22 October 2026
Industry, civil society, academia welcome Treasury’s fiscal discipline amid weak growth
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Industry, civil society, academia welcome Treasury's fiscal discipline amid weak growth
Business organisation Business Leadership South Africa (BLSA) views the 2026 Medium-Term Budget Policy Statement (MTBPS) as proof that government's fiscal discipline is working.
The organisation has welcomed the National Treasury's ensuring that South Africa's government debt decreased despite the US-Israel conflict against Iran having been launched three days after the February Budget.
"That discipline is being rewarded: the rand has remained resilient, strengthening and becoming less volatile despite the sharp rise in global oil prices, and the ratings agencies are taking notice.
"S&P upgraded South Africa in November 2025, Fitch followed in June 2026, its first upgrade in almost 21 years, and Moody's moved to a positive outlook. BLSA expects further upgrades after these figures, which would lower borrowing costs for government and business alike," highlights BLSA CEO Busisiwe Mavuso.
However, BLSA says the core problem remains the slow pace of economic growth as Treasury cut its 2026 forecast to 1.2% and projects 2% growth by 2029.
The organisation is encouraged with Finance Minister Enoch Godongwana's endorsement of government's strategy for faster growth and healthier public finances.
"BLSA fully supports these goals and will continue to assist government wherever it can in achieving them.
"Faster economic growth is the best way to address South Africa's severe unemployment crisis. This is a long-term process, which is why every effort to accelerate delivery matters, especially on structural reforms and infrastructure," Mavuso says.
Industry body Business Unity South Africa (Busa) has also acknowledged the continued focus on prudent fiscal management and the responsible stewardship of public finances.
"The mini-Budget recognises the underlying fiscal strength and creates room for sustainable increases in expenditure over time. The proposed fiscal anchor, expected to be introduced through legislation in 2027, should strengthen accountability and help ensure that fiscal plans remain consistent and implementable," Busa CEO Khulekani Mathe says.
Busa also welcomes the increased emphasis on infrastructure, highlighting that capital assets are the fastest-growing spending category.
Meanwhile, industry organisation Consulting Engineers South Africa (Cesa) CEO Chris Campbell has welcomed the measures to strengthen fiscal stability and improve infrastructure delivery but cautions that these interventions will have limited impact unless funding translates into properly planned, completed and functional projects.
"Debt stabilisation, the operationalisation of the Infrastructure Finance and Implementation Support Agency, the continued scaled of the Budget Facility for Infrastructure (BFI), progress on the Credit Guarantee Vehicle and the push to expand public-private partnerships in the municipal space are all steps in the right direction," he says.
Campbell also notes the importance of capital spending being the fastest-growing component of the Budget, but he argues that more resources need to be directed towards rebuilding South Africa's economic capacity and to ease pressure on households and firms that are struggling under tough conditions.
Financial services firms Standard Bank has also commended government's continued commitment to infrastructure development with an infrastructure pipeline of about R217-billion through the Infrastructure Fund and more more than R100-billion in projects approved through the BFI.
"Infrastructure projects create opportunities far beyond construction. They can stimulate demand across logistics, professional services, manufacturing, technology and business services, creating avenues for small and medium-sized enterprise growth and job creation," highlights Standard Bank business banking coverage head Umesh Madhav.
He adds that the key will be to translate investment commitments into practical opportunities tha...
Business organisation Business Leadership South Africa (BLSA) views the 2026 Medium-Term Budget Policy Statement (MTBPS) as proof that government's fiscal discipline is working.
The organisation has welcomed the National Treasury's ensuring that South Africa's government debt decreased despite the US-Israel conflict against Iran having been launched three days after the February Budget.
"That discipline is being rewarded: the rand has remained resilient, strengthening and becoming less volatile despite the sharp rise in global oil prices, and the ratings agencies are taking notice.
"S&P upgraded South Africa in November 2025, Fitch followed in June 2026, its first upgrade in almost 21 years, and Moody's moved to a positive outlook. BLSA expects further upgrades after these figures, which would lower borrowing costs for government and business alike," highlights BLSA CEO Busisiwe Mavuso.
However, BLSA says the core problem remains the slow pace of economic growth as Treasury cut its 2026 forecast to 1.2% and projects 2% growth by 2029.
The organisation is encouraged with Finance Minister Enoch Godongwana's endorsement of government's strategy for faster growth and healthier public finances.
"BLSA fully supports these goals and will continue to assist government wherever it can in achieving them.
"Faster economic growth is the best way to address South Africa's severe unemployment crisis. This is a long-term process, which is why every effort to accelerate delivery matters, especially on structural reforms and infrastructure," Mavuso says.
Industry body Business Unity South Africa (Busa) has also acknowledged the continued focus on prudent fiscal management and the responsible stewardship of public finances.
"The mini-Budget recognises the underlying fiscal strength and creates room for sustainable increases in expenditure over time. The proposed fiscal anchor, expected to be introduced through legislation in 2027, should strengthen accountability and help ensure that fiscal plans remain consistent and implementable," Busa CEO Khulekani Mathe says.
Busa also welcomes the increased emphasis on infrastructure, highlighting that capital assets are the fastest-growing spending category.
Meanwhile, industry organisation Consulting Engineers South Africa (Cesa) CEO Chris Campbell has welcomed the measures to strengthen fiscal stability and improve infrastructure delivery but cautions that these interventions will have limited impact unless funding translates into properly planned, completed and functional projects.
"Debt stabilisation, the operationalisation of the Infrastructure Finance and Implementation Support Agency, the continued scaled of the Budget Facility for Infrastructure (BFI), progress on the Credit Guarantee Vehicle and the push to expand public-private partnerships in the municipal space are all steps in the right direction," he says.
Campbell also notes the importance of capital spending being the fastest-growing component of the Budget, but he argues that more resources need to be directed towards rebuilding South Africa's economic capacity and to ease pressure on households and firms that are struggling under tough conditions.
Financial services firms Standard Bank has also commended government's continued commitment to infrastructure development with an infrastructure pipeline of about R217-billion through the Infrastructure Fund and more more than R100-billion in projects approved through the BFI.
"Infrastructure projects create opportunities far beyond construction. They can stimulate demand across logistics, professional services, manufacturing, technology and business services, creating avenues for small and medium-sized enterprise growth and job creation," highlights Standard Bank business banking coverage head Umesh Madhav.
He adds that the key will be to translate investment commitments into practical opportunities tha...