Government reprioritises R3.8 billion to protect women

Source: Government of South Africa

Government reprioritises R3.8 billion to protect women

In response to the recent spate of murders and attacks on women,  government has reprioritised R3.8 billion over the 2027 Medium-Term Expenditure Framework (MTEF) period to appoint 3 552 social workers. 

It has also allocated R186 million to strengthen the criminal justice response by increasing forensic and investigative capacity.

This, according to Finance Minister Enoch Godongwana, who delivered the Medium-Term Budget Policy Statement (MTBPS) during a sitting of the National Assembly on Wednesday.

Godongwana said the funds give effect to President Cyril Ramaphosa’s announcement concerning the unacceptably high levels of gender-based violence and femicide in South Africa.

READ | Four-point plan to aid the GBVF fight

“We are expanding sexual offences courts from 55 to 101 and increasing the number of countrywide Thuthuzela Care Centres that provide support to rape victims, from 72 to 80, by 2028/29.

“To improve national coordination and oversight of government’s response to GBVF, an additional R157.4 million is allocated to the Department of Women, Youth and Persons with Disabilities,” he said.

Meanwhile, over the MTEF period, R556.7 million will be reprioritised to sustain HIV and AIDS services following the withdrawal of funding from the United States President’s 
Emergency Plan for AIDS Relief (PEPFAR). This will supplement the R3.8 billion reprioritised through the district health programmes grant. – SAnews.gov.za
 

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How can African schools support children’s mental health? Research shows what works and what doesn’t

Source: The Conversation – Africa – By Lydia Namatende-Sakwa, Associate Research Scientist, African Population and Health Research Center

Schools are often among the first places where emotional and behavioural difficulties become visible. Learners may start missing classes, withdrawing from friends or struggling academically.

Schools are strategically positioned for mental health intervention because of their centrality in the lives of children and adolescents. They are an important entry point for mental health responsive action that can reach large numbers of children and adolescents through existing systems.

The burden of child and adolescent mental health is especially urgent in Africa for three reasons. First, specialist mental health services are limited. Second, children face a combination of social, economic, health and humanitarian risks. And third, the continent has a young population. In 2024, 46% of Africa’s population were children under 18.

Evidence from high-income countries suggests that comprehensive mental health interventions involving schools, families and communities can improve mental health, social functioning, learning and general wellbeing.

We are part of a research team, Education and Youth Empowerment, that examines inclusive and quality education in Africa, with a focus on school mental health, gender and adolescent well-being. We recently carried out a review of school-based and school-linked strategies aimed at strengthening capacity to address mental health among children and adolescents. Our study screened 1,759 records and 122 scholarly studies that met our criteria.

Among our main findings were these:

  • Promising evidence that brief, structured programmes that teach coping, emotional and problem-solving skills can reduce symptoms of depression and anxiety and improve well-being when delivered by trained non-specialists.

  • Counselling on its own is not enough to prevent mental health problems or address the wider school, family and social conditions that contribute to learners’ distress.

  • Teachers can play an important role in promoting wellbeing, recognising signs of distress and helping learners access support, but they should not be expected to diagnose or treat mental health conditions.

  • Support needs to extend beyond the school to include families, communities, health services and child-protection systems.

  • Schools need to be part of a wider mental health support system, rather than relying on stand-alone services such as counselling rooms, one-off programmes or individual guidance teachers.

This evidence was geographically uneven. Most studies came from a relatively small number of countries, particularly Ghana, Uganda, Tanzania, South Africa and Kenya. Evidence was much more limited from francophone and lusophone Africa, north and central Africa, and from rural, remote, pastoralist and conflict-affected settings.

Our findings point to the need for school mental health systems that combine prevention, early identification, teacher support, family and community engagement, and clear referral pathways to specialist care.

What’s working

Our review found promising evidence for brief, structured interventions delivered by trained non-specialists. These include Shamiri, a four-week group intervention tested in Kenyan secondary schools. Under this programme, students meet in small groups for an hour each week, taking part in exercises such as problem-solving, reflecting on personal growth and writing gratitude letters. The sessions are led by trained lay facilitators.

