Global Minimum Tax Act: Application of certain documents released by the inclusive framework

Insourcing Bill B19-2025

MEDICAL

Pharmacy Act

Criteria to accredit a course to be completed by Foreign Qualified Pharmacists

Qualifications for Specialist Pharmacists in South Africa

Medicines and Related Substances Act:

Regulations: General: Amendment

Schedules: Amendment

Regulations: General: Amendment: Comments invited

MINE HEALTH AND SAFETY

Occupational Diseases in Mines and Works Act:

Adjustment of Levies Paid by Controlled Mines and Works

Amendment of Amounts to Increase Benefits

TRANSPORTATION

Administrative Adjudication of Road Traffic Offences Amendment Act:  Commencement

SA steps up climate fight

FirstRand weighs higher UK motor finance provision after Supreme Court ruling

BMA introduces traceable stamps to tighten border security

A new paradigm for executive dismissals? Analysing the proposed amendments to the Labour Relations Act on remedies for high-income employees

Changes include artisanal miners in draft bill

Problems with South Africa’s new driving law

AGREMENTS

LAW AND TYPE OF NOTICE

Agrement South Africa: Various

DETAILS

LINK TO FULL NOTICE

Agrément South Africa: Innovative Construction Product Assessments: Conloo Precast Toilet System

G 53099 GoN 6468

01 August 2025

53099gon6468.pdf

Agrément South Africa: Innovative Construction Product Assessments: Shocrete Mark 2 (MK 2) Precast Concrete Toilet Top Structure

G 53099 GoN 6470

01 August 2025

53099gon6470.pdf

Agrément South Africa: Innovative Construction Product Assessments: Spunbond Roof Undertile Membrane

G 53099 GoN 6472

01 August 2025

53099gon6472.pdf

Agrément South Africa: Innovative Construction Product Assessments: Amalooloo/MyLoo Urine Diversion and Low Volume Multi-Flush Toilet System

G 53099 GoN 6467

01 August 2025

53099gon6467.pdf

Agrément South Africa: Innovative Construction Product Assessments: Roadsaver Coldlay Surfacing System

G 53099 GoN 6469

01 August 2025

53099gon6469.pdf

AGRICULTURE

LAW AND TYPE OF NOTICE

Marketing of Agricultural Products Act:

Application for continuation of statutory measures (levies, records and returns and registration) on cotton lint: Comments invited

G 53099 GeN 3404

– Comment by 22 Aug 2025

01 August 2025

APPLIES TO: 

1. Agricultural Sector

• Cotton Producers: Farmers growing cotton will need to register and may be subject to data reporting requirements.
• Emerging Farmers: Special focus is placed on supporting small-scale and emerging cotton producers.

2. Processing and Manufacturing

• Cotton Ginners: These are the primary contributors to the statutory levy and are responsible for processing raw cotton into lint.
• Cotton Spinners: They convert cotton lint into yarn and are part of the downstream manufacturing process.
• Textile Manufacturers: Use cotton yarn to produce fabrics and garments.

3. Trade and Commerce

• Importers and Exporters: Required to register and submit records and returns. This includes those trading cotton lint across borders.
• Purchasers: Entities buying cotton lint for further processing or resale.

4. Retail and Consumer Goods

• Clothing Retailers: Represented by the National Clothing Retail Federation, they are indirectly affected through supply chain costs and cotton availability.
• Consumers: Represented by the South African National Consumer Union, they may be impacted by price changes or quality standards.

5. Labour and Training

• Textile Workers: Represented by the South African Textile Workers Union, they are affected through employment, training, and industry standards.
• Training Institutions: Involved in quality standards and capacity building funded by levy income.

6. Research and Development

• Agricultural and Market Researchers: Funded by the levy to conduct studies on production, product development, and market trends.

FULL TEXT

DETAILS

APPLICATION FOR THE CONTINUATION OF STATUTORY MEASURES

(REGISTRATION, RECORDS AND RETURNS AND A LEVY ON COTTON LINT)

IN TERMS OF THE MARKETING OF AGRICULTURAL PRODUCTS ACT, 1996, (ACT NO 47 OF 1996),

(MAP ACT) AS AMENDED

INVITATION TO DIRECTLY AFFECTED GROUPS IN THE COTTON INDUSTRY TO FORWARD COMMENTS REGARDING THE REQUEST FROM COTTON SOUTH AFRICA

In terms of section 11 of the Marketing of Agricultural Products Act, 1996 (Act No. 47 of 1996) (MAP Act), the NAMC hereby announce that the Minister of Agriculture has received a request from Cotton South Africa (NPC), on behalf of the directly affected groups in the cotton industry, for the continuation of the following statutory measures for a new period of four years as from 1 April 2026:

• Registration with Cotton South Africa of producers, purchasers, processors, importers and exporters of cotton (in terms of section 19 of the MAP Act);

• the keeping of records and the submission of returns to Cotton South Africa by exporters, importers, processors and purchasers of cotton (in terms of section 18 of the MAP Act); and

• a statutory levy on cotton lint at a rate of 31 c/kg (VAT excluded) from 1 April 2026, and thereafter (from 1 April 2027) with annual adjustments equal to the preceding year’s consumer price index published by Stats SA and communicated by Cotton South Africa, to be payable by South African ginners on cotton lint produced.

The current statutory measures administered by Cotton South Africa, namely the statutory levy of 30 c/kg (VAT excluded) on cotton lint produced, payable by ginners to Cotton South Africa, as well as the statutory measures relating to registration with Cotton South Africa of producers, purchasers, processors, importers and exporters of cotton and the keeping of records and the submission of returns to Cotton South Africa by exporters, importers, processors and purchasers of cotton, will lapse on 31 March 2026.

The affected role players as represented on the Board of Cotton South Africa, i.e. from farm to retail including labour, all supported the continuation of the statutory measures. Letters of support were received from:

• the South African Cotton Producers’ Organisation which is the representative body for all South African cotton farmers.

• the South African Cotton Ginners’ Association who represents the cotton ginners.

• the present three cotton spinners.

• the National Clothing Retail Federation of South Africa.

• the South African National Consumer Union and

• the South African Textile Workers Union.

The purpose and aims of the continuation of statutory measures are to enable Cotton South Africa to perform the following functions, which would be partly funded from the levy income:

a) The collection, processing and dissemination of reliable production and market information;

b) promotion of cotton production and usage;

c) coordination and funding of production, product and market research;

d) maintenance of quality standards and norms and provision of training in this regard;

e) facilitation of the development of the emerging cotton production sector; and

f) to act as the representative industry forum.

According to the applicant, the budgeted income from the proposed statutory levies is estimated to be between R3.9 million and R4.3 million per annum on local production of cotton lint for the proposed levy period of 1 April 2026 – 31 March 2030. These forecasts are based on the assumption that a steady increase in the cotton crop is expected for the next few years and an inflation rate of approximately 5% per year. Other income for Cotton South Africa includes amongst others, contributions for small-scale farmer training, income from the provision of grading services to outside parties, cotton mark royalties, investment income, rental income and voluntary contributions by importers of cotton lint outside SADC.

As the proposed continuation of statutory measures is consistent with the objectives of the MAP Act, the NAMC is investigating the possible implementation of the proposed statutory measures.

Directly affected groups in the cotton industry are kindly requested to submit comments or objections regarding the proposed continuation of statutory measures to the NAMC in writing (e-mail lizettem@namc.co.za) on or before 22 August 2025, to enable the Council to formulate its recommendation to the Minister in this regard.

LINK TO FULL NOTICE

Marketing of Agricultural Products Act: Application for continuation of statutory measures (levies, records and returns and registration) on cotton lint: Comments invited

G 53099 GeN 3404

– Comment by 22 Aug 2025

01 August 2025

53099gen3404.pdf

ACTION

1. Cotton Producers (Farmers)

• Register with Cotton South Africa.
• Participate in data collection efforts (e.g., crop estimates, production volumes).
• Engage in training and development programs, especially for emerging farmers.

2. Cotton Ginners

• Pay the statutory levy of 31 c/kg (excluding VAT) on cotton lint produced.
• Submit records and returns to Cotton South Africa regarding cotton lint processed.
• Maintain quality standards and participate in training initiatives.

3. Cotton Spinners

• Register with Cotton South Africa.
• Submit records and returns if involved in purchasing or processing cotton lint.
• Collaborate on research and development initiatives.

4. Importers and Exporters

• Register with Cotton South Africa.
• Submit regular returns and records on cotton lint traded.
• Contribute voluntarily to Cotton South Africa if importing outside the SADC region.

5. Purchasers of Cotton

• Register with Cotton South Africa.
• Submit records and returns on cotton purchases.
• Comply with quality standards and traceability requirements.

6. Clothing Retailers

• Support industry initiatives through collaboration and feedback.
• Align sourcing practices with quality and sustainability standards promoted by Cotton South Africa.

7. Labour and Training Bodies

• Participate in training programs funded by the levy.
• Support workforce development and quality assurance efforts.

8. Research and Development Entities

• Conduct studies on cotton production, processing, and market trends.
• Collaborate with Cotton South Africa on funded projects.

CUSTOMS, EXCISE AND INTERNATIONAL TRADE

LAW AND TYPE OF NOTICE

Customs and Excise Act:

Amendment to Part 1 of Schedule No. 1 (No. 1/1/1958) (English / Afrikaans)

G 53102 RG 11858 GoN 6475

01 August 2025

APPLIES TO: 

Industries Directly Affected

1.     Sugar Manufacturing

·       Producers of beet sugar and cane sugar will be directly impacted by changes in import/export duties.

