By Zandile Majavu
Most political parties and experts are concerned about the watered-down budget speech by Finance Minister Enoch Godogwana, which they claim failed to direct resources to the urgent needs of the country. More parties expected tangible solutions to the country’s urgent problems since this year’s speech preceded the upcoming national elections, while some small business experts think it was pro-big businesses and more focused on social needs.
Action SA said the budget speech was another missed opportunity that showed that the ruling party lacked the political will to cut funding from non-strategic programmes, such as the R3.7 billion VIP protection budget. “We cannot afford ‘more of the same.’ South Africa’s economy needs urgent, innovative interventions to get us back on track. Real GDP growth is expected to come in at 0.6% for 2023, entirely insufficient to grow the economy, the tax base, and jobs, it said.
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Speaking to Vutivi News, African Panel Beaters and Motor Mechanics Association (APMA) president Sisa Mbangxa pointed out that the speech was more focused on social impact, and was pro-big businesses than small businesses. “In the automotive sector, he spoke more of the Original Equipment Manufacturer (OEMS) and not more of the aftermarket markets (referring to Godogwana’s proposition that producers of electric vehicles in South Africa will be able to claim 150% of qualifying investment from March 2026,” Mbangxa said.
He further said the funds allocated to SMEs could be sectorised rather than made a blanket approach to be able to track delivery. “They always assume that the leading problem with SMEs is funding, ignoring access to the market. The market is still highly monopolised by big businesses, so it does not help get workshops and funding while, at the end of the day, you do not have access to markets. That is where most small businesses fail,” Mbangxa added.
Meanwhile, Cape Chamber of Industry and Commerce president Jacques Moolman slammed the decision taken by Godogwana to borrow money from the foreign exchange account to bail the country from its debt just before the May elections. “It may go down in history as the Cinderella Budget. With a wave of his fiscal wand, Finance Minister Enoch Godongwana procured a largely overlooked R150 billion, just enough to balance the books and get South Africa to the proverbial ball – the national elections on May 29,” Moolman said.
He added that the problem with spells, as Cinderella discovered to her detriment, was that they expired at midnight, and South Africa’s tenuous finances faced the same prospect following the elections.
The DA said the budget speech was indicative of a panicking ANC government that has no plans to accelerate economic growth, resolve relentless blackouts, and stabilise the debt.
However, Black Business Forum president Luthando Bara Vutivi News that Godogwana’s emphasis on revitalising industrialisation and enhancing the appeal of industrial parks was commendable because it would foster job creation. “The commitment to supporting micro, small, and medium enterprises through financial and non-financial aid reflects a proactive approach to bolstering local businesses. Efforts to curb unemployment are crucial, and we appreciate the focus on this vital aspect of economic development,” he said.
