension for the lawmaker representing Kogi Central Senatorial District, Senator Natasha Akpoti-Uduaghan, over her dispute with the Senate President, Senator Godswill Akpabio, following her alleged violation of the Senate’s rules.
A few hours after the committee submitted its report, the Senate quickly adopted the recommendations and slammed a six-month suspension on the lawmaker, depriving her senatorial zone representation in the Red Chamber, in violation of the Constitution, which guarantees that each of the 109 senatorial districts in the country shall be represented in the upper legislative chamber.
Her suspension for six months has raised legal issues as it is also in breach of various court judgments in the previous cases involving Senators Ali Ndume and Ovie Omo-Agege, as well as Dino Melaye and 10 other members of the House of Representatives, as well as Bauchi and Ondo states’ lawmakers.
When the Senate on March 30, 2017, suspended Senator Ndume for 90 legislative days for not “conducting due diligence” before filing a petition against the then Senate President, Dr Bukola Saraki, Justice Babatunde Quadri of the Federal High Court in Abuja nullified his suspension, declaring the action illegal, unlawful and unconstitutional. Delivering judgment in the suit marked FHC/ABJ/CS/551/2017, which Ndume filed, the judge said the suspension was in violation of Sections 68 and 69 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) and Article 13(1) of the African Charter on Human and Peoples’ Rights (Ratification and Enforcement) Act CAP A9 Laws of the Federation of Nigeria, 2004.
The judge consequently ordered the Senate to pay the plaintiff his outstanding salaries and allowances. Again, Justice Nnamdi Dimgba of the Federal High Court in Abuja nullified the suspension, saying that while the National Assembly has the power to discipline its erring members, a legislator could not be suspended for more than 14 days.
A recent scandal involving Senator Natasha Akpoti-Uduaghan and Senate President Godswill Akpabio has raised questions about the integrity of Nigeria’s National Assembly. The controversy began when Akpoti-Uduaghan accused Akpabio of sexual harassment during an interview with Arise Television, alleging that he made inappropriate advances towards her at his residence in Uyo, Akwa Ibom State, in December.
Between February 28 and March 5, several senators publicly defended Senate President Godswill Akpabio, dismissing Senator Natasha Akpoti-Uduaghan’s allegations of sexual harassment. Senator Neda Imasuen, Chairman of the Senate Committee on Ethics, Privileges, and Public Petitions, was among those who defended Akpabio.
Undeterred, Akpoti-Uduaghan formalized her accusations by submitting a petition to the Senate on March 5, urging her colleagues to investigate her claims. However, the Senate swiftly dismissed the petition, citing a rule that prohibits senators from submitting petitions signed by them. Chairman Imasuen declared the petition “dead on arrival,” referencing Order 40, Subsection 4 of the Senate Standing Orders. The next day, the Senate voted to suspend Akpoti-Uduaghan for six months, citing misconduct and actions that allegedly brought the institution into disrepute. Akpoti-Uduaghan has rejected the Senate’s decision, vowing to continue representing her constituents.
In a statement, she condemned the move, saying: “Against the culture of silence, intimidation, and victim-shaming, my unjust suspension invalidates the principles of natural justice, fairness, and equity.” Akpoti-Uduaghan emphasized that her suspension does not withdraw her legitimacy as a senator and that she will continue to serve her constituents and the country until 2027 and beyond.
Former Senate President Bukola Saraki has called for a transparent investigation into the matter, emphasizing the need to safeguard the Senate’s integrity. However, the Senate’s decision to suspend Akpoti-Uduaghan for six months without investigating her allegations has sparked widespread criticism.
The Nigerian Bar Association Women Forum (NBAWF) Chairperson, Barrister Huwaila Ibrahim, has urged Senate President Godswill Akpabio and Senator Natasha Akpoti-Uduaghan, Chairman of the Senate Committee on Diaspora, to undergo a transparent and open investigation into allegations of misconduct involving both parties.
According to Ibrahim, an investigation would allow Senator Akpabio to clear his name and Senator Akpoti-Uduaghan to substantiate her claims.
Additionally, Ambassador Zainab Mohammed, spokesperson for the Coalition of Women in Governance (CWIG), has called for Senator Akpoti-Uduaghan’s recall following her six-month suspension, citing concerns that the suspension constitutes an assault on democracy and a betrayal of collective values
After she dropped the bomb, a flurry of activities ensued. Senator Ireti Kingibe, a serving female senator, and two former female senators, Senator Abiodun Olujimi and Senator Florence Ita-Giwa, were invited to share their views. However, their submissions were met with widespread disappointment. While arguing for adherence to rules is valid, it’s essential to recognize that rules should be applied fairly and without bias, especially in institutions of great importance.
