Minister of Finance Enoch Godongwana presented the Mid-Term Budget Policy Statement on Wednesday, announcing a lower economic growth outlook, which he attributed to the ongoing conflicts in the Middle East.
Speaking in Parliament, Godongwana explained that the domestic outlook had weakened, with real economic growth expected to reach 1.2%, compared with the earlier projection of 1.6% made in February. However, the Finance Minister also projected that, through proper infrastructure investment, the country could experience growth of 3% per year.
Fiscal discipline and a lower inflation target are helping to contain borrowing costs and reduce South Africa’s risk premium.
“The rand has strengthened and become less volatile. This reflects the difficult choices we have made to preserve macroeconomic stability and fiscal sustainability. But growth remains too low. For this reason, the government is focused on accelerating the implementation of structural reforms, coupled with strengthening state capability and delivering public infrastructure. This will put the economy on a faster, more sustainable growth trajectory. If we stay the course, growth could exceed 3% per annum,” said Godongwana.
The Finance Minister also announced temporary fuel levy relief, with a R3 reduction per litre for diesel and R1.50 for petrol from 4 November 2026 until 1 December 2026. Following this period, the fuel levy reduction will change to R1.50 per litre for diesel and R1 for petrol.
Photo: Yahyaa Ismail
