Parliament reconvenes next week to process a host of outstanding legislation that will have a major bearing on business and the economy.
President Cyril Ramaphosa will outline his 10-party coalition government’s policy agenda and priorities when he gives his annual state-of-the nation address in the legislature in Cape Town on 6 February. Finance minister Enoch Godongwana will deliver the budget 13 days later, with allocations to be approved by MPs in May.
These are some of the key laws to watch out for:
National State Enterprises Bill
The draft law provides for the establishment of a centralised holding company that will own and oversee state companies, including power utility Eskom, with a view to making them more effective and efficient. The new structure will be partially modelled on Singapore’s Temasek Holdings and owned by the government in its entirety. It will fall under the jurisdiction of the department of planning & monitoring, which is located in Ramaphosa’s office.
Regulation of Interception of Communications Bill
This contentious piece of legislation, a version of which was previously approved by parliament, would have given the authorities wide-ranging powers to monitor electronic communications and had a profound effect on personal and corporate privacy. Ramaphosa refused to sign it and returned the bill to the legislature to revise it, citing concerns that it wasn’t compliant with the constitution. Envisioned changes include providing for the appointment of a judge to review the classification process and the insertion of safeguards for journalists or practicing lawyers who are placed under surveillance.
South African Reserve Bank Amendment Bill
The measure proposes that the state become the sole owner of the central bank, effectively scrapping its private shareholding. It would also give the finance minister the power to name some of the bank’s directors, as opposed to them being elected at its AGM, and set regulations relating to the appointment of directors. The Reserve Bank has rejected the notion that it should be nationalised, saying the process will be extremely expensive and there are no tangible benefits, and it’s unclear if the legislation will pass in its current form.
Protection of State Information Bill
The bill provides for the protection of sensitive state information and establishes a system for classifying it. It also seeks to ensure that certain valuable state information isn’t altered, destroyed, lost or unlawfully disclosed. South Africa’s constitution stipulates that all state information is open to the public by default and can only be classified through a set process. Civil rights groups will be closely monitoring the processing of the bill to ensure this safeguard isn’t eroded. Ramaphosa returned a previous iteration of the law to parliament on the grounds that it was overly restrictive.
Tobacco Products and Electronic Delivery Systems Bill
The draft law aims to tighten up restrictions on the sale and advertisement of tobacco products and on electronic delivery systems, or vaping devices, which aren’t currently regulated. It also provides for product packaging to be standardised, and manufacturing and exports standards to be upheld. The sale of tobacco products and electronic delivery systems to children will be outlawed, as will their free distribution and sale through vending machines. Tobacco companies say the passage of the bill in its current form will push up their costs and prices, and encourage illegal trade.
Merchant Shipping Bill
In 2017, the government committed to revive South Africa’s merchant shipping industry. The bill provides a legal framework for it to follow through on that pledge and meet its obligations as a signatory to the 1951 International Maritime Organisation convention. It aims to give the transport minister and maritime safety authority the power to oversee the registration, permitting and licensing of ships, ensure marine traffic is properly regulated and safeguard the safety and wellbeing of seafarers.
Parliament is also due to consider legislation regulating the SABC, South African Airways and Electoral Commission, as well as two proposed amendments to the constitution. The government meanwhile plans to introduce a new policy early this year that aims at encouraging greater competition in the telecommunications industry and reducing data prices, Johannesburg-based Business Day newspaper reported on 13 January. — (c) 2025 Bloomberg LP
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