Political Finance Database

South Africa

South Africa

Bans and limits on private income
Public funding
Regulations of spending
Reporting, oversight and sanctions
Question Value
1. Is there a ban on donations from foreign interests to political parties?
Code
Yes
Comment

The Political Party Funding Act prohibits donations to parties by foreign governments or agencies, foreign persons or entities, organs of the state or state owned enterprises.  

Source

"(1) Political parties may not accept a donation from any of the following sources: (a) Foreign governments or foreign government agencies; (b) subject to subsection (4), foreign persons or entities; (...)

(4) Subject to subsection (5), nothing in subsection (1)(b) prevents a political party from accepting donations from foreign entities for the purpose of— (a) training or skills development of a member of a political party; or (b) policy development by a political party."

Article 8, Political Party Funding Act (PPFA), 2018.

2. Is there a ban on donations from foreign interests to candidates?
Code
Not applicable
Source

 

10. (1) No person or entity may deliver a donation to a member of a political party other than for party political purposes. (2) A member of a political party may only receive a donation contemplated in subsection (1) on behalf of the party. (3) No person may circumvent subsections (1) or (2), or any of the provisions of this Chapter.

The Political Party Funding Act 2018 

Independent candidates are currently exempt from the Political Party Funding Act and its regulations (https://www.elections.org.za/pw/FAQ/Political-Party-Funding)

3. Is there a ban on corporate donations to political parties?
Code
No
Comment

The law establishes a Multiparty Democracy Fund (MPDF) where corporate bodies and other private sector actors are encouraged to submit their donations to, from where the funds can be distributed to represented political parties. The fund is centrally managed by the EMB.

The law further allows political parties to access private funding provided that the amounts accessed are within permissible limits and are duly disclosed.

Source

3. (1) AMulti-Party Democracy Fund is hereby established for the purpose of funding represented political parties from private sources. (2) The Commission must open an account for this Fund with any bank registered as a bank in terms of the Banks Act, 1990 (Act No. 94 of 1990). (3) Subject to subsection (4), the Commission must credit the account contemplated in subsection (2) with— (a) money received from any private source whether from inside or outside the Republic; (b) any money recovered in terms of section 17; and (c) interest earned on money deposited or invested in terms of section 4(1). (4) The Commission may not accept money received in terms of subsection (3)(a) from any— (a) organ of state; (b) state owned enterprise; or (c) foreign government or foreign government agency. (5) Any contributor contemplated in subsection (3)(a) may request the Commission not to disclose their identity or the amount of the contribution. (6) The Commission may charge a fee to defray the cost of administering and managing this Fund, which may not exceed five per cent of the money credited to this fund under subsection (3) during the previous financial year

The Political Party Funding Act 2018 

4. Is there a ban on corporate donations to candidates?
Code
Yes
Source

10. (1) No person or entity may deliver a donation to a member of a political party other than for party political purposes. (2) A member of a political party may only receive a donation contemplated in subsection (1) on behalf of the party. (3) No person may circumvent subsections (1) or (2), or any of the provisions of this Chapter.

The Political Party Funding Act 2018 

5. Is there a ban on donations from Trade Unions to political parties?
Code
No
Comment

The law does not provide any ban on donation from trade unions.

6. Is there a ban on donations from Trade Unions to candidates?
Code
Not applicable
Source

10. (1) No person or entity may deliver a donation to a member of a political party other than for party political purposes. (2) A member of a political party may only receive a donation contemplated in subsection (1) on behalf of the party. (3) No person may circumvent subsections (1) or (2), or any of the provisions of this Chapter.

The Political Party Funding Act 2018 

Independent candidates are currently exempt from the Political Party Funding Act and its regulations (https://www.elections.org.za/pw/FAQ/Political-Party-Funding)

7. Is there a ban on anonymous donations to political parties?
Code
Yes, above certain threshold
Source

Disclosure of donations to political party 9. (1) A political party must disclose to the Commission all donations received— (a) above the prescribed threshold; and (b) in the prescribed form and manner. (2) A juristic person or entity that makes a donation above the threshold prescribed in terms of subsection (1)(a) must disclose that donation to the Commission in the prescribed form and manner. (3) The Commission must publish the donations disclosed to it in terms of subsections (1) and (2)— (a) on a quarterly basis; and (b) in the prescribed form and manner. (4) Nothing in this section detracts from rights given effect to by the Promotion of Access to Information Act, 2000 (Act No. 2 of 2000).

