Khetha Buthelezi
On the back of Human Rights Month, it would be an injustice to neglect to confront the glaring systemic corruption which continues to erode the nation's economy and undermine fundamental human rights of its citizens. With the current pressure on day-to-day affordability threatening livelihoods on a large scale, South Africans are facing a further financial squeeze from the upcoming increase in value-added tax (VAT) coming into effect on International Workers’ Day – 01 May 2025.
The proposed Budget, from the National Treasury will raise VAT by 0.5 percentage points on 01 May 2025 and by the same margin on 01 April 2026, bringing the rate to 16%. As if that was not enough, the electricity price tariffs are going up by a further 12.7% on 01 April 2025. These increases threaten to further deepen inequality and disproportionately affect the most vulnerable especially as the cost of essential grocery items continues to rise.
Taxation
Pay-as-you-earn (PAYE) income tax in South Africa is between 18 – 45 percent. Adding a further 16% taxation for every purchase plus 12.7% increase on already-expensive, and unreliable electricity is nothing short of putting the rope on taxpayers’ necks. The continuation of loadshedding in Saldanha disrupts the cold storage for fish, damages equipment, and forces small-scale fishers to sell their catch quickly at lower prices, cutting into their already tight margins.
Corruption
Government corruption levels have led to the misallocation of public funds, poor service delivery, and economic stagnation. The Koeksister Project is a community-driven initiative that applies Doughnut Economics, transition towns and commoning principles to promote economic resilience in the West Coast. It aims to empower small-scale fishers, small businesses and informal traders by advocating for better market access, cooperative business models, and local economic governance.
The project works to dismantle structural barriers that prevent fishers from accessing infrastructure and fair markets by challenging restrictive zoning laws, advocating for designated trading spaces, and supporting community-led business initiatives. By promoting alternative economic models, the Koeksister Project not only supports livelihoods but also contributes to economic justice and long-term sustainability for West Coast communities.
Small-scale fishers
Small-scale fishers along South Africa's West Coast, particularly in Port Nolloth and Saldanha Bay, face significant challenges in accessing government-owned buildings and essential infrastructure. These obstacles hinder their ability to store, process, and sell their catch effectively. Government is failing to provide access to markets and harbours for small-scale fishers to launch their boats, while lengthy processes and excessive red tape further hinder their ability to operate sustainably.
In Port Nolloth, the Aukotowa Small-Scale Fisheries Cooperative, supporting over 60 households, lacks suitable office space and is forced to conduct administrative tasks from the home of its administrative clerk, despite provisions in the Memorandum of Agreement (MOA) with the Department of Forestry, Fisheries and the Environment (DFFE) and the Department of Public Works and Infrastructure (DPWI) which provide for access to government facilities.
The government undertook refurbishment initiatives to revitalise the Saldanha Bay Harbour. Minister Sihle Zikalala paid a follow up visit in May 2023 to assess progress. An additional R72 million investment deal was announced to repair equipment and improve infrastructure at the harbour, with the aim to enhance access for small-scale fishers and local businesses.
Despite these commitments, small-scale fishers report that the promised improvements are slow to materialise, leaving them without the necessary facilities to support their operations and realise tangible results. The ongoing delays in refurbishing small harbours and providing access to government-owned buildings continue to impede the economic stability of these fishing communities.
Infrastructure development
Addressing the slow movement in much-needed infrastructure requires prompt action from government to fulfil their commitments, to ensure that small-scale fishers have equitable access to infrastructure to sustain their livelihoods. The human rights implications are clear: economic policies that deepen poverty and inequality infringe on citizens' rights to dignity, access to basic services, and economic participation.
The proposed VAT hike represents an unjust economic policy which shifts the burden of corruption onto the taxpayers and marginalised communities, who suffer the consequences and live in low-income households, endure degrading levels of poverty, inequality and crime.
Instead of resorting to tax increases that further impoverish the population, South Africa must adopt a budget that prioritises: anti-corruption measures - strengthening the National Prosecuting Authority (NPA) and the Special Investigating Unit (SIU); sustainable development – investing in renewable energy and mine rehabilitation projects to create employment and reduce environmental degradation; and economic justice – funding community-led initiatives to build resilient local economies.
* Buthelezi is the Economic Officer responsible for community-empowerment projects at The Green Connection
Weekend Argus