Hi there 🙋🏾♀️
Happy 2025! As promised, we’re back to give you simple but interesting news summaries. It looks like 2025 will be a great year for the economy, which is amazing news. While we were partying over new year’s eve, President Cyril Ramaphosa signed two significant acts into law that will have positive (we hope) rewards for Mzansi. In politics, the People’s Bae, Mbuyiseni Ndlozi, has hung up his red beret after months of speculation, and the ANC is turning 113, but not without drama, in true ANC form.
Earlier this week, the Golden Globes kicked off awards season and we’re impressed at how diverse they were. Notably missing from the globes was Blake Lively, who is suing her co-star Justin Baldoni for eh… less than appropriate behaviour. Meanwhile, over in North America, Donald Trump prepares to take office while our second-most favourite Canadian Justin, Prime Minister Trudeau, resigns. Meanwhile, sworn enemy of blue light brigades, DA leader John Steenhuisen, has been caught with blue lights on his official vehicles. Smells like hypocrisy to us!
Let’s dive into your first weekly update of the year, brought to you by Verashni Pillay and the explain.co.za team. 😄
Format:
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▁ ▂ ▄ ▅ ▆ ▇ █ 1. OUR TAKE: South Africa’s 2025 economic outlook: cautious optimism
2025 might finally be the year South Africa turns an economic corner. After years of sluggish growth, load shedding, and general despair, key improvements are driving cautious optimism.
Energy stability leads the charge
Eskom’s dramatic turnaround—nearly 300 days without load shedding—has transformed the economic landscape. This isn’t a flash in the pan either, with dark days still to come. Improved monitoring and private sector contributions to renewable energy are set to permanently stabilise the grid by March 2025. Who would have believed we could defeat load shedding! This shift is already boosting business confidence and could soon filter into stronger earnings for businesses and GDP growth, according to experts.
Fixing infrastructure bottlenecks
After thoroughly messing up our ports, Transnet has entered into 25-year agreements with private operators to overhaul operations at Cape Town and Durban ports. Finally! The state-owned company recently reported a R2.2 billion half-year loss. It’s horrendous mismanagement has cost our economy enormously over the years. These latest reforms aim to ease the logistical nightmares that have stifled exports and hampered SA’s growth.
A break for consumers
Inflation, which peaked at 5.6% in early 2024, has steadily dropped to below 3%, providing relief for households. This paved the way for two interest rate cuts last year, with more expected in early 2025.
Challenges remain, but things are finally looking up
Of course, not everything’s rosy. Eskom’s proposed tariff hikes and crumbling water infrastructure could slow progress. Experts are calling for strong leadership, particularly within the government of national unity, to keep the momentum going. Still, after a decade of stagnation, 2025’s cautious optimism feels like a breath of fresh air. Here’s to hoping this new year is one for the books! 💪🏾
▁ ▂ ▄ ▅ ▆ ▇ █ 2. BIG STORY: Parliament loses its bae: Mbuyiseni Ndlozi steps away from EFF
Dr Mbuyiseni Ndlozi, one of the Economic Freedom Fighters’ (EFF) most prominent leaders, has officially resigned from Parliament. The announcement, confirmed today, comes at a precarious time for the party, which has seen high-profile defections and declining electoral performance. Ndlozi and fellow MP Yazini Tetyana submitted their resignations to EFF Secretary-General Marshall Dlamini, although both remain ordinary members of the party—for now.
The MK Party has stolen the EFF’s thunder since its strong showing in the 2024 elections, winning 14% of the vote. Meanwhile, the 11-year-old EFF has struggled to grow beyond 10%.
Speculation is rife that Ndlozi and Tetyana may follow in the footsteps of Floyd Shivambu and Advocate Dali Mpofu, who defected from the EFF to Jacob Zuma’s party last year.
Ndlozi, often referred to as the “People’s Bae” for his charisma and sharp rhetoric, has been a defining figure in the EFF since its inception in 2013. His eloquence and critiques of government policy made him a household name, but his absence at the EFF’s December elective conference raised questions about his future. Malema dismissed concerns at the time, calling speculation about Ndlozi’s loyalty “gossip from drunkards.”
