This Content is for Subscribers Only
Finance Minister Enoch Godongwana tabled the 2025 Medium-Term Budget Policy Statement in Parliament on 12 November 2025, outlining key priorities to stabilise public finances, accelerate economic growth, and strengthen infrastructure development. The address comes as South Africa faces global headwinds, domestic constraints, and growing pressure to create jobs and restore fiscal credibility.
What Happened
Delivering his speech before Parliament, Minister Godongwana emphasised that South Africa’s economic strategy will focus on maintaining macroeconomic stability, implementing structural reforms, building state capability, and expanding infrastructure investment.
He announced a new inflation target of 3%, with a 1% flexibility band, aligning South Africa with international best practice to promote lower interest rates and stronger investor confidence.
The Minister further revealed that public debt will stabilise at 77.9% of GDP in 2025/26, signalling the first time since the 2008 financial crisis that debt will not increase as a share of GDP.
Official Response
Godongwana said government is on track to restore fiscal sustainability, citing improved tax revenues, expenditure discipline, and growing investor confidence.
“The presentation of the Medium-Term Budget Policy Statement sends a clear message South Africa is choosing growth, stability, and reform,” he stated.
He also reaffirmed the state’s commitment to infrastructure-led growth, announcing a new R15 billion infrastructure bond and R4.1 billion allocated for disaster relief to repair schools, clinics, and pipelines damaged by floods.
The Minister stressed the success in removing South Africa from the FATF grey list, crediting collaboration across government, law enforcement, and the private sector.
Community Impact
The budget prioritises job creation, skills development, and service delivery, particularly at municipal level.
Funds will be directed toward water, transport, and energy projects, while reforms in logistics, energy, and public services aim to cut inefficiencies and attract private sector investment.
Godongwana reaffirmed the government’s commitment to fighting corruption and enhancing transparency, noting the launch of a Procurement Payments Dashboard to track state spending.
“We are eliminating waste and inefficiency in government to ensure that every rand spent contributes effectively to growth and service delivery,” he said.
