The ACDP notes the Department’s R11.1 billion allocation for the 2025/26 financial year, and its emphasis on industrial financing and localisation strategies. While we support the Department’s stated objectives of inclusive growth and industrial transformation, we remain deeply concerned about the disconnect between policy ambition and implementation outcomes.
The looming expiry of the 90-day reciprocal tariff pause on 9 July 2025, and the uncertainty this places on our exporters – especially in the automotive, agricultural and steel sectors, serves as an exogenous trade threat.
The ACDP urges Minister Tau and this Department to use every trade and diplomatic tool possible, to engage with the US in finding amicable solutions. The ACDP further urges the Department to act decisively to protect our national interests; foreign decisions are not isolated, whether involving the US, Russia/Ukraine, Israel/Gaza or China/Taiwan, they directly impact regional economic integration, investor confidence and market access, especially when they intersect with the strategic interests of our major trading partners.
During the 6th Administration, on behalf of the ACDP, I have consistently called for the ramping up of beneficiation, with a monitoring index to track progress/regress in this area. It is encouraging to now hear the Minister of Electricity and Energy, speak on safely beneficiating coal for energy, and the Minister of Minerals and Petroleum identifying critical minerals for beneficiation. If we continue to export our raw potential, we will become importers of missed opportunity.
The ACDP has consistently called for increased support for labour-intensive industries and small enterprises. In this regard we support the departmental program alignment with the African Continental Free Trade Area and the unlocking of IDZ’s, SEZ’s, SMME’s, youth-led and women-owned businesses without disadvantaging ethical big business.
The ACDP understands the need for economic redress. We differ on the strategy. This budget, however, fails to address systemic inefficiencies and positive structural reforms needed. Hence, it risks entrenching elite capture under the guise of transformation. We must move away from race-based policies, which continue to enrich the few politically-connected individuals, not the broad masses. Unless done, we will continue to perpetuate the us-versus-them psychological and economic warfare, keeping millions of South Africans impoverished.
I thank you.
