BY: Saneliso Mlambo
The Political Party Funding Act (PPFA) of South Africa, enacted in 2021, was designed to enhance transparency and accountability in the financing of political parties. It introduced measures such as capping individual donations at R15 million annually and mandating the disclosure of donations exceeding R100,000. However, recent legal challenges and proposed amendments have brought the Act under intense legal and constitutional scrutiny.
In February 2025, the civil society organization My Vote Counts initiated a legal challenge in the Western Cape High Court, arguing that the PPFA’s current provisions are insufficient in promoting true transparency and accountability.
The Act requires only donations above R100,000 to be disclosed, potentially allowing significant sums to remain undisclosed if divided into smaller amounts.
The lack of provisions addressing cumulative donations from related entities may enable donors to bypass disclosure requirements.
While opponents of the challenge argue that full disclosure could infringe on donor privacy and deter contributions, My Vote Counts contends that transparency is paramount to prevent undue influence and corruption.
The Democratic Alliance (DA) and other political entities opposing the application maintain that the Act strikes a balance between transparency and the protection of donor rights. They assert that the existing thresholds are adequate and caution that overregulation might deter legitimate funding sources.
In May 2024, the Electoral Matters Amendment Act (EMAA) was enacted, introducing significant changes to the PPFA. Notably, it granted the President the authority to set upper limits on donations and disclosure thresholds, a move that has been met with criticism. Critics argue that this centralization of power could lead to arbitrary decisions, undermining the Act’s original intent. The lack of clear guidelines or criteria for setting these limits further exacerbates concerns about potential misuse and the erosion of checks and balances in political financing.
These developments occur against a backdrop of shifting political dynamics. The African National Congress (ANC) lost its parliamentary majority in May 2024, leading to the formation of a coalition government. This political realignment has intensified debates over the PPFA, as transparency in party funding becomes increasingly critical in a more fragmented political environment.
The ongoing legal and constitutional scrutiny of the PPFA underscores the complex interplay between ensuring transparency in political funding and safeguarding individual rights. As South Africa navigates these challenges, the outcomes of these debates and legal proceedings will significantly influence the country’s commitment to democratic principles and the integrity of its political processes.