CAPE TOWN - Finance Minister Enoch Godongwana says that the formation of the Government of National Unity has been a major boost for business and consumer confidence.
Godongwana delivered his maiden Medium Term Budget Speech in Parliament since the election of the seventh administration on Wednesday.
He says the suspension of power cuts and decreasing inflation has boosted confidence as well. He says the GNU remains committed to bettering the lives of South Africans through job creation and reducing the cost of living.
Godongwana says that South Africa's economic growth is expected to remain low.
Treasury is forecasting a 1.1 percent growth for this year. The Minister says that there is a strategy to lift the country's economy.
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According to the Minister, more funding will be provided for Parliament, the office of the Chief Justice, and the IEC as they prepare for the 2026 local government elections.
He says that these adjustments aim to maintain the integrity of the country's institutions. The Minister also highlighted Operation Vulindlela's early successes, pointing to structural reforms that are actively reducing economic bottlenecks.
He says the initiative showcases how government-business collaboration can drive meaningful change. Godongwana says the second phase will continue to prioritise network sectors.
"Government is putting its money where its mouth is," he says.
It is finally working on those reforms to develop sustainable infrastructure.
"We know the government has said prioritising infrastructure projects was the only way to support economic growth many times," he says.
Godongwana, says effective investment in the sector will boost economic activity and enable higher growth over the medium term.
Godongwana goes on to say that South Africa has been praised by the Financial Action Task Force. The praise is on how the country has dealt with the issues of Money Laundering and Countering the Financing of Terrorism.
South Africa has now fully addressed 16 of the 22 items in the FATF Action Plan.
Meanwhile, many municipalities across the country are grappling with significant debt challenges.
Godongwana has announced several initiatives to systematically address these local government failures.
Among them is the Eskom Municipal Debt Relief Programme, designed to alleviate the financial burdens faced by municipalities and enhance their capacity to provide essential services.