In a trial involving 413 adolescents, participants showed greater reductions in depression and anxiety symptoms than those in a study-skills programme. Benefits were still evident seven months later.

Other promising approaches included:

  • improving mental health awareness among learners and staff to recognise signs of distress, understand mental health, reduce stigma, and know when and where to seek help

  • trained teachers, school staff or peer facilitators building skills such as emotional regulation, empathy, relationships and problem-solving, while enabling young people to support one another

  • using games, music, dance, creative activities and physical movement to support emotional wellbeing, social connection and coping.

An approach employed among refugee children in Uganda combines movement, games, dance, breathing exercises and group activities. Evidence points to improvements in wellbeing and social connectedness, with benefits for traumatic stress and bullying.

These approaches show that school mental health does not have to mean therapy.

Why counselling isn’t enough

Counselling is one of the most common school-based mental health approaches. It provides a confidential space where learners can talk through emotional, behavioural or social difficulties with a trained adult. Counselling matters, but it cannot change everything around a child.

Some learners need confidential spaces to discuss grief, anxiety or family difficulties. But counselling usually responds after a problem has emerged and cannot, by itself, change the conditions contributing to that problem.

Our review showed that many of the pressures affecting children’s mental health – including bullying, violence, poverty, family stress and unsafe school environments – sit beyond what individual counselling can address. Counselling therefore needs to be combined with preventive, whole-school and community-linked approaches.

A school can have a counselling room and still be unsafe. It can have a guidance teacher and still tolerate bullying. It can teach learners to recognise depression and anxiety while having no way to get specialised care.

Role of teachers

Because specialist mental health professionals are scarce, many school-based programmes rely on task-sharing: training teachers and other non-specialists to take on defined mental health support roles. They can help create supportive environments, recognise signs of distress, reduce stigma and guide learners towards appropriate help.

But there must be boundaries. Teachers should not be expected to diagnose mental health conditions, manage serious cases or become substitute psychologists. Evidence from task-sharing programmes in low- and middle-income countries shows that non-specialists are most effective when their roles are clearly defined and supported by training, supervision and referral pathways to more specialised care, as well as clear procedures for confidentiality, safeguarding and referral.

Teacher well-being also matters. Adding mental health responsibilities without time, resources and support risks increasing workload and stress.

Beyond the school gate

Evidence from low- and middle-income countries shows that children’s mental health is shaped not only by what happens at school, but also by family, community and wider social conditions. Reviews of community- and family-based approaches show that involving caregivers, trusted community actors and referral services is valuable.

Schools cannot address children’s mental health alone. Parents and caregivers need support to recognise distress and follow through on referrals. Non-teaching staff also matter because learners may first confide in another trusted adult.

Schools need functioning links with health facilities, child-protection services, community organisations and social protection systems.

Across the studies we reviewed, implementation repeatedly depended on school leadership, cultural adaptation, financing, confidentiality, safeguarding, supervision, clear referral pathways and coordination across sectors.

Schools need mental health systems, not isolated services

Our review showed that isolated interventions are unlikely to be enough. Effective school mental health depends on the wider system around them, including leadership, trained staff, supervision, safeguarding, referral pathways, family engagement, teacher well-being, coordination with health and social services, and sustainable financing.

Charity Waweru-Mwangi contributed to this article.

– How can African schools support children’s mental health? Research shows what works and what doesn’t
– https://theconversation.com/how-can-african-schools-support-childrens-mental-health-research-shows-what-works-and-what-doesnt-292878

Burkina Faso : Offensive agropastorale : le Premier ministre lance l’aménagement de 50 000 hectares irrigués

Source: Africa Press Organisation – French


Le Camarade Premier ministre, Chef du Gouvernement, Rimtalba Jean Emmanuel Ouédraogo, a lancé, dans la soirée du mardi 20 octobre 2026, à Niaogho, dans la région du Nakambé, l’opération commando d’aménagement de 50 000 hectares de périmètres irrigués à travers le Burkina Faso. Le lancement, effectué sur un site pilote de 1 000 hectares, marque une nouvelle étape dans la maîtrise de l’eau au service de la production agricole et de la souveraineté alimentaire.

