Category: South Africa Government

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Address by President Cyril Ramaphosa at the Opening of the National House of Traditional and Khoi-San Leaders, Good Hope Chamber, Parliament

Source: President of South Africa –

Chairperson of the National House of Traditional and Khoi-San Leaders, Kgosi Seatlholo: Rapulana!
Deputy Chairperson of the National House of Traditional and Khoi-San Leaders, Nkosi Langa Mavuso: Ah! Zwelidumile,
Your Majesties, Kings and Queens, 
Chairperson of the National Council of Provinces, Ms Refilwe Mtsweni-Tsipane,
Speaker of the National Assembly, Ms Thoko Didiza,
Minister of Cooperative Governance and Traditional Affairs, Mr Velenkosini Hlabisa,
Ministers and Deputy Ministers,
Premiers,
Chairpersons and Deputy Chairpersons of Provincial Houses of Traditional and Khoi-San Leaders,
The President and Deputy Presidents of Contralesa and Rolesa,
Representatives of Khoi and San Communities present,
Members of the Commission on Khoi-San Matters,
Leaders of political parties,
Representatives of Chapter 9 Institutions,
Directors-General and officials,
Distinguished guests,
Ladies and gentlemen. 

It is my honour to address the National House of Traditional and Khoi-San Leaders on the tasks and priorities of our nation for the year ahead. 

As I begin, I wish to honour the memories of traditional leaders that we have recently lost. 

We remember with reverence Kgosi Bogosieng Mahura of Batlhaping ba ga Phuduhutswana in the Northern Cape, who passed away in December. 

A few days ago, we laid to rest Hosi Dr Tinyiko Lwandlamuni N’wamitwa of the Valoyi Traditional Community in Limpopo. 

These and other departed leaders leave behind towering legacies that we should nourish, sustain and build upon. 

The institution of traditional leadership forms the sturdy roots that hold the great tree of our nation up. Traditional leadership is the institution that anchors us in history. It nourishes us with identity. It stabilises us when storms rage. 

In many of the provinces across our country, traditional leaders remain enablers of social cohesion, mediators of conflict, guardians of land and transmitters of culture. Long before the formal architecture of the modern state, there were systems of cogent accountability rooted in consensus and community. 

As the custodians of many of our cultures, customs and shared values that are the source of our nation’s strength, you hold the soil together, anchor the trunk and help us grow taller. Without strong roots, a nation cannot stand. 

It is you who our people turn to in times of uncertainty and upheaval, and on whom they rely for guidance and wisdom that has been passed down through the ages and generations. 

As such, traditional leaders are indispensable partners as we work to improve our economy and the lives of every South African man, woman and child. 

In the State of the Nation Address two weeks ago I outlined the national priorities of the Government of National Unity for the year ahead. 

I called on all of society – including traditional leaders – to marshal their energies, resources and talents towards our collective goals. 

The country is in a much better position than it was a year ago. But our challenges are many and our difficulties are deeply embedded in our past. 

Joblessness, especially among young people, is rife across the country. But its effects are most severe in rural communities. 

With limited access to opportunities in villages and small towns, many young people migrate to urban centres in search of work. 

This affects the local economy and weakens the social fabric. Young people become disconnected from customs and leadership structures. 

The service delivery challenges in local government are felt particularly hard in rural areas. 

Where roads are poorly maintained, farmers cannot transport their goods to towns. Schoolchildren and the elderly have to travel long distances to get to clinics and schools, costing them money that is already in scarce supply. 

Rural areas are increasingly water-stressed. When the taps are dry, it doesn’t only affect households, but small-scale and communal farmers who rely on water to till the land, grow crops and sustain their livestock. 

The effects of climate change are worst in rural areas, as we saw with the recent floods in parts of Limpopo, Mpumalanga and KwaZulu-Natal. 

Extreme weather such as floods and droughts affect crop yields and the condition of livestock herds. 

As communities rooted in land and tradition, there is much we should learn from traditional communities as we approach these challenges. 

When we launched the District Development Model, we said that development plans must be informed by engagement with communities. 

We have sought through this model to align planning and service delivery across the country’s districts and metros. 

We continue to work with traditional leaders to gain an understanding of the conditions in their communities, of their specific needs and priorities, and to undertake development that is responsive to these realities. 

One area where we are seeing impact is in our efforts to support youth development in rural communities is through public employment. 

The Presidential Employment Stimulus has to date created over 2.5 million work and livelihood opportunities for young people, including in rural areas. 

The Social Employment Fund continues to support agricultural interventions for smallholder farmers, including skills development, training in sustainable farming practices and access to markets. 

The National Rural Youth Service Corps, commonly known as NARYSEC, is having a positive impact on the lives of rural youth. 

Last year, many young people in rural areas graduated from this programme, having received training in agriculture, construction, IT, hospitality and other areas. 

Agriculture is the lifeblood of rural communities. 

In the State of the Nation Address, I outlined the steps we are taking to support farmers and improve agricultural productivity across the country. 

We will continue to provide innovative funding to black producers, with the support of the Land Bank and commercial banks. 

As we look to new markets for our agricultural exports, we want to ensure that a citrus farmer from Xitlakati village in Giyani and a poultry producer from Malangeni in Umdoni in KwaZulu-Natal have the same opportunities to expand their businesses as an established commercial farmer. 

That is why this year we will be deploying 10,000 new agricultural extension officers across the country to provide technical support to both smallholder and commercial farmers. 

We will also be consolidating the training funded by the AgriSETA to bring more young people into the agriculture sector. 

The foot-and-mouth disease that is wreaking havoc on farming operations across the country has not left small-scale farmers untouched. 

As we procure the vaccines we will use to vaccinate the national herd, we will ensure that communal and small-scale farmers have access to them. 

The mineral riches beneath the soil of the lands under the stewardship of our traditional leaders must be harnessed for the benefit of the communities. 

With some of the world’s largest reserves of critical minerals lying beneath our soil, government has dedicated funding to mapping our reserves and undertaking exploration.

Our progressive legal and regulatory frameworks have sought to ensure that mining activity does not result in environmental degradation, displacement or loss of livelihoods. 

In some cases, rural communities have benefited from these developments, but in far too many instances they have not. 

As we work to harness the potential of our critical minerals, government and traditional leaders must work together to ensure that these resources create jobs and businesses in the areas where they are mined.

We are determined that our minerals should be processed and beneficiated where they extracted, so that we export finished goods, not raw materials.

South Africa’s natural endowments must be harnessed for the benefit of those who live on and work the land. 

The service delivery challenges at local government level are severely affecting communities under the stewardship of traditional leaders. 

One of the greatest problems is water. 

In the State of the Nation Address, I outlined our plans to invest more than R156 billion for water and sanitation infrastructure over the next three years. 

Many projects to supply water to rural areas are either underway or about to commence. 

From the Moretele North-Klipvoor Bulk Water Scheme in the North West and Limpopo, to the Ntabelanga Dam on the uMzimvubu River in the Eastern Cape, to the Mandlakazi Regional Bulk Water Scheme in KwaZulu-Natal, we are investing in securing water for generations to come. 

