South African President signs new law to regulate political party donations

South African President Cyril Ramaphosa has signed into effect a new law which will regulate public and private funding of political parties, according to a statement.

The Political Party Funding Act, which will come into operation on April 1, 2021, provides for funding of parties by government but prohibits personal donations to political party members, the presidency said in a statement on Friday.

Described all round as a historic development for transparency and accountability in South Africa, the Act establishes funds to provide political parties represented in Parliament and legislatures with funding to undertake their work.

It also requires that donations be disclosed by parties and donors to the Independent Electoral Commission (IEC).

The Act prohibits donations to parties by foreign governments or agencies, foreign persons or entities, organs of state or state-owned enterprises, it said.

Parties may however receive funding from foreign entities for training, skills development or policy development.

No member of a political party may receive a donation other than for political party purposes.

“The implementation of the Political Party Funding Act will have far-reaching consequences for good governance and ethical political activity.

“It will strengthen the confidence of citizens in the democratic political process and enable them to assert their right to information,” the Presidency said in a statement. Amongst other things, the Act seeks to ensure that all represented political parties receive sufficient funds for their work in a fair and equitable manner.

Ramaphosa called on all parties to work together and with the Independent Electoral Commission of South Africa to ensure the effective implementation of this law.