2.     Food & Beverage

·       Companies that use sugar as a key ingredient (e.g., confectionery, soft drinks, baked goods) may face cost changes depending on sourcing.

3.     Retail & Wholesale

·       Supermarkets and distributors dealing in sugar and sugar-containing products may need to adjust pricing and procurement strategies.

4.     Agriculture

·       Farmers growing sugarcane or sugar beet could be affected by shifts in demand or pricing due to duty changes.

5.     Import/Export & Logistics

·       Businesses involved in the cross-border trade of sugar will need to navigate the updated customs duties, especially under different trade agreements.

6.     Hospitality & Catering

·       Restaurants, hotels, and catering services that purchase sugar in bulk may see cost implications.

Industries Indirectly Affected

1.     Packaging

·       Changes in sugar trade volumes could influence demand for packaging materials.

2.     Health & Nutrition

·       Regulatory shifts might prompt reformulations or influence public health campaigns around sugar consumption.

3.     Finance & Trade Advisory

·       Firms offering customs, excise, and trade compliance services will need to update clients and systems accordingly.

FULL TEXT

DETAILS

LINK TO FULL NOTICE

Customs and Excise Act: Amendment to Part 1 of Schedule No. 1 (No. 1/1/1958) (English / Afrikaans)

G 53102 RG 11858 GoN 6475

01 August 2025

53102rg11858gon6475.pdf

ELECTRONIC COMMUNICATIONS

LAW AND TYPE OF NOTICE

White Paper on Audio and Audiovisual Media Services and Online Safety:

Draft: Extension of date for comments

G 53118 GoN 6487

– Comment by 26 Sep 2025

05 August 2025

APPLIES TO: 

1. Media, Broadcasting & Entertainment

• Traditional broadcasters (e.g., SABC, e.tv) will be subject to a revised licensing framework.
• Over-the-top (OTT) platforms like Netflix, Showmax, Amazon Prime Video, and Disney+ will require licenses to operate in South Africa
• Video-sharing platforms such as YouTube may also be regulated under new categories like Video-Sharing Platform Services (VSPS)

2. Online Content & Tech Platforms

• On-demand content services (OCS) targeting South African audiences will be subject to licensing based on revenue thresholds (e.g., ZAR 50 million for class licences)
• User-generated content platforms and social media may face new obligations, especially around disinformation and child protection.

3. Telecommunications & Internet Service Providers

• ISPs may be indirectly affected through obligations related to content accessibility, online safety, and infrastructure support for regulated services.

4. Film & Local Content Production

• The policy promotes local content creation, retransmission rights, and copyright protection, which could benefit South African filmmakers and producers

5. Education & Child Protection

• Emphasis on digital and media literacy, child safety, and accessibility for persons with disabilities will influence educational content providers and NGOs working in these areas.

6. Legal & Regulatory Bodies

• ICASA will play a central role in implementing the new licensing and regulatory framework.
• A new ombudsman may be created to oversee online media services, working alongside existing regulatory bodies

7. Foreign Investment & International Media

• The policy suggests reviewing foreign ownership restrictions to encourage investment, potentially affecting multinational media companies and investors

FULL TEXT

DETAILS

DEPARTMENT OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES

NO. 6487 5 August 2025

GOVERNMENT NOTICE

DEPARTMENT OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES

NOTICE TO EXTEND THE CLOSING DATE FOR WRITTEN COMMENTS ON THE DRAFT WHITE PAPER POLICY FRAMEWORK ON AUDIO AND AUDIOVISUAL MEDIA SERVICES AND ONLINE SAFETY

1. On 11 July 2025, the Minister of Communications and Digital Technologies published the Draft White Paper on Audio and Audio Visual Media Services and Online Safety in the Government Notice No. 52972 published in Government Gazette No. 3369 of 2025.

2. Interested persons were invited to submit their written representations within thirty (30) calendar days after the publication of the Notice in the Gazette Friday, 10 August 2025.

3. The Department has received and considered requests from stakeholders to extend the deadline to submit representations or comments.

4. The Department hereby extends the closing date for receipt of written submissions regarding the Draft White Paper on Audio and Audio Visual Media Services and Online Safety to Friday, 26 September 2025.

5. A person that submits comment consents to the disclosure thereof to any requester concerned, except if indicated otherwise in writing.

6. Comments received after the closing date shall be disregarded.

All written comments and enquiries on this publication should be directed to:

The Director-General, Department of Communications and Digital Technologies

Block A3, iParioli Office Park, 1166 Park Street, Hatfield, Pretoria

Private Bag X860, Pretoria, 0001

By email: fwpsa2025@dcdt.gov.za

Kindly write the Draft White Paper on Audio and Audio Visual Media Services and Online Safety in the subject field of your email.

A copy of the revised set of the Draft White Paper on Audio and Audio Visual Media Services and Online Safety is available at www.gov.za or

www.dcdt.gov.za.

__________________________________

HON. SOLLY MALATSI, MP

MINISTER OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES

DATE: 01 August 2025

LINK TO FULL NOTICE

White Paper on Audio and Audiovisual Media Services and Online Safety: Draft: Extension of date for comments

G 53118 GoN 6487

– Comment by 26 Sep 2025

05 August 2025

53118gon6487.pdf

Related links

White Paper on Audio and Audiovisual Media Services and Online Safety: Draft

ACTION

Please ensure that you submit your comments before 26 September 2025.

FINANCE

LAW AND TYPE OF NOTICE

Global Minimum Tax Act:

Application of certain documents released by the inclusive framework

G 53096 GoN 6461

31 July 2025

APPLIES TO: 

Industries Most Affected

1.     Technology and Digital Services

·       These companies often operate across borders and may benefit from low-tax jurisdictions.

·       Examples: Software firms, cloud service providers, e-commerce platforms.

2.     Pharmaceuticals and Life Sciences

·       Global operations and intellectual property structures often result in profit shifting.

·       High R&D investment and patent income can be taxed favorably in certain jurisdictions.

3.     Financial Services

·       Banks, insurance companies, and investment firms with international subsidiaries.

·       Complex structures and cross-border income streams are common.

4.     Consumer Goods and Retail

·       Multinational brands with global supply chains and sales networks.

·       Often use regional hubs in low-tax jurisdictions.

5.     Automotive and Manufacturing

·       Large-scale operations with subsidiaries in multiple countries.

·       May use transfer pricing strategies that are now under scrutiny.

6.     Mining and Energy

·       South Africa’s resource-rich sectors often involve foreign MNEs.

·       Income from royalties and resource extraction is a key focus.

Types of Entities Affected

• South African-headquartered MNE Groups: Must pay top-up tax under the Income Inclusion Rule (IIR) for low-taxed foreign subsidiaries.
• Foreign MNE Groups operating in South Africa: Subject to the Domestic Minimum Top-Up Tax (DMTT) if their South African operations are taxed below 15%.
• Branches, subsidiaries, and joint ventures of foreign MNEs in South Africa.
• Excluded Entities (not subject to operative provisions):
  • Governmental entities
  • International organisations
  • Non-profits
  • Pension funds
  • Investment funds and real estate investment vehicles that qualify as Ultimate Parent Entities (UPEs)

SUMMED UP

South Africa’s Minister of Finance, Enoch Godongwana, has officially adopted key OECD/G20 documents under the Global Minimum Tax Act, 2024. These documents provide administrative guidance and commentary on the Global Anti-Base Erosion (GloBE) Model Rules, which aim to ensure large multinational enterprises (MNEs) pay a minimum effective tax rate of 15% in every jurisdiction they operate.

Industries Most Affected

• Technology & Digital Services
• Pharmaceuticals
• Financial Services
• Consumer Goods & Retail
• Automotive & Manufacturing
• Mining & Energy

These sectors often involve cross-border operations and tax planning strategies that are now subject to stricter rules.

Key Implications

• Applies to MNEs with €750 million+ in annual revenue.
• South African entities in MNE groups may be jointly liable for top-up taxes.
• Aligns South Africa with global efforts to curb profit shifting and tax base erosion.

FULL TEXT

DETAILS

NATIONAL TREASURY

NO. 6461 31 July 2025

GLOBAL MINIMUM TAX ACT, 2024 (ACT 46 OF 2024)

In terms of section 23(1) of the Global Minimum Tax Act, 2024 (Act No. 46 of 2024) I, Enoch Godongwana, Minister of Finance, specify that the documents released by the OECD/G20 Inclusive Framework relating to Administrative Guidance to the GloBE Model Rules and the Commentary to the GLoBE Model Rules, as set out in the Schedule hereto, will apply for purposes of that Act.

E GODONGWANA

MINISTER OF FINANCE

SCHEDULE

The following documents have been released by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting and will apply for purposes of the Act in terms of section 23(1):

(a) OECD (2024), Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024; OECD/G20 Inclusive Framework on BEPS, OECD, Paris;

(b) OECD (2025), Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on Article 8.1.4 and 8.1.5 of the Global Anti-Base Erosion Model Rules, January 2025, OECD/G20 Inclusive Framework on BEPS, OECD, Paris;

(c) OECD (2025), Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on Article 9.1 of the Global Anti-Base Erosion Model Rules, OECD/G20 Inclusive Framework on BEPS, OECD, Paris;

(d) OECD (2025), Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), Central Record of Legislation with Transitional Qualified Status, March 2025, OECD/G20 Inclusive Framework on BEPS, OECD, Paris; and

(e) OECD (2025), Consolidated Commentary to the Global Anti-Base Erosion Model Rules (2025), May 2025; OECD/G20 Inclusive Framework on BEPS, OECD, Paris.