We have embarked on a comprehensive review of the White Paper on Local Government. 

This review is an opportunity for us to reimagine the architecture of our local government, including how it interfaces with and provides a role for the institution of traditional and Khoi-San leadership. 

We are proposing a more structured cooperation between municipalities and traditional and Khoi-San leadership institutions. 

We know that we can rely on the wise counsel and lived experiences of our traditional leaders to help in repositioning our local government to better serve the needs of our people. 

As we seek to strengthen our local government system we know that the dual governance approach – of both municipal and traditional bodies – can create friction. 

As we address the challenges that our local government structures are going through we need to establish structured engagement platforms with municipal leadership and ensure that our traditional leaders are involved in the reform process.

Our traditional leaders by definition are development-oriented. 

As the custodians of the most valued asset of our people, which is land, they need to use it as a most strategic lever. 

We all know that the land question should be addressed and that communal land which is central to rural development should be managed transparently through effective and equitable allocation systems.

These systems must prevent elite capture of scarce land that has economic value in areas such as mining and tourism or as commercial land. 

We need to be clear that land-use and ownership rights should be fairly availed to our people as in households, as was the case in the past, to cooperatives, women and youth with a view of promoting productive land use for agriculture, agro-processing and eco-tourism. 

We are pleased that the processing of the Traditional and Khoi-San Leadership Bill is proceeding at a good pace in preparation for its re-introduction in Parliament. 

As you would recall, we previously reported that the Independent Commission on the Remuneration of Public Office Bearers had conducted a comprehensive review of the salaries and benefits of public office bearers, including traditional leaders. 

Upon consideration of the report that the Commission had submitted to me, I found it necessary to refer it back to the Commission to provide further clarity on some critical aspects. We will be communicating any updates on this matter through the Ministry of Cooperative Governance and Traditional Affairs. 

The establishment of the Kings and Queens Forum has been one of the most significant developments in recent years. 

I have been advised of the successful engagements that the Forum had in December last year with a range of stakeholders and partners, where their Majesties discussed how they could best work together with other role players to advance the needs of the communities under their jurisdiction. 

When we last met, South Africa had just begun its Presidency of the G20, which culminated in the G20 Leaders’ Summit in November last year. 

We were gracious and worthy hosts and our remarkable hospitality is still being commended by world leaders. 

We are grateful for the active role that traditional leaders played in the Disaster Risk Reduction Ministerial Working Group and the G20 Social Summit, and for the broader contribution to the overall success of our G20. 

Let me also commend the House on the important work it has embarked on in partnership with government and other stakeholders. These include work with Habitat for Humanity, the Al-Imdaad Foundation, the National Heritage Council, the Hendrietta Bogopane-Zulu Foundation, and others. 

These partnerships remind us: when we walk together, we walk far. 

The House must be applauded on the launch of the Lenaka Memorial Lectures that honour and celebrate the sterling contributions of past and current traditional and Khoi-San leaders in development. 

As we reflect on the work of those who have come before us, we must accept our responsibility to confront some of the challenges of the present. 

We must act together to end the death and injury of our young men during customary initiation. 

I am aware of Minister Hlabisa’s efforts in collaboration with traditional leaders to promote safe initiation practices. 

Let us give these interventions our all so that we can restore this profound cultural practice to its proper place in the life of our people. 

We must work together to end gender-based violence and femicide. 

Government has classified GBVF as a national disaster so that we can better focus and coordinate the work we must do across government and across society. 

As the custodians of our culture, heritage and values, traditional leaders must be at the forefront of the effort to end violence against women and children. 

As leaders of communities, traditional leaders can take a firm stance against those attitudes and practices that enable such violence. 

We are a nation that succeeds when we work together to find solutions. 

We must take advantage of the opportunity presented by the National Dialogue to fix the challenges our country faces. 

It is vital that traditional communities are involved in the dialogues that will take place across the country during the course of this year. 

We are pleased that traditional and Khoi-San leaders are well represented in both the Eminent Persons Group and the National Dialogue Steering Committee. 

Our great nation is rising once more from the ashes of a difficult past. 

We have endured a global pandemic, civil unrest, devastating natural disasters, an energy crisis and other great challenges. 

But we are making progress and we are recovering. 

We must join hands and work together for the betterment of our villages and towns, for our communities, and for our country as a whole. 

As our valued partners in governance, we will continue to rely on your guidance, your wisdom and your support. 

And as our traditional leaders you must be a partner in shaping the future. As we open this gathering, let us reflect on a simple but enduring image I alluded to at the beginning: 

A great tree does not grow separately from its roots.

It depends on them. And roots do not resist growth. They enable it 

May this House continue to be a stabilising force in our democracy and national life.

As our traditional leaders you must remain custodians of dignity and cohesion.

And may you help lead the renewal of our rural economies, the empowerment of our youth, and the strengthening of our social fabric. 

Because when the roots are strong, the nation stands firm. 

I now declare this third session of the sixth House of Traditional and Khoi-San Leaders officially open. 

I thank you. 

Pula!
 

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KZN Finance MEC welcomes fiscal discipline in National Budget

Source: Government of South Africa

KZN Finance MEC welcomes fiscal discipline in National Budget

KwaZulu-Natal MEC for Finance Francois Rodgers has described the 2026 National Budget as a critical step towards restoring South Africa’s financial credibility.

Presenting the 2026 Budget Speech in Parliament on Wednesday, Finance Minister Enoch Godongwana announced that public debt is projected to stabilise at 78.9% of Gross Domestic Product (GDP) in 2025/26 before declining over the medium-term.

READ | Finance Minister Enoch Godongwana: 2026 Budget Speech

The budget deficit is expected to narrow to 4.5% of GDP, with further reductions projected to decline to 2.9% in 2028/29.

Rodgers welcomed the budget’s strong emphasis on fiscal discipline and debt stabilisation.

“It is encouraging that the country is taking debt seriously. Every rand saved on interest is a rand that can be redirected to critical service delivery,” Rodgers said.

Stabilising public finances, he said, is essential for the protection of future generations and creating an environment conducive to economic growth.

The MEC also welcomed targeted tax relief measures aimed at supporting small businesses. These include an increase in the VAT registration threshold from R1 million to R2.3 million, as well as capital gains tax relief that raises the Capital Gains Tax (CGT) exemption on the sale of a small business from R1.8 million to R2.7 million.

However, Rodgers expressed concern that the budget offers limited relief for provincial frontline departments, such as Health, Education and Social Development, which have faced sustained pressure due to reductions in the equitable share over the years.

“In KZN, equitable cuts from National Treasury amount close to R80 billion over the past nine years. This is amid increases in expenditure items,” the MEC said.

Rodgers also urged Godongwana to urgently pursue the taxation of online gambling, arguing that it presents a viable opportunity to generate additional revenue for improved service delivery. – SAnews.gov.za

GabiK

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Cape Town, Stellenbosch and Plettenberg Bay rake in international visitor money

Source: Government of South Africa

Cape Town, Stellenbosch and Plettenberg Bay rake in international visitor money

Data from payment provider, Yoco, shows that during December 2025, Cape Town, Stellenbosch and Plettenberg Bay accounted for 67% of all international visitor payments across the country.

