Media Statement

As the Minister of Finance prepares to table the 2026 National Budget, South Africa does so from a position of renewed economic momentum and growing confidence. Inflation has moderated, the rand has strengthened, bond yields have eased, and the country has recorded its first major credit ratings upgrade in 16 years.

The economy is moving upward, supported by improved macroeconomic stability and declining risk premiums.

Across sectors, performance has strengthened, with mining and agriculture leading contributions to output and export performance. Against this improving backdrop, the African National Congress outlines its expectations for a Budget that must consolidate fiscal stability, accelerate structural reform, and decisively advance inclusive growth, job creation and social protection.

The projected economic growth in 2026 rising up to 2 per cent by 2028, reflects early momentum from ongoing

reforms, strengthening investor confidence and easing borrowing costs. The ANC anticipates that the Budget will build on this foundation by intensifying reforms in electricity, logistics, water and industrial development to lift growth onto a higher, more employment-intensive path.

The stabilisation of public debt as a percentage of GDP, marks a turning point after years of fiscal strain. With the main budget deficit projected to narrow from 4.5 percent, the ANC looks to the Budget to translate this hard-won stability into expanded developmental capacity rather than reduced service delivery.

Infrastructure must remain central to economic recovery. With over a trillion in projected public infrastructure spending over the next three years, the ANC expects sharper execution, improved project preparation and stronger crowding-in of private investment. Priority areas must include energy transmission expansion, rail freight modernisation, water security, housing and municipal bulk infrastructure. Progress in enabling increased investment into private renewable energy generation demonstrates the impact of reform. However, continued delays in grid allocation, logistics reform and water sector legislation, must be resolved with urgency. The ANC anticipates clearer timeframes and strengthened administrative capacity to overcome legal and operational bottlenecks that constrain growth.As the National Budget is tabled, we are clear that while private sector participation can assist in mobilising capital and accelerating delivery, it must never mean the erosion of public ownership of strategic state assets.

Public resources belong to the people of South Africa.

Any partnership model must safeguard state control, constitutional accountability and the developmental mandate of government. Investment must strengthen the state, not hollow it out.

The situation in local government demands decisive structural intervention and the ANC expects a shift toward utility-style service models, stricter enforcement of financial compliance measures and the introduction of Distribution Agency Agreements to restore accountability and protect essential services.

Protecting the social wage remains paramount with more than 60 per cent of consolidated spending supporting health, education, social protection and employment programmes. Protecting the poor will continue with allocations to extend the Social Relief of Distress grant until 2027 providing necessary relief to vulnerable households. The ANC anticipates that the redesign of this grant will strengthen pathways to skills development, livelihoods and productive economic participation while safeguarding dignity.

In tax policy, we anticipate the withdrawal of previously announced increases and the adjustment of personal income tax brackets for inflation, signal responsiveness to cost-of-living pressures. The ANC expects revenue improvements to continue to be driven by enhanced SARS capacity, stronger compliance and economic expansion rather than additional burdens on working South Africans.

Looking ahead, the proposed principles-led fiscal anchor will be introduced to entrench sustainability while preserving constitutional commitments to socio-economic rights. Fiscal consolidation must reinforce development, not undermine it.

South Africa stands at a distinct point. Stability is returning and confidence is strengthening. The 2026 National Budget must now convert this stability into faster growth, more jobs, functional municipalities and tangible improvements in the lives of our people.

The African National Congress remains committed to advancing a capable developmental state that balances fiscal prudence with transformation, reform with protection, and growth with social justice.

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