By Noko Mashilo
In his first Medium Term Budget Policy Statement (MTBPS) under the government of national unity (GNU), Finance Minister Enoch Godongwana, outlined fiscal priorities and strategic goals for the coming years.
He emphasised economic recovery, prudent public spending and debt management while addressing social challenges and infrastructure development. The MTBPS traditionally covers projected revenues, expenditure plans and initiatives aimed at promoting growth and job creation.
Godongwana began on a sombre note, paying tribute to his predecessors who have died in recent weeks, and acknowledged that while progress is ongoing, a new light is shining on South Africa’s economic horizon.
He highlighted the three key priorities set forth by President Cyril Ramaphosa for the GNU: fostering inclusive growth and job creation, reducing poverty and alleviating the high cost of living, and building a capable, ethical, and developmental state.
“Inclusive economic growth lies at the heart of the GNU’s agenda and stands atop the national priorities. This policy statement evaluates the trade-offs and strategic choices facing the nation, charting a course towards growth, transformation and concrete action,” he said on Wednesday.
On the international front, the minister projected global economic growth at 3.2% in 2024 and 2025, with global trade expected to grow at an average annual rate of 3.3% during the same period. He noted that emerging markets and developing countries, including South Africa, would likely face ongoing challenges amid these trends.
Domestically, real GDP growth is forecasted at 1.1% for 2024, down from the 1.3% estimated in February, with an average of 1.8% growth anticipated over the medium term.
“This highlights the imperative for higher, inclusive growth to realise a better quality of life for all,” he added.
The policy statement’s strategy to elevate the economy relies on four pillars: maintaining macroeconomic stability, implementing structural reforms, supporting growth-enhancing infrastructure and strengthening state capacity.
Among these, structural reforms, particularly those in Operation Vulindlela, are aimed at enhancing productivity, competitiveness and inclusive economic growth while creating employment opportunities.
Black Entrepreneurs Alliance (BEA) CEO Refilwe Monageng voiced concern that the policy lacked support for economic revitalisation.
“Marginalised individuals remain excluded due to blacklisting, unable to access finance or meet trade obligations. There’s no mention of support for entrepreneurs or ensuring job creation,” he said.
Monageng also criticised the decision to halt bailouts for state-owned entities like Transnet.
“Without affordable rail transport options, entrepreneurs struggle to export goods, which stymies job creation and increases the economy’s debt dependency,” Monageng argued.