This translates into R500 million flowing into local businesses and protecting and creating jobs, said Western Cape Premier Alan Winde, who delivered the Western Cape State of the Province Address on Wednesday.

“This is a Cape Town pastry chef who gets a permanent role in a new bakery. This is a Stellenbosch wine guide who can pay off his student loan. This is a mountain bike mechanic in Plett who can make the final payment on his business loan,” said the Premier.

He said as the country has been taken off the grey list, fuel prices are down, inflation is down, and the Rand is stronger than it has been in years. The green shoots of economic revival were most welcome in the Western Cape where economic growth doubled over the last five years.

“Nearly 90% of all net jobs created in South Africa over the last five years were created right here in the Western Cape. That means of the 404 712 total net jobs created, 360 347 of them come from this province.”

Winde said growth and jobs were the cornerstone of the province’s vision, because “nothing fixes a life like a job, nothing builds dignity like a job, and nothing puts food on the table like a job”.

He said 93 000 new jobs were created in the province in the last quarter and unemployment is now down to 18.1%, the lowest in South Africa.

“Since 2022, the number of small businesses has grown by 143 119. That is 55% growth, compared to only 18% nationally. The Western Cape Government supports this growth by cutting red tape and providing tailored business support.”

The SME Accelerator Support programme partners with the Johannesburg Stock Exchange to strengthen the investment readiness of small businesses. The programme recruited over 200 businesses with funding readiness support and matched 115 of these businesses directly with a range of funders over the past two years.

The province launched an inaugural TechTalks series, where 150 businesses obtained practical guidance on technology adoption, notably AI, helping small businesses harness innovation for growth.

“In aerospace, 20% of all satellites circumnavigating the world have components made right here in the Cape. The Western Cape has a booming boatbuilding industry producing vessels with cutting edge tech.

“The Western Cape is also front-and-centre in driving the revitalisation of the country’s ailing logistics sector. Our government fully supports Operation Vulindlela as a critical national reform programme to unlock economic growth, create jobs, and modernise the country’s economy.”

Winde welcomed measures that will relax competition rules for the country’s rail and port networks.

“Steps to return efficiency to the Port of Cape Town by investing in critical infrastructure are much needed and long overdue. The Western Cape Government will welcome private sector operators and investors with open arms to achieve this,” he said.

Further support is offered to jobseekers through the provision of free Wi-Fi at 1 600 sites across the province. By December 2025, the network had almost wis million subscribers.

After a successful, inaugural Western Cape investment summit last year, with a multi-billion Rand deal book, Winde said he was delighted to announce that five projects were now nearing financial close.

The following is set to be announced this year:
-R600 million in the green hydrogen industry;
-R1.8 bn in the manufacturing sector;
-R105 million in the tech industry;
-R250 million in the green economy (EV) and
-R400 million in the solar energy sector.

“These projects will create thousands more jobs for our residents. That is thousands more families with food on their table and a roof over their heads.” – SAnews.gov.za
 

Janine

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Public warned against consumption of washed-up lobster and fish

Source: Government of South Africa

Public warned against consumption of washed-up lobster and fish

The Department of Forestry, Fisheries and the Environment (DFFE) has warned members of the public that washed-up lobster and fish are not safe for human consumption.

The department has confirmed that red tide conditions along Elands Bay in the West Coast have resulted in large marine walkouts and mortalities, including significant numbers of West Coast Rock Lobster (kreef) and other fish species in and around Elands Bay.

“The time of death of these cannot be confirmed. Exposure to algal toxins and bacterial contamination poses a serious health risk. Consumption may result in severe illness or death. Members of the public are urged not to collect, sell or eat any stranded marine animals,” the department said in a statement.

The department has urged the South African Police Service (SAPS) and other agencies to assist in monitoring the situation to ensure that there is order within the community.

The department has, since yesterday morning, activated the West Coast Rock Lobster Walkout Contingency Plan. Officials from the department, in collaboration with various national, provincial and local authorities, will do the following:

• Remove and relocate live lobsters to areas with stable oxygen levels.

• Collect and dispose of dead marine life.

• Monitor oxygen levels and algal activity.

• Conduct scientific assessments of affected stocks. – SAnews.gov.za

Edwin

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Call for health research that tackles root causes of disease

Source: Government of South Africa

Call for health research that tackles root causes of disease

Higher Education and Training Deputy Minister, Nomusa Dube-Ncube, has called for a new generation of health science research that goes beyond diagnosing disease, to confronting and dismantling the systems that sustain illness and inequality.

Speaking at the launch of the Regenesys School of Health Sciences in Sandton, Johannesburg, Dube-Ncube emphasised that the future of health science must be intersectional, decolonised, context sensitive, and justice centred.

“We need research that goes beyond disease diagnosis, but one that dismantles the systems that perpetuate them. The future of health science cannot afford to be reductionist or narrow,” Dube-Ncube said.

Launched on Tuesday, the Regenesys School of Health Sciences aims to integrate artificial intelligence (AI) and innovation into healthcare education, preparing leaders to address system challenges. The initiative is designed to tackle health challenges by training professionals in modern, technology-focused healthcare, complementing existing nursing and curative practices.

Addressing academics, industry leaders and students, the Deputy Minister noted that the department’s presence at the event signalled its commitment to partnership in advancing the Post-School Education and Training (PSET) sector.

She acknowledged that private institutions often face scepticism rooted in the perception that “private means profit first before people”. However, she said the responsibility lies with institutions such as Regenesys to dispel the notion by following every regulation and guideline to the tee, as provided by the department.

“Your actions and diligence in following the rules will help inspire the youth that sit despondent at home and the students that have marked you as their institution of choice,” the Deputy Minister said, stressing that government’s willingness to work with private institutions would never compromise compliance standards.

The department’s vision for the future of education includes expanded blended learning models, improved access and a more futuristic, skills-based approach to education.

This, she said, is essential in a rapidly changing world, where technological shifts are reshaping industries and professions.

“For us who are in decision making positions, the posture we hold for the desire of the future must be aligned with what we think will be good for the future and most importantly, the youth of this country,” Dube-Ncube said.

South Africa’s medical doctors and research community were lauded globally during the COVID-19 pandemic, with local scientists and clinicians recognised among the best in the world.

“That is something that we should celebrate and ensure that it is increased and guarded jealously through the improvement of the education offered. We must always aim higher.”

She said the country carries the disproportionate burden of disease, communicable and non-communicable, compounded by poverty, malnutrition, unemployment, gender-based violence (GBV) and deep systemic inequality.

The Deputy Minister expressed hope that students emerging from the new medical school would bridge “the chasm between data and dignity, between publications and lived realities.”

Strengthening private-public partnership

Dube-Ncube also underscored the importance of public-private partnerships in tackling South Africa’s challenges. She said government is committed to strengthening linkages with industry to reduce graduate unemployment and to foster innovation.

