Category: South Africa Government

South Africa’s economic growth outlook is “steadily improving”, with growth projected to reach some 1.6% in 2026, following growth of 1.4% in 2025.

This is according to Finance Minister Enoch Godongwana, who delivered the 2026 Budget Speech in Parliament on Wednesday.

“We project real economic growth of 1.6% in 2026, an improvement from the 1.4% 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%, reaching 2% by 2028,” the Minister said.

He added that although the outlook is optimistic, challenges to the economy remain.

“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,” he said.

Delving deeper into the numbers in the 2026 Budget Review, National Treasury noted that South Africa’s real gross domestic product (GDP) is expected to average 1.8% over the medium term, reaching 2% in 2028.

“Although household consumption is forecast to ease from the high growth estimated for 2025, it is expected to contribute the most to medium-term growth, supported by further gains in real purchasing power, moderately stronger wage growth, easing inflation, wealth gains from rising asset prices, improved consumer sentiment and better credit conditions.

“Additional support for growth is expected to come from private sector investment – encouraged by a relatively resilient global environment – and easing domestic supply constraints. A continued recovery in rail and port capacity is also expected to boost foreign trade volumes over the medium term,” the Budget Review read.

Treasury noted that South Africa’s unemployment rate has fallen by some 1.3% over the first three quarters of 2025 to reach 31.9%, while total employment has reached just over 17 million.

“However, the labour force absorption rate remains low at 40.6%, below the pre-pandemic level of 43.1%, indicating that only four out of 10 adults are employed or actively seeking work. South Africa’s persistently and extremely high unemployment rate reflects the depth of structural constraints in the labour market, where labour force growth exceeds the pace of job creation.

“Faster, more inclusive economic growth that expands productive capacity and supports labour-intensive sectors is the key to reducing unemployment. Achieving much higher levels of job creation over the medium- to long-term requires South Africa to address longstanding regulatory barriers, narrow spatial and infrastructure disparities, reduce high levels of crime, and improve education and training outcomes,” Treasury said.

Inflation is expected to rise moderately from 3.2% in 2025 to 3.4% in 2026, driven, in the main, by higher food prices.

The price of meat in particular is expected to rise “due to supply disruptions linked to foot-and mouth disease”.

Treasury expects inflation to ease to 3.3% in 2027 and 3.2% in 2028.

“[However], risks from geopolitical tensions, exchange rate volatility, administered prices and animal disease outbreaks remain elevated. The reduction of the inflation target to 3%, with a 1 percentage point tolerance band, will structurally reduce inflation, helping to protect real income levels.

“Inflation expectations have declined further, with the Bureau for Economic Research measure falling to its lowest level on record following the 2025 MTBPS announcement, indicating that expectations are adjusting to the new target quickly,” the department noted. – SAnews.gov.za

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Government has officially withdrawn the R20 billion tax increase for Value Added Tax (VAT) that was previously penciled in for the 2026 Budget, to provide inflationary relief to taxpayers.

Tabling the 2026 Budget in Parliament on Wednesday, Minister of Finance Enoch Godongwana explained that the withdrawal was due to the tax system demonstrating 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, the 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,” the Minister said to a joint sitting of Parliament in  Cape Town, to much applause.

Government is 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.

“Our national savings and investment rate is far below the levels needed to truly create generational wealth and support local investment in the economy,” he said.

To encourage South Africans to save more, government had proposed the tax-free annual investment limit be increased from R36 000 to R46 000 per year.

Furthermore, the limit to retirement fund deductions should be raised from R350 000 to R430 000, allowing individuals to invest more each year on a tax-free basis.

VAT registration for small business

Government has increased the compulsory VAT registration threshold 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,” the Minister said.

Sin taxes

Consumers can expect to pay more for tobacco, alcohol, and petrol from 1 April 2026.

