It's good news as SA is removed from the international grey list - Cosatu

South Africa received well deserved good news with the United Nations’ Financial Action Task Force (FATF)’s announcement that it has been removed from the international grey list.  This is a positive victory for workers, the economy, the state and society.

Our grey listing in February 2023 was a painful blow.  It was a vote of no confidence in South Africa’s governance, law enforcement and financial systems by the international community.  It was a loud deterrent to international investors considering investing in our economy.  It was not surprising given our painful decade of state capture and corruption.

It took an incredible amount of collective work by various government institutions, Parliament and the banking sector to ensure South Africa’s exit from the grey list.

We must commend the sterling work done by government, in particular Treasury, the South African Revenue Service, Financial Intelligence Centre and the Reserve Bank as well as their pears in the private banking sector to address the FATF’s 22 findings. 

Similarly, Parliament moved with speed and determination to strengthen and pass the General Laws Amendment Act amongst other legislation.

South Africa has done well to exit the grey listing within two and a half years.

In a year when fake news and outright disinformation have been unleashed against South Africa, this is a wonderful vote of confidence by the international community.  It is a sign that under government led by President Cyril Ramaphosa and the African National Congress, that we are turning the corner in rebuilding the state and cleansing it of the cancer of corruption and criminality.

This achievement is of great importance to workers and the working class for several reasons.

Firstly, the FATF findings required the South African government to strengthen its institutional and legal systems and ramp up the fight against corruption.  It is workers and the poor who pay the price when their hard-earned taxes that are needed and mandated to fund the public and municipal services that the working class and the economy depend upon are lost to corruption.

It is workers who have lost wages, pensions and jobs to the cancer of corruption.  Government ramping up the fight against corruption is key to ensuring that scarce public resources are used as intended to uplift the poor and build a more prosperous and inclusive society.

FATF required the Reserve Bank, Financial Intelligence Centre, South African Revenue Service and the broader banking and financial sector boost their capacity to monitor money laundering.  This is key to tackling often very sophisticated criminals and syndicates, particularly those involved in corruption, terrorism financing, drugs and weapons trafficking.  Banks are now required to ask account holders to explain unusual financial transactions. 

Cosatu was particularly concerned when we were grey listed as this was a body blow against our collective efforts to attract the domestic and international investment necessary to take our struggling economy from the 1% annual growth rate it has been stuck at to the 3% level needed to create jobs and reduce our dangerously high unemployment rate of 42.9%.

Many investors, and especially pension funds, will not invest in countries that are grey listed.  Our removal sends a positive signal to these investors that South Africa is a place to invest in.  In an increasingly globalised economy, we cannot afford any unnecessary obstacles to attracting investment.

Investment is a necessity if we are to create growth, decent jobs and give hope to our people.

Whilst this is without a doubt a welcome moment for South Africa, we must be careful not to rest on our laurels, become complacent and repeat the mistakes of the recent past.

In less than a year, South Africa will be expected to report to FATF on further progress on these findings, in particular on our successes in holding those who steal from the state and the poor fully accountable.

This means that the Medium-Term Budget Policy Statement due to be tabled at Parliament on 12 November and the 2026/27 Budget must ensure that law enforcement, the judiciary, SARS and other relevant organs of state have the finances, skilled personnel, infrastructure and related resources necessary to ramp up the war against crime and corruption, and most critically to score decisive victories.

Austerity budget cuts, reducing headcounts or imposing below inflation increases upon key frontline public services is dangerous and enables criminals to evade justice.  It depresses a society in desperate need to see criminals sent to prison.

Particular attention must be given to capacitating the South African Police Service, the National Prosecuting Authority and the judiciary.  SA Revenue Service (Sars) has shown that public services can be rebuilt and deliver upon their mandates.  Similar interventions to fully empower the SA Police Service, National Prosecuting Authority and courts are long overdue.

The Department of Trade, Industry and Competition needs to expedite the promulgation of and regulations for the remaining provisions of the Companies Amendment Act requiring the full disclosure of ownership of companies, including those established through trusts.

It is critical that the institutions of governance are constantly invested in and strengthened.  That legislation is tightened requiring maximum transparency and accountability to the public and Parliament.

The era of state capture has shown the importance of building institutional capacity and to continuously reinforce them to withstand, including from internal sabotage and corruption.  We cannot simply depend upon feelings, favours or assumptions.

2025 will be remembered as a year when South Africa’s still maturing democracy was tested by a variety of internal and external attacks, the weaponising of fake news and attempts to roll back the nation’s transformation journey.  We are still recovering from a variety of socio-economic setbacks in addition to dealing with corruption and state capture.

Yet we are seeing one by one, major victories as we collectively work to cleanse the state and renew the nation.  The rebuilding of Sars, Eskom, Transnet, South African Airways and many others are a sign that whilst we have far to go, we are turning the corner.  Cosatu will continue to support these efforts.

Cosatu President Zingiswa Losi

*** The views expressed here do not necessarily represent those of Independent Media or IOL.

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