Cette opération répond aux difficultés d’une campagne humide 2026 marquée par une pluviométrie insuffisante et des poches de sécheresse dans plusieurs régions. Face à ces contraintes, le Président du Faso, le Camarade Capitaine Ibrahim Traoré, a instruit, le 27 septembre dernier, le Gouvernement d’engager des actions urgentes pour renforcer la production en saison sèche et développer de nouvelles superficies irriguées.

L’opération commando constitue un volet majeur du plan de mobilisation de l’eau. Celui-ci comprend dix opérations spéciales : cinq conjoncturelles, destinées à valoriser les aménagements existants et les ressources en eau disponibles, et cinq structurelles, visant à créer de nouvelles superficies irriguées.

Selon le Chef du Gouvernement, le pays dispose actuellement de moins de 30 000 hectares irrigués. L’aménagement de 50 000 hectares supplémentaires représente ainsi un changement d’échelle dans la transformation de l’agriculture burkinabè.

« Aujourd’hui, l’objectif, c’est de réaliser 50 000 hectares supplémentaires. Donc, c’est une opération d’envergure historique qui est en train d’être mise en œuvre », a souligné le Camarade Premier ministre.

Pour atteindre cet objectif, les travaux de terrassement et de planage porteront sur 60 000 hectares, entre novembre 2026 et avril 2027. Ces interventions préparatoires doivent permettre de livrer 50 000 hectares de périmètres irrigués au plus tard le 31 octobre 2027.

Le coût global du plan est estimé à 254,79 milliards de francs CFA hors taxes, dont près de 13 milliards consacrés aux opérations de terrassement. Les engins de Faso Mêbo, de la Société nationale de l’aménagement des terres et de l’équipement rural (SONATER), de l’Office national des barrages et des aménagements hydro-agricoles (ONBAH) et du Génie militaire seront notamment mobilisés. Pour tenir les délais, les bulldozers devront travailler jusqu’à vingt heures par jour.

Grâce à la maîtrise de l’eau, les périmètres aménagés devront permettre au moins trois cycles de production par an. Cette perspective ouvre la voie à une meilleure planification des activités agricoles, à l’accroissement des récoltes et à une moindre dépendance aux aléas pluviométriques.

En parallèle, les opérations conjoncturelles prévoient la remise en culture de 10 464 hectares durant la campagne sèche, pour une production additionnelle attendue de 36 624 tonnes. Elles doivent renforcer rapidement la disponibilité des produits agricoles, pendant la réalisation des aménagements structurels.

La mise en œuvre de cette ambition repose également sur la mobilisation des acteurs du monde rural. Quelque 8 000 Volontaires pour la défense de la patrie agricole prendront part aux travaux. Leur participation leur ouvrira un droit prioritaire à l’attribution de parcelles sur les périmètres aménagés.

Les artisans burkinabè seront, eux aussi, sollicités pour fabriquer des équipements hydromécaniques jusque-là importés. Il s’agit de valoriser le savoir-faire national et de renforcer sa contribution à la réalisation des infrastructures.

« Tout ce que nous faisons aujourd’hui ne peut réussir sans l’adhésion des populations », a rappelé le Chef du Gouvernement. Il a invité les autorités coutumières et les conseils villageois à faciliter la libération des emprises nécessaires aux travaux. Il a également exhorté les producteurs et leurs organisations à préparer l’exploitation des périmètres dès leur livraison.

L’enjeu sera de traduire cet effort national d’aménagement en récoltes régulières et abondantes. La mobilisation des producteurs devra ainsi prolonger celle des engins, pour faire de chaque périmètre aménagé un espace de production au service de la souveraineté alimentaire.

Distribué par APO Group pour Gouvernement du Burkina Faso.

Government identifies R38.1 billion in medium-term savings

Source: Government of South Africa

Government identifies R38.1 billion in medium-term savings

Government has identified R38.1 billion in savings over the medium term as it works to improve the quality of spending and direct funds towards efficient and effective programmes.

