Ramaphosa says medium-term budget will support economic reforms and infrastructure

President Cyril Ramaphosa has welcomed the Medium-Term Budget Policy Statement, saying it will strengthen important government economic reforms and help unlock much-needed growth.

Speaking after Finance Minister Enoch Godongwana tabled the MTBPS in Parliament, Ramaphosa described infrastructure as the “flywheel” of the economy. He said proper investment in roads, ports, water, electricity and other key projects would create jobs, improve services and attract private money.

The 2026 MTBPS shows government is deliberately shifting spending away from day-to-day consumption towards long-term infrastructure. National Treasury expects capital spending to grow faster than other areas of the budget over the next three years.

Several reforms are already under way. The Infrastructure Finance and Implementation Support Agency, which started operating in April, is helping prepare projects worth more than R207 billion. The Budget Facility for Infrastructure has approved support of over R100 billion for ready-to-build projects. An infrastructure bond launched late last year has already raised more than R14 billion for these pipelines.

Government is also making it easier for municipalities to partner with the private sector. Amended Public-Private Partnership regulations have been submitted to Parliament. Of the 68 projects currently in the PPP pipeline, 31 are municipal projects. These changes aim to speed up delivery of water, electricity and sanitation services where backlogs are worst.

The budget also confirms that debt has stabilised at 78.4 percent of GDP. Tax revenue is R17.1 billion higher than expected earlier this year, mainly because of stronger corporate taxes from the mining sector. Growth for 2026 has been revised down to 1.2 percent, but Treasury still expects it to rise gradually in the years ahead.

Godongwana stressed that the goal is not simply to spend more, but to spend better so that every rand delivers real economic returns and improves people’s lives. Extra allocations have gone to municipalities for free basic services, to provinces for health and education, and to temporary fuel levy relief to ease the cost of living.

Ramaphosa’s comments underline government’s view that continued reforms, especially in infrastructure, logistics and energy, remain central to lifting South Africa’s growth rate and creating jobs.

Source: https://x.com/ewnreporter/status/2112912084833063173

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