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Daily Podcast - June 03, 2025


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Daily Podcast - June 03, 2025

3rd June 2025

By: Thabi Shomolekae
Creamer Media Senior Writer

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For Creamer Media in Johannesburg, I’m Thabi Shomolekae.

Making headlines: MKP redeploys Shivambu to National Assembly for violating the party’s constitution; South Africa's GDP vulnerable to sliding into negative territory after barely growing in the first quarter; And, EFF in court to block fuel tax increase

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MKP redeploys Shivambu to National Assembly for violating the party’s constitution

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The uMkhonto WeSizwe Party has removed Floyd Shivambu as the party’s secretary-general and has redeployed him to represent the party in the National Assembly, following a recent trip to Malawi to visit fugitive pastor Shepherd Bushiri.

In a press briefing today, the MKP said Shivambu’s visit was in violation of the party’s constitution but that his redeployment would strengthen the MKP as an opposition party owing to his experience as a former member of Parliament.

MKP chairperson Nathi Nhleko said the trip was not an officially sanctioned programme of the party and its President Jacob Zuma, and went against the party's constitution.

He added that civil society had approached the party, after which it considered the gravity of the matter and the implications for the party and its image and principles.

 

South Africa's GDP vulnerable to sliding into negative territory after barely growing in the first quarter

South Africa’s GDP increased by 0.1% in the first quarter, following an increase of 0.4% in the fourth quarter of 2024, with the economy not growing sufficiently and these figures can slide into negative territory at any time, said Statistics South Africa Statistician-General Risenga Maluleke on June 3.

Compared to the first quarter of 2024, GDP expanded by 0.8%. South Africa's real economy during the first quarter of 2025 was R1.7-trillion.

Four industries recorded positive growth from the fourth quarter to the end of first quarter of 2025. The agriculture industry was the largest positive contributor, increasing by 15.8% and contributing 0.4 of a percentage point to the positive GDP growth.

The transport industry increased by 2.4%, contributing 0.2 of a percentage point, and the finance industry increased by 0.2%, contributing 0.1 of a percentage point.

Further, the manufacturing industry was the largest negative contributor, decreasing by 2% and contributing negative 0.2 of a percentage point.

Meanwhile, in the secondary sector, manufacturing shrank by 2% and contributed negative 0.2 of a percentage point to GDP. Seven of the ten manufacturing divisions reported negative growth rates, Maluleke said.

 

And, EFF in court to block fuel tax increase

The Economic Freedom Fighters went to court today to try to block a fuel tax increase that Finance Minister Enoch Godongwana proposed in last month's Budget.

The 4% increase in the levy South Africans pay on petrol and diesel is due to kick in tomorrow, but the EFF wants the High Court to suspend it on the basis that it is unjust and that the Minister did not follow proper parliamentary process.

The party said in a statement before a court hearing in Cape Town, this increase places an unjust burden on the working class and the poor, who are already reeling from rising costs of living, stagnant wages, and ongoing economic hardship.

In a sworn statement, Godongwana said he had the right to raise the fuel levy and that the EFF's case appeared aimed at blocking passage of the Budget, which he already had revised twice due to disagreements in the coalition government.

Godongwana said that if the court blocks the tax increase, it would leave a revenue shortfall of at least R3.5-billion, which would have to be recovered through additional borrowing, taxes or spending cuts.

 

That’s a roundup of news making headlines today

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