“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 eight 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 nine cents per litre for petrol and eight cents per litre for diesel. 
•    The carbon fuel levy will go up by five cents per litre for petrol and six cents for diesel. 
•    The Road Accident Fund levy will increase by seven cents per litre. 
–SAnews.gov.za

 

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Cape Town International Airport is continuing with recovery efforts following yesterday’s fire incident, says Airports Company South Africa (ACSA).

A fire broke out on its premises on Tuesday, which has led to international departures being suspended for a period. According to media reports, the fire affected the airport’s network and IT services, including airport Wi-Fi and other essential systems.

The fire was reported at approximately 11:15 and was extinguished shortly thereafter, ACSA said. As a precaution, sections of the International Terminal affected by smoke were evacuated. 

By last night, power had been fully restored in the Northern Service Yard (International inner lane, landside). 

“Airline check-in systems are operational, with the exception of Lift Airlines, which remains on manual processing,” said ACSA said on Wednesday.

The Border Management Authority (BMA), customs and baggage handling are currently operating manually, which may result in delays for international arriving passengers.

Technical teams are still hard at work to reinstate systems that are still being restored.

“Passengers are advised to allow additional time at the airport and to check directly with their airline or the ACSA Mobile App for the latest flight updates.

“Visitors collecting international passengers are requested to follow on-site signage and official airport communications regarding access points.

“We thank passengers and stakeholders for their patience and cooperation as operations normalise incident,” said the company. – SAnews.gov.za
 

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Agriculture Minister, John Steenhuisen, will this Friday officially kickstart the nationwide mass vaccination rollout against Foot and Mouth Disease (FMD) in KwaZulu-Natal.

The high-priority intervention follows the arrival of one million high-potency vaccine doses from Biogénesis Bagó, Argentina, on Saturday.

“As the largest single consignment of FMD vaccines ever to enter South Africa, the shipment marks the operational “kickstart” of the Department of Agriculture’s new 10-Year Strategic Plan to vaccinate the national herd,” said the department.

The department reported that millions of additional doses of the FMD vaccine have been procured and are expected to arrive in the country soon.

“The vaccination process is strategically phased starting with mass vaccination in the highest-risk areas and then moving to lower-risk areas,” the department said in a statement.

The rollout will take place at Colbourne Dairy Farm near Mooi River in the uMngeni Municipality. – SAnews.gov.za
 

 

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Land Reform and Rural Development Minister Mzwanele Nyhontso has acknowledged that while South Africa has recorded notable successes in land reform since 1994, progress has been slower than anticipated.

The Minister was addressing the second International Conference on Agrarian Reform and Rural Development (ICARRD+20), currently underway in Cartagena de Indias, Colombia.

Taking place from 24 to 28 February 2026, ICARRD+20 conference provides a strategic platform for governments, social movements, and international organisations to deliberate on pressing global challenges, including land and water grabbing, climate change vulnerabilities, and the need for redistributive land reform.

In his address, Nyhontso noted that democratic South Africa’s land reform programme has been anchored on three pillars, including restitution, redistribution and tenure reform.

“While the implementation of this approach has seen some significant successes where a few communities have reclaimed their ancestral land, or others among the landless have been assisted to obtain land on which they have attempted some developmental activities, progress has been slow,” Nyhontso said.

Outlining measures to accelerate transformation, Nyhontso said government is overhauling its redistribution programme, starting with the formulation of the Equitable Access to Land Bill. The legislation seeks to streamline procedures and prioritise the landless, particularly those with the potential to become successful commercial producers.

He reiterated that land redistribution must be pro-poor and state-led and must affirm the rights of women and youth to equitable access to land.

“We have a clear policy undertaking that 50 percent of all land that is redistributed must go to women and 40 percent to the youth, to ensure the future of the resilience of the rural economy,” the Minister said.

He noted an encouraging trend of young people, including young women, entering farming, and emerging as successful agrarian entrepreneurs. He added that government is strengthening support systems to ensure beneficiaries of land reform programmes are sustainable and productive.