LINK TO FULL NOTICE

Global Minimum Tax Act: Application of certain documents released by the inclusive framework

G 53096 GoN 6461

31 July 2025

53096gon6461.pdf

ACTION

1. Determine Applicability

• Confirm if the multinational enterprise (MNE) group meets the €750 million global revenue threshold in at least two of the last four years
• Identify all Constituent Entities operating in South Africa or abroad.

2. Calculate Effective Tax Rates (ETR)

• Assess the jurisdictional ETR for each country where the MNE operates.

• If ETR < 15%, calculate the Top-up Tax due under:
  • Income Inclusion Rule (IIR) – for South African-headquartered MNEs.
  • Domestic Minimum Top-Up Tax (DMTT) – for foreign MNEs operating in South Africa

3. Submit GloBE Information Return (GIR)

• Appoint a Designated Local Entity to file the GIR on behalf of all domestic entities.

• Submit the GIR to SARS:
  • 15 months after fiscal year-end.
  • 18 months for the first year (Transition Year)

4. Record-Keeping

• Maintain detailed records for seven years to demonstrate compliance.
• Include tax calculations, entity structures, and jurisdictional data

5. Review Corporate and Tax Structures

• Evaluate existing tax planning strategies.
• Adjust structures to avoid penalties and ensure tax efficiency

6. Monitor Deferred Tax Assets (DTAs)

• Apply OECD’s guidance on DTAs, especially those arising from government incentives or retroactive tax changes.
• Use the two-year Grace Period for transitional DTAs cautiously

7. Ensure Timely Payment

• Pay any Top-up Tax by the GIR due date.
• Penalties for non-compliance can reach R50,000, doubling or tripling based on unpaid tax amounts

8. Coordinate International Reporting

• If another jurisdiction handles the GIR via a Qualified Competent Authority Agreement, notify SARS accordingly.

LAW AND TYPE OF NOTICE

Insourcing Bill B19-2025

31 July 2025

APPLIES TO: 

ORGANS OF STATE

SUMMED UP

Purpose of the Bill

To provide a legislative framework for insourcing services that are regularly required by organs of state, aiming to:

• Reduce corruption in the tender system.
• Enhance accountability.
• End exploitation of outsourced workers.
• Promote fair labour practices and decent work.

Scope and Application

• Applies to all organs of state.

• Covers services such as:
  • Security
  • Cleaning
  • Gardening
  • Maintenance
  • Catering
  • Auditing
  • Transport
  • IT
  • Administration
  • Healthcare
  • Any other services prescribed by the Minister.

Key Provisions

1.     Insourcing Policy:

·       Developed by the Minister.

·       Must promote job security, fair labour practices, and ethical standards.

·       Includes annual skills audits and employee skills databases.

2.     Implementation:

·       Accounting officers must ensure proper deployment and monitoring mechanisms.

3.     Obligation to Insource:

·       Organs of state must insource listed services unless justified otherwise.

·       Outsourcing allowed only if insourcing is not feasible, with mandatory training provisions.

4.     Exemptions:

·       May be granted for national security, international sourcing, or public interest.

5.     Reporting:

·       Quarterly reports by accounting officers.

·       Annual report by the Minister to Parliament.

6.     Regulations:

·       Minister may prescribe additional services and training value percentages.

7.     Transitional Provisions:

·       Existing contracts continue until expiry.

·       Long-term contracts must include training clauses where possible.

Financial & Organisational Implications

• Some funding may be needed to develop the insourcing policy.
• No major personnel changes expected, as existing employees will be used.

FULL TEXT

DETAILS

INSOURCING BILL

(As introduced in the National Assembly (proposed section 76); explanatory summary of Bill and prior notice of its introduction published in Government Gazette No. 47526 of 18 November 2022)

(The English text is the offıcial text of the Bill)

(MS OMC MAOTWE, MP)

BILL

To provide for insourcing of certain services that are required on a regular basis by organs of state; and to provide for matters connected therewith.

PREAMBLE

SINCE organs of state require services to be provided to them on a regular basis;

AND SINCE there is a need to provide a legislative framework to supplement the current system of wholesale outsourcing of services and functions required by organs of state in order to address—

● administrative problems created by the outsourcing of services;

● corruption in the tender system; and

● enhancement of accountability in delivering services to the people of the Republic of South Africa;

AND SINCE there is a duty on the State to put an end to the exploitation of workers whose services are currently procured by way of outsourcing to provide the services that the State regularly requires, or to provide the services that the State is required to deliver on a recurring basis;

AND RECOGNISING that section 23 of the Constitution of the Republic of South Africa, 1996, guarantees everyone the right to fair labour practices;

AND RECOGNISING that the fundamental goal of the State is the achievement of decent and productive working conditions and respecting that everyone has the right to choose a trade, occupation or profession, the right to equity and security in the workplace, and to have their human dignity respected and protected;

AND FURTHER RECOGNISING that the government is determined to create a skilled workforce capable of preparing the country for a fast-paced global economy, and has pledged its commitment to the realisation of decent work and sustainable livelihoods for the workforce of South Africa and has undertaken to mainstream decent work imperatives into national development strategies,

BE IT THEREFORE ENACTED by the Parliament of the Republic of South Africa  as follows:—

ARRANGEMENT OF SECTIONS

Sections

1. Definitions

2. Application of Act

3. Insourcing policy

4. Implementation of insourcing policy

5. Obligation on organs of state to insource services

6. Exemption

7. Insourcing report

8. Regulations

9. Transitional provisions

10. Short title and commencement

Definitions

1. In this Act, unless the context indicates otherwise—

‘‘accounting officer’’, in relation to—

(a) a national or provincial government, means the director-general;

(b) a public entity, means the accounting authority contemplated in section 49 of the Public Finance Management Act;

(c) a municipality, means a municipal manager;

(d) a constitutional institution, means the chief executive officer of the constitutional institution as referred to in section 36 of the Public Finance Management Act;

(e) Parliament, means the Secretary to Parliament as provided for in section 1 of the Financial Management of Parliament and Provincial Legislatures Act, 2009 (Act No.10 of 2009);

(f) a provincial legislature, means the secretary of the provincial legislature as provided for in section 3 of the Financial Management of Parliament and Provincial Legislatures Act, 2009 (Act No.10 of 2009); and

(g) any other institution or category of institutions included in the definition of

‘‘organ of state’’ in section 239 of the Constitution and recognised by the Minister by notice in the Government Gazette as an institution or category of institutions, means the head of that institution or the accounting officer as defined in section 1 of the Public Finance Management Act;

‘‘Constitution’’ means the Constitution of the Republic of South Africa, 1996;

‘‘insource’’ means the use by an organ of state of its own resources or personnel for services needed by that organ of state, or for services that the organ of state must provide, and ‘‘insourcing’’ has a corresponding meaning;

‘‘Minister’’ means the cabinet member responsible for public service and administration;

‘‘organ of state’’ means—

(a) a national or provincial department as defined in the Public Finance Management Act;

(b) a public entity as defined in the Public Finance Management Act;

(c) a municipality as contemplated in the Constitution;

(d) a constitutional institution as defined in the Public Finance Management Act;

(e) Parliament;

(f) a provincial legislature; and

(g) any other institution or category of institutions included in the definition of

‘‘organ of state’’ in section 239 of the Constitution and recognised by the Minister by notice in the Government Gazette as an institution or category of institutions to which this Act applies;

‘‘outsourcing’’ means procuring a supplier or service provider that is not an organ of state or procuring outside resources and personnel, to deliver a service needed by an organ of state, or to deliver a service that the organ of state must provide;

‘‘prescribed’’ means prescribed by regulation made under section 8;

‘‘Public Finance Management Act’’ means the Public Finance Management Act, 1999 (Act No.1 of 1999);

‘‘services’’ means the services listed in section 2; and

‘‘this Act’’ includes the regulations made under section 8.

Application of Act

2. (1) This Act applies to all organs of state.

(2) This Act applies to the following services:

(a) Security services;

(b) cleaning services;

(c) gardening services;

(d) general maintenance, which includes—

(i) repairs to buildings; and

(ii) refurbishment of infrastructure;

(e) catering services;

(f) auditing services;

(g) transport services;

(h) information technology services;

(i) administration services;

(j) healthcare-related services; and

(k) any other services that may be prescribed by the Minister in terms of section 8.

(3) In the event of any inconsistency between this Act and any other legislation, this Act prevails.

Insourcing policy

3. The Minister must develop an insourcing policy that—

(a) complies with the basic values and principles governing public administration as contemplated in section 195 of the Constitution;

(b) requires insourcing for the services listed in section 2, and any other prescribed services;

(c) limits outsourcing and promotes job security;

(d) sets criteria for when a service may be outsourced;

(e) provides for an annual skills audit of all employees of that organ of state;

(f) requires a database containing the skills of all employees of that organ of state; and

(g) promotes fair labour practices.

Implementation of insourcing policy

4. (1) The accounting officer of an organ of state must implement the insourcing policy developed by the Minister in terms of section 3.

(2) In order to effectively implement the insourcing policy, an organ of state must ensure that—

(a) personnel are adequately deployed and that proper mechanisms and resources are in place to insource services; and

(b) monitoring and evaluation mechanisms are in place.

Obligation on organs of state to insource services

5. (1) An organ of state must insource all services referred to in section 2(2) and those prescribed by the Minister in terms of section 8.

(2) If circumstances prevent, or severely hinder, an organ of state to insource a service, that organ of state may procure a service by way of outsourcing in terms of the insourcing policy developed in terms of section 3 and in accordance with the relevant procurement legislation.