“We need a multi-sectoral approach to solve South Africa’s crises — be it in education or healthcare. It is imperative that the approach to this be honest and impassioned because the task that lies ahead of us, whether you are in government or in the private sector, is to think beyond the confines of your own industry and sector,” the Deputy Minister said.

Drawing on international experience, including engagements with education systems in China and Hungary, the Deputy Minister highlighted the transformative role of technology in improving access and quality while striving for equity. – SAnews.gov.za

GabiK

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Eskom notes Sibanye Stillwater high court judgement

Source: Government of South Africa

Eskom notes Sibanye Stillwater high court judgement

Eskom is studying the high court judgement brought by Sibanye Stillwater and others, setting aside the power utility’s refusal of Sibanye’s wayleave application to develop a 50MW behind the meter Photovoltaic (PV) power plant to supply electricity to Sibanye’s Kloof Mine.

“Eskom notes the judgment delivered by Adams J on 18 February 2026 in the High Court of South Africa, Gauteng South Division, in a matter brought by Sibanye Stillwater and others (“Sibanye”).

Eskom’s intention was always to facilitate Sibanye’s wayleave application by ensuring it met the applicable regulatory requirements that maintain the continued safety, stability and reliability of the national network, and to provide a consistent application of the rules,” the power utility said in a statement on Wednesday.

The power utility said it had raised concerns before the High Court, including safety considerations, in its discretion to refuse the wayleave application, as well as its statutory obligations.

“All these concerns were communicated to Sibanye as part of the reasons for declining Sibanye’s application. However, the High Court found in Sibanye’s favour.”

“The intention was to connect the PV plant to a section of the Kloof substation owned and operated by Sibanye, via a six-kilometre power line which will cross Eskom’s 132kV distribution lines.  This required Eskom’s consent as it holds a servitude over the property where Sibanye wanted to build a power line to connect to its Kloof substation,” said Eskom.

Thereafter, Sibanye brought a review application under the Promotion of Administrative Justice Act (PAJA) to set aside Eskom’s refusal to grant it the wayleave and substitute with an order granting its application.

“Eskom is studying the judgment and its implications and will determine the appropriate next steps following consultation with its legal advisors. In the meantime, Eskom is within its timeframes as contemplated by the law to appeal the judgment,” it said. 

Medupi Power Station Flue Gas Desulphurisation assessment

Meanwhile, Eskom has released the draft Medupi Power Station Flue Gas Desulphurisation  assessment for public comment.

“Eskom has released the draft Cost Benefit Analysis (CBA) report on flue gas desulphurisation (FGD) at Medupi Power Station for public comment. This follows the directive issued by the then Minister of Forestry, Fisheries and the Environment, Dr Deon George, on 31 March 2025, which requires Eskom to conduct and make publicly available an updated assessment for input from interested parties,” the power utility said.

The power station is located in the Limpopo province.

The assessment was undertaken by an independent service provider to support an open, evidence based process that will assist the Ministry in reviewing the matter.

“The draft report, along with a non technical summary, will be open for public comment from 24 February to 26 March 2026. Communities, environmental groups, industry representatives, government institutions and all other interested and affected parties are encouraged to review the documents and share their feedback,” it said. 

Copies of the draft reports will be available on the Eskom website at https://www.eskom.co.za/eskom-divisions/gx/emissions-standards/  
–SAnews.gov.za

 

Neo

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Deputy Minister Mhlauli to join Politically Aweh online Family Meeting

Source: President of South Africa –

The Deputy Minister in The Presidency, Ms Nonceba Mhlauli, will participate in an online Family Meeting hosted by Politically Aweh on Thursday, 26 February 2026.

The session forms part of an open and youth led dialogue platform that creates space for direct engagement between young South Africans and public leaders. The Deputy Minister will engage on issues affecting young people, including youth unemployment, opportunities available through government programmes, the future of South Africa’s economy, and broader political questions raised by participants.

The discussion follows heightened interest from young people on economic reform, the upcoming local government elections, and global developments such as South Africa’s role in the G20. The Deputy Minister will respond to questions submitted live during the session and engage in a candid conversation focused on accountability, participation and solutions.

Members of the public, particularly young people, are encouraged to register and participate.

Event details:

Date: Thursday, 26 February 2026
Time: 18:00 to 19:00
Platform: Zoom Webinar
Registration Link: https://us06web.zoom.us/meeting/register/6Ps-Fo2zTC20B86nZRrSeQ#/registration

The online Family Meeting provides an opportunity for young people to speak directly to decision makers and contribute to shaping the national conversation on youth development, employment and governance.
 

Media enquiries: Ms Mandisa Mbele, Office of the Deputy Minister in The Presidency, on 082 580 2213 or mandisam@presidency.gov.za

Issued by: The Presidency
Pretoria

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President Ramaphosa to address Annual Opening of the National House of Traditional and Khoi-San Leaders

Source: President of South Africa –

President Cyril Ramaphosa will on Thursday, 26 February 2026, deliver the keynote address at the Annual Official Opening of the National House of Traditional and Khoi-San Leaders (NHTKL) at Parliament, Cape Town.

The address marks the official opening of the NHTKL and underscores the integral role of the institution of traditional leadership in advancing and deeping constitutional democracy. 

The collaboration and partnership between government and traditional leaders is rooted in the promotion of seamless integration of the traditional and democratic governance systems.

The NHTKL comprises traditional leaders who are delegates from the Provincial Houses of Traditional Leaders of South Africa and who represent the nine Provinces at national level.

The institution of Traditional and Khoi-San leadership is an important pillar of unity and cohesion in our democratic constitutional dispensation. 

As custodians of culture and heritage, Traditional and Khoi-San leaders promote the interests of citizens through their active participation in efforts to address the broader socio-economic challenges, especially those in traditional communities.

Invited guests include Kings and Queens, Cabinet Ministers and Deputy Ministers, Members of Executive Councils (MECs) responsible for Traditional Affairs, Chairpersons and Deputy Chairpersons of Provincial Houses, CONTRALESA, royalities, representatives from business and religious sectors, NGOs, Chapter 9 Institutions, the National Khoi-San Council, and delegations from SADC countries.

The President’s address will be as follows:

Date: Thursday, 26 February 2026
Time: 10h00
Venue: Good Hope Chamber, Parliament, Cape Town
 

Media enquiries: Vincent Magwenya, Spokesperson to the President 
media@presidency.gov.za

Issued by: The Presidency
Pretoria

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Deputy President Mashatile to officiate the launch of the Strategic Hydrogen Localisation Investment Facility at Wits University

Source: President of South Africa –

Deputy President Shipokosa Paulus Mashatile will on Friday, 27 February 2026, officiate the launch of the Strategic Hydrogen Localisation Investment Facility, a landmark R100 million investment aimed at advancing South Africa’s hydrogen research, innovation and localisation capabilities, at the University of the Witwatersrand in Braamfontein, Johannesburg.