Nyhontso asdmitted that South Africa’s earlier “willing-buyer, willing-seller” model, a market-led approach, did not achieve the desired pace or scale of transformation. As a result, government has introduced new measures, including the Expropriation Act, and is advancing additional legislation such as the Communal Land Tenure and Administration Bill.

“These are not merely legislative tools, but instruments of decolonisation.”

The Minister also highlighted ongoing challenges, including illegal evictions of farmworkers and labour tenants from commercial farms, underscoring the need to secure tenure rights for residents of communal areas.

Beyond national policy, the Minister called for strengthened global governance mechanisms. South Africa supports empowering FAO’s Global Land Observatory to monitor land governance and urged the Committee on World Food Security to report regularly on the implementation of international declarations protecting peasants and Indigenous peoples. – SAnews.gov.za

 

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Social Development Minister Sisisi Tolashe has called for bold digital action to accelerate youth employment, urging delegates at the Expanded Public Works Programme (EPWP) Social Sector Conference to respond decisively to the country’s unemployment crisis.

Addressing more than 300 delegates gathered in Durban on Tuesday, the Minister emphasised that job creation remains a top priority of the 7th Administration under the Government of National Unity. 

She stressed that the EPWP must rise to the challenge, particularly in addressing youth unemployment.

“We must be able to respond directly to the challenge of creating over one million job opportunities by 2030,” the Minister said. She added that the conference provides a strategic platform to harness the talent, imagination and energy of young people while repositioning the social sector to be digitally skilled, inclusive and future-ready.

The three-day conference brought together representatives from government, the private sector and civil society organisations to chart a new path for inclusive development.

Delivering the welcome address on the opening day, KwaZulu-Natal MEC for Social Development, Mbali Shinga, described the conference as a decisive moment for the sector, anchored on the call to migrate “from vulnerability to resilience.”

“The conference is about migrating from vulnerability to resilience,” she said, underscoring the need to strengthen communities through innovation, skills development and sustainable work opportunities. 

Shinga emphasised that the gathering is not merely a policy discussion, but an opportunity to rethink how the EPWP social sector responds to the socio-economic realities facing communities. She noted that the programme remains a critical pathway for unlocking work opportunities, particularly for unemployed youth.

Through strategic partnerships with the private sector and civil society, the sector aims to create innovative opportunities that empower individuals while strengthening community resilience.

The MEC added that the EPWP social sector must continuously adapt and “do things differently” to remain responsive and impactful.

Delivering the opening remarks and outlining the purpose of the conference, Director-General of the Department of Social Development, Peter Netshipale, described the EPWP Social Sector Conference as part of the democratic government’s enduring legacy.

“The EPWP Social Sector Conference is a legacy of a democratic government as it is linked to the current five-year Medium Term Development Plan 2024–2029 strategic framework,” he said.

He added that the conference aligns with government’s broader developmental priorities, including job creation, poverty alleviation and the strengthening of social protection systems.

The conference continues under the theme: “Revolutionising access to social services through digital skills in the EPWP social sector,” with discussions expected to focus on leveraging technology to expand access, improve efficiency and empower beneficiaries with future-ready skills.

As deliberations continue, delegates are expected to develop practical resolutions aimed at accelerating the transition from vulnerability to resilience, ensuring that the EPWP social sector remains a dynamic instrument for inclusive growth and sustainable livelihoods. – SAnews.gov.za

 

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Land Reform and Rural Development Minister Mzwanele Nyhontso has maintained that there will never be any compromise on the question of land, describing it as central to the ongoing struggle for genuine social and economic development, and the restoration of dignity to millions of people.

Addressing delegates at the International Conference on Agrarian Reform and Rural Development (ICARRD+20), currently underway in Cartagena de Indias, Colombia, Nyhontso said land remains at the core of South Africa’s democratic project and its unfinished liberation struggle.

“There can simply be no compromise on the question of redress for the atrocious legacies of the colonial and past regimes which continue to linger. If we do not resolve the land question, we will never resolve the climate question, let alone the hunger question,” the Minister said.