For his part, Ndlozi has maintained radio silence, even as Malema denied any discord.
There has been speculation that Malema’s iron grip on the party and unwillingness to make way for new leaders has led to dissatisfaction among his former comrades. Shivambu has accused him of “betraying the revolution”. Malema’s leadership style—seen by critics as authoritarian—appears to have alienated key figures.
As the MK Party gains momentum, capitalising on voter disillusionment with traditional opposition parties, the EFF faces an identity crisis. Can Malema retain his grip on the party amid growing dissatisfaction? Or is the red beret movement nearing its political ceiling?
▁ ▂ ▄ ▅ ▆ ▇ █ BRIEFS
3. The Golden Globes: A triumph for diversity
The 82nd Annual Golden Globes kicked off the 2025 awards season with a celebration of diversity, marking a historic shift from the awards’ scandal-ridden past. The glitzy event at the Beverly Hilton in Los Angeles on Sunday saw the who’s who of Hollywood turn out.
Comedian Nikki Glaser made history as the first solo female host, welcoming her powerful guests while joking they still weren’t powerful enough to tell the US who to vote for. 😅
Back to the diversity wins, the Spanish-language musical Emilia Perez, about a drug lord transitioning to life as a woman, was the night’s biggest winner. It scooped four awards, including Best Film in the Musical or Comedy category, triumphing over Wicked and Anora. Zoe Saldana took home Best Supporting Actress for her performance in the film, further cementing its dominance.
Demi Moore stunned audiences with her win for Best Actress – Musical or Comedy for The Substance. At 62, she noted this was her first individual acting award in 45 years, saying, “I’m just so humbled and so grateful.” Brazilian actress Fernanda Torres made history by winning Best Actress – Drama for I’m Still Here, a performance that edged out heavyweights like Nicole Kidman and Angelina Jolie.
The television categories also saw international acclaim. The Japanese-language drama Shōgun won Best TV Series – Drama and acting awards for its cast, including Hiroyuki Sanada and Anna Sawai. Its success reflects growing recognition for stories outside the traditional Hollywood lens.
The Globes’ return to glory comes after a 2021 exposé revealed the Hollywood Foreign Press Association, which runs the awards, had no Black members in its voting body, sparking outrage and a boycott. Since then, significant reforms have been made to diversify its membership. The industry has learned that representation matters—not just socially but financially too, with research showing that diverse films earn higher box office returns.
This year’s Golden Globes celebrated a wider range of stories and talent, proving the industry is finally taking steps toward inclusivity and equity—one award at a time. 🙌🏾
4. ANC’s 113th anniversary: a bumpy road to celebrations
The African National Congress (ANC) is celebrating its 113th anniversary this week in the Western Cape, but the party’s journey to this milestone has been anything but smooth.
The official celebration will be held on Saturday at the modest Khayelitsha Stadium, with a capacity of just 22,000 – a stark contrast to the massive stadiums it’s filled in the party’s prime. ANC Secretary-General Fikile Mbalula claims the choice of a smaller venue is intentional, aiming to reconnect with the party’s grassroots in the province. “This is the constituency that voted for the ANC religiously,” he said, acknowledging recent drops in voter turnout. ANC Chairperson Gwede Mantashe echoed the sentiment, describing the venue as a chance to interact directly with the people.
But the lead-up to the event hasn’t been without drama. Deputy President Paul Mashatile accused the Western Cape’s DA-led government of neglecting communities like Khayelitsha and Gugulethu, sparking a heated response from Helen Zille, who called the remarks “bullsh*t.”
Then, on Tuesday afternoon, Mashatile’s bodyguards were accused of manhandling a man who wanted to enter his home while the deputy president was visiting the man’s mother, who runs a community soup kitchen. Mashatile has since apologised, but it is worrying how he’s never too far behind whenever we hear of VIP protection members abusing their power.
Adding to the chaos, former ANC President Jacob Zuma has demanded reinstatement to the party after being expelled last year for founding the rival MK Party, which ate away at the ANC’s parliamentary and KwaZulu Natal provincial majority in last year’s election. His lawyers have given the ANC until 31 January to respond, but Mbalula dismissed Zuma’s demands as “mischievous and ridiculous.”