Political Party Funding Act, 2018

8. Is there a ban on anonymous donations to candidates?
Code
Not applicable
Source

10. (1) No person or entity may deliver a donation to a member of a political party other than for party political purposes. (2) A member of a political party may only receive a donation contemplated in subsection (1) on behalf of the party. (3) No person may circumvent subsections (1) or (2), or any of the provisions of this Chapter.

The Political Party Funding Act 2018 

Independent candidates are currently exempt from the Political Party Funding Act and its regulations (https://www.elections.org.za/pw/FAQ/Political-Party-Funding)

9. Is there a ban on donations from corporations with government contracts to political parties?
Code
No
Comment

The law is silent on donations from corporations with government contracts.

10. Is there a ban on donations from corporations with government contracts to candidates?
Code
Not applicable
Source

10. (1) No person or entity may deliver a donation to a member of a political party other than for party political purposes. (2) A member of a political party may only receive a donation contemplated in subsection (1) on behalf of the party. (3) No person may circumvent subsections (1) or (2), or any of the provisions of this Chapter.

The Political Party Funding Act 2018 

Independent candidates are currently exempt from the Political Party Funding Act and its regulations (https://www.elections.org.za/pw/FAQ/Political-Party-Funding)

11. Is there a ban on donations from corporations with partial government ownership to political parties?
Code
Yes
Comment

The Political Parties Funding Acts prohibits donations to parties by organs of the state or state owned enterprises.

Source

"(1) Political parties may not accept a donation from any of the following sources: (...) (d) state-owned enterprises."

Article 8, Political Party Funding Act (PPFA), 2018.

12. Is there a ban on donations from corporations with partial government ownership to candidates?
Code
Not applicable
Source

10. (1) No person or entity may deliver a donation to a member of a political party other than for party political purposes. (2) A member of a political party may only receive a donation contemplated in subsection (1) on behalf of the party. (3) No person may circumvent subsections (1) or (2), or any of the provisions of this Chapter.

The Political Party Funding Act 2018 

Independent candidates are currently exempt from the Political Party Funding Act and its regulations (https://www.elections.org.za/pw/FAQ/Political-Party-Funding)

13. Is there a ban on the use of state resources in favour or against a political party or candidate?
Code
No
Comment

While olitical partis are banned from accepting any donation from organs of the state. However, there is no specific mention on the use of state resources such as government premises, time of government personnel for political activitie, etc.

Source

"(1) Political parties may not accept a donation from any of the following sources: (...) (c) organs of state."

Article 8, Political Party Funding Act (PPFA), 2018.

14. Is there a limit on the amount a donor can contribute to a political party during a non-election specific period?
Code
Yes, for both natural and legal persons
Comment

Political parties are not permitted to accept donations above R15 million from a single donor.

Source

"(2) A political party may not accept a donation from a person or entity in excess of the prescribed amount within a financial year.

(5) The total donations contemplated in subsection (4) is limited to a prescribed amount within a financial year."

Upper limit of donations

7. The amount contemplated in section 8(2) of the Act is fifteen million rand within a financial year.

Article 8, Political Party Funding Act (PPFA), 2018.

15. If there is a limit on the amount a donor can contribute to a political party during a non-election specific period, what is the limit?
Code
Fifteen million rand per year
Source

"Upper limit of donations

7. The amount contemplated in section 8(2) of the Act is fifteen million rand within a financial year.

Limit on donations from foreign entity 

8. The amount contemplated in section 8(5) of the Act is five million rand within a financial year."

Clauses 7 & 8 of Schedule 2 of the Political Party Funding Act (PPFA), 2018.

16. Is there a limit on the amount a donor can contribute to a political party during an election?
Code
No, but limits for regular periods apply to campaign periods
Source

"(2) A political party may not accept a donation from a person or entity in excess of the prescribed amount within a financial year.

(5) The total donations contemplated in subsection (4) is limited to a prescribed amount within a financial year."

Article 8, Political Party Funding Act (PPFA), 2018.

17. If there is a limit on the amount a donor can contribute to a political party during an election, what is the limit?
Code
Fifteen million rand per year (USD 830,000).
Source

"Upper limit of donations 7. The amount contemplated in section 8(2) of the Act is fifteen million rand within a financial year.

Limit on donations from foreign entity 8. The amount contemplated in section 8(5) of the Act is five million rand within a financial year."

Clauses 7 & 8 of Schedule 2 of the Political Party Funding Act (PPFA), 2018.

18. Is there a limit on the amount a donor can contribute to a candidate?
Code
Not applicable
Comment

Donations can only be received on behalf of party.

Source

10. (1) No person or entity may deliver a donation to a member of a political party other than for party political purposes. (2) A member of a political party may only receive a donation contemplated in subsection (1) on behalf of the party. (3) No person may circumvent subsections (1) or (2), or any of the provisions of this Chapter.