The Wits–South Africa Hydrogen Localisation Initiative (Wits-SAHLI) is a partnership between Air Liquide South Africa, the University of the Witwatersrand (Wits University), and the Localisation Support Fund.

Funded by Air Liquide South Africa, the R100 million initiative seeks to strengthen South Africa’s research capacity and build local expertise to support the country’s just energy transition towards a low-carbon hydrogen economy.

The initiative represents a concrete step towards decarbonisation and sustainability, directly aligning with national and global commitments to build a low-carbon and sustainable society. It is designed to empower South African companies by creating direct opportunities to participate, innovate and grow within the hydrogen value chain through targeted development and industrial integration.

Wits-SAHLI will also pioneer research, development and the scaling of hydrogen technologies, bridging the gap between laboratory scale research and industrial scale implementation. The establishment of a modular pilot hydrogen plant on Wits University’s West Campus in particular will support applied research and teaching, enable on-campus testing of hydrogen applications, and provide a de-risked platform for industry partners to explore and scale hydrogen solutions.

Central to the initiative is fostering localisation by building competitive local industrial capacity and developing a tangible domestic supply chain for hydrogen components and services, thereby reducing reliance on imports.

Wits-SAHLI also represents a collaborative ecosystem that unites industry, academia and government in pursuit of a shared vision for South Africa’s energy transition.

The launch event will bring together Executive Leadership of Air Liquide, University leadership, industry partners, including representatives from Sasol, as well as Cabinet Ministers and key stakeholders across the energy, higher education and industrial sectors.

Deputy President Mashatile will be joined by the Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa and the Minister of Higher Education and Training, Mr Buti Manamela.

Members of the media are invited to cover the event as follows:

Date: Friday, 27 February 2026
Time: 08h00 – 12h30
Venue: Wits University, West Campus, Johannesburg

Media wishing to cover the launch event are requested to RSVP by submitting their full names, ID number and media house by 18h00 on Thursday, 26 February 2026, to Matome@presidency.gov.za or 082 318 5251.

Media enquiries: Mr Keith Khoza, Acting Spokesperson to the Deputy President on 066 195 8840

Issued by: The Presidency
Pretoria

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Finance Minister Enoch Godongwana: 2026 Budget Speech

Source: Government of South Africa

Finance Minister Enoch Godongwana: 2026 Budget Speech

Honourable Speaker, Thoko Didiza

Deputy Speaker, Annelie Lotriet

His Excellency, President Cyril Ramaphosa

Honourable Deputy President Paul Mashatile

Cabinet Colleagues

The Budget Council

The Budget Forum

Governor of the South African Reserve Bank, Lesetja Kganyago

Commissioner of the South African Revenue Service, Edward Kieswetter

Chairperson of the Financial and Fiscal Commission, Patience Mbava

Honourable Members

Fellow South Africans

I have the honour to table the following documents before this House:

The 2026 Division of Revenue Bill

The 2026 Appropriation Bill

The 2025/26 Special Appropriation Bill

The 2026 Estimates of National Expenditure

The 2026 Budget Review

The 2026 Budget Speech

Introduction

Honourable Members, we have reached an important turning point in the management of our public finances.

Five years ago, the outlook was stark.

State Capture had hollowed out critical institutions and weakened state owned entities.

South Africa had been downgraded to junk status by the last of the three major credit rating agencies in 2020.

The devastation of the coronavirus pandemic coupled with the Russia-Ukraine conflict had dealt a blow to global growth.

And in 2023, the Financial Action Task Force had placed South Africa on its grey list.

The warning lights were flashing.

Public finances were under severe strain and growth had stalled.

Faced with this crisis, we chose not to be defined by it. Instead, we turned it into a catalyst for change.

We committed to a clear reform agenda and a disciplined fiscal strategy built on three principles: stabilise debt, invest in infrastructure and spend better.

Today, that commitment has delivered tangible results.

For the first time in 17 years, debt will stabilise and it will continue to fall in the coming years.

The budget deficit has narrowed significantly, and debt-service costs are also falling.

The world has taken notice:

  • South Africa has been removed from the FATF grey list;
  • We secured our first credit rating upgrade in 16 years;
  • And borrowing costs have eased, creating space for growth and development.

These are signals of restored credibility. Of renewed resilience. And of a nation regaining its footing.

The lesson is a simple but powerful one: steady structural reform and responsible public finances are the bedrock of a prosperous and more inclusive South Africa. 

Economic Outlook

Honourable Members, allow me to turn to the global and domestic economic outlook.

Global outlook

The global economy is projected to grow by 3.3 per cent in 2026, broadly in line with last year’s outcome.

Advanced economies are expected to grow moderately, while emerging markets will continue to anchor global momentum. India and Sub-Saharan Africa in particular, are forecast to grow more strongly, supported by resilient domestic demand.

These developments are unfolding within an unprecedented global trade environment characterised by persistent geopolitical tensions and shifting trade policies which are reshaping supply chains.

In response we need to diversify our trading portfolios, secure new markets, reduce vulnerability to external shocks and position ourselves to benefit from emerging global growth centers.

Domestic outlook

On the domestic front, our growth outlook is steadily improving.

We project real economic growth of 1.6 per cent in 2026, an improvement from the 1.4 per cent estimated in 2025.

This improvement reflects the continued strengthening of economic performance from the second half of 2025.

Over the medium term, growth is expected to average 1.8 per cent, reaching 2 per cent by 2028.

Persistent logistics bottlenecks, weak public infrastructure and the recent outbreak of foot-and-mouth disease continue to weigh on economic activity and pose risks to the outlook.

In light of this, rapid inclusive growth remains our only durable path forward.

Our efforts to promote faster economic growth continue to revolve around the four pillars:

  • Maintain macroeconomic stability,
  • Implement structural reforms,
  • Invest in growth-enhancing infrastructure, and
  • Build state capacity

These pillars are the foundation upon which inclusivity is built, and how we ensure that growth is faster.

 Fiscal Strategy 

Madam Speaker, a key facet of macroeconomic stability is prudent fiscal management that advances socioeconomic obligations.

Our fiscal strategy involves four key features:

  • Support economic growth by accelerating public investment.
  • Improve the efficiency of public spending.
  • Improve the composition of spending by containing the public-service wage bill while increasing capital investment.
  • Entrench sustainable public finances with a principles-led fiscal anchor.

We are already reaping the fruits of this strategy.

The consolidated budget deficit has narrowed to 4.5 per cent of GDP for 2025/26, an improvement from 4.8 per cent that we estimated in the 2025 Budget. The deficit falls to 4 per cent in 2026/27 and 3.1 per cent the year after.

Gross debt stabilises as a share of GDP in 2025/26, at 78.9 per cent. In 2026/27 it falls further, to 77.3 per cent of GDP and declines to 76.5 per cent by 2028/29.

The slightly higher debt peak this year reflects weaker nominal GDP growth and our decision to take advantage of strong investor demand in domestic and global markets by increasing issuance in 2025/26.

The main budget primary surplus for 2025/26 reaches 0.9 per cent of GDP.