(3) Before an organ of state procures a service by way of outsourcing in terms of subsection (2), the accounting officer of that organ of state must confirm that the service cannot be provided by a person already employed by that organ of state, taking into account—

(a) the database containing the skills of all employees of that organ of state contemplated in section 3(e); and

(b) the availability and willingness of an employee with the required skill to undertake or perform the service, where that service does not form part of the employee’s core functions.

(4)(a) Where a service is outsourced, the organ of state must require the supplier or the service provider to provide training to a person already employed by that organ of state to provide that service.

(b) The requirement for training referred to in paragraph (a) must be included as a term in the contract between the organ of state and the supplier or the service provider of the outsourced service.

(c) The value of the training must at least be equal to the prescribed percentage of the value of the contract.

(5) The accounting officer of an organ of state must quarterly submit a report to the Minister on—

(a) the services that were outsourced;

(b) the reasons as to why those services could not be insourced; and

(c) the training that was provided by the supplier or service provider to whom the services were outsourced, as well as the steps taken to ensure that the services can be insourced in future.

Exemption

6. The Minister may, on request from the accounting officer, exempt an organ of state from any or all of the provisions of this Act if—

(a) it is in the interest of national security;

(b) the services needed can only be obtained from an international supplier; or

(c) it is in the public interest to grant such an exemption.

Insourcing report

7. The Minister must, annually, table a report in the National Assembly setting out—

(a) the progress made by all organs of state regarding the implementation of the insourcing policy;

(b) all projects where an organ of state could not insource services, with reasons why those services could not be insourced; and

(c) the training of personnel provided by the organs of state and the suppliers or service providers of the outsourced services, as well as steps taken by the organs of state to ensure that the services can be insourced in future.

Regulations

8. (1) The Minister may—

(a) prescribe any other services that must be insourced by organs of state; and

(b) make regulations regarding any matter that may be necessary or expedient to prescribe in order to achieve the objects of the Act.

(2) The Minister must prescribe the percentage value of the contract referred to in section 5(4).

(3) Different regulations may be made to suit the varying requirements of particular services.

(4) Any regulations made in terms of this section must, before publication in the Gazette, be approved by Parliament.

Transitional provisions

9. (1) Any services outsourced under any procurement legislation before the commencement of this Act, where the contract has not ended, must continue to be so provided until the termination date of the contract.

(2) All contracts already concluded and tenders already advertised before the commencement of this Act must be continued with, provided that where a contract exceeds 12 months, the service provider must be requested, where legally and practically possible, to provide training to a person identified by the organ of state.

Short title and commencement

10. This Act is called the Insourcing Act, 2025, and comes into operation on a date determined by the President by proclamation in the Gazette.

MEMORANDUM ON THE OBJECTS OF THE INSOURCING BILL, 2025

1. PURPOSE AND BACKGROUND

The South African government in all spheres, including organs of state, provide services to citizens, but in order to do so, it often contracts third parties who provide these services and use their own employees to deliver these services. This includes, but is not limited to: cleaning services; security services; gardening services; construction of buildings and infrastructure; maintenance of buildings and infrastructure; IT services; catering services; auditing services; transport services; administration services, and healthcare-related services. All these services are usually required on a recurring basis, and there is always a need for government to provide these services for an indefinite period of time.

Post-1994 the South African government embarked on a programme of wholesale outsourcing of services and functions, required or provided by government. This emphasised the principles of de-bureaucratisation of the public sector and local government, reforming and strengthening management practices in government, decentralising decision making, and outsourcing of all government functions where possible.

These reforms created many administrative problems. One such issue is that prices for contracts are often purposefully inflated through manipulation of the tender system. This underlies the majority of corrupt activities that are currently taking place in all spheres of government, including in organs of state. It has further, to a large extent, collapsed the ability of the State to deliver the necessary services to the people of South Africa. Secondly, there is continuous exploitation of the workers who are employed by these service providers to deliver these services — services that the State will for the foreseeable future be required to provide on a recurring basis. By contracting third parties who provide outsourced workers, the government in all spheres, including organs of state, is often making use of persons whose labour is exploited, whose employment is on a casual basis, providing minimal job security, whose labour is under-paid, who receives minimal or no benefits and who are accordingly not properly protected by labour legislation.

The Insourcing Bill, 2025 (‘‘Bill’’), seeks to provide a comprehensive legislative mechanism to bring an end to these problems and challenges brought about by the outsourcing of services and functions provided by government.

2. OBJECTS OF BILL

The Bill seeks to provide for insourcing of services that are required on a regular basis by the organs of state.

3. CONTENTS OF BILL

3.1 Clause 1 provides for definitions of words used in the Bill.

3.2 Clause 2 sets out the application of the Act.

3.3 Clause 3 states that the Minister must develop an insourcing policy that complies with basic values and principles governing public values; promotes high ethical standards and prohibits fraud and corruption; promotes job security and fair labour practices.

3.4 Clause 4 provides that the accounting officer of an organ of state has an obligation to implement the insourcing policy developed by the Minister. In terms of this clause, an organ of state must ensure that personnel are adequately deployed and that proper mechanisms and resources are in place to enable insourcing of services.

3.5 Clause 5 places an obligation on the organs of state to insource all services. It also sets out the criteria which must be followed before any service can be outsourced.

3.6 Clause 6 permits an organ of state to apply for an exemption from any provisions of the Act under certain circumstances.

3.7 Clause 7 places an obligation on the Minister to table a report in the National Assembly of all the projects where services could not be insourced and state the reasons why those services could not be insourced.

3.8 Clause 8 empowers the Minister to make regulations.

3.9 Clause 9 provides for transitional provisions and provides that where there is a contract in place for services before the commencement of this Act, and if that contract has not yet come to an end, those services must be provided until the end of the contract. Furthermore, Clause 9 provides that all contracts already concluded and tenders already advertised before the commencement of this Act must be continued with, provided that where a contract exceeds 12 months, the service provider must be requested, where legally and practically possible, to provide training to a person identified by the organ of state.

3.10 Clause 10 provides for the short title and commencement.

4. FINANCIAL IMPLICATIONS FOR THE STATE

Funds may be required to develop the insourcing policy.

5. ORGANISATIONAL AND PERSONNEL IMPLICATIONS

It is not anticipated that there will be additional organisation and personnel implications, as organs of state will make use of their employees.

6. PARLIAMENTARY PROCEDURE

6.1 Whether a Bill is a section 76 Bill, is determined in two ways. First, by the explicit list of legislative matters in section 76(3)(a) to (f) of the Constitution and second, whether the provisions of the Bill, in substantial measure, fall within a functional area of concurrent national and provincial legislative competence as listed in Schedule 4.

6.2 Section 76(3)(d) of the Constitution provides that any legislation contemplated in section 195(4) of the Constitution must be passed in accordance with the procedure in section 76.

6.3 The Member is, therefore, of the opinion that the Bill must be dealt with in accordance with the procedure established by section 76 of the Constitution as provided for in section 76(3) of the Constitution, as the Bill is considered to be legislation envisaged in section 195(4) of the Constitution.

6.4 The Member is of the opinion that it is not necessary to refer this Bill to the National House of Traditional and Khoi-San Leaders, in terms of section 39(1)(a) of the Traditional and Khoi-San Leadership Act, 2019 (Act No. 3 of 2019), since it does not directly affect traditional or Khoi-San communities or contain any provisions pertaining to customary law or customs of traditional or Khoi-San communities.

LINK TO FULL NOTICE

Insourcing Bill B19-2025

31 July 2025

b19-2025.pdf

ACTION

For the Minister of Public Service and Administration

1.     Develop an Insourcing Policy:

·       Must align with constitutional values (Section 195).

·       Include criteria for outsourcing, skills audits, and employee databases.

·       Promote fair labour practices and job security.

2.     Prescribe Regulations:

·       Define additional services to be insourced.

·       Set the percentage value of training required in outsourcing contracts.

·       Ensure regulations are approved by Parliament before publication.

3.     Annual Reporting:

·       Table a report in the National Assembly on:

·       Progress of insourcing.

·       Projects where insourcing was not possible.

·       Training provided and future insourcing plans.

For Organs of State (e.g., departments, municipalities, public entities)

1.     Implement the Insourcing Policy:

·       Deploy personnel and resources to support insourcing.

·       Establish monitoring and evaluation mechanisms.

2.     Mandatory Insourcing:

·       Insourcing is required for all listed services (e.g., cleaning, security, IT).

·       Outsourcing is only allowed if insourcing is not feasible, with justification.

3.     Outsourcing Conditions:

·       Must confirm no internal capacity exists before outsourcing.

·       Include training clauses in contracts (value must meet prescribed percentage).

·       Submit quarterly reports to the Minister detailing:

·       Outsourced services.

·       Reasons for outsourcing.

·       Training provided and future insourcing steps.

4.     Maintain a Skills Database:

·       Conduct annual skills audits.

·       Track employee capabilities to support internal service delivery.

For Accounting Officers

• Ensure compliance with the insourcing policy.
• Request exemptions only under specific conditions (e.g., national security, international sourcing).
• Oversee reporting and contract compliance.

Transitional Actions

• Continue existing outsourcing contracts until expiry.
• For contracts longer than 12 months, request training provisions where possible.

