2 March 2026
To download Dr Maimane’s soundbite, click on this link: https://iono.fm/e/1651411
It is undeniable that this year’s budget responds to the questions posed before it. The fundamental question that South Africa has to confront is unemployment. Six out of ten adults in this country do not work. The harsh reality is that citizens are still relatively poor, with more than half living below the upper poverty line. There can be no debate that South Africa’s economy and wealth are largely concentrated, with a few people able to participate fully in that wealth while the majority live in poverty.
There is also no debate that this budget is set against a backdrop of geopolitical instability. As has already been raised, the war or conflict taking place will have profound consequences for South Africans. I want to say upfront that all peace-loving citizens who are democrats must condemn attacks by one nation upon another. The sovereignty of nations must always be upheld, especially in a world of suppressed GDP growth.
Lastly, this budget takes place against the backdrop of climate change, which remains at the forefront of disaster management challenges in South Africa. These are the themes within which the budget occurs.
It would be remiss of me not to acknowledge the green shoots in the budget. Inflation is stabilising at 3.6 per cent. The budget presents a primary surplus. South Africa’s removal from the grey list provides an opportunity for ratings agencies to move us from uninvestable status to a place where South Africa becomes attractive for investment. While we can worry about GDP growth, we must also consider gross capital formation, which is the rate of investment. Our stock exchange has performed well, but it is important that this translates into investment in South Africa itself.
It is also important to highlight the need for fiscal discipline. This is not about austerity. It is about ensuring that for every rand the taxpayer contributes, it goes towards the benefit of citizens and its intended purpose. Wasteful and fruitless expenditure is an assault on an already difficult fiscal position.
We have made a start, but South Africa still has a long way to go. We must not fool ourselves into believing that because we see a primary surplus, all is well. We have a long way to go.
On growth, the global outlook sits at 2.6 per cent. Sub-Saharan Africa is projected to grow by 4.3 per cent. South Africa is projecting 1.6 per cent. While some factors are external, we must look inward. The problem is not everywhere else. We must ask where we are falling short.
The fundamental question for South Africa is how to move people from the lower income quintiles into the middle class. One key area is investment in sectors such as manufacturing. If you make it in South Africa, it must be consumed in South Africa and exported to the continent.
Infrastructure investment, particularly in transport, is critical. A reliable transport system means workers can get to and from work, increasing disposable income and productivity. At the same time, labour absorption must be central. Infrastructure programmes must bring people into the labour market.
As the Standing Committee on Appropriations, we will focus on key expenditure items. First is education. If you do not invest in skills, it becomes harder for the economy, especially the tertiary sector, to absorb labour. While the minister’s investment in employing teachers is welcome, particularly in poorer communities, it is not enough. We must invest in infrastructure such as libraries. We must ensure that maths and science are available to young South Africans. If we fail here, young people become not only unemployed but unemployable.
Education and health together constitute a significant share of the social wage. These are major budget items, and expenditure must be directed to productive assets.
Second, no one will invest in an unsafe economy. The R1 billion investment in crime prevention and policing is important. However, sending the army is not a solution. The army does not police murder. Ultimately, it can only provide tactical support. It does not address the fact that 74 South Africans are murdered every day, nor that conviction rates for murder remain low. We must increase police headcount, employ more detectives and ensure South Africa is safe for investment.
Healthcare investment is equally critical. While National Health Insurance has been deferred, we must improve the doctor-to-patient ratio. At the same time, corruption in healthcare is an insult. When resources allocated to hospitals are misused, lives are put at risk. Citizens who go to a hospital and cannot find oxygen or a bed are not choosing to sleep on the floor. Every rand spent must deliver value. Corruption carries a premium in this country, and it must be dealt with through the criminal justice system.
On the Special Appropriation Bill, we will scrutinise bailouts such as that of Sentech. We must consider which expenditures are necessary and which must be cut. The public broadcaster must be adequately funded, particularly in an election year, to ensure citizens can make informed choices. But we must also examine state-owned entities and agencies that are not delivering. Government has created agencies for everything, yet many do not deliver value.
If expenditure increases in areas such as security, we must look at reducing the size of the executive. Billions spent on deputy ministers who are unclear about their responsibilities could be better deployed towards citizen safety.
I welcome that debt is stabilising and is no longer the fastest-growing item in the budget. As debt peaks and stabilises, we must focus on growing GDP. To reduce debt relative to GDP, we must increase GDP itself. GDP is fundamentally about producing goods and services that people want to buy.
If we focus on manufacturing, increase gross capital formation and create a regulatory framework that enables investment, South Africa can tell a different story. The central mission is this: how do we move 18 million grant recipients, and enable at least 10 million of them to enter productive employment? How do we double GDP from just over R7 trillion to R16 trillion, making South Africa a trillion-dollar economy?
That is the important question. If we can answer it, the budget begins to make sense. We are not there yet.
As a committee, we will not only focus on fiscal discipline. We will engage citizens directly. Public hearings are scheduled, including in KwaZulu-Natal, so that ordinary people can speak about their budget. Because it is not your money or my money. It is the citizens’ money.
Thank you, Chairperson.
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