Taxpayer funds help keep big parties in power
Since the 2021/22 financial year, the fiscus has directly bankrolled nearly R7.5 billion for political parties.
Section 236 of the Constitution mandates national legislation to provide for public funding of political parties in a manner that enhances multi-party democracy “on an equitable and proportional basis.”
Yet, South Africa’s public funding model for political parties heavily favors established, dominant forces, with experts warning of a dangerously uneven playing field that disadvantages smaller and emerging parties.
A recent change to the distribution formula is expected to further embolden incumbents. The equal distribution of public money for parties will go from 33% to 10%.
This issue was a key topic at a political party funding symposium, Unpacking Money in Politics, hosted by civil watchdog My Vote Counts (MVC) and the South African National Editors Forum (SANEF).
The Political Party Funding Act of 2021 (PPFA) established the Represented Political Party Fund (RPPF), which channels public funding from the Electoral Commission of South Africa (IEC) to parties represented in the National Assembly and provincial legislatures.
Funds from the RPPF may only be used for specific purposes, excluding salaries, fees, or legal costs; however such funds are reportedly often abused.
The fund is capitalised by the National Treasury and distributed quarterly according to a formula: originally, 33% of funds were distributed equally among all represented parties, while 67% was allocated proportionally according to representation.
Since the law was amended in 2024 to loosen donation disclosure requirements and thresholds, the distribution formula also quietly changed: only 10% is now allocated equally to all parties, while 90% is distributed proportionally.
According to statistics from the IEC, Treasury allocated R1.68 billion to this fund since 2021/22.
Additional funding streams for parties come from parliamentary and provincial allocations to provide proportional financial and administrative support to represented parties, to the tune of at least R5.82 billion since 2021/22.
In 2023/24, R1.56 billion was distributed among 15 parties: the ANC received nearly R905 million, the DA R311 million, and the EFF R180 million.
In the 2023/24 financial year, a grand total of R2.19 billion of public funds was distributed among 15 political parties – over 90% of which went to five parties.
The bigger picture
This excludes private donations to political parties, which totaled at least R1.05 billion in the 2023/24 FY, based on what was disclosed to the IEC.
Before a landmark Constitutional Court ruling in 2018, which led to the PPFA of 2021, South Africa’s entire political funding system was in the dark from the public.
MVC and others successfully challenged the secrecy, leading to the establishment of donation disclosure rules, thresholds, and other funding parameters.
Recently, the Act (now PFA) and thresholds were amended, allowing undisclosed donations of up to R200,000 and an annual cap of R30 million from a single donor or entity.
In total, political parties received R3.24 billion between 1 April 2023 and 31 March 2024: well, at least what was disclosed to the Electoral Commission.
A tilted playing field… by design?
MVC warns that this further entrenches dominant parties. “Although the IEC allocation is only one portion of the public funding parties receive, this raises the concern that incumbent parties are affording themselves a bigger portion of the public funding pie.”
“This makes the playing field less competitive for newer parties, which have won representation but are afforded very limited funding to build their constituencies and improve their political positions.”
A recent study by the Human Sciences Research Council (HSRC) showed that many respondents expressed worry that public funding risks entrenching incumbency and stifling democratic innovation.
Professor Steven Friedman of the University of Johannesburg’s Centre for the Study of Democracy highlighted systemic flaws in the proportional allocation system.
“The problem is that the formula assumes voter preferences remain fixed for the full electoral cycle. It simply assumes that for the next five years, nobody’s changed their mind, which is clearly nonsense.”
He explained that parties continue receiving allocations based on past elections, even if public support shifts dramatically.
“If party X got 48% of the vote, it’s getting 48% of the funding, possibly in a situation where it now has 12% support.”
Beyond misalignment with public opinion, the proportional system entrenches established parties and raises barriers for new entrants.
“It prevents new parties and makes it more difficult for them to emerge,” Friedman said. In practice, dominant parties retain both political and financial advantages, regardless of shifts in the electorate between elections.
Alternative funding models
Friedman proposes a donor-count–based public funding model, which shifts focus from past election results to broad citizen support.
He said that this system reduces the disproportionate influence of wealthy donors, ensures broad participation, and strengthens democratic accountability.
“If we are going to have government which responds to the citizens rather than responds to donors … the politicians in this country … had better start taking controls on their own funding seriously.”
It will also measure public support through small donations.
“Your test of whether you get public funding or not is not your results in the last election. And it’s not how much money you can raise from private donors, it’s how many people you can get to donate to you,” said Friedman.
“If you go to a shack settlement or a township where poverty levels are quite high, and you can get somebody to donate R5 to your party.
“That counts the same as somebody who gives a big donation and your … public funding is measured by that.”
The professor also further calls for full transparency and strict donation limits.
“Political parties should be expected to keep records of who gave the money … from the person who gave them 5 rand … through to the person who gave them a much bigger donation, and that should be available for inspection by anybody who wishes to inspect it at any given time.”
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