MEDICAL

LAW AND TYPE OF NOTICE

Pharmacy Act:

Criteria to accredit a course to be completed by Foreign Qualified Pharmacists

G 53110 BN 815

04 August 2025

APPLIES TO: 

Foreign-Qualified Pharmacists

FULL TEXT

DETAILS

LINK TO FULL NOTICE

Pharmacy Act: Criteria to accredit a course to be completed by Foreign Qualified Pharmacists

G 53110 BN 815

04 August 2025

53110bn815.pdf

LAW AND TYPE OF NOTICE

Pharmacy Act:

Qualifications for Specialist Pharmacists in South Africa

G 53109 BN 814

04 August 2025

APPLIES TO: 

Specialist Pharmacists

FULL TEXT

DETAILS

LINK TO FULL NOTICE

Pharmacy Act: Qualifications for Specialist Pharmacists in South Africa

G 53109 BN 814

04 August 2025

53109bn814.pdf

LAW AND TYPE OF NOTICE

Pharmacy Act: Guidelines for Work-Based Learning (WBL)

G 53112 BN 816

04 August 2025

APPLIES TO: 

Education Providers

These include:

• Universities offering the Bachelor of Pharmacy (BPharm) and Master’s degrees in Pharmacy.
• Technical and Vocational Education and Training (TVET) colleges offering diplomas and occupational certificates.
• Accredited training institutions for short courses like PCDT, PIMART, Immunisation, and Family Planning.

Responsibilities:

• Design and manage WBL programmes.
• Secure placement sites and sign formal agreements.
• Provide orientation, study guides, and assessments.
• Ensure students are registered and insured.

Placement Sites / Workplaces

These include:

• Community pharmacies
• Institutional pharmacies (e.g., hospitals)
• Primary Health Care (PHC) facilities
• Manufacturing and distribution facilities
• Corporate pharmacy chains
• Independent pharmacies

Responsibilities:

• Host students for WBL placements.
• Appoint qualified preceptors.
• Provide feedback and support assessments.
• Ensure compliance with Council standards.

Healthcare Professionals

Especially those acting as preceptors, such as:

• Pharmacists (with ≥3 years’ experience)
• Clinical pharmacists
• Nurses (especially for NIMART supervision)
• Medical practitioners (e.g., MBChB holders for HIV management)

Responsibilities:

• Supervise and mentor students.
• Conduct assessments and provide feedback.
• Ensure professional conduct and safety.

Regulatory and Government Bodies

• South African Pharmacy Council (SAPC) – sets standards, approves qualifications, and monitors compliance.
• Department of Health (DoH) – involved in placement agreements and issuing permits (e.g., Section 22A for PIMART).
• South African Qualifications Authority (SAQA) – oversees qualification frameworks (HEQSF and OQSF).

Insurance Providers

• Offer professional indemnity cover for students, which is mandatory during WBL.

FULL TEXT

DETAILS

Please click on the link provided below for more information.

LINK TO FULL NOTICE

Pharmacy Act: Guidelines for Work-Based Learning (WBL)

G 53112 BN 816

04 August 2025

53112bn816.pdf

ACTION

Education Providers

Actions Required:

1.     Design WBL programmes aligned with Council requirements.

2.     Secure placement sites and sign formal Memoranda of Understanding (MoUs).

3.     Schedule WBL placements during academic or recess periods.

4.     Provide orientation/training for students and preceptors.

5.     Develop and distribute study guides for both students and preceptors.

6.     Ensure student registration with SAPC and verify professional indemnity cover.

7.     Assess WBL performance and confirm competence.

8.     Collect and analyze annual feedback from students and preceptors.

Placement Sites (Pharmacies, Clinics, Hospitals, etc.)

Actions Required:

1.     Host students for WBL placements across required pharmacy categories.

2.     Appoint qualified preceptors with ≥3 years’ experience.

3.     Provide supervision and mentorship throughout the placement.

4.     Participate in assessments and provide feedback.

5.     Comply with Council standards for site registration and scope of practice.

6.     Engage in annual planning communication with education providers.

Preceptors / Health Professionals

Actions Required:

1.     Supervise students during WBL placements.

2.     Mentor and assess students using provided guidelines.

3.     Attend orientation/training sessions.

4.     Provide feedback on student performance and WBL processes.

Regulatory Bodies (SAPC, DoH, SAQA)

Actions Required:

1.     Approve qualifications and training sites.

2.     Issue permits (e.g., Section 22A for PIMART).

3.     Monitor compliance with WBL standards.

4.     Respond to disruptions (e.g., pandemics) with guidance.

Students

Actions Required:

1.     Complete required WBL hours and activities.

2.     Follow professional conduct and scope of practice.

3.     Maintain a signed logbook as evidence of learning.

4.     Obtain professional indemnity cover.

5.     Participate in assessments and feedback.

LAW AND TYPE OF NOTICE

Medicines and Related Substances Act:

Regulations: General: Amendment

G 53099 GoN 6464

– Comment by 01 Oct 2025

01 August 2025

APPLIES TO: 

Organizations Directly Affected

1. Pharmaceutical Companies

• Must establish and maintain pharmacovigilance systems.
• Required to submit risk management plans, safety reports, and undergo inspections.
• Must report adverse events and sales volumes when requested.

2. Holders of Certificates of Registration

• These are entities (often manufacturers or importers) that have registered medicines or scheduled substances under the Act.
• They are responsible for ongoing safety monitoring, record keeping, and reporting to the Authority.

3. Contract Research Organizations (CROs)

• May be involved in post-authorisation safety and efficacy studies.
• Could be contracted to manage pharmacovigilance systems or reporting duties.

4. Distributors and Wholesalers

• If they hold registration certificates or deal with unregistered medicines, they must comply with reporting and safety monitoring requirements.

5. South African Health Products Regulatory Authority (SAHPRA)

• The regulatory body responsible for enforcing these regulations.
• Will conduct inspections, review safety data, and issue guidelines.

Healthcare Professionals

6. Healthcare Providers (Doctors, Nurses, Pharmacists)

• Must report suspected adverse drug reactions and safety concerns to the Authority.

7. Veterinarians

• Required to report adverse reactions and safety issues related to veterinary medicines.

Other Entities

8. Academic and Research Institutions

• May be involved in safety studies, data analysis, or consultation on pharmacovigilance.

9. Manufacturers of Unregistered Medicines

• Even if not subject to registration, they must comply with pharmacovigilance requirements under sections 14(3), 14(4), 15C, 21, and 36 of the Act.

SUMMED UP

Key Changes

• Pharmaceutical companies and registration holders must:
  • Establish a Pharmacovigilance System Master File.
  • Appoint a qualified pharmacovigilance officer.
  • Submit risk management plans, safety reports, and benefit-risk evaluations.
  • Undergo routine or ad hoc inspections.
  • Implement corrective actions for inspection findings.
  • Conduct post-authorisation safety and efficacy studies if required.

• Reporting Requirements:
  • Submit adverse event data, sales volumes, and other safety-related information upon request.
  • Maintain records of adverse events and notify the Authority of any safety concerns.

• Healthcare providers and veterinarians must report:
  • Suspected adverse drug reactions.
  • Safety, quality, or effectiveness concerns.

• Unregistered medicines are also subject to these regulations under specific sections of the Act.

FULL TEXT

DETAILS

LINK TO FULL NOTICE

Medicines and Related Substances Act: Regulations: General: Amendment

G 53099 GoN 6464

– Comment by 01 Oct 2025

01 August 2025

53099gon6464.pdf

ACTION

Ensure that you submit your comments before 1 October 2025.

LAW AND TYPE OF NOTICE

Medicines and Related Substances Act:

Schedules: Amendment

G 53099 GoN 6466

01 August 2025

APPLIES TO: 

Healthcare Providers

These organisations must ensure compliance with the updated schedules regarding prescribing, dispensing, and administering medicines:

• Hospitals and Clinics (public and private)
• Dental Practices (especially those employing dental therapists)
• Emergency Medical Services (EMS) (paramedics, emergency care practitioners)
• Optometry and Podiatry Clinics
• Primary Health Care Facilities (especially those with nurses and non-physician prescribers)

Professional Bodies and Councils

These entities oversee the registration and scope of practice for healthcare professionals:

• Health Professions Council of South Africa (HPCSA)
• South African Nursing Council (SANC)
• South African Pharmacy Council (SAPC)

They must update guidelines and training to reflect the new scope of practice and medicine access.

Pharmaceutical Sector

Includes organisations involved in the manufacture, distribution, and sale of medicines:

• Pharmaceutical Manufacturers
• Medicine Distributors and Wholesalers
• Retail Pharmacies
• Medical Device and Supplement Companies (especially those producing nicotine products, iron supplements, etc.)

These businesses must ensure correct labeling, packaging, and scheduling compliance.

Regulatory and Government Agencies

Responsible for enforcing the Medicines and Related Substances Act:

• South African Health Products Regulatory Authority (SAHPRA)
• Department of Health
• Customs and Border Control (for import/export of scheduled substances)

Educational Institutions

Training programs for healthcare professionals must align with the updated schedules:

• Universities and Colleges offering degrees in:
  • Dental Therapy
  • Emergency Medical Care
  • Nursing
  • Optometry
  • Podiatry

SUMMED UP

Purpose of the Document

• Updates and amends the medicine schedules under the Act.
• Lists substances and their scheduling status (Schedules 1 to 7).
• Specifies who may prescribe or administer these substances, including non-medical practitioners like dental therapists, optometrists, and emergency care providers.

Schedule Summaries

Schedule 1

• Includes substances like iron and nicotine in specific forms and dosages.
• Allows certain healthcare professionals (e.g., dental therapists, optometrists) to prescribe within their scope.
• Example for dental therapists:
  • Paracetamol for dental pain (oral)
  • Lidocaine for surface anaesthesia (topical)
  • Acyclovir for viral lip infections (topical)

Schedule 2

• Includes fluconazole (150 mg single dose) for fungal infections.