The Political Party Funding Act 2018 

Independent candidates are currently exempt from the Political Party Funding Act and its regulations (https://www.elections.org.za/pw/FAQ/Political-Party-Funding)

19. If there is a limit on the amount a donor can contribute to a candidate, what is the limit?
Code
Not applicable
20. Is there a limit on the amount a candidate can contribute to their own election campaign?
Code
Not applicable
Source

10. (1) No person or entity may deliver a donation to a member of a political party other than for party political purposes. (2) A member of a political party may only receive a donation contemplated in subsection (1) on behalf of the party. (3) No person may circumvent subsections (1) or (2), or any of the provisions of this Chapter.

The Political Party Funding Act 2018 

Independent candidates are currently exempt from the Political Party Funding Act and its regulations (https://www.elections.org.za/pw/FAQ/Political-Party-Funding)

21. Is there a limit on in-kind donations to political parties?
Code
Yes
Comment

Regular limit applies. In-kind donations are included in the definition of donation.

Source

"donation in kind— (a) includes— (i) any money lent to the political party other than on commercial terms; (ii) any money paid on behalf of the political party for any expenses incurred directly or indirectly by that political party; (iii) the provision of assets, services or facilities for the use or benefit of a political party other than on commercial terms; or (iv) a sponsorship provided to the political party; but (b) does not include services rendered personally by a volunteer;"

Article 1, Political Party Funding Act (PPFA), 2018.

22. Is there a limit on in-kind donations to candidates?
Code
No
Comment

Donations can only be received on behalf of party.

Source

10. (1) No person or entity may deliver a donation to a member of a political party other than for party political purposes. (2) A member of a political party may only receive a donation contemplated in subsection (1) on behalf of the party. (3) No person may circumvent subsections (1) or (2), or any of the provisions of this Chapter.

The Political Party Funding Act 2018 

Independent candidates are currently exempt from the Political Party Funding Act and its regulations (https://www.elections.org.za/pw/FAQ/Political-Party-Funding)

23. Is there a ban on political parties engaging in commercial activities?
Code
Yes
Source

Article 7

(2) The money paid in terms of section 6(7) may not be used by that represented political party—

..(c) directly or indirectly for the purpose of establishing any business, or acquiring or maintaining any right of financial interest whatsoever in any business, or in any immovable property, except where the right or interest in the immovable property is to be used by the party solely for party political purposes;

Political Party Funding Act, 2018

24. Is there a ban on political parties taking loans in relation to election campaigns?
Code
No
Comment

The law does not make any explicit mention of loans. However, in the definition of ´in-kind´ donation, it is mentioned that if loan is not provided on commercial terms, it can be categorized as in-kind donation. It can be inferred that commercial loans are permitted. 

Source

"donation in kind— (a) includes— (i) any money lent to the political party other than on commercial terms; (ii) any money paid on behalf of the political party for any expenses incurred directly or indirectly by that political party; (iii) the provision of assets, services or facilities for the use or benefit of a political party other than on commercial terms; or (iv) a sponsorship provided to the political party; but (b) does not include services rendered personally by a volunteer;"

Article 1, Political Party Funding Act (PPFA), 2018.

25. Is there a ban on candidates taking loans in relation to election campaigns?
Code
Not applicable
Source

10. (1) No person or entity may deliver a donation to a member of a political party other than for party political purposes. (2) A member of a political party may only receive a donation contemplated in subsection (1) on behalf of the party. (3) No person may circumvent subsections (1) or (2), or any of the provisions of this Chapter.

The Political Party Funding Act 2018 

Independent candidates are currently exempt from the Political Party Funding Act and its regulations (https://www.elections.org.za/pw/FAQ/Political-Party-Funding)

26. Is there a ban on donors to political parties/candidates participating in public tender/procurement processes?
Code
No
Comment

The law is silent on this regard.

27. Are there provisions requiring donations to go through the banking system?
Code
Yes
Source

12. (1) A political party must—

(a) deposit all donations received by that political party, membership fees and levies imposed by the political party on its representatives into an account with a bank registered as a bank in terms of the Banks Act, 1990 (Act No. 94 of 1990), in that political party’s name;

(b) keep a separate account with a bank registered as a bank in terms of the Banks Act, 1990 (Act No. 94 of 1990), into which all money allocated to it from the Funds must be deposited;

Article 12, Political Party Funding Act (PPFA), 2018.