In the next financial year it expands to 1.6 per cent, and then to 1.9 per cent in 2027/28. By 2028/29, we see it reaching 2.3 per cent.

Honourable Speaker, to sustain fiscal discipline, we intend to continue the engagements on fiscal anchors.

We aim to introduce a proposal for a principle-based fiscal anchor in the Medium-Term Budget Policy Statement after thorough consultation in Cabinet, Parliament and with the public.

Just as inflation targeting provided clarity and credibility to monetary policy, the fiscal anchor aims to entrench fiscal credibility.

Implementing Structural Reforms

Madam Speaker, the structural reforms to lift growth we are implementing alongside this fiscal strategy reflect an understanding that the state should adjust to the needs of the national economy in a flexible way. Operation Vulindela must be understood in this context.

In terms of energy reforms, we are stabilising electricity supply and building a competitive, reliable energy market.

Regulatory reforms in this sector have unlocked significant private investment, accelerating generation capacity and driving the transition towards cleaner, renewable power.

In logistics, we are dismantling bottlenecks in rail and ports that have throttled exports and raised the cost of doing business.

Our intention is to bolster public-private investment in rail operations while retaining state ownership of rail infrastructure.

The objective is to move goods faster, cheaper and more reliably.

Reforms in local government include shifting to a performance-linked utility model for water and electricity services.

This is aimed at strengthening financial sustainability, accountability and transparency.

Spatial and housing reforms focus on restructuring our cities to ensure that people have access to affordable housing located close to centers of economic activity.

This is a systematic effort to remove the structural blockages that have held back growth for many years.

Revenue trends and outlook

Madam Speaker, over the past three years, our tax system has demonstrated resilience despite slow economic growth.

For 2025/26, the gross tax revenue is revised up by R21.3 billion compared to the estimate in the 2025 Budget.

Higher-than-expected net VAT, corporate income tax and dividends tax collections, improved the in-year outlook.

As a result, government has decided to withdraw the R20 billion in tax increases provisionally included in the May 2025 Budget.

The improving fiscal position allows us enough room to withdraw the proposed tax increases, without putting fiscal sustainability or economic activity at risk. 

We are also proposing additional tax measures to ease the financial burden on households and businesses, by adjusting personal income tax brackets and rebates fully in line with inflation.

Madam Speaker, our national savings and investment rate is far below the levels needed to truly create generational wealth and support local investment in the economy.

To encourage South Africans to save more, we propose that:

  • The tax-free annual investment limit be increased from R36 000 to R46 000 per year.
  • The limit to retirement fund deductions be raised from R350 000 to R430 000, allowing individuals to invest more each year on a tax-free basis.

Madam Speaker each year we ask South Africans to send in their “Tips for the Budget”. This year more than 1,200 citizens sent us their opinions and suggestions.

Renette Oosthuizen, a small business owner from Gauteng, had this tip:

“Minister Godongwana, please increase the VAT registration threshold for small businesses to R2 million. The R1 million threshold has not kept pace with the cost of doing business.”

Renette, you will be happy to know that in this budget the compulsory VAT registration threshold increases from R1 million to R2.3 million.

We are taking other measures to support small businesses:

  • We are raising the capital gains tax exemption for the sale of a small business for older persons from R1.8 million to R2.7 million. This applies to small businesses worth R15 million instead of the R10 million previously. It will enable small business owners to receive more tax relief when they sell their businesses.

Madam Speaker, increases to certain taxes are unavoidable.

For 2026/27, excise duties on tobacco will be increased in line with inflation.

This includes excise duty on electronic nicotine and non-nicotine delivery systems.

As a result:

  • The tax on a 20-pack of cigarettes rises from R22.81 to R23.58.
  • Pipe tobacco rises by 28 cents per 25 grams, and cigarette tobacco by 87 cents per 50 grams.
  • Cigars rise by R4.56 per 23 grams.

The excise on alcoholic beverages also rises by inflation.

As such:

  • A 340 millilitre can of beer or cider increases by 8 cents.
  • A 750 millilitre bottle of wine goes up by 15 cents.
  • A 750 millilitre bottle of spirits will increase by R3.20.

In terms of fuel levies, the total increase will also be in line with inflation.

  • The general fuel levy will go up by 9 cents per litre for petrol and 8 cents per litre for diesel.
  • The carbon fuel levy will go up by 5 cents per litre for petrol and 6 cents for diesel.
  • The Road Accident Fund levy will increase by 7 cents per litre.

Honourable Members, the strong revenue collection this year, and the overall resilience of tax administration, reflects an efficient and agile tax administration, continually improving through targeted compliance initiatives.

However, the scourge of illicit trade represents a major threat to these hard-won gains. It threatens our economy, endangers consumers, and robs the fiscus of billions in revenue.

The recent announcement by a major tobacco producer, that will close its local operations, is a stark reminder of the impact of illicit trade on jobs and the overall economy.

The sophisticated and organised nature of illicit operations demands an intensified effort to curb this trade, secure prosecutions and dismantle its supply chains.

SARS has already intensified its efforts. It will also continue its joint operations with the Border Management Agency, the SAPS and the defence force to stop the illicit trade in tobacco.

Financial Sector Reforms

Madam Speaker, National Treasury continues to work on ensuring that financial services customers are treated fairly and the sector operates optimally.

One key issue is the more than R88 billion of unclaimed financial assets and benefits.

Following recommendations from the Financial Sector Conduct Authority, National Treasury will introduce reforms to manage these unclaimed benefits through the creation of a central administrator responsible for record keeping and tracing.

Crypto Assets

We will also shortly publish draft regulations under the Currency and Exchanges Act, to include crypto assets in our capital flow management regime.

Crypto assets will now be governed in the cross-border movement of capital framework, which will be complementary to regulations already in place to prevent the use of crypto assets to launder money and commit fraud.

Data infrastructure

The use of data and artificial intelligence has become critical for the future development of economies worldwide. As such data infrastructure should be considered as critical as electricity, ports and transport networks.

This year we will be exploring options to help data centres and related infrastructure to expand these investments in South Africa and solidify our role as a regional hub for these technologies.

Trade

One of the main policy objectives is to ensure that the financial sector supports regional integration and the implementation of the Africa Continental Free Trade Agreement.

National Treasury is easing restrictions on the cross-border flows of capital by enabling domestic asset managers to manage portfolios of foreign assets.

This will improve competitiveness and allow South Africa to function as a hub for investment into the continent.

Payments

National Treasury, working with the South African Reserve Bank, has prioritised modernising the national payments system and innovation in digital finance.

The Payments Ecosystem Modernisation (PEM) has achieved its first key milestone with the establishment of a Payments Utility, which was completed in November last year with the establishment of PayInc.

PayInc will provide open, shared digital payments infrastructure to support operability across various payment providers, serving as the main platform for high-value and retail transactions.

Targeted and responsible savings

Madam Speaker, in the Budget last May we promised that spending priorities would not be funded through tax increases if this could be avoided.