• Expanded list of analgesics and antifungals for dental therapists:
  • Ibuprofen, Diclofenac, Codeine
  • Nystatin, Miconazole

Schedule 3

• Covers injectable iron and higher-dose nicotine products.
• More restricted access compared to Schedules 1 and 2.

Schedule 4

• Includes antibiotics and local anaesthetics for dental use:
  • Lidocaine, Mepivacaine
  • Amoxicillin + Clavulanic Acid, Erythromycin, Metronidazole
  • Adrenaline for emergency anaphylaxis

Schedules 5–7

• Cover more tightly controlled substances, including psychotropics and narcotics.
• Schedule 7 includes substances like Dipentylone and Pholcodine.

FULL TEXT

DETAILS

LINK TO FULL NOTICE

Medicines and Related Substances Act: Schedules: Amendment

G 53099 GoN 6466

01 August 2025

53099gon6466.pdf

ACTION

Healthcare Providers

Examples: Hospitals, clinics, dental practices, EMS providers

Actions Required:

1.     Update prescribing protocols to reflect new scheduling and scope of practice.

2.     Train staff (especially non-medical prescribers like dental therapists and paramedics) on newly permitted substances.

3.     Audit medicine inventories to ensure compliance with new scheduling (e.g., nicotine products, iron supplements).

4.     Revise patient care guidelines to include newly authorized treatments.

5.     Ensure proper documentation for prescribing and dispensing scheduled substances.

Professional Bodies and Councils

Examples: HPCSA, SANC, SAPC

Actions Required:

1.     Revise scope of practice definitions for registered professionals.

2.     Update registration and licensing criteria to align with new medicine access.

3.     Issue guidance and circulars to members about schedule changes.

4.     Monitor compliance and investigate breaches of prescribing authority.

Pharmaceutical Sector

Examples: Manufacturers, distributors, pharmacies

Actions Required:

1.     Reclassify products according to updated schedules (e.g., nicotine patches, iron injections).

2.     Update packaging and labeling to reflect correct schedule classification.

3.     Ensure regulatory compliance for manufacturing and distribution.

4.     Train pharmacy staff on new dispensing rules and patient advisories.

5.     Adjust marketing strategies for products affected by schedule changes.

Regulatory and Government Agencies

Examples: SAHPRA, Department of Health

Actions Required:

1.     Enforce new scheduling regulations through inspections and audits.

2.     Update public databases and registries of scheduled substances.

3.     Communicate changes to stakeholders and the public.

4.     Monitor adverse events and misuse of newly accessible substances.

Educational Institutions

Examples: Universities offering health sciences

Actions Required:

1.     Revise curricula for dental therapy, emergency care, nursing, etc.

2.     Update clinical training modules to include newly permitted substances.

3.     Inform students and faculty of scope of practice changes.

4.     Align assessments and competencies with updated legal frameworks.

Medicines and Related Substances Act:

Regulations: General: Amendment: Comments invited

G 53099 GoN 6465

– Comment by 01 Nov 2025

01 August 2025

APPLIES TO: 

Organizations Likely to Be Affected

1. Pharmaceutical Companies

• Manufacturers: Must ensure their products are not classified as substandard or falsified under the new definitions.
• Importers: Must comply with the updated list of approved ports and border posts for medicine importation.
• Distributors: Need to align with new quality and compliance standards.

2. Logistics and Customs Operators

• Freight and courier companies handling medical imports must adapt to the revised port-of-entry restrictions and SAHPRA approval requirements.
• Customs brokers will need to ensure documentation and routing comply with the new regulations.

3. Healthcare Providers

• Hospitals, clinics, and pharmacies must be vigilant about sourcing medicines that meet the updated definitions and standards.
• They may also need to report suspected falsified medicines under the revised Regulation 51.

4. Regulatory Bodies

• SAHPRA (South African Health Products Regulatory Authority): Gains expanded oversight, especially in approving imports through land border posts.
• Department of Health: Will manage public feedback and implement the regulatory changes.

5. Border Control and Port Authorities

• Must coordinate with SAHPRA to monitor and enforce the new importation rules at designated airports, harbours, and land border posts.

6. Legal and Compliance Firms

• Organizations offering regulatory consulting will need to update clients on compliance strategies and help interpret the new definitions and procedures.

Regulatory Amendments Overview

1. Definitions Updated (Regulation 1)

• Deleted: Definition of “counterfeit medicine”.

• Added:
  • “substandard medicine”: A medicine that fails to meet its quality standards or specifications.
  • “falsified medicine”: A medicine whose identity, composition, or source is deliberately or fraudulently misrepresented.

2. Importation Rules Revised (Regulation 6)

• Medicines must be imported only through designated ports of entry, including:
  • Cape Town International Airport / Harbour
  • Chief Dawid Stuurman International Airport / Port Elizabeth / Ngqura Harbour
  • King Shaka International Airport / Durban Harbour
  • O.R. Tambo International Airport

• New provision allows importation through border posts (e.g., Beit Bridge, Vioolsdrift, Kopfontein, Maseru Bridge, Lebombo, Oshoek) if approved by SAHPRA.

3. Falsified Medicines (Regulation 51)

• Clarifies that a medicine “suspected of being falsified” falls under regulatory scrutiny.

4. Short Title

• These amendments are titled: General Regulations made in terms of section 35 of the Medicines and Related Substances Act, Amendment, 2025.

DETAILS

LINK TO FULL NOTICE

Medicines and Related Substances Act: Regulations: General: Amendment: Comments invited

G 53099 GoN 6465

– Comment by 01 Nov 2025

01 August 2025

53099gon6465.pdf

ACTION

Ensure that you submit your comments by 01 November 2025.

MINE HEALTH AND SAFETY

LAW AND TYPE OF NOTICE

Occupational Diseases in Mines and Works Act:

Adjustment of Levies Paid by Controlled Mines and Works (English / Afrikaans)

G 53097 GoN 6462

31 July 2025

APPLIES TO: 

MINING COMPANIES

FULL TEXT

DETAILS

LINK TO FULL NOTICE

Occupational Diseases in Mines and Works Act: Adjustment of Levies Paid by Controlled Mines and Works (English / Afrikaans)

G 53097 GoN 6462

31 July 2025

53097gon6462.pdf

LAW AND TYPE OF NOTICE

Occupational Diseases in Mines and Works Act:

Amendment of Amounts to Increase Benefits (English / Afrikaans)

G 53098 GoN 6463

31 July 2025

APPLIES TO: 

MINING COMPANIES

FULL TEXT

DETAILS

LINK TO FULL NOTICE

Occupational Diseases in Mines and Works Act: Amendment of Amounts to Increase Benefits (English / Afrikaans)

G 53098 GoN 6463

31 July 2025

53098gon6463.pdf

PETROLEUM

LAW AND TYPE OF NOTICE

PETROLEUM PRODUCTS: RETAIL PRICES

LINK TO FULL NOTICE

Petroleum Products Act: Maximum retail price for liquefied petroleum gas

G 53117 RG 11859 GoN 6484

05 August 2025

53117gon6484.pdf

Petroleum Products Act: Regulations: Single maximum national retail price for Illuminating Paraffin

G 53117 RG 11859 GoN 6486

05 August 2025

53117rg11859gon6486.pdf

Petroleum Products Act: Regulations: Amendment

G 53117 RG 11859 GoN 6485

05 August 2025

53117rg11859gon6485.pdf

TRANSPORTATION

LAW AND TYPE OF NOTICE

Administrative Adjudication of Road Traffic Offences Amendment Act:

Commencement (English / Afrikaans)

G 53099 P 272

01 August 2025

FULL TEXT

DETAILS

PLEASE NOTE: BOTH OF THESE NOTICES WILL BE ADDRESSED IN A DEDICATED ALERTER. THE LEGAL TEAM IS CURRENTLY WORKING ON IT AND WILL DISTRIBUTE IT AS SOON AS IT’S READY.

LINK TO FULL NOTICE

Administrative Adjudication of Road Traffic Offences Amendment Act: Commencement (English / Afrikaans)

G 53099 P 272

01 August 2025

53099pr272.pdf

LAW AND TYPE OF NOTICE

Administrative Adjudication of Road Traffic Offences Act:

Commencement (English / Afrikaans)

G 53099 P 274

01 August 2025

FULL TEXT

DETAILS

PLEASE NOTE: BOTH OF THESE NOTICES WILL BE ADDRESSED IN A DEDICATED ALERTER. THE LEGAL TEAM IS CURRENTLY WORKING ON IT AND WILL DISTRIBUTE IT AS SOON AS IT’S READY.

LINK TO FULL NOTICE

Administrative Adjudication of Road Traffic Offences Act: Commencement (English / Afrikaans)

G 53099 P 274

01 August 2025

53099pr274.pdf

Administrative Adjudication of Road Traffic Offences Act: Commencement (English / Afrikaans)

G 53099 P 273

01 August 2025

53099pr273.pdf

SOUTH AFRICA

SA steps up climate fight

Jail and hefty fines on the cards for transgressors

The government has taken a giant leap in implementing the Climate Change Act by publishing carbon budget and mitigation planning regulations, with imprisonment and hefty financial fines on the cards for companies and individuals found in transgression.

The publication of the regulations marks a major advancement in SA’s climate strategy. The regulations have been years in the making.

In a government notice on Friday, the department of forestry, fisheries & the environment laid out draft regulations setting out how the country’s major emitters will be allocated carbon budgets, with a requirement to submit their mitigation plans. In the foreword to the regulations, minister Dion George invited members of the public to comment on the draft regulations by end-September.

“The draft regulations set out requirements necessary for allocating, implementing and enforcing any approved carbon budget and Climate Change Act lays foundation for a green economy that is resilient, inclusive, future-focused  associated mitigation plan,” George said.