The savings form part of a shift away from incremental, input-driven budgeting towards strategic decisions based on outcomes, affordability and value for money.

Finance Minister Enoch Godongwana said government is phasing out programmes that are no longer fit for purpose.

“We are also restructuring underperforming and inefficient programmes, and reducing administrative inefficiencies and fraud in programmes,” the Minister said on Wednesday while delivering the Medium-Term Budget Policy Statement (MTBPS) in Parliament on Wednesday.

In addition to the R12 billion identified in the 2026 Budget, a further R38.1 billion has been identified over the 2027 Medium-Term Expenditure Framework (MTEF) period:
•    R11.7 billion from low-priority programmes and measures to reduce duplication and administrative inefficiencies in national departments;
•    R13 billion from reducing fraud in social grants;
•    R7.8 billion from the human settlements development grant, where programme inefficiencies and rent-seeking have resulted in less spending on building houses; and
•    R5.5 billion from surpluses in public entities.

Godongwana said efficiencies and savings could also be found in provincial budgets. For example, implementing more effective remuneration policies for healthcare workers could enable provinces to employ more health professionals.

The National Treasury’s MTBPS document emphasised that improving the quality of spending by allocating funds to efficient and effective programmes is a fundamental reform of the budget process.

“Targeted and responsible savings are identified by assessing programmes on a common basis and asking key questions. Are programmes legally required? Are they aligned with policy priorities? 

“Do they efficiently deliver measurable outputs and outcomes? Is there persistent underspending or poor performance? Could the same objective be achieved at lower cost or through a better institutional arrangement?” 

“Government will continue to reduce leakage and fraud by improving administration and verification, redesigning programmes that fail to meet their objectives, redirecting funds from low priority, inefficient or duplicated activities and addressing accumulated cash surpluses in public entities,” National Treasury explained.

These savings have been reprioritised and redirected across the fiscal framework.

Revised spending for 2026/27

The 2026 Adjustments Appropriation Bill proposes an upward adjustment of R10.6 billion to expenditure.

This includes R1.9 billion in rollovers from the previous financial year and R6.2 billion for unforeseeable and unavoidable expenditure, mostly for disaster relief.

An additional R2.2 billion is provided for early-retirement and voluntary-exit packages for qualifying public servants.

A Special Appropriation Bill for 2026/27 is proposed, allocating a total of R6.9 billion, mainly to the South African Revenue Service.

“Government will allocate R10 billion of the in-year revenue overrun to the contingency reserve for the El Niño response and other risks. The remainder is a provisional allocation for infrastructure projects currently under evaluation by the Budget Facility for Infrastructure,” National Treasury said.

In the adjustments budget, R150 million is allocated to enhance the technical capabilities of the digital services unit, which will lead the development of the MyMzansi app. The app will allow citizens to access government services through a single digital platform.
A further R20 billion has been earmarked for infrastructure projects currently under evaluation by the Budget Facility for Infrastructure.

In-year adjustments

The Minister said the additional revenue in 2026/27 means government can increase expenditure by R45.5 billion compared with what was announced in February.

Together with allocations from the contingency reserve, the Adjustments Appropriation Bill includes:
•    R6.2 billion for unforeseeable and unavoidable expenditure, mostly for disaster relief and rehabilitation;
•    R1.9 billion rolled over from the previous financial year;
•    R4.3 billion in self-financing expenditure;
•    R823 million for the South African National Defence Force to deploy troops to assist the police in fighting gang-related crime and combating illegal mining; and
•    R516 million for the Madlanga, Khampepe and Nkabinde commissions of inquiry.
–SAnews.gov.za
 

 

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Government boosts funding to fight crime and corruption

Source: Government of South Africa

Government boosts funding to fight crime and corruption

Finance Minister Enoch Godongwana has announced an R810 million recapitalisation of the South African Police Service (SAPS) vehicle fleet next year, alongside an additional R2.2 billion over the medium term to strengthen the independence of the judiciary.

“Crime and corruption weaken governance and hold back the economy. They rob the fiscus of funds intended for service delivery and raise the cost of doing business,” the Minister said on Wednesday.