It was clear that Senator Natasha felt beleaguered, believing the Senate President had a score to settle with her. If this was the case, I expected the three senators to support a process that would allow Senator Natasha to shed light on her serious allegations of sexual harassment, beyond national television, and for the Senate President to defend himself transparently.
To people’s horror, none of the female senators stood up for another woman. Even if they thought Senator Natasha was misguided, she was still entitled to have her fears and concerns heard. It’s painful that they missed the opportunity to address the constant intimidation, gas-lighting, and belittling women in leadership positions face.
To women who have publicly opposed Senator Natasha, there is news for you: you’re not fighting the same battle as most male senators or men who have aired their views. You’re not on the same page; you’re not even reading the same book.
If this was just about Senator Natasha following rules and not disrupting the space for women in politics, the problem could be easily fixed. Familiarizing herself with Senate rules and proceedings would make her work more productive.
However, this is not what’s at play. What’s happening is a full-scale war on women in public life, with clear lines drawn. Women need to wake up! We need to battle powerful forces that want women to remain silent in the face of provocation and abuse.
People don’t have to like Senator Natasha Uduaghan, but she deserves respect, to be heard, and allowed justice. The silence of feminist organizations and women’s rights advocates is deafening. The controversy has ignited a national debate, with many Nigerians demanding a thorough investigation into the allegations and an end to the culture of silence and intimidation.
Abba Dukawa writes from Kano can be reached via abbahydukawa@gmail.com
By Shaheen Price
South Africa continues to grapple with a crippling unemployment crisis resulting in the highest income inequality in the world, evidenced by a 2023 Gini coefficient of 0.63. Unlike comparable emerging economies like Brazil, South Africa’s high barriers to entry into the informal sector and the difficulties informal businesses face to transition to formal business create a significant economic bottleneck.
While the formal economy struggles to absorb the nation’s workforce, the informal sector, estimated at 7.5 million participants, represents untapped potential.
According to a working paper from the Center for International Development at Harvard University, South Africa’s informal economy has the potential to provide an entry point into the labour market for many unemployed South Africans.
The paper argues that the country has traditionally placed too little emphasis on policy intervention and policy change to give “more oxygen” to the informal economy. It cites research providing evidence that grants, for example, increase business assets by 57%, work hours by 17% and earnings by 38%. Informal businesses that were able to formalise provide even more advantages, typically ending up hiring more staff and paying taxes which add to the country’s fiscus.
Despite its potential, the informal sector, predominantly located in townships, faces persistent challenges: an ability to access finance, an entrepreneurial skills gaps, market access barriers and inadequate infrastructure.
The Institute of Business Advisors Southern Africa (IBASA) says that the two types of businesses that can benefit most from formalising are those that are operating as informal, non-registered businesses and those that are registered businesses, but which lack well-structured processes. Once a business has been formalised, it is able to build up a track record, secure funding and scale operations.
The Harvard paper advocates for deregulating the management and oversight of the informal sector in the longer term with immediate policy interventions including lowering, removing or changing the conditions of licensing and registration costs of – and stipulations to – informal trading as a starting point to realising the potential of the informal sector. This, says the paper, would unleash the informal sector’s power to generate meaningful income opportunities.
The recently launched GoodApp is a pioneering online platform designed to bridge the gap between consumers and a diverse network of home service providers in the informal sector including electricians, plumbers, hairdressers, beauticians, make-up artists, nail technicians, massage therapists, handymen, painters, carpet cleaners, window cleaning services, swimming pool maintenance providers, movers and packers, and cleaners, amongst others. By prioritising professionalism, trust and reliability, the platform aims to bring informal economy service providers into the formal economy.
What sets GoodApp apart is a rigorous verification process which ensures that every service provider undergoes comprehensive background checks, security clearances and certification verification while continuous performance monitoring ensures consistent professionalism and reliability. In addition, customers can access detailed reviews and ratings prior to booking a service provider.
GoodApp offers enormous potential for township service providers in terms of servicing consumers living in suburbia as well as in townships. There is a growing awareness that township communities are not peripheral players in the economy but are instead essential engines of South African consumer power with an estimated spending capacity of R900 billion, according to the latest Township Customer Experience Report.
Nearly half of survey respondents said they were directing more than a quarter of their income towards purchases within their township, highlighting an increasing shift towards hyper-local economic activity.
Amongst the most significant findings of the latest report is the need for transparency and reliable verification. Not only do consumers want to support brands that resonate and understand them, but they also want customer service that is responsive, empathetic and attentive – all traits that help build trust and brand loyalty in a community-driven market.
GoodApp addresses this demand by providing a platform for verified, trustworthy and professional service providers, accessible at the customer’s convenience. By formalising and legitimising informal service providers, GoodApp empowers them to thrive while providing consumers with confidence and peace of mind, ultimately contributing to a more inclusive and equitable South African economy.
Shaheen Price is the Co-Founder of The Good App
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