LETTER | Time is ripe to prioritise growth-oriented reform over political comfort

The latest budget speech by finance minister Enoch Godongwana lands at a pivotal moment for SA. After years of stagnation, policy drift and waning investor confidence, the emerging signs of economic stabilisation under the Government of National Unity (GNU) suggest that the country may finally be turning the corner. This improvement is not accidental.

It is the product of deliberate reforms, firm political will and a renewed commitment to consequence management, many of which have been driven by the reform agenda championed by the Democratic Alliance (DA) within the GNU. The budget speech reflects a cautious but important shift in tone — away from populist expenditure promises and toward fiscal responsibility, structural reform and growth-oriented governance. This matters.

For over a decade, policy uncertainty and ANC governance failures eroded confidence in the state’s ability to manage the economy. The presence of reform-minded ministers and deputy ministers, like Ashor Sarupen, in key portfolios has helped restore a measure of credibility to government decision-making, particularly in areas such as infrastructure reform, energy stability and public sector accountability. Investor confidence does not return through rhetoric; it returns through predictable policy, credible institutions and decisive leadership.

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The GNU’s reformist posture, though constrained has begun to signal exactly that. Business sentiment, while still cautious, is responding to a government that appears more willing to confront inefficiency, unblock investment and introduce pragmatic solutions to long-standing structural bottlenecks The budget also reveals the limits of coalition governance. The reluctance of the ANC to compromise on certain ideological policy positions continues to act as a drag on faster economic recovery. Growth-enhancing reforms in labour markets, state-owned enterprises and regulatory red tape remain contested terrain.

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