Article by Viory
South African Minister of Finance Enoch Godongwana lauded an ‘important turning point’ for his country’s economy, which became the largest in Africa in 2025 after outpacing Egypt for the first time in four years.
Godongwana was speaking in Cape Town on Wednesday, where he announced the national budget for 2026.
“Five years ago, the outlook was stark… South Africa had been downgraded to junk status by the last of the three major credit ratings agencies in 2020,” he explained, before adding that Pretoria had turned the challenge ‘into a catalyst for change’.
“State structural reform and responsible public finances are the bedrock of a prosperous and more inclusive South Africa,” he continued, noting that South Africa has secured its first credit rating upgrade in 16 years.
He addressed the state of the global economy, which he stated is forecast to grow by 3.3% this year, with advanced economies posting more moderate growth.
“Emerging markets will continue to anchor global momentum. India and sub-Sahara Africa in particular, are forecast to grow more strongly supported by resilient domestic demand,” he explained.
He also addressed the ‘unprecedented global trade environment’, following the impact of global conflicts and US President Donald Trump’s tariffs agenda, which hit South Africa hard..
“In response, we need to diversify our trade portfolios and secure our markets, reduce vulnerabilities to external shocks, and position ourselves to benefit from the emerging global growth centres,” he added.
The minister laid out budget increases in security and defence, after President Cyril Ramaphosa had announced efforts to ‘fight illegal mining and gangsterism’ in his state of the nation address.
Article by Viory
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