Ahead of this year’s Budget Speech, Finance Minister Enoch Godongwana would do well to heed the 2,000-year-old wisdom of Roman playwright Terence: Fortes fortuna adiuvat—fortune favours the bold.
While President Cyril Ramphosa’s State of the Nation Address (SONA) merely delivered more of the same, this year’s Budget cannot be business as usual – South Africa can no longer afford it. Under ANC rule, unemployment, poverty and inequality have deepened to record levels, and the only way forward is through bold action from the new coalition government.
The bold action we need starts with jumpstarting economic growth through strategic investment, properly funding SARS to boost revenue collection and crack down on illicit trade, and enforcing real accountability—putting those who mismanage or steal public funds out of jobs and into orange overalls.
Revive Growth Through Investment in Research, Education, and Skills Development
A first step is to invest in research and development (R&D) in the manufacturing sector. South Africa’s government spends less than 1% of GDP on R&D, while our researchers per capita lag behind major emerging markets. This underinvestment stifles our ability to build competitive industries that attract foreign direct investment (FDI) and create much needed jobs.
The consequences of this neglect are clear: in 1994, manufacturing accounted for approximately 21% of GDP; today, it has shrunk to around 12%. The imminent closure of ArcelorMittal SA (AMSA)’s longs steel business, putting up to 100,000 jobs at risk, is a direct result of failed industrial policy. Instead of protecting jobs, government interventions have made it harder to manufacture in South Africa.
The coalition government must also reassess the economic impact of BBBEE. In its current form, it has been reduced to little more than an ANC cadre-enrichment scheme. Bold reforms are needed to ensure genuine economic inclusion that drives job creation rather than stifling investment.
StatsSA’s latest household spending survey confirms that education—not race—is now the biggest driver of inequality. Yet, higher education funding is set to shrink from 2% of GDP to 1.78% by 2026/27. This is a betrayal of our youth, who need skills development programs that actually deliver opportunities. Those responsible for the failure of these programs must be held accountable.
Properly Fund SARS to Improve Revenue Collection and Combat Illicit Trade
SARS remains critically underfunded—a problem dating back to corruption-accused Tom Moyane’s tenure, when its budget was slashed by 12%. The result? A tax gap of R450 billion per year and uncollected tax of R400 billion. That’s R850 billion in potential revenue left on the table. While last year’s Mini Budget allocated an additional R500 million to SARS, this is nowhere near enough.
Underfunding SARS also fuels illicit trade, which costs South Africa R100 billion annually in lost tax revenue. This isn’t just a financial loss—it destroys jobs and deepens the tax gap further. A properly funded SARS must be empowered to enforce compliance and shut down tax-dodging syndicates across industries. This, in turn, will create a fairer business environment and foster the local entrepreneurship South Africa desperately needs—across professions, backgrounds, and regions.
Enforce consequence management
Every week in Parliament, I sit in portfolio committee meetings where government departments and entities present reports riddled with financial mismanagement. Across all spheres of government, one thing is clear: there is no culture of accountability.
The problem is not a lack of funding—it is that public funds are being wasted and looted with impunity. When I asked Auditor-General Tsakani Maluleke what one action she believes would bring accountability to the state, her answer was simple: orange overalls for corrupt officials. I couldn’t agree more.
Last week, the AG presented audit findings on the Compensation Fund and the Unemployment Insurance Fund (UIF), which together manage R46 billion in annual revenue. These funds exist to support workers in times of need, yet the findings paint a horror show of corruption and negligence. The dignity of South African workers is being systematically stripped away by those entrusted with their welfare.
If the Finance Minister fails to ensure that corruption-accused officials are prosecuted and jailed, he cannot claim to be bold. The National Prosecuting Authority (NPA), responsible for tackling state corruption, remains underfunded and understaffed. If this Budget does not include an earmarked allocation for prosecuting corrupt officials, then South Africans should not be surprised when, next year, they hear the same empty promises from the President—and opposition parties lamenting yet another year of inaction.
Now is the time for boldness
This Budget presents an opportunity to show real boldness—not the empty rhetoric of SONA 2025 or the hollow reform agenda of the grand coalition government.
If Minister Godongwana needs a case study, I would point him to Dr. Nasiphi Moya and her team’s first 100 days as Executive Mayor of Tshwane. In just three months, they have demonstrated that decisive leadership and a commitment to service delivery can yield tangible results. The Auditor-General and other stakeholders are already recognising the improvements under her administration. Tshwane proves that change is possible when those in power show true boldness.
South Africa cannot afford another timid Budget. The time for half-measures has passed. Fortune favours the bold—now, let’s see if the Finance Minister has the courage to act.