We have kept that promise, through our commitment to finding savings from unproductive expenditure, closing leakages, and rooting out inefficiencies.

I am happy to announce that R12 billion in savings have been identified over the medium term.

Targeted and responsible savings are not a once-off initiative.

They will be an ongoing and entrenched part of the budget process going forward to weed out inefficiencies and low-performing programmes.

Every programme and every allocation must demonstrate value, efficiency and accountability.

As part of this process, the Public Transport Network Grant has been scaled down, by about R8.4 billion, over the next three years.

The grant has not improved access to public transport relative to the investments made.

The grant will, however, continue to help cover indirect costs in cities that run bus services.

Enhanced targeting of social grants authentication of beneficiaries to reduce fraud in the grant system will yield R3 billion of savings.

The South African Social Security Agency has upgraded its biometric and income verification processes, resulting in nearly 35 000 grants being identified as incorrect or fraudulent, and therefore terminated.

Honourable Members, we are committed to improving access for the many South Africans deserving and eligible for social support.

Abuse of the system will not be tolerated.

The remaining savings from TARS are reallocated to strengthen capacity in the judiciary, border management, defence and Stats SA.

Madam Speaker, to secure the skills essential to a modern economy, government is reforming the national skills ecosystem.

The skills development levy paid by employers to fund Sector Education and Training Authorities, or SETAs, and the National Skills Fund, have not yielded the outcomes we expected.

We must improve how we equip individuals ready to enter the labour market.

Beyond providing them a theoretical understanding, the government will explore ways to reorganise training by introducing a dual-training skills acquisition system.

We are also looking at how institutions with the capacity to train job-seekers and graduates can tool them with artisanal skills.

Spending Priorities 

Madam Speaker, in 2026/27, we will spend R2.67 trillion.

This spending includes a proposed R5 billion in the contingency reserve to cater to disasters declared since the MTBPS.

Government spending remains highly redistributive. The social wage accounts for more than 60 per cent of non-interest spending over the medium term.

Basic education, health and social protection constitute 70.3 per cent of the social wage in 2026/27, providing support to 13.6 million school children, healthcare services to 84 per cent of the population and social grants to 26.5 million beneficiaries.

Social grants

For 2026/27, social grants are allocated R292.8 billion, enabling the following increases:

  1. The old age grant, disability grant and care dependency grant rise by R80 in April 2026, to R2 400.
  2. The war veterans grant also increases by R80 to R2 420.
  3. The foster care grant goes up to R1 290 in April, a R40 increase and to R1 300 in October, a R10 increase.
  4. The child support grant and grant-in-aid grant increase by R20 to R580.

The social relief of distress continues in its current form over the year ahead.

Peace and security

Madam Speaker, the President in his State of the Nation Address announced the deployment of the defence force alongside police to fight illegal mining and gangsterism.

To support this and other efforts to intensify law and order, spending on peace and security increases from R268.2 billion in 2025/26 to R291.2 billion in 2028/29.

The Border Management Authority has been allocated an additional R990 million over the medium term to build capacity by filling 738 positions.

R2.7 billion is added to defence over the medium term to improve operations, including to maintain the South African Air Force’s fighter capability.

In addition we have allocated R1 billion to the police service, and another R1 billion to the SANDF, through the CARA fund for the fight against organised crime.

Over the medium term, R883.8 million is shifted from the Department of Justice and Constitutional Development to the Office of the Chief Justice.

This will enable the Office of the Chief Justice to manage its own budgets, enhancing its independence from the Executive from the first of April.

Similar arrangements for the funding of Parliament are being undertaken, in the spirit of separation of powers.

An additional R687 million has been allocated to increase capacity in the judiciary.

The President also announced the establishment of specialised courts. Once the costing is finalised, allocation for this will be considered later in the year.

For the various commissions of inquiry underway that are unlikely to finish within their initial deadlines, funding will also be made available when the costs become clearer.

Special appropriation

Madam Speaker, the fiscal framework tabled in the 2025 MTBPS included R8.5 billion that we added to the contingency reserve.

The special appropriation bill tabled today allocates these funds.

The special appropriation bill also includes, amongst others:

  • R5.8 billion for PRASA’s rolling stock fleet renewal programme;
  • R1 billion for South Africa’s share subscription to the international finance corporation; and
  • R700 million for the Department of Communications and Digital Technology.

Division of revenue

Madam Speaker, in 2026/27, 48.9 per cent of nationally raised revenue is allocated to national government, 41.7 per cent to provinces and 9.4 per cent to local government.

The split translates to R951,7 billion for national government, R810.5 billion for provinces and R182,3 billion for municipalities.

Additional allocations to the provincial equitable share include R342 million to progressively equalise Grade R teacher pay, R340 million for the early retirement and voluntary exit programme, and R319 million for the presidential employment initiative.

R1.5 billion is added to the provincial roads maintenance grant in 2026/27 to fund the carry-through costs of the disasters that occurred between April 2024 and June 2025.

Basic Education

In terms of consolidated expenditure, spending on education remains the largest component at 23.7 per cent over the medium term.

Basic education receives R22.7 billion for carry-through costs announced in May 2025. Early childhood development receives the majority of these funds.

R9.9 billion supports employee compensation and other pressures in education.

Early childhood development grant receives an additional R12.8 billion over the next three years, expanding service to an additional 300 000 children.

This will also maintain the increased per child, per-day subsidy of R24 introduced in 2025/26.

The increased allocations align the National School Nutrition Programme to food inflation to continue providing meals to over 9.9 million learners in almost 20 000 schools.

Health

Madam Speaker, R26 billion is allocated to provinces to bolster our HIV/AIDS programme such as the prevention of mother-to-child transmission and the provision of anti-retro virals.

As part of the targeted and responsible savings initiative, provinces will repurpose some of their funding to meet obligations towards PEPFAR. This follows the funding withdrawal by the United States.

R21.3 billion is allocated to the health sector over the medium term for the compensation and employment of doctors, and to make up for shortfalls in goods and services expenditure.

Local Government

Madam Speaker, of the allocated funding to local government, R86.9 billion is to support the provision of free basic services to 11.2 million households.

Local government is the sphere where communities experience the state most directly. Yet many municipalities are in financial and operational distress and therefore unable to deliver services as they should.

Audit outcomes highlight this unacceptable reality: 63 per cent of municipalities are in financial distress, and the proportion of clean audits remains unacceptably low.

A central challenge with municipalities is that they not only differ in capacity, but also in their revenue-raising potential.

This demands a more targeted approach to respond to the diverse pressures facing municipalities.

The National Treasury is revitalising support for development of long-term financial plans.

These plans will improve project identification, sustainably plan cash flows and inform financial decisions. This will negate the challenge of unfunded mandates and limited capacity to maintain infrastructure and sustain services.

Further structural reforms are underway including a comprehensive review of the local government fiscal framework.

Together, these reforms will modernise the intergovernmental system and build a more capable, resilient and appropriately differentiated local government sphere.

Metro Trading Services

Honourable Members, municipalities must return to the foundational principle of fiscal integrity.