The conference attended by global stakeholders, including the Food and Agriculture Organisation (FAO), is taking place as South Africa prepares to mark the 49th anniversary of the death of a leader of the liberation struggle Robert Mangaliso Sobukwe on 27 February 2026.

Nyhontso invoked Sobukwe’s legacy, saying land dispossession is central to the oppression of the African majority and national self-determination.

He placed South Africa’s experience within a broader Global South struggle, warning that two decades after the original ICARRD conference in Porto Alegre affirmed that equitable access to land is a prerequisite for peace and food security, land concentration has intensified and marginalisation persists.

“We are here in Cartagena to declare that land should not be allowed to be hoarded by a few as it is the foundation of life, the cradle of societies, and the ultimate guarantor of the collective survival of humankind,” the Minister said.

Nyhontso also used the platform to criticise “distortions” surrounding South Africa’s land reform and state-led land-related developments, particularly narratives alleging a so-called “white genocide.”

He disputed the claims as deliberate misinformation aimed at undermining legitimate redress measures, including expropriation in the public interest.

In Africa, Asia and Latin America, he said, forests are being enclosed and, in some instances, literally alienated for private use, and water sources are being privatised, while small-scale food producers and fishers are being pushed further to the margins of society.

“There can be no ‘just transition’ if it is associated with the displacement of small-scale producers. There can be no ‘food security’ if land and agriculture continue to be controlled by a handful of multinational corporations,” the Minister said.

Nyhontso highlighted more than three centuries of dispossession, culminating in the 1913 Natives Land Act and the aggressive institutionalisation of the oppressive machinery of apartheid from 1948 to 1993, which confined the African majority to just 13 % of the land.

“The quality of this land remains marginal, and the territories that today we refer to as communal areas, which constitute much of this land, remain overcrowded and underdeveloped.”

The ICARRD+20 conference, taking place from 24 to 28 February 2026, provides a strategic platform for governments, social movements, and international organisations to deliberate on pressing global challenges, including land and water grabbing, climate change vulnerabilities, and the need for redistributive land reform. – SAnews.gov.za
 

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A 52-year-old suspect linked to rhino poaching will today appear before the Bellville Magistrate Court.

The suspect, who was about to board a flight to Singapore with his family, was arrested by the Directorate for Priority Crime Investigation (DPCI) Western Cape, which assisted in executing the arrest warrant, as issued by the Kempton Park Magistrate Court. 

“The suspect has been linked to a Kempton Park case of possession of rhino horns and predator bones, which were discovered to have been from Haartebeesfontein in the North West. This is in contravention of sections of the National Environmental Management and Biodiversity Act. [The suspect’s arrest follows] the arrest of two Nigerian nationals on 1 December 2025,” the police said in a statement.

The rhino horns are alleged to have been from a staged robbery reported on 8 December 2025 at Voi Farm, Hartbeesfontein, where 98 rhino horns were allegedly stolen. 

Upon further investigation, it was found that 17 of the recovered rhino horns on 1 December 2025 were part of the 98 rhino horns stolen on 8 December 2025. 

“It was further established that the owner of the rhino horns was a Vietnamese national, who was suspiciously not present at the time of the robbery. 

“The vehicle which was suspected to have been used as an instrument to commit the crime was traced to Woodhill Golf Estate in Pretoria, wherein search warrants were applied for and approved. 

“The warrants were executed in joint operation by the Hawks’ Serious Organised Crime Investigation’s Wildlife Trafficking section headquarters (HQ), with the assistance of the Tactical Operations Management Section, SAPS K9 Pretoria, Forensic Science Laboratories and Department of Forestry, Fisheries and Environment HQ,” the police said. 

The operation resulted in the seizure of a Toyota Prado, which is suspected to have been used in a commission of a crime. 