Question Value
28. Are there provisions for direct public funding to political parties?
Code
Yes, regularly
Comment

The Political Party Funding Act (6 of 2018) established two public funding streams for political parties managed by the Electoral Commission, namely: the Represented Political Party Fund, and the Multi-Party Democracy Fund. The former draws from national budged while the latter draws from non-state contributions.

Source

Establishment of Represented Political Party Fund

2. (1) A Represented Political Party Fund is hereby established for the purpose of enhancing multi-party democracy by providing for the funding of represented political parties.

Article 2, Political Party Funding Act, 2018.

Allocation and payment of money to represented political party

6. (1) The Commission may allocate money from the Funds to a represented political party only.

Article 6, Political Party Funding Act (PPFA), 2018.

29. What are the eligibility criteria for political parties to receive public funding?
Code
Representation in elected body
Source

"(1) The Commission may allocate money from the Funds to a represented political party only."

Article 6, Political Party Funding Act (PPFA), 2018.

30. What is the allocation calculation for political parties to receive public funding?
Code
Equal Proportional to seats received
Source

"(2) Any allocation from the Funds must be made to a represented political party in accordance with the prescribed formula. (3) The formula prescribed in subsection (2) must be based on— (a) in part, an equitable allocation taking into account a weighted scale of representation for an allocation to a represented political party; and (b) in part, a proportional allocation taking into account the relationship that the number of a represented political party’s representatives in both the National Assembly and the provincial legislatures bears to the sum of the seats in these legislatures. (4) The Commission must apply the formula prescribed in subsection (2) taking into account the number of representatives of each represented political party and the number of seats in the respective legislatures based on the results of the election."

Article 6, Political Party Funding Act (PPFA), 2018.

31. What are the provisions on 'ear marking' direct public funding to political parties (how it should be used)?
Code
  • Ongoing party activities
  • Intra-party institution
  • Research and policy initiatives
Source

"(1) Subject to subsection (2), the money paid in terms of section 6(7) may be used by that represented political party for any purpose compatible with its functioning as a political party in a modern democracy including— (a) the development of the political will of the people; (b) bringing the political party’s influence to bear on the shaping of public opinion; (c) inspiring and furthering political education; (d) promoting active participation by individual citizens in political life; (e) exercising an influence on political trends; (f) ensuring continuous and vital links between the people and organs of state; and (g) complying with the provisions of this Act."

Article 7, Political Party Funding Act (PPFA), 2018.

32. Are there provisions for free or subsidized access to media for political parties?
Code
Yes
Source

"Airtime in respect of Party Election Broadcasts (PEBs) shall be allocated by the Authority to the registered political parties contesting the national and provincial elections on the basis of the respective formulae set out in Annexure A of these Regulations."

Paragraph 5, Regulations on Party Election Broadcasts, Political Advertisements, the Equitable Treatment of Political Parties by Broadcasting Licensees and Related Matters, 2014.

33. What criteria determine allocation for free or subsidized access to media for political parties?
Code
  • Equal
  • Number of candidates
  • Share of seats
Source

Annexure 5, Regulations on Party Election Broadcasts, Political Advertisements, the Equitable Treatment of Political Parties by Broadcasting Licensees and Related Matters, 2014.

34. Are there provisions for free or subsidized access to media for candidates?
Code
Not applicable
35. Are there provisions for any other form of indirect public funding?
Code
No
36. Is the provision of direct public funding to political parties tied to gender equality among candidates?
Code
No
37. Are there provisions for other financial advantages to encourage gender equality in political parties?
Code
No
Question Value
38. Is there a ban on vote buying?
Code
No
39. Are there limits on the amount a political party can spend?
Code
No
40. If there are limits on the amount a political party can spend, what is the limit?
Code
Not applicable
41. Are there limits on the amount a candidate can spend?
Code
Not applicable
42. If there are limits on the amount a candidate can spend, what is the limit?
Code
Not applicable
43. Are there limits on the amount that third parties can spend on election campaign activities?
Code
No
44. Are there limits on traditional media advertising spending in relation to election campaigns?
Code
No
45. Are there limits on online media advertising spending in relation to election campaigns?
Code
No
46. Do any other restrictions on online media advertisement (beyond limits) exist?
Code
No
Question Value
47. Do political parties have to report regularly on their finances?
Code
Yes
Comment

The law provides that within 3 months of the financial year-end, all political parties must prepare a statement showing all money received by the represented political party from the funds during the previous financial year, the application of that money, and the purposes for which the money has been applied.  
Political parties are required to designate an Accounting Officer whose responsibility among others is to ensure that all party income is well recorded, accounted for and audited. The Accounting Officer thereafter is enjoined to submit the auditor's opinion to the Independent Electoral Commission.

