24. Is there a ban on political parties taking loans in relation to election campaigns?

South Africa

South Africa

Answer
No
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.

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. 

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