On The Deals Shaping Our Economy
🇿🇦 “An Attack On The Middle Class”
Finance Minister Enoch Godongwana is voicing serious concern over the health department's proposal to scrap medical scheme tax credits to fund the National Health Insurance (NHI).
Why it matters: The health department wants to start phasing out the credits as early as next April.
But Godongwana warns that the very people paying the most personal income tax (PIT) are the ones who would lose their credits.
"My worry... is that if you look at who is paying our PIT (personal income tax), it's the same group you want to take medical credits away from. It's actually an attack on the middle class."
By the numbers:
R30.4 billion: The amount government provided in medical scheme tax credits in 2022/23.
R9 billion: The additional amount provided for qualifying out-of-pocket healthcare expenses.
The other side: Medical scheme industry groups argue the credits are vital to keep membership affordable and reduce the burden on state facilities.
What's next: The Treasury has not finalized its position and is still in discussions with the health department.
🇷🇺 Putin Greenlights Citi's Exit
Vladimir Putin has personally approved the sale of Citigroup's Russian business to Moscow-based Renaissance Capital, a major step in the US bank's effort to exit the country.
Why it matters: This move brings Citi closer to a full exit from Russia, a process that started in April 2021 and accelerated after the 2022 invasion of Ukraine.
The long road:
Western sanctions and Russian counter-measures—which banned entities from "unfriendly" countries from selling assets—severely complicated the exit.
Citi has since wound down most of its institutional services and closed its last retail branch in Russia in 2024.
The inside scoop: A former senior Russian official suggested the approval was a "political gesture" from the Kremlin to the White House.
"All large foreign holdings [in Russia] are kind of hostages... Obviously there is an expectation that the current US administration, which is very business-oriented, may be [receptive] to this gesture."
✉️ Trump's Formal Plea for Netanyahu
Donald Trump has escalated his campaign to end Benjamin Netanyahu's corruption trial, sending a formal letter to Israel's president, Isaac Herzog, asking him to "fully" pardon the prime minister.
Why it matters: It’s an "unprecedented" intervention. Trump argued the five-year-old trial is a "political, unjustified prosecution" that distracts Netanyahu from pressing matters like Iran.
"While I absolutely respect the independence of the Israeli Justice System... I believe that this 'case' against Bibi... is a political, unjustified prosecution."
The response: President Herzog gave a polite but firm procedural response.
"anyone seeking a presidential pardon 'must submit a formal request in accordance with the established procedures'."
The backdrop: This letter is just the latest in a series of stunning interventions.
During a previous address to the Israeli parliament, Trump went off-script to publicly urge Herzog to issue a pardon.
After the 12-day war with Iran in June, he also called for the trial's cancellation on Truth Social.
"I have an idea Mr. President, why don’t you give him a pardon?"
Netanyahu has been on trial since May 2020 for fraud, bribery, and breach of trust. He denies all charges.
Bottom Line:
His far-right coalition partners welcomed Trump's letter.
Opposition leader Yair Lapid noted that Israeli law requires an "admission of guilt and an expression of remorse" for a pardon.
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