The smaller, subdued celebrations reflect the ANC’s struggles to retain its political dominance amid declining support and internal rifts. As Africa’s oldest liberation movement reflects on its legacy, it faces a crucial question: can it pivot from self-serving politics to serving the people? The answer may determine whether it reaches another century of existence.
5. In case you missed it: The Blake Lively drama that has everyone talking
Remember late last year when everyone seemed very irritated with actress Blake Lively, around the time of the release of her movie It Ends With Us? Critics accused her of trivialising the movie’s themes of domestic violence and punting her brands and products, including, inappropriately, alcohol. An old interview surfaced showing her being rude to a journalist.
It turns out that the seeming public swell of dissatisfaction may have been orchestrated by her director and co-star, Justin Baldoni, with his PR team.
Late last year, Blake Lively filed a lawsuit against Baldoni, alleging sexual harassment during the production of It Ends With Us, listing examples of unwanted kissing scenes, inappropriate sexual comments, coming into her trailer uninvited when she was unclothed, and contributing to a hostile work environment. She accused Baldoni of orchestrating a smear campaign to tarnish her reputation after she raised concerns about his behaviour.
Baldoni has firmly denied these allegations, providing texts where he was invited into Lively’s trailer while she was breastfeeding to run lines, among other refutations. Baldoni also filed a $250 million lawsuit against The New York Times, who broke the story.
There had been some muttering about the conflict between the stars after the film, with rumours Lively had tried to wrestle creative control (which Baldoni now says was the case). But nothing as explosive as what’s come to light. Lively’s lawsuit includes detailed subpoenaed texts, like the PR professionals saying Baldoni wants to feel like Lively “can be buried” and gloating over negative coverage they appeared to have seeded into social media. Baldoni’s team haven’t denied the veracity of the texts but said they were taken out of context.
Lively seems to have come by the texts thanks to a fallout within an involved PR company (the owner has accused the employee responsible of going rogue and found the texts after taking back the company phone. She has filed a separate lawsuit against Baldoni and others.)
The takeaway for now? It seems all too easy to destroy a woman’s reputation, with a public eager to take a successful woman down.
Lively genuinely has been quite annoying through the years, including her (slavery) plantation-themed wedding to husband Ryan Reynolds (which they later apologised for.
But both things can be true: she can be tone-deaf AND is a victim in this instance if the allegations are true. It’s a reminder that a woman doesn’t need to be perfect to have her rights respected.
6. John Steenhuisen’s blue-light blunder: Can’t he switch them off?
For years, the Democratic Alliance (DA) has criticised the “blue-light brigade”—those ministerial convoys that zip through traffic with flashing lights and sirens, leaving ordinary South Africans in their wake. But DA leader and Minister of Agriculture John Steenhuisen appears to have embraced the very privilege his party has long condemned.
It’s pretty spicy that a former DA politician ended up exposing John. Athol Trollip, now with ActionSA, asked Steenhuisen about his official vehicles.
In a written parliamentary response, Steenhuisen said: “Yes, all the executive vehicles are fitted with blue lights and the appropriate signalling systems”. The fleet includes three luxury SUVs, all equipped with blue lights, valued at a combined R2.8 million. 😶
In response to questions from The Daily Maverick, Steenhuisen’s spokesperson, Charity McCord, stated that “the vehicles were inherited from the previous administration, and the acquisition of new vehicles has been strictly blocked by the DA ministers themselves.”
Technically, the blue lights can be disabled, allowing the vehicles to function as regular cars without the ostentation. In 2010, the DA-run Western Cape began an initiative to remove the sirens and lights from provincial vehicles at a cost of R500 each. However, it seems Steenhuisen may have missed this memo, as McCord did not directly address whether Steenhuisen or his drivers have opted to deactivate the lights in practice.
Helen Zille, DA federal chair, has been vocal about the party’s blue-light ban. In July, following the DA joining the national government for the first time, she told 702 listeners, “I certainly hope they [DA ministers] won’t take the full benefits of the Ministerial Handbook… I hope they won’t run around in blue lights brigades, because that has been our policy for a very long time.”
