CAPE TOWN – President Cyril Ramaphosa has officially raised the ceiling on private donations to political parties to R30 million per year, marking a significant shift in South Africa’s political funding landscape. His decision follows a resolution by the National Assembly in May, after extensive debates and revisions by Parliament’s home affairs committee.
The move, however, comes amid ongoing disputes and criticism from opposition benches, who argue that the ruling African National Congress (ANC) is attempting to consolidate its financial advantage in an already fragile political environment. The matter has left many observers describing the process as yet another example of Ramaphosa deadlocked in controversy, balancing between legal obligations and political interests.
In the newly published proclamation, President Ramaphosa set the new donation limit at R30 million annually, doubling the previous R15 million cap. At the same time, the declaration threshold for private donations was also doubled, from R100,000 to R200,000.
Ramaphosa: Doubling the Donation and Declaration Thresholds
This means that any political party or independent candidate that receives a donation exceeding R200,000 will be legally obliged to declare it to the Electoral Commission of South Africa (IEC). Even smaller donations below the threshold must still be recorded in each party’s annual financial statements, ensuring a more transparent reporting system.
IEC’s manager for political funding, George Mahlangu, reiterated last week in the Western Cape that no political party would be exempt from these requirements.
“No party will be off the hook in declaring its donations,” Mahlangu stressed. “Even if the amount is below the R200,000 threshold, they are expected to keep accurate financial records.”
The current developments are rooted in a 2023 judgment by the Western Cape High Court, which forced Parliament to reinstate donation limits after they had been scrapped ahead of last year’s general elections.
In the run-up to the 2024 polls, Parliament controversially removed the R15 million cap on private donations to both political parties and independent candidates. Critics said this opened the door to unchecked financial influence in politics. Civil society organisations challenged the decision, and in August 2023 the High Court ruled in their favour, compelling Parliament to backdate declarations to the IEC until a new limit was officially determined.
The ruling effectively pressured lawmakers into revisiting the Political Party Funding Act of 2018, which had originally established the R15 million limit and the R100,000 declaration threshold. The outcome of that process is now reflected in Ramaphosa’s proclamation.
While some analysts have welcomed the adjustment as a modernisation of outdated limits, others fear it risks entrenching inequality among political parties. Larger, established parties are more likely to attract multi-million-rand donations, while smaller parties may continue to struggle for resources.
Critics argue that increasing both the ceiling and the declaration threshold could make it harder to detect hidden streams of influence. Political parties may now structure donations just under R200,000 to avoid disclosure, while wealthier donors may wield greater influence over policy decisions.
These criticisms highlight why the decision has been described as another case of Ramaphosa deadlocked between governance reform and political survival. On one hand, he is tasked with ensuring compliance with the court order and upholding democratic transparency. On the other, he faces internal ANC pressures to secure more substantial funding as the party battles declining support and financial strain.
Reactions to the announcement have been mixed. The ANC has welcomed the increase, describing it as a pragmatic adjustment to account for inflation and the growing costs of running competitive campaigns.
The Democratic Alliance (DA), however, expressed concern, warning that the changes may be tailored to benefit the ANC disproportionately. DA spokespersons have called for stronger enforcement mechanisms to prevent loopholes that allow big money to dominate politics.
Smaller opposition parties, such as the Inkatha Freedom Party (IFP) and the Economic Freedom Fighters (EFF), have also voiced unease. They argue that the new limit widens the gap between well-resourced and underfunded parties, making elections less fair.
As South Africa prepares for upcoming by-elections and future national contests, the debate around political funding is unlikely to subside. The IEC will now shoulder greater responsibility in monitoring compliance, while parties are expected to demonstrate improved transparency.
For President Ramaphosa, however, the issue may continue to weigh heavily. His administration is still battling perceptions of inconsistency in tackling corruption and strengthening accountability. By signing off on these changes, he risks being seen as favouring big donors at a time when ordinary South Africans remain disillusioned with politics.
The proclamation may resolve the legal requirements imposed by the courts, but politically, the conversation is far from over. As critics continue to frame the issue as another case of Ramaphosa deadlocked in controversy, the long-term implications for party funding, transparency, and public trust remain uncertain.
Source- EWN