Budget 2025: Can The Finance Minister Be Bolder Than The President?
Ahead of this year’s Budget Speech, Finance Minister Enoch Godongwana would do well to heed the 2,000-year-old wisdom of Roman playwright Terence: Fortes fortuna adiuvat—fortune favours the bold.
While President Cyril Ramphosa’s State of the Nation Address (SONA) merely delivered more of the same, this year’s Budget cannot be business as usual – South Africa can no longer afford it. Under ANC rule, unemployment, poverty and inequality have deepened to record levels, and the only way forward is through bold action from the new coalition government.
The bold action we need starts with jumpstarting economic growth through strategic investment, properly funding SARS to boost revenue collection and crack down on illicit trade, and enforcing real accountability—putting those who mismanage or steal public funds out of jobs and into orange overalls.
Revive Growth Through Investment in Research, Education, and Skills Development
A first step is to invest in research and development (R&D) in the manufacturing sector. South Africa’s government spends less than 1% of GDP on R&D, while our researchers per capita lag behind major emerging markets. This underinvestment stifles our ability to build competitive industries that attract foreign direct investment (FDI) and create much needed jobs.
The consequences of this neglect are clear: in 1994, manufacturing accounted for approximately 21% of GDP; today, it has shrunk to around 12%. The imminent closure of ArcelorMittal SA (AMSA)’s longs steel business, putting up to 100,000 jobs at risk, is a direct result of failed industrial policy. Instead of protecting jobs, government interventions have made it harder to manufacture in South Africa.
The coalition government must also reassess the economic impact of BBBEE. In its current form, it has been reduced to little more than an ANC cadre-enrichment scheme. Bold reforms are needed to ensure genuine economic inclusion that drives job creation rather than stifling investment.
StatsSA’s latest household spending survey confirms that education—not race—is now the biggest driver of inequality. Yet, higher education funding is set to shrink from 2% of GDP to 1.78% by 2026/27. This is a betrayal of our youth, who need skills development programs that actually deliver opportunities. Those responsible for the failure of these programs must be held accountable.
Properly Fund SARS to Improve Revenue Collection and Combat Illicit Trade
SARS remains critically underfunded—a problem dating back to corruption-accused Tom Moyane’s tenure, when its budget was slashed by 12%. The result? A tax gap of R450 billion per year and uncollected tax of R400 billion. That’s R850 billion in potential revenue left on the table. While last year’s Mini Budget allocated an additional R500 million to SARS, this is nowhere near enough.
Underfunding SARS also fuels illicit trade, which costs South Africa R100 billion annually in lost tax revenue. This isn’t just a financial loss—it destroys jobs and deepens the tax gap further. A properly funded SARS must be empowered to enforce compliance and shut down tax-dodging syndicates across industries. This, in turn, will create a fairer business environment and foster the local entrepreneurship South Africa desperately needs—across professions, backgrounds, and regions.
Enforce consequence management
Every week in Parliament, I sit in portfolio committee meetings where government departments and entities present reports riddled with financial mismanagement. Across all spheres of government, one thing is clear: there is no culture of accountability.
The problem is not a lack of funding—it is that public funds are being wasted and looted with impunity. When I asked Auditor-General Tsakani Maluleke what one action she believes would bring accountability to the state, her answer was simple: orange overalls for corrupt officials. I couldn’t agree more.
Last week, the AG presented audit findings on the Compensation Fund and the Unemployment Insurance Fund (UIF), which together manage R46 billion in annual revenue. These funds exist to support workers in times of need, yet the findings paint a horror show of corruption and negligence. The dignity of South African workers is being systematically stripped away by those entrusted with their welfare.
If the Finance Minister fails to ensure that corruption-accused officials are prosecuted and jailed, he cannot claim to be bold. The National Prosecuting Authority (NPA), responsible for tackling state corruption, remains underfunded and understaffed. If this Budget does not include an earmarked allocation for prosecuting corrupt officials, then South Africans should not be surprised when, next year, they hear the same empty promises from the President—and opposition parties lamenting yet another year of inaction.
Now is the time for boldness
This Budget presents an opportunity to show real boldness—not the empty rhetoric of SONA 2025 or the hollow reform agenda of the grand coalition government.
If Minister Godongwana needs a case study, I would point him to Dr. Nasiphi Moya and her team’s first 100 days as Executive Mayor of Tshwane. In just three months, they have demonstrated that decisive leadership and a commitment to service delivery can yield tangible results. The Auditor-General and other stakeholders are already recognising the improvements under her administration. Tshwane proves that change is possible when those in power show true boldness.
South Africa cannot afford another timid Budget. The time for half-measures has passed. Fortune favours the bold—now, let’s see if the Finance Minister has the courage to act.