Godongwana made the remarks while delivering the Medium-Term Budget Policy Statement (MTBPS), in which he outlined the government’s revised economic outlook and adjusted expenditure estimates.

In addition to this year’s allocations to the Border Management Authority, government is increasing the number of labour inspectors.

“The government is also considering measures to strengthen the capacity of the border inspectorate and immigration officers to address our challenges with illegal migration,” Godongwana said.

He added that the Financial Action Task Force’s (FATF) 18-month Mutual Evaluation process is under way.

“It evaluates the technical compliance and effectiveness of the implementation of laws. It tests whether our laws work in practice through investigations, prosecutions and asset forfeitures.

“We are striving to achieve technical compliance and fully implement the FATF recommendations. These efforts have been supported by investments in fighting crime and corruption,” Godongwana said.

The FATF is an intergovernmental financial watchdog established to combat money laundering, terrorist financing, proliferation financing and other threats to the integrity of the international financial system.

It sets global standards for anti-money laundering and counter-terrorism financing, promotes their effective implementation and conducts mutual evaluations to assess countries’ compliance with its recommendations.

In 2026, South Africa was removed from the European Union’s list of high-risk third-country jurisdictions.

This followed South Africa’s removal from the FATF grey list – formally known as the list of jurisdictions under increased monitoring – and the United Kingdom’s list of high-risk countries for money laundering and terrorist financing. Both removals took effect on 13 October 2025. – SAnews.gov.za

 

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Gross tax revenue forecast revised upwards

Source: Government of South Africa

Gross tax revenue forecast revised upwards

South Africa’s gross tax revenue forecast for 2026/27 has been revised upwards by R17.1 billion, supported by stronger-than-expected collections from corporate income tax, dividends tax and Value-Added Tax (VAT), Finance Minister Enoch Godongwana announced on Wednesday.

The revised forecast reflects an improved revenue outlook compared with the February estimate.

“A large portion of this improvement is due to higher commodity prices, and these gains are expected to dissipate over the medium term. Overall, gross tax revenue is projected to increase from R2.14 trillion this year to R2.53 trillion in 2029/30,” the Minister told Parliament.

Delivering the Medium-Term Budget Policy Statement (MTBPS), Godongwana said the South African Revenue Service (SARS) continues to strengthen revenue administration and improve compliance.

He added that SARS is playing a key role in government’s efforts to combat the illicit economy, particularly the illegal alcohol and tobacco trades.

“Through customs and excise modernisation, which includes enhanced cargo scanning, track-and-trace capabilities, and stronger frontline enforcement, SARS is disrupting the networks that enable illicit trade.

“We will provide a more detailed update on the National Illicit Economy Disruption Programme in the Budget next year,” the Minister said. –SAnews.gov.za

 

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Infrastructure reforms unlock projects worth more than R207 billion

Source: Government of South Africa

Infrastructure reforms unlock projects worth more than R207 billion

Government is redirecting spending from consumption to infrastructure investment in an effort to accelerate economic growth, expand productive capacity, and improve public services. 

“Infrastructure is a catalyst for economic growth and remains at the centre of government’s reform agenda. We are shifting spending towards productive investment that expands economic capacity, improves access to essential services and supports employment. Our goal is not simply to spend more, but to spend better.

“Every rand invested must deliver greater economic returns, attract private investment and improve the quality of life of South Africans,” Finance Minister Enoch Godongwana said on Wednesday.

The Infrastructure Finance and Implementation Support Agency (IFISA), announced by Finance Minister Enoch Godongwana in the February Budget, began operating on 1 April 2026.

It supports projects across all spheres of government, with a potential investment value of more than R207 billion.

Godongwana said these projects will help mobilise private capital and expertise, improve risk sharing and bring infrastructure projects to market faster. 

National Treasury said in its Medium-Term Budget Policy Statement (MTBPS) document that the infrastructure reform agenda supports this shift by strengthening the systems used to prepare, manage and deliver projects.

“Improving project preparation and implementation is a priority. This will reduce underspending, accelerate delivery and ensure that infrastructure investment translates into productive assets and better public services.

