Johannesburg - Political parties on Tuesday welcomed the signing of the Political Party Funding Bill into law by President Cyril Ramaphosa.
The bill provides for the establishment of two funds for represented parties, disclosure of donations and the prohibition of certain donations made directly to parties.
It also prohibits State institutions from making donations and as well as receiving foreign funding.
Ramaphosa's signing of the bill comes after parties mounted pressure on the president to sign the bill into law after it was passed by Parliament last year.
The ruling party in a statement welcomed the move, saying: "The ANC has consistently supported the principle of regulating funding for political parties. We view this as an important milestone in strengthening our democracy and enhancing transparency as a cornerstone of our democracy".
"We are encouraged that this law is a practical expression of the ANC’s unwavering commitment to the constitutional values of fairness, equity, accountability and transparency.
The party further said it had no doubt that the bill would provide the country "with an opportunity to deepen our democracy and usher in a new culture of transparent funding for political parties".
"In welcoming the Political Party Funding Act, we have no doubt that we have taken a bold step that seeks to protect and defend our young democracy."
Adding to this was the Inkatha Freedom Party (IFP), which hailed the signing of the bill as a "victory for transparency and a victory for our democracy".
"In light of the ANC’s involvement with Bosasa and the rot of corrupt activities which is now being laid bare before the South African public in the state capture commission of inquiry – we are hopeful that more allegations will come to the fore.
"The IFP has championed alongside civil society organizations the drafting of this legislation which has now become an Act of Parliament. This Act will see for the first time the levelling of the playing field and halt the abuse of state resources for party-political purposes."
The Presidency is yet to release a statement on the signing of the bill.