Cape town: Business Unity South Africa (BUSA) has welcomed the 2026 National Budget, noting its clear acknowledgement of South Africa's central economic challenge, including insufficient growth, which continues to entrench unemployment and inequality. Reacting to the 2026 Budget Speech tabled by Finance Minister Enoch Godongwana in Parliament on Wednesday, BUSA commended the budget's focus on prudent fiscal management and responsible stewardship of public finances.
According to South African Government News Agency, BUSA CEO Khulekani Mathe highlighted several key milestones achieved over the past year, including South Africa's removal from the Financial Action Task Force (FATF) grey list, a credit rating upgrade, debt stabilisation, a narrowing budget deficit, and easing borrowing costs. Mathe emphasized the importance of these developments, stating that they demonstrate what is possible when the country focuses on the right priorities and works in unison. He particularly praised the removal from the FATF grey list, which required coordinated efforts across government departments, agencies, and the private sector.
The organisation noted that public debt is stabilising, while fiscal consolidation efforts have begun to yield measurable improvements in market confidence. Mathe pointed to the Gross Domestic Product (GDP) growth forecast of 1.6% in 2026, rising to 2.0% by 2028. While the projected improvement suggests that South Africa's economy is beginning to turn the corner, BUSA remains concerned that the growth rate is still too modest to meaningfully address unemployment at scale.
BUSA also commended Godongwana for a budget that contains no surprises, particularly regarding tax policy, while reflecting significant gains from improved tax administration and expenditure reviews. These improvements have generated sufficient gains to close the R20 billion funding gap anticipated for the 2026/27 fiscal year without the need for additional tax hikes. Additional tax measures aimed at easing the financial burden on businesses and households were also welcomed.
Despite the positive fiscal outlook, BUSA warned that the country's progress will be constrained unless service delivery at the local government level improves materially. It noted that the failure of some municipalities to fulfil basic service delivery functions continues to impose direct costs on households and businesses, eroding confidence and undermining the positive narrative of a country on the mend.
BUSA acknowledged progress in areas where stronger collaboration between government and business has intensified, particularly in structural reforms in energy, transport, and logistics under the auspices of Operation Vulindlela. Private-sector participation and public-private partnerships are seen as essential to unlocking the growth potential of the South African economy. Business stands ready to support measures aimed at growing the economy, boosting investment, and accelerating job creation.