The latest budget speech by finance minister Enoch Godongwana lands at a pivotal moment for SA.
After years of stagnation, policy drift and waning investor confidence, the emerging signs of economic stabilisation under the Government of National Unity (GNU) suggest that the country may finally be turning the corner.
This improvement is not accidental. It is the product of deliberate reforms, firm political will and a renewed commitment to consequence management, many of which have been driven by the reform agenda championed by the Democratic Alliance (DA) within the GNU.
The budget speech reflects a cautious but important shift in tone — away from populist expenditure promises and toward fiscal responsibility, structural reform and growth-oriented governance.
This matters. For over a decade, policy uncertainty and ANC governance failures eroded confidence in the state’s ability to manage the economy.
The presence of reform-minded ministers and deputy ministers, like Ashor Sarupen, in key portfolios has helped restore a measure of credibility to government decision-making, particularly in areas such as infrastructure reform, energy stability and public sector accountability.
Investor confidence does not return through rhetoric; it returns through predictable policy, credible institutions and decisive leadership.
The GNU’s reformist posture, though constrained has begun to signal exactly that.
Business sentiment, while still cautious, is responding to a government that appears more willing to confront inefficiency, unblock investment and introduce pragmatic solutions to long-standing structural bottlenecks
The budget also reveals the limits of coalition governance.
The reluctance of the ANC to compromise on certain ideological policy positions continues to act as a drag on faster economic recovery.
Growth-enhancing reforms in labour markets, state-owned enterprises and regulatory red tape remain contested terrain.
This tension is now the defining fault line within the GNU — between those pushing for bold structural change and those clinging to policies that have demonstrably constrained growth and job creation.
The ANC honeymoon is over. It’s time to deliver for all and save those trapped out of jobs.
The danger is that partial reform may lead to partial results. Stabilisation is not the same as transformation.
Without deeper policy alignment in favour of investment, entrepreneurship and competitive markets, the economy risks settling into a low-growth equilibrium better than decline, but far below its potential.
Still, credit must be given where it is due.
The improved fiscal discipline, emphasis on consequence management and commitment to innovation in governance reflect a clear break from the era when accountability was routinely deferred.
These shifts are already yielding measurable benefits — improved sentiment in capital markets, renewed engagement from investors, and a government that is slowly regaining credibility both domestically and abroad.
However, credibility is fragile. It will only be sustained if reform momentum is maintained and expanded.
The GNU must resist the temptation to declare victory too soon.
Stabilisation is merely the foundation — sustained growth, job creation and poverty reduction require deeper, more decisive policy reforms.
The message from this budget is, therefore, two-fold.
First, reform works and the contributions of reform-driven leaders within the GNU are beginning to bear fruit.
Second, progress will remain constrained unless all coalition partners align behind policies that actively enable economic expansion rather than impede it.
South Africa now stands at the crossroads —consolidate reform and unlock growth, or allow ideological rigidity to dilute the gains already achieved.
The budget speech shows that the country has begun the journey toward recovery.
Whether it completes that journey will depend on the courage of the GNU to prioritise pragmatic, growth-oriented policy over political comfort.
- Thulani Dasa (community activist)
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