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

Making headlines: EFF, DA claim vindication in VAT court ruling; Govt says Vincent Smith sentencing shows determination to strengthen accountability; And, Africa Trade Barometer points to ease-of-trade improvements leading to investment

EFF, DA claim vindication in VAT court ruling

The Economic Freedom Fighters and the Democratic Alliance today said they felt vindicated following the Western Cape High Court ruling on the value added tax rate.

The court ruled that Section 7(4) of the VAT Act is unconstitutional, removing powers of the Finance Minister to alter the rate of VAT.

Both parties brought the legal challenge last year, following Minister of Finance Enoch Godongwana's attempt to increase VAT during the 2025 Budget process by 0.5% in 2025 and 0.5% in 2026.

The court suspended the declaration of invalidity for 24 months to allow Parliament time to amend the VAT Act.

The EFF claimed that the Section 7(4) of the VAT Act has been an instrument of “economic dictatorship”.

DA Federal Council chairperson Helen Zille said the court ruling vindicates the party’s constitutional challenge and reinforces that there can be no taxation without proper parliamentary oversight.

Govt says Vincent Smith sentencing shows determination to strengthen accountability

The Government Communication and Information System has welcomed the sentencing of former African National Congress Member of Parliament Vincent Smith, praising the Judicial Commission of Inquiry into Allegations of State Capture, led by Deputy Chief Justice Raymond Zondo.

Smith, the first person to be sentenced for State capture fraud and corruption, was given a seven-year prison sentence by the Johannesburg High Court, relating to kickbacks from facilities management company Bosasa.

Smith pleaded guilty to charges including contravention of the Prevention and Combating of Corrupt Activities Act and the Income Tax Act.

The sentencing followed recommendations of the Judicial Commission of Inquiry into Allegations of State Capture, which investigated widespread corruption and fraud during the Presidency of Jacob Zuma.

Acting GCIS spokesperson Nomonde Mnukwa said the commission played a critical role in uncovering wrongdoing and recommending institutional reforms to strengthen accountability and rebuild public trust.

She said implementing the recommendations of the Zondo Commission, and other commissions of inquiry, was a key part of strengthening democratic institutions and restoring integrity in government.

Mnukwa further pointed out that Smith’s sentencing also reflected government’s commitment to intensify the fight against corruption and ensure that those who abuse public resources were held accountable.

And, Africa Trade Barometer points to ease-of-trade improvements leading to investment

The latest ‘Africa Trade Barometer’, which has been published yearly by financial services firm Standard Bank since 2022 and which tracks businesses' perceptions of the ease of trade in Africa, shows that trade-enabling infrastructure and business confidence are improving.

Macroeconomic indicators for the ten countries surveyed, which represent 66% to 68% of Africa's GDP, namely Angola, Ghana, Kenya, Mozambique, Namibia, Nigeria, South Africa, Tanzania, Uganda and Zambia, showed a varied picture of resilience and recovery.

The average business confidence index score across the ten countries increased to 65, up from 59, signalling growing optimism among surveyed businesses, and inflation declined in seven of the ten countries in 2025.

Over the past four years the ten markets surveyed saw average GDP growth of 4% a year, compared to the global average GDP growth rate a year of 3%.

The average real GDP growth rate for the ten countries was forecasted to rise to 4.3% in 2026, said Standard Bank Group business and commercial banking head of trade Philip Myburgh.

Seven of the ten countries also reduced their levels of sovereign debt during the past year.

That’s a roundup of news making headlines today

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