On 15 October 2026, the Deputy Finance Minister addressed MCCI members in Middelburg, highlighting the Treasury’s reform priorities and their impact on business confidence, investment, and growth.
Key Messages
- Inflation Reform: South Africa now targets inflation at 3% ±1%, aiming to create a more stable price environment that lowers borrowing costs and improves business planning.
- Fiscal Reform: Treasury is strengthening budget credibility through a proposed fiscal anchor, linking spending decisions to long-term sustainability.
- Primary Surplus: Government projects a surplus rising from 0.9% of GDP in 2025/26 to 2.3% by 2028/29, reducing reliance on debt for non-interest spending.
- Debt Stabilisation: Gross debt is expected to peak at 78.9% of GDP in 2025/26, then decline gradually, provided growth strengthens.
- Infrastructure Investment: Over R1.07 trillion is allocated for public-sector infrastructure over the medium term, with capital spending the fastest-growing budget item.
- Structural Reform: Energy and logistics reforms are opening space for private-sector participation, with milestones such as the Durban Container Terminal concession and progress toward private freight rail operations.
- Municipal Reform: Programmes like the Municipal Debt Relief Scheme and a R54 billion performance-linked incentive for trading services aim to restore financial discipline and improve service delivery.
Implications for Business
- More predictable inflation and fiscal discipline should lower financing costs.
- Infrastructure commitments promise better roads, water systems, and electricity reliability.
- Structural reforms in energy and logistics are expected to ease supply chain bottlenecks.
- Municipal reforms emphasise accountability, ensuring businesses benefit from stronger local services.
The Deputy Minister stressed that reforms must be judged by practical results: reliable power, efficient transport, quality municipal services, and renewed confidence to invest. MCCI members are encouraged to monitor these outcomes closely and engage with government to ensure the reforms deliver tangible benefits for the business community.
MCCI members supported the Deputy Minister’s proposals and trust that future decisions will serve the economy’s best interests.