Source

Articles 8 and 12, Political Party Funding Act, 2018.

Paragraph 11(2), Schedule 2 of Political Party Funding Act, 2018.

48. Do political parties have to report on their election campaign finances?
Code
No
Comment

The Political Party Funding Act does not draw a line between routine political party financing and campaign financing. It appears the law considers campaign finance to be a component of the general funding to political parties.

Source

Political Party Funding Act 2018, and Regulations 2021

49. Do candidates have to report on their election campaign finances?
Code
Not applicable
50. Do third parties have to report on election campaign finances?
Code
No
51. Is information in reports from political parties and/or candidates to be made public?
Code
Yes
Comment

The political party funding Act and Regulations compel the Independent Electoral Commission (IEC) to make political party funding disclosures available to the public on a quarterly basis. 

Source

Articles 9, 14 and 22, Political Party Funding Act, 2018.

52. Must reports from political parties and/or candidates reveal the identity of donors?
Code
Sometimes
Comment

It is mandatory for sources of donations above R100,000 to be disclosed and thus contained in the report. The report must contain among other things a list of all donations received and made as contemplated in Section 9(1) and 9(2) of the Act.

Source

"The threshold referred to in section 9(1)(a) of the Act is R100 000,00 within a financial year."

Paragraph 9, Schedule 2 of Political Party Funding Act, 2018.

53. Must reports from political parties and/or candidates include information on itemized income?
Code
Yes
Source

 

12. (1) A political party must— (a) deposit all donations received by that political party, membership fees and levies imposed by the political party on its representatives into an account with a bank registered as a bank in terms of the Banks Act, 1990 (Act No. 94 of 1990), in that political party’s name; (b) keep a separate account with a bank registered as a bank in terms of the Banks Act, 1990 (Act No. 94 of 1990), into which all money allocated to it from the Funds must be deposited; (c) appoint an office-bearer or official of that political party as its accounting officer; and (d) appoint an auditor registered and practising as such in terms of the Auditing Professions Act, 2005 (Act No. 26 of 2005), to audit its books and financial statements. (2) The accounting officer contemplated in subsection (1)(c) must— (a) account for all income received by the political party; (b) ensure that— (i) any money allocated from the Funds is not paid out for a purpose not authorised by this Act; and (ii) the political party complies with this Act; (c) keep separate books and records of account, in the prescribed manner, in respect of money allocated from the Funds and all transactions involving that money; and (d) within the prescribed period— (i) prepare a statement showing all money received by the represented political party from the Funds during the previous financial year, the application of that money and the purposes for which the money has been applied; (ii) prepare a statement showing all donations and membership fees, and any levy imposed by the political party on its elected representatives during that financial year; and (iii) submit those statements and the books and records of account to an auditor appointed in terms of subsection (1)(d).

"The separate books and records of account required by section 12(2)(c) of the Act must be kept according to generally recognised accepted accounting practices, and must include the following: (a) Records showing all transactions involving allocated moneys; (b) records showing all assets acquired with allocated moneys; (c) records showing commitments entered into in respect of allocated moneys; (d) a balance sheet; (e) an income and expenditure statement; and (f) a cash flow statement."

Political Party Funding Act, 2018.

54. Must reports from political parties and/or candidates include information on itemized spending?
Code
Yes
Source

"(1) Financial statements prepared in relation to the Funds must show the amounts spent during a financial year in question by each represented political party that received allocations in accordance with these regulations in connection with purposes classifiable under the following descriptive categories: (a) Personnel expenditure; (b) accommodation; (c) travel expenses; (d) arrangement of meetings and rallies; (e) administration; (f) promotions and publications; and (g) legal expenses incurred in the public interest."

Paragraph 11, Schedule 2 of Political Party Funding Act (PPFA), 2018.

55. Which institution(s) receives financial reports from political parties and/or candidates?
Code
EMB
Comment

The Electoral Commission of South Africa (IEC).

56. Which institution(s) is responsible for examining financial reports and/or investigating violations?
Code
  • EMB
  • Auditing agency
Comment

The Electoral Commission of South Africa (IEC) and the Auditor General.

Source

Article 22, Political Party Funding Act (PPFA), 2018.

57. What power is granted to the institution(s) responsible for examining reports and/or investigating violations?
Code
Refer for investigation Request additional information from potential violator Request additional information from others Impose sanctions
58. What sanctions are provided for political finance infractions?
Code
  • Fines
  • Prison
  • Forfeiture
  • Loss of public funding
Source

Articles 15-20, Political Party Funding Act (PPFA), 2018.

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