The South African National Budget

On 21 May 2025, South Africa's Minister of Finance, Enoch Godongwana, delivered his National Budget Speech for the third consecutive time, a presentation that has been dubbed Budget 3.0. This iteration of the budget comes on the heels of a significant revision, as it retracts a previously suggested increase in the value-added tax (VAT) rate, which had been proposed in prior budget speeches in February and March. In this latest budget, the government has decided to maintain the VAT rate at 15%.

The latest update on public-private partnerships (PPPs) is that the rules have been simplified. Starting in June 2025, projects under R2 billion will require fewer approvals. A clear process will be put in place for receiving and reviewing unsolicited PPP proposals or bids from private companies. New manuals and guidelines on PPPs are being created and will be available to the public.

Budget 3.0 laid out a comprehensive array of financial strategies and policy directions, all crafted to tackle the persistent economic and social challenges facing the nation. With an emphasis on fostering sustainable development, the budget aims to navigate these complexities within the current political framework, striving to create a balanced and resilient economic environment for all South Africans.

For more post-budget insights, click on the below tabs.