“Reforms are also under way to mobilise private-sector finance and expertise, augmenting limited fiscal resources and state capacity. These measures will improve the efficiency of infrastructure investment and ensure that it delivers value for money,” Treasury said.

READ | Reform programme: “not abstract policy measures”

Public Private Partnerships 

Government is also fast-tracking the use of Public Private Partnerships (PPP), particularly in municipalities where infrastructure backlogs and service delivery pressures are most severe. 

Of the 68 projects currently in the PPP pipeline, 31 are municipal projects.

“A major milestone has been reached with the submission of the amended Municipal PPP Regulations to Parliament for the required 30-day scrutiny period. This is the final step before implementation,” Godongwana said.

The new regulations will simplify processes, reduce transaction costs and make it easier for municipalities to partner with the private sector to deliver infrastructure and services.
Furthermore, the Budget Facility for Infrastructure (BFI) is delivering results.

“The BFI ensures that scarce public resources are directed to well-prepared, implementation-ready projects. Fiscal support approved through the BFI now stands at more than R100 billion. 

“The infrastructure bond has raised over R14 billion since its inaugural issuance in December 2025. These funds are earmarked for projects in the BFI pipeline,” he said.
Godongwana encouraged more public institutions to make use of the BFI when developing large infrastructure projects. 

“Where additional support is required, IFISA [Infrastructure Finance and Implementation Support Agency] stands ready to assist with project preparation and the development of funding proposals.

“We are already working with institutions in the criminal justice system, in particular the police, to prepare projects for future BFI windows,” he said.

The Minister emphasised that infrastructure delivery is not only about building new assets, saying it’s also about protecting and maintaining the assets we already have.

“Every maintenance project deferred today becomes a larger repair bill tomorrow. Better project selection, stronger implementation capacity, improved asset management and effective partnerships with the private sector will ensure that infrastructure investment translates into faster growth, more jobs and better public services.

“Our task is clear: build faster, maintain better and attract private investment. Above all, we must ensure that every rand invested in infrastructure works harder for the people of South Africa,” he added.

Infrastructure Conditional Grant Review

Godongwana announced that government is reforming the infrastructure grant system to strengthen planning, accountability and oversight. 

This follows the government completing a review of infrastructure grants to provinces and municipalities.

Between 2017/18 and 2023/24, national government transferred R887 billion through infrastructure conditional grants to provinces and municipalities, which the Minister said was a substantial investment.

“The review assessed whether these grants are delivering infrastructure and improving service outcomes. The findings were clear. While most funds are spent, projects are often delayed, incomplete, or fail to deliver the intended benefits. 

“Conditional grants are exactly that, conditional. Funds must be used for their intended purpose and approved projects. Transferred funds must result in completed projects, functional infrastructure and reliable services for communities,” he said. –SAnews.gov.za

 

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Treasury tackles debt

Source: Government of South Africa

Treasury tackles debt

National Treasury has set its focus on further reducing South Africa’s debt-to-GDP ratio over the rest of the decade by continuing to grow the primary surplus and narrowing the budget deficit.

This after achieving debt stabilisation at 78.4% of Gross Domestic Product (GDP) in 2025/26.

“Government is on course to achieve these objectives, despite heightened global volatility.

“Lower debt levels will reduce borrowing costs and improve investor sentiment, supporting higher public and private investment, and stronger growth and job creation,” the department’s Medium Term Budget Policy Statement read.

National Treasury noted that the fiscal framework has remained resilient, despite “financial market volatility, heightened economic uncertainty and global price shocks” due to the Middle Eastern conflict.

“Main budget fiscal balances for 2025/26 outperformed 2026 Budget estimates, mainly due to strong revenue collections and lower debt-service costs,” the MTBPS read.

Revenue collection

The 2026/27 estimated tax revenue collection has been revised upward by R17.1 billion, while petroleum royalties are revised up by some R6.8 billion.

Additionally, departmental revenue is also expected to rise by R14.3 billion.

“In total, tax and non-tax revenue and National Revenue Fund receipts are R54.1 billion above the 2026 Budget estimate.