“With respect to car­bon budgets, the draft regulations provide for mandatory allocation, progress tracking, compliance assessment and enforcement,” he said. “With respect to mitigation plans, the draft regulations provide for mandatory implementation of interventions, and mechanisms for the department to monitor and evaluate the effectiveness of the plans.”

President Cyril Ramaphosa proclaimed the Climate Change Act in March. It lays the foundation for a green economy that is resilient, inclusive and future-focused.

However, despite the act having come into operation in March, the commencement of certain provisions of the act was deferred to a later date to give the department time to develop a set of regulations that will enable implementation of these provisions, a process the department has now concluded.

The regulation states a carbon budget must specify the maximum amount of greenhouse gas emissions that may be emitted during the first commencement period and the mitigation plan must align with carbon budget allocations.

A “competent authority” will have the right to either reject or accept the mitigation plan. If the mitigation plan is rejected, the government can direct an entity to amend the plan.

Companies will be required to submit annual progress reports, which must include details on the mitigation meas­ures that were implemented for all facilities and emis­sion sources for which mitigation measures were declared in the mitigation plan.

Companies will be found guilty of an offence if they fail to sub­mit car­bon budgets and mitigation plans. Entities will also fall foul of the law if they do not submit annual progress plans and if they fail to implement recommended remediation identified by an independent verifier, with imprisonment and hefty financial fines on the cards. The regulations are meant to align with the act, support SA’s Paris Agreement targets and limit national emissions to 350-million tonnes to 420-million tonnes of carbon dioxide equivalent by 2030.

The regulations were published along­side the accompanying declaration of the list of greenhouse gases and activities and associated technical guidelines.

The framework is essential for implementing the Climate Change Act and meeting Paris Agreement commit­ments by setting clear carbon budgets and mandatory mitigation plans for top emitters. Eskom and Sasol are SA’s largest emitters, with steel producer ArcelorMit­tal also a large polluter, with mining groups.

Some of the greenhouse gases listed in the regulations include carbon dioxide, methane, nitrous oxide and sulphur hexafluoride.

The regulations show that listed activities for the allocation of mandatory carbon budgets include coal mining, production and refining of crude oil, production of synthetic fuels from coal or gas, cement production and iron and steel production.

The technical guidelines state that a carbon budget must reflect the maximum amount of greenhouse gases the company is allowed to emit based on operational control.

“The company must be able to attribute por­tions of the overall carbon budget to each of its facilities,” the guideline reads.

“As such the company must ensure that emissions from individual facilities are monitored and reported in a manner that aligns with the overall budget and that the responsibility for emissions reduction is distributed appropriately.”

By Kabelo Khumalo

Businessday

FINANCIAL ARTICLES AND JUDGMENTS

UNITED KINGDOM

FirstRand weighs higher UK motor finance provision after Supreme Court ruling

But the judgment brings much-needed legal clarity and resolves concerns about the viability of the broader industry.

JSE-listed banking giant FirstRand says it may need to revise the initial R3.3 billion provision set aside for UK motor finance litigation following a ruling by the UK Supreme Court on Friday, 1 August.

The court ordered the bank to repay commission plus interest to one of the claimants in a high-profile case concerning vehicle financing practices in the country.

While the court ruled in favour of FirstRand in several key respects, including fiduciary duties, it found that the relationship between the bank and one claimant, a Mr Johnson, was unfair under the UK’s Consumer Credit Act.

FirstRand’s share price jumped more than 3% on Monday, following the judgment and clarification of the legal position.

The group noted that the Supreme Court ruling brings much-needed legal clarity and closes off concerns that could have had a far-reaching impact on the broader UK motor finance industry.

Investec, which is also affected by the probe, indicated it had made a R684 million provision for possible compensation in the vehicle finance probe.

The judgment confirmed that motor dealers do not owe customers a fiduciary duty as credit brokers – a point of industry-wide relevance.

FirstRand previously flagged the “far-reaching and materially negative” implications for the motor finance industry and the broader consumer finance sectors in the UK should the courts rule that lenders owe a fiduciary duty to a customer.

However, the court found that FirstRand must repay commission and interest in Johnson’s case. The Supreme Court concluded:

• The commission paid to the dealer was high and undisclosed, suggesting an unfair lending arrangement
• The documents presented to Mr Johnson failed to disclose a commercial relationship between FirstRand and the dealer – including a right of first refusal – while misleadingly suggesting the dealer offered impartial credit options
• While Mr Johnson did not read the documents, he was not financially sophisticated, and the lender could not reasonably have expected him to understand the details, particularly as the relevant disclosures were not clearly flagged.

FirstRand noted that “wide discretion could be applied by the courts to award a remedy,” but emphasised that the Johnson ruling “does not necessarily create a precedent” for other cases.

Appeal Court rulings 

The case follows an October 2024 ruling by the UK Court of Appeal in favour of claimants Wrench and Johnson.

FirstRand appealed to the Supreme Court, which has now upheld its arguments in the Wrench and Hopcraft matters, allowing those appeals to succeed.

Based on initial assessments and assuming customers fall within the Financial Conduct Authority’s (FCA’s) criteria for redress, the bank may need to update its accounting provision for the year ended 30 June 2025.

This would involve adjusting its probability-weighted scenarios and applying the FCA’s proposed interest rate of the average base rate, plus 1%.

Impact on guidance

If implemented, this could see normalised earnings growth trend toward the lower end of the bank’s June 2025 guidance, which projected low double-digit to mid-teen growth.

FirstRand maintains that it complied with regulatory requirements and industry norms at the time but accepts that the Supreme Court deemed its disclosures in the Johnson matter inadequate.

The SA group is also evaluating the potential impact of the FCA’s proposed redress scheme, outlined in a 3 August statement, in which the regulator noted that a redress scheme must be fair to consumers who have lost out, while also ensuring the integrity of the motor finance market.

The scheme is still subject to consultation and possible revisions. A six-week public consultation is expected to begin by early October, with the final rules to follow. The FCA intends to launch the scheme in 2026, with compensation payments to begin next year.

Liesl Peyper

Moneyweb

Full UK Supreme Court judgment

SOUTH AFRICA

BMA introduces traceable stamps to tighten border security

The Border Management Authority (BMA) is rolling out a series of security upgrades as part of its ongoing strategy to modernise South Africa’s border management system.

Speaking at a press conference on the first quarter of the 2025/26 financial year, BMA Commissioner Dr Michael Masiapato highlighted key developments, including the introduction of secure, trace­able immig­ra­tion stamps, drone based surveillance and new training initiatives in counterfeit detection.

He said the BMA introduced new security stamps on Friday, replacing the old, vulnerable stamps that had been used by immigration specialists.

This followed wide­spread misuse of the stamps, with individuals illegally stamping people’s passports with fraudulently reproduced stamps in the past few months.

Masiapato said the initiative formed part of the BMA’s broader commitment to strengthening national security and represented a deliberate step towards enhancing the integrity of border control processes.

The authority had collaborated with the Government Printing Works and designed the new stamps with the highest security standards, including the BMA logo to prevent tampering, forgery and unauthorised use.

“Each of the immigration officers has been allocated a specific stamp with its unique number linked to each officer to trace back should their allocated stamp be found to facilitate illegal migration into the country,” he said.

The BMA was now embarking on redesigning new stamps for other specialised functions such as agriculture, health and environment.

Masiapato also announced that six border guards had qualified as drone pilots in July.

This is as the authority tries to strengthen border secur­ity efforts by leveraging technology­driven solutions such as the usage of drones for bor­der sur­veil­lance.

To increase drone oper­a­tion capa­city, he said they plan to send more bor­der guards for pilot train­ing.

“The skills they have acquired will strengthen border security efforts through enhanced surveillance and increased visibility, particularly in the identified vulnerable segments of the borderline. Further, we have also partnered with the South African Reserve Bank (SARB) and trained the border guards in counterfeit detection and currency handling, giving them the necessary skills to identify counterfeit banknotes and coins in circulation.”

Between April 1 and June 30, the BMA inter­cep­ted and deported 9,954 individuals who had attempted to enter SA illegally. Of these, 5,826 were found to be undocumented, 2,127 were deemed inadmissible and 2,001 were classified as undesirables.

The majority of those intercepted and deported individuals were Basotho, Zimbabweans and Mozambicans.

“In this quarter, our border law enforcement team also intercepted and handed over to SAPS a total of 15 high-powered suspected stolen vehicles for further handling. Incrementally, since July 2022, the border guards have intercepted more than 349 vehicles which were meant to be smuggled out of the country by criminal syndicates,” Masiapato said.

During the quarter under review, port immigration specialists processed 8,582,250 passengers entering and leaving the country. Port health specialists processed 986 permits for the movement of mortal remains dur­ing the three-month period, of which 44 were imported into the country while 942 were expor­ted out of the country.

About 13 children were intercepted across the various ports, of which five were unaccompanied and handed over to officials of the department of social development for further processing.

“The remaining eight who were with their parents were refused entry as they did not meet the entry requirements into the country. We would like to re-emphasise the requirements for the crossborder movement of children. A child who is under alternative care must produce a certified copy of an authorisation letter from the provincial head of the department of social development before departure,” he said.

Daily Dispatch

SOUTH AFRICA

A new paradigm for executive dismissals? Analysing the proposed amendments to the Labour Relations Act on remedies for high-income employees

Reframing the legal landscape

The proposed amendments introduce a new section to the LRA—provisionally section 208B—as well as corresponding amendments to sections 193, 194 and Schedule 7.