Revenue collected for a specified function must first sustain that function before any cross-subsidisation can occur.

In reality, this principle is consistently flouted.

For instance, Johannesburg’s water revenue is R11.9 billion but only R1.3 billion is allocated to Joburg Water for capital expenditure.

This has contributed to the massive backlog of R64 billion that is needed to fix water supply problems in the city.

If this practice of collecting revenue from basic services while diverting the funds to unrelated functions continues, maintenance backlogs will grow, services deteriorate and critical infrastructure systems eventually collapse.

To correct the trajectory, R27.7 billion has been allocated over the medium term to a performance-linked reform for metro trading services in electricity, water, sanitation and solid waste. 

This is the first step towards matching revenue collection to reinvestment in the same service.

The reform however goes beyond the performance-based grant structure.

It entrenches operational and financial management reform.

Under the new system, failure to meet reform and operational targets will result in budgets being reduced.

This will strengthen accountability and governance, enabling long-term infrastructure investment.

And supporting the sustainable turnaround of these essential services.

Qualifying municipalities, including eThekwini and City of Johannesburg, have begun implementing Council-approved improvement plans to ring-fence revenue and reinvest in water and electricity.

Municipal Infrastructure Grant Reform

Government is also reforming the municipal infrastructure grant to address persistent underspending, misuse of funds and capacity constraints that hinder effective service delivery in non-metropolitan municipalities.

A split delivery model has been introduced. Municipalities with proven capacity will continue to receive funding directly.

However, where there are serious capacity or governance failures, the delivery will shift to an indirect model.

Capable district municipalities and other accredited implementing agencies will form part of their infrastructure delivery suite.

The intention is to protect citizens from persistent municipal dysfunctions that have long undermined effective service delivery.

Infrastructure

Madam Speaker, infrastructure investment remains the foundation upon which long-term economic growth, improved service delivery and job creation are built.

Government is shifting the composition of spending towards growth-enhancing public infrastructure.

Over the medium-term, public-sector spending on infrastructure will exceed R1 trillion.

Of this: 

  • R577.4 billion will be spent by state owned companies and other public entities;
  • R217.8 billion by provinces; and
  • R205.7 billion by municipalities.

By sector, transport and logistics make up the largest share.

Transport, Water and Energy

SANRAL will focus on strengthening long-term network resilience. This includes the annual maintenance of approximately 27,000 kilometers and the resurfacing of 2,000 kilometers of road.

The Passenger Rail Agency of South Africa (PRASA) will continue implementing its corridors recovery programme and modernising core infrastructure to rebuild a reliable, affordable rail service for commuters.

This will enable the increase in annual passenger trips from 77 million in 2024/25 to between 250 and 450 million over the medium term.

In energy, investment will focus on improving security of supply and mobilise private investment.

Since the MTBPS, I am pleased to announce that National Treasury together with the World Bank are making significant progress with the Credit Guarantee Vehicle.

The CGV, which will support massive investments in transmission infrastructure, will be incorporated as a company in the coming months. Next, we expect development partners to confirm their capital participation.

Thereafter, the CGV will apply for a license from the Prudential Authority. We are targeting the CGV to be operational later this year.

In water, investments are directed towards high-impact bulk water augmentation schemes, refurbishment of ageing infrastructure and the completion of strategic projects that support economic nodes, agriculture and household supply.

Honourable Members, we continue to implement reforms to unlock greater private sector participation, enhance spending efficiency and shorten delivery timelines.

Public-Private Partnerships

The amendment of the PPP regulations has enabled greater private sector participation by streamlining procedural requirements, closing regulatory gaps and clarifying institutional roles. 

The pipeline is projects is growing. Currently, 63 projects are at different stages of development.

Among the most advanced are the six border posts project which will ease congestion, lift regional trade flows and upgrade key inland border posts.

We expect them to reach financial closure later this year.

Similarly, the process of procuring a new vendor for the Gautrain rapid rail link system is advanced.

Conclusion of these projects will mark the first closure of major PPP transactions in more than five years.

Public institutions should increasingly see PPPs as a viable alternative method for delivery, particularly in cases where funding limitations or capacity constraints hinder effective implementation.

To further unlock PPP opportunities across government, work is underway to finalise the new PPP regulations for municipalities.

The final regulations will be published by 30 June 2026.

Budget Facility for Infrastructure

The budget facility for infrastructure continues to play a pivotal role in enabling funding of strategic infrastructure projects.

Since shifting from annual to quarterly windows last year, the BFI has approved R21.9 billion for five major projects.

These include Transnet’s coal and iron ore corridor projects, which will restore rail capacity to 77 million tonnes for the coal line and 60 million tonnes for the ore line, and the Polokwane regional wastewater programme.

As part of the efforts to position infrastructure as an investable asset class, government issued an infrastructure bond in 2025 raising R11.8 billion to support its contribution in BFI approved projects.

The BFI call for proposals for the 2026/27 cycle opens today. The detailed circular has been published on the National Treasury website.

We call on public institutions in key sectors of the economy to submit proposals with funding gaps and strategic value, for consideration.

This includes critical social infrastructure such as courts, correctional facilities, police stations and even the development of new tertiary institutions like the proposed Ekurhuleni University and student accommodation, as well as health care facilities such as the Dr George Mukhari Academic and the Inkosi Albert Luthuli Hospital.

Conclusion

Madam Speaker, the progressive realisation of the fundamental socioeconomic rights enshrined in our constitution is essential to our mission to deal with inequality, poverty and unemployment.

It is a mission that demands that we make prudent fiscal choices.

With the health of our public finances comes a greater degree of economic freedom and sovereignty.

It is this sovereignty that gradually frees us from over-reliance on external debt.

It shields us from the inherent uncertainties of global finance and global politics.

As we have witnessed over the last few years, the established norms of the global order can shift and be undermined.

To achieve our ultimate goal of bettering the lives of our people we must continue pursuing this sovereignty.

A budget and a fiscal strategy that advances inclusive growth and the sustainability of public finances is a crucial part of achieving this greater freedom.

It moves us closer to fulfilling our constitutional promise to do all that it takes for our people to live with dignity and prosperity.

Madam Speaker, I am grateful to the President and Deputy President for their support and leadership.

Thank you to the Deputy Ministers of Finance, and the excellent National Treasury team, led by the Director-General.

My sincere thanks to the Governor of the South African Reserve Bank.

Let me also thank my colleagues in the Ministers’ Committee on the Budget and in the Budget Council who have shared the task of difficult trade-offs that have to be made.

Similarly, to the Parliamentary Committees of Finance and Appropriations, I express my sincere appreciation.

To my wife and family, it is your encouragement and sacrifice that makes this work possible. Thank you.

Madam Speaker, as Commissioner Kieswetter prepares to take his leave at the end of April, I ask this House to join me in thanking him for seven years of patriotic, dedicated service. 

Commissioner, your unwavering integrity and commitment to operational excellence is an example to all of us.

Lastly, I thank every South African. This Budget reflects our shared journey and the belief that together we can build a more equal, more prosperous economy.

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