The acting National Head of the Directorate for Priority Crime Investigation, Lieutenant General Patrick Mbotho, reiterated that the DPCI will remain steadfast in stamping out wildlife trafficking and related serious organised crime. – SAnews.gov.za

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Transformation will not succeed unless all key stakeholders embrace it, defend it and implement it with conviction. 

This is according to the Minister of Trade, Industry and Competition, Parks Tau.

He was speaking during the historic engagement session between the Department of Trade, Industry and Competition and all 11 Broad-Based Black Economic Empowerment (B-BBEE) Sector Charter Councils in Pretoria on Tuesday.

The session marked the first time that all Sector Charter Councils convened collectively with the custodian of the Broad-Based Black Economic Empowerment Act to assess progress, confront weaknesses, and chart a strengthened, outcomes-focused path for economic transformation in South Africa.

Opening the session, the Minister described the engagement as a landmark moment for B-BBEE, noting that while progress has been recorded, the next phase of transformation must place sharper emphasis on impact, accountability and scale.

Recent B-BBEE data presented during the session showed black ownership at approximately 29%, JSE-listed companies at 31% black ownership, black women ownership at around 12%, management control between 39% and 51%, and transaction values reaching approximately R600 billion.

“These numbers reflect a policy that has made a significant impact in undoing the injustice of the apartheid economy. But transformation works when it is implemented. It fails when it is ignored or circumvented,” said Tau.

He underscored that South Africa is at a decisive moment.

“Crossroads are not places of collapse; they are places of choice. And now, choices must be made,” he said.

A key outcome of the engagement was agreement on the need to move from a compliance-driven approach to an outcomes-based transformation framework. There was also a call to move beyond ticking boxes and focusing only on numbers.

“We must ask what has actually changed in ownership, management, skills, enterprise growth and industrial capability,” said Tau.

Discussions also focused on the effectiveness of skills development spending, with the Minister noting that over R100 billion had reportedly been spent on skills development over three years.

“With that level of investment, we should not be facing the skills crises we see today. Sectors must demonstrate tangible skills outcomes rather than expenditure alone,” he said.

The engagement concluded with consensus on a three-point action approach: addressing funding mechanisms, optimising implementation within the current legal framework, and reviewing institutional architecture where systems are not functioning effectively.

“We are not here to create conflict. We are here to fix what is not working, strengthen what is working, and ensure that transformation remains central to South Africa’s economic trajectory,” he said.

Tau confirmed that feedback from the engagement will be consolidated and presented to Cabinet as part of the ongoing review of the B-BBEE framework. Delegates further agreed that this engagement marked the beginning of a more structured and continuous platform between the government and Sector Charter Councils.

“This is not the last engagement; it is the first in this format. If this country does not transform, none of us will succeed,” he said. – SAnews.gov.za

                                                                                                                    

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Science, Technology and Innovation Deputy Minister, Dr Nomalungelo Gina, is today leading a strategic dialogue on advancing women’s leadership in South Africa’s energy transition at an event held in Johannesburg. 

Taking place on the sidelines of the South African National Energy Development Institute’s (SANEDI) Annual Energy Conference, which began on Tuesday, today’s breakfast session is themed: “Elevating Women in Energy: Driving Innovation, Inclusion, and Leadership in South Africa’s Energy Sector.”

Gina is joined by key women leaders in the sector, including Morwesi Thonga, the chairperson of the EWSETA Board and Bertha Dlamini, the head of African Women in Energy and Power.

Following the breakfast session, the spotlight will be on projects funded by the Department of Science, Technology and Innovation (DSTI), to examine how science, technology, skills development, and policy can drive an inclusive, innovation-led energy future.

The Department’s Director-General, Dr Mlungisi Cele, will engage stakeholders on DSTI-funded energy projects, including outputs from the Hydrogen and Energy RDI Flagship Programmes.

The broader conference is themed: “Catalysing Just, Sustainable and Digital Energy Transition for Africa and Beyond”. – SAnews.gov.za

 

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