Under the proposed framework, employees earning above the high-income threshold—initially set at ZAR 1.8 million per annum (the cap), will no longer be entitled to reinstatement or re-employment remedies for unfair dismissal, unless the dismissal is automatically unfair. In cases of automatically unfair dismissals, reinstatement, re-employment, and uncapped compensation will remain available.

In all other cases of unfair dismissals, the remedy to affected high-income employees will be limited to compensation capped at the threshold. The cap will also apply to compensation awarded for unfair labour practices.

These changes may directly impact both employers, particularly at the executive level, and high-income employees, with broader implications for litigation risk, employment policy design, and dispute resolution strategy.

For management and human resources teams, the amendments present a new frontier in managing executive exits. With reinstatement largely removed from the remedial equation, the risk calculus shifts. Employers may make decisions with greater certainty and reduced concern over long-term reinstatement orders that could disrupt leadership continuity or organisational strategy.

For senior employees, the changes require a mindset shift. Gone are the days when litigation might lead to reinstatement in the C-suite. The focus will likely pivot to maximising compensation claims, albeit under a capped regime, and, where applicable, pursuing whistleblower-based claims to circumvent the cap.

On one hand, the proposed amendments may align with broader economic and legal principles. High-income earners typically possess stronger bargaining power, better legal access, and greater mobility in the labour market. Limiting their remedies to capped compensation—where the amount may still be substantial—might not amount to a denial of justice.

Furthermore, reinstatement in senior roles is often impractical due to irreparably damaged trust relationships. The Labour Court and the Commission for Conciliation, Mediation and Arbitration (CCMA) have long struggled with the feasibility of reinstatement in executive-level disputes. The amendments acknowledge this reality by replacing a frequently impractical remedy with a more realistic approach.

However, constitutional guarantees of equal treatment and fair labour practices, enshrined in sections 9 and 23 of the Constitution, must apply equally to all employees. Differentiating remedies based on income could amount to socio-economic discrimination, undermining the universality of labour rights. There is also a risk that employers may abuse the regime, knowing their exposure is capped unless the dismissal is automatically unfair.

Thus, while the amendments may be pragmatic, they also represent a philosophical shift: labour rights are no longer universal protections, but potentially tiered entitlements. The constitutional validity of this approach may well be tested.

Implications of the proposed amendments

For employees earning above the threshold, the loss of the reinstatement remedy could be viewed as a reduction in labour protections. Reinstatement offers not only economic redress but also reputational vindication. The absence of this remedy could result in unfair dismissals becoming more routine, as employers will only face capped compensation even where the dismissal lacks merit.

Conversely, employers may benefit from the increased certainty brought about by the removal of reinstatement. Fewer reinstatement hearings mean reduced procedural complexity and cost. In addition, the amendments may enable adjudicative bodies to focus on more precarious employment disputes. Ultimately, the amendments may help build a more predictable and commercially aligned labour law framework.

For affected employees, some consolation may lie in the finality that capped compensation brings. In executive-level dismissals, a return to the organisation is often undesirable for both parties. The cap may enable faster resolutions, reduced reputational harm, and more constructive settlement negotiations.

Given the high volume of labour disputes that clog our courts and tribunals, a capped compensation system could help reduce the burden on dispute-resolution institutions.

In balancing the pros and cons, the proposed amendments may foster a more predictable and less adversarial system. However, the risk of diminished equality and protection remains.

The proposed changes reflect a maturing of South Africa’s labour law regime, recognising that high-level employees may not require identical remedial protections as lower-income workers. By shifting the focus from reinstatement to fair compensation, the amendments may introduce both clarity and efficiency.

That said, their success depends on careful implementation. Procedural fairness must remain paramount, and meaningful remedies must still be available to employers who are unfairly dismissed. The exclusion of automatically unfair dismissals from the capped regime is a critical safeguard.

If implemented with due care, these changes may usher in a more streamlined and commercially aligned dispute-resolution framework that reflects the realities of modern executive employment, without compromising fundamental fairness.

Kenneth Coster, Hassan Mahlawe, Megan Wilkinson

Webber Wentzel

SOUTH AFRICA

Changes include artisanal miners in draft bill

Proposed licensing regime for small-scale mining included in draft minerals bill

The department of mineral resources & energy has gazetted a correction to the Draft Mineral Resources Development Bill to include a proposed licensing regime for artisanal and small-scale mining (ASM).

The current proposal formalises previously informal operations through demarcated ASM zones, streamlined permits and eligibility criteria accessible to community-based entities. According to the department, these measures aim to unlock inclusive economic growth, deepen beneficiation, and correct historical imbalances.

For mining-adjacent communities that have historically been excluded from resource governance and benefit-sharing, the bill could usher in long over­due structural reforms.

The amendment clarifies that any prospecting or mining right or interest in an unlisted company holding such rights may not be ceded, transferred, encumbered, let, sublet or assigned without the prior written consent of the minister. This reframing excludes references to listed entities and close corporations and is understood to tighten the regulatory over­sight of transactions involving mineral rights.

The introduction of a licensing regime for ASM was first raised in the unimplemented 2020 draft amendment to the Mineral and Petroleum Resources Develop­ment Act.

In a statement, mineral & petroleum resources minister Gwede Mantashe said the new licensing frame­work would “ensure regulatory certainty and investor confidence while promoting local industrialisation”. The measures would enhance employment, skills development and rural enterprise formation in line with the principal act.

After the imposition of 30% tariffs by the US on selected SA exports, the bill assumes broader strategic importance. By formalising artisanal and small-scale mining operations, it introduces a mechanism able to absorb labour dislocated from traditional export-oriented industries. The low capital intensity and community-based nature of ASM enterprises could stimulate regional economies, enhance self-employment and generate new fiscal flows.

The integration of ASM into the formal framework represents a pivot toward endogenous growth that insulates the mining sector from external shocks. This new proposed licensing scheme enables communities to participate directly in the value chain, fostering localised economic strength.

However, without robust enforcement and interdepartmental coordination, the aspirations in the bill risk falling short of their transformative potential. Implementation will then hinge on the promulgation of supporting regulations, which have yet to be published.

Once the public com­ment period closes on August 13, the department will consolidate submissions and prepare a revised draft for cabinet approval. The bill will then be tabled in parliament, where it will undergo committee scrutiny and possible further amendments. If adopted and signed by the president, the bill could be enacted and operational within the next year.

BusinessDay

SOUTH AFRICA

Problems with South Africa’s new driving law

The government recently confirmed that the next stage of the Administrative Adjudication of Road Traffic Offences (Aarto) Act will be rolled out nationwide from 1 December 2025.

However, the act is unlikely to achieve its stated purpose and will become a costly and ineffective endeavour.

This is according to the Organization Undoing Tax Abuse (Outa), which cited the challenges the act has faced in its initial rollout across Johannesburg and Pretoria.

President Cyril Ramaphosa stated that the Aarto Act will be introduced across 69 metros and municipalities 1 December, and that the remaining 144 municipalities will be added on 1 April 2026.

The controversial demerit system, which is directly tied to the Aarto Act, will then go live on 1 September 2026.

This system will allocate penalty points on an individual’s licence for various driving offences, with more severe infringements earning more points than mild ones.

Once a person accumulates 15 points, their licence will be suspended for a period of three months per point over the 15-point threshold.

Importantly, the points expire three months after they are received, meaning a person would need to commit several offences in a relatively short period to lose their licence.

In a recent interview on 702, Outa executive director Advocate Stefanie Fick explained that the system is designed to promote better driving on South Africa’s roads.

“I think the principle, if you look at it on paper, is just to say: okay, we want an administrative process instead of sending people through the whole court system,” she said.

“In essence, what they want to do is create better drivers by saying: if you commit these minor offences, you can lose your licence.”

The problem with Aarto is that it has not proven to be effective in its earlier rollouts across Gauteng, quickly running into financial issues with the way it is enforced.

“In the beginning, they ran out of money. In terms of the Aarto Act, you need to either serve the infringement in person or you need to do it via registered post,” she said.

“They ran out of money and they couldn’t send it via registered post, and obviously, I don’t think they have the resources to serve it on everybody.”

Fick noted that if authorities don’t follow the prescribed procedure, which requires them to send an infringement notice and a courtesy letter within 32 days, they cannot enforce the act.

“So, also their inability to follow their own procedure was a bit of a problem from the start. And tell me, do you really think people are driving better in Joburg? No,” she said.

A new headache for motorists

The demerit system is expected to create new problems for fleet operators, as both drivers and cars can accumulate points.

“With unroadworthiness and those types of intervention, you can actually get double points for the driver and for the car,” said Fick.

“At some point, your driver, because he’s a driver, will get demerit points and they can’t drive anymore. Also, your cars can’t be on the road.”

Additionally, the demerit system is likely to exacerbate the issue of cloned and stolen vehicles in South Africa.

Motorists are already facing issues where they are receiving speeding tickets because of criminals using cars with copies of their licence plates.

The consequences of these incidents will therefore be much higher when the rightful owner of a car is at risk of losing their licence because someone stole or cloned their vehicle.

“I’ve got tickets where it’s my motor vehicle licence, but it’s not me because it’s a duplicated car, or your car gets stolen and it is used by someone else,” said Fick.

“So, because the system is not functioning properly, I do think that people may run into trouble because of the system.”

The demerit system was supposed to be implemented by July 2022, but has been delayed multiple times as a result of legal disputes.

In July 2023, the Constitutional Court ruled that the Aarto Act is constitutional and valid, and the system is now set to be implemented by the end of this year.

The table below shows the fine and demerit amounts that will be distributed for common traffic offences in South Africa:

Michael Taylor

TopAuto