As South Africans tighten their belts amid economic pressures, Steenhuisen’s blue-light SUVs stand as a stark reminder that political optics matter. Perhaps it’s time for a rethink—or a more modest ride.
7. The fall of Trudeau vs the rise of Trump and Musk: How populism is challenging liberal norms worldwide
Populism is shaking up liberal democracies around the globe, with key players like Canada’s Justin Trudeau stepping down, Donald Trump making a comeback, and Elon Musk throwing his weight around in UK politics. The upshot? Liberal norms are under serious threat.
Trudeau bows out
Justin Trudeau, once the poster child for progressive politics, announced his resignation this week after nearly a decade in power. Despite early successes like cutting child poverty and legalising marijuana, he leaves amid declining approval ratings and internal party chaos. Trudeau cited these internal battles as the reason for stepping aside. His departure paves the way for populist Conservative leader Pierre Poilievre, who’s gained traction with rhetoric promising to “take back control” of Canada’s borders and economy. Sound familiar? It’s Trump 2.0, Canada-style.
Musk stirs the UK political pot
Across the pond, UK Prime Minister Keir Starmer has been fielding attacks from Trump-allied billionaire businessman Elon Musk, who is blaming him for historical grooming gang scandals—claims widely debunked but damaging nonetheless. Musk’s tactics echo the populist playbook: amplify divisive rhetoric, muddy the waters with misinformation, and watch the chaos unfold. His vocal support for far-right figures and calls for drastic measures like dissolving Parliament in the UK have only deepened the divide in British politics.
Trump’s resurgence
Meanwhile, in the US, Donald Trump’s political comeback is overshadowing his legal troubles. As he prepares for another term in office, several charges against him have been dropped—not because he’s innocent, but because of his status as an incoming president. Critics argue this undermines the principle that no one is above the law. Yet Trump’s brand of populism remains strong, powered by his ability to rally a disillusioned base.
Lessons for South Africa
What does this mean for us? The rise of populist leaders globally highlights the fragility of democracy when institutions fail to deliver real change. South Africa’s own flirtation with populism, seen in the MK Party’s growing support, serves as a reminder: if leaders don’t address people’s frustrations, populists will.
8. New year, new laws: tax and equity laws take effect
South Africa kicked off 2025 with two major pieces of legislation: the Global Minimum Tax Act and the Employment Equity Amendment Act (EEA). These laws aim to tackle multinational tax avoidance and promote workplace diversity. Here’s what they mean for you.
The Global Minimum Tax Act, effective from 1 January, enforces a 15% minimum effective tax rate on multinational enterprises (MNEs) earning over €750 million (roughly R15.3 billion) annually. It’s part of a global initiative to prevent tax avoidance by corporations moving profits to low-tax havens. Finance Minister Enoch Godongwana has championed the act, predicting it will generate an extra R8 billion in corporate tax revenue by 2026.
Key to the law is the domestic minimum top-up tax. If an MNE pays less than 15% tax in another jurisdiction, SARS can now collect the difference. While this levels the playing field, some critics argue the revenue threshold is too high, exempting many multinationals operating in South Africa.
The Employment Equity Amendment Act also took effect on New Year’s Day, targeting inequality in the workplace. Smaller businesses (with fewer than 50 employees) are exempt from submitting equity plans, but larger companies must meet sector-specific diversity targets to qualify for government contracts. No compliance certificate? No government business.
These laws reflect South Africa’s commitment to aligning with international standards while addressing local challenges. But questions remain about their implementation. Critics of the EEA worry it could place undue strain on businesses, while some argue the tax law won’t effectively tackle corporate loopholes.
Still, with these reforms, the government signals it’s serious about equity and accountability in 2025. As implementation unfolds, their impact on South Africa’s economy will become clearer.
That’s it from us at The Wrap, an award-winning product of explain.co.za – simple news summaries for busy people. 💁🏾♀
The Wrap is sponsored by explain’s agency division. We specialise in content marketing for purpose-driven organisations, often with a pan-African reach. Mail info@explain.co.za for a quote.
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