Finance Minister Enoch Godongwana has the final checks to his suit done by President Cyril Ramaphosa and Deputy President, Paul Mashatile ahead of tabling his 2026 Budget. Honourable Members, we have reached an important turning point in the management of our public finances. State Capture had hollowed out critical institutions and weakened state owned entities.
South Africa had been downgraded to junk status by the last of the three major credit rating agencies in 2020. The devastation of the coronavirus pandemic, coupled with the Russia Ukraine conflict, dealt a blow to global growth. In 2023, the Financial Action Task Force placed South Africa on its grey list.
The warning lights were flashing. Public finances were under severe strain and growth had stalled. We turned it into a catalyst for change.
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We committed to a clear reform agenda and a disciplined fiscal strategy built on three principles. Stabilise debt. Invest in infrastructure.
Spend better. Today, that commitment has delivered tangible results. For the first time in 17 years, debt will stabilise and continue to fall in the coming years.
The budget deficit has narrowed significantly, and debt service costs are declining. South Africa has been removed from the FATF grey list. We secured our first credit rating upgrade in 16 years.
Borrowing costs have eased, creating space for growth and development. These are signals of restored credibility, renewed resilience, and a nation regaining its footing. The lesson is clear. Steady structural reform and responsible public finances are the foundation of a more inclusive and prosperous South Africa.
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