“This outcome will support a pipeline of infrastructure projects approved through the Budget Facility for Infrastructure, alleviate some spending pressures and increase the contingency reserve, mitigating risks to the framework.

“Debt-service costs, as a proportion of main budget revenue, stabilised at 21.3% in 2024/25 and are projected to decline to an average of 20.6% over the MTEF [Medium-Term Expenditure Framework] period, but remain stable as a share of GDP,” the statement read.

Fiscal strategy

Having stabilised the gross debt, intensified attention is aimed at growing the main budget surplus and reducing the debt-to-GDP ratio over the rest of the decade.

Government will:

  • Support the economy through prudent fiscal policy and increased capital investment.
  • Improve value for money in public spending by conducting programme reviews and implementing their recommendations, while protecting the social wage and directing a growing share of spending towards capital investment.
  • Reduce debt-service costs as a share of revenue, while managing debt redemptions.
  • Propose a principles-based fiscal anchor to entrench fiscal sustainability.

“The growing primary surplus will ensure that the ratio of gross debt to GDP declines. This will reduce debt-service costs as a share of revenue, opening space for government to allocate more resources to developmental priorities and to build buffers against fiscal shocks.

“The main budget deficit of 3.7% of GDP in the current year is forecast to decline to 2.5% in 2029/30. The narrowing deficit will enable government to better manage maturing debt,” the MTBPS explained.

The department emphasised that improving government’s spending efficiency remains a top priority, “supported by budget reforms, programme reviews and efficiency measures”.

“These efforts have yielded R38.1 billion in targeted and responsible savings that are being redirected to priority spending areas over the MTEF period.

“The Early Retirement Programme aims to rejuvenate the public service and will generate estimated average annual savings of R4.4 billion over the next three years. The findings of government’s ghost worker investigations are being consolidated and will be published in the 2027 Budget,” the MTBPS stated. – SAnews.gov.za

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South African economy shows resilience despite global shocks

Source: Government of South Africa

South African economy shows resilience despite global shocks

Government’s commitment to ensure economic progress is bearing fruit. 

The after the past few years has seen the country on the back foot of the effects of state capture, the COVID-19 pandemic, low growth as well as rising expenditure and debt.

This is according to Finance Minister Enoch Godongwana, who delivered the Medium-Term Budget Policy Statement (MTBPS) in Parliament on Wednesday.

Godongwana noted that damage from stringent challenges “demanded that we change course”.

“Government committed itself to move away from fiscal fragility towards one of stable, credible and sustainable public finances. We limited bailouts of state-owned entities, funded new commitments responsibly and prioritised investment over unsustainable consumption. 

“Before this very house, we were honest about the choices before us. We made it clear that government could not fund every demand at once without risking the country’s fiscal future. 

“Today, that commitment is beginning to pay off,” Godongwana told Parliament.

Importantly government began to address debt, ultimately stabilising debt in the 2025/26 financial year. 

“Debt as a percentage of GDP [gross domestic product] is now falling, creating a stronger foundation for investment, growth and job creation. 

“Earlier this year, all three major global credit rating agencies announced positive rating actions on South Africa, despite a challenging global environment.

“The fiscal space created through disciplined budgeting allows us to protect frontline services, preserve the jobs of teachers, doctors and nurses, while protecting the social wage for the most vulnerable,” the Minister stated.

Economic outlook

Godongwana noted that South Africa’s risks to the outlook remain elevated due to various issues.

“A prolonged conflict in the Middle East, alongside El Niño and its likely impact on producer costs and output, could further weaken domestic growth.

“Domestic economic activity has already lost some momentum, especially in export-linked sectors. We now forecast real economic growth of 1.2% in 2026, down from the 1.6 % projected in February,” he stated.

In 2027, growth is expected to bounce to 1.6%, rising to 2% by 2029.

Despite the challenging times, the South African economy has shown resilience backed by fiscal discipline and a lower inflation target, 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,” he acknowledged.

To address that, sharp focus is being placed on implementing structural reforms together 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,” Godongwana stated.

