Shivambu Criticizes Finance Minister Over Fiscal Management

Nyiko Floyd Shivambu, a South African politician now affiliated with the uMkhonto weSizwe political party, has launched a scathing attack on Finance Minister Enoch Godongwana, accusing him of being “incapable, directionless, and conclusively useless” following recent fiscal developments.

In a social media post shared on X (formerly Twitter) on Sunday, Shivambu criticized Godongwana’s handling of the 2025 fiscal framework and the controversial attempt to implement a VAT increase. He cited the Cape High Court’s recent ruling, which set aside the 2025 Fiscal Framework and suspended the VAT hike scheduled for 1 May 2025, as evidence of ministerial failure.

Shivambu had previously served as a member of parliament for the Economic Freedom Fighters (EFF) until August 2024 before joining former president Jacob Zuma’s uMkhonto weSizwe party.

When all is said and done, South Africa should appreciate that objectively, we heave an incapable, directionless and conclusively useless Minister of Finance called Enoch Godongwana. Those who have worked with him and those close to him know very well that Mr. Godongwana lacks… pic.twitter.com/dSmS3xlpR7

— Floyd Shivambu (@FloydShivambu) April 27, 2025

Background: Court Ruling on VAT Increase

The Cape High Court delivered a ruling on 27 April 2025 that halted the planned increase in Value-Added Tax (VAT) from 15% to 15.5%. The court found procedural and constitutional issues with the adoption of the budget framework and revenue proposals.

A memorandum from the Speaker of Parliament, dated 27 April 2025 and circulated among Members of Parliament, highlighted that due to the court ruling, the VAT increase and related fiscal measures would not proceed as planned. Parliament has now been instructed to reconsider and properly process any future adjustments to tax policy.

Shivambu Highlights Institutional Failure

In his remarks, Shivambu emphasized that those who have worked closely with Godongwana are fully aware of his shortcomings. He accused the Finance Minister of leading South Africa’s economy into greater uncertainty through poor fiscal management and political incompetence.

Shivambu’s new party, uMkhonto weSizwe, has positioned itself as a vocal critic of the current government’s economic policies, calling for broader reforms to address inequality, unemployment, and public sector instability.

Political Tensions Ahead of Mid-Year Budget Review

The latest tensions come as Parliament now faces an urgent task to rework South Africa’s 2025/26 financial plans. A revised budget must be tabled by no later than July 2025 to avert a constitutional crisis and potential calls for fresh elections.

Political analysts suggest that the criticism of Godongwana, combined with the court ruling, may signal deeper fractures within South Africa’s economic governance as the country grapples with slow growth, high unemployment, and rising living costs.

Outlook: What Lies Ahead

As the country heads into a critical budget review process, the pressure is mounting on the Treasury and Parliament to deliver a credible, lawful fiscal framework that meets constitutional standards and addresses the needs of ordinary South Africans.

The unfolding situation will likely dominate political discourse in the coming months, with major implications for economic policy, governance credibility, and public trust.