Honourable Speaker, the ACDP notes that while South Africa’s public finances are improving, discipled fiscal management is essential to achieve faster economic growth and meaningful job creation.
While fiscal consolidation is beginning to show promise, with a rising primary budget surplus and public debt expected to stabilise at 77.9% of GDP, this remains too high, and debt servicing costs continue to crowd out critical social spending and crime prevention.
Acknowledging that economic growth projections remain weak at 1.4% for 2026/27 years, and averaging at 1.8% over the medium term, the ACDP agrees that growth between 3 to 5 per cent is a necessity to effectively address unemployment and poverty.
Global exogenous developments, particularly the Iran war and rising oil prices, further threaten these projections by increasing economic pressures and complicating debt stabilisation efforts.
South Africa’s foreign policy stance has strained relations with key trade partners such as the United States and the European Union, largely due to our alignment with Russia, China and Iran. These tensions, including tariffs and diplomatic disputes, risk undermining trade agreements, slowing economic growth and potentially isolating the country internationally.
To stabilise debt over the long term, the ACDP calls for reducing it to approximately 60% of GDP, while maintaining a strong fiscal anchor such as growing the primary surplus.
Furthermore, structural reforms in energy, water, transport and visa systems are essential to unlock higher growth alongside urgent improvements in local government service delivery.
The ACDP posits that private investment is a key driver of growth, but remains subdued due to crime, policy uncertainty, and political instability.
Businesses are holding some R1.8 trillion in cash reserves and unlocking this capital depends on creating a safe, stable environment supported by reliable infrastructure.
The ACDP further notes that on the revenue side, higher commodity prices and improved tax collection have created a windfall, allowing for tax relief without increasing major tax rates. We must continue to build on these successes.
As Kingdom-builders, the ACDP calls for policy certainty, strengthened law enforcement, reduced wasteful expenditure, and greater accountability to rebuild trust, attract greater investment, and ensure that taxpayers receive value for money.
I thank you.