Fiscal strategy

The Minister stated that South Africa’s fiscal strategy rests on four main pillars, namely: 
•    Supporting growth through prudent fiscal policy and increased capital investment; implementing structural reforms
•    Improving value for money by driving efficiencies, reducing waste and prioritising spending that delivers results; supporting growth-enhancing public infrastructure investment
•    Reducing debt-service costs while managing the debt burden responsibly
•    Embedding fiscal sustainability through a principle-based fiscal anchor

“This strategy remains on course. In fact, it is already yielding results. 

“For the first time in nearly two decades, our debt-to-GDP stabilised at 78.4% of GDP in 2025/26,” the Minister stated.

The primary surplus, where government revenue exceeds non-interest spending, also continues to grow.

“We are increasing it from 1.7 % of GDP this year to nearly 3% by 2030. This will allow us to reduce borrowing, contain debt-service costs and create more space for growth-enhancing investment and essential public services. 

“The budget deficit is also better than we expected in February. 

“It will now narrow to 4.3% of GDP this year compared to the 4.5% forecast at the time of the Budget. By 2030, we see the deficit falling to 2.5% of GDP,” he said.

Ensuring sustainability

The National Treasury describes fiscal sustainability as the ability of the state, under reasonable macroeconomic and fiscal assumptions, to “meet its present and future expenditure and debt-service obligations and to manage its fiscal risks, without undermining macroeconomic stability and without requiring an unrealistically large or abrupt future correction to revenue or expenditure”.

In response to this, Godongwana stated that to safeguard the advances made, government has released the draft fiscal anchor legislation for public comment in October, with the expectation that it will be tabled in Parliament next year.

The anchor is aimed at embedding prudent management of the public finances across administrations.

“The proposed legislation sets out fiscal sustainability as a standard into the Public Finance Management Act instead of a rigid numerical rule.

“It requires each Administration [following every General Election] to commit to its own fiscal objectives, consistent with the electoral mandate. It then reports against it at every Budget and explain any material deviation to Parliament.

“Fiscal sustainability cannot depend on the commitments of a single administration,” the Minister said.

In this regard, the Financial and Fiscal Commission will be responsible for independently reporting on the “consistency of the fiscal framework with the administration’s fiscal plan”.

“This approach preserves flexibility in changing economic conditions while strengthening transparency, accountability and fiscal discipline. 

“Most importantly, it helps to ensure that developmental priorities and constitutional obligations are pursued at a pace that public finances can sustain. 

“That is how we protect our economic future and our constitutional commitments. – SAnews.gov.za

 

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Finance Minister announces fuel levy relief

Source: Government of South Africa

Finance Minister announces fuel levy relief

Consumers will breathe a sigh of relief, following Finance Minister Enoch Godongwana’s announcement of a reduction in the general fuel levy.

The Minister made the announcement during the Medium Term Budget Policy Statement (MTBPS) delivered in Parliament on Wednesday.

Fuel increases have put strain on households and businesses, with petrol and diesel costs reaching record highs due to increases in Brent Crude Oil prices triggered by conflict in the Middle East.

“To provide temporary relief, the fuel levy will be reduced by R3 per litre for diesel and R1.50 per litre for petrol from 4 November 2026 up until to 1 December 2026. 

“Thereafter, the relief will continue at a lower amount until 5 January 2027. The diesel levy will be reduced by R1.50 per litre, and the petrol levy by R1 per litre,” Godongwana stated.

These measures are expected to provide R10 billion in support for households and businesses at a fiscal cost of R10 billion in foregone revenue.

The origin is revenue overruns from 2025/26 placed in an appropriation bill to be allocated to the CEF [Central Energy Fund] … It will be surrendered back [to] be used to offset the costs of the fuel levy relief. The cost will be fully accommodated.

“To fund this support, the R10 billion that was transferred to the Central Energy Fund will be returned to the National Revenue Fund to finance this relief.

“This intervention will help to ease cost of living pressures without compromising the sustainability of the budget,” the Minister explained.

Currently, 95 Petrol costs some R30.25 inland and R29.38 at the coast per litre. – SAnews.gov.za

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