Search

South Africa’s Budget Battle Deepens as Coalition Divisions Widen

South Africa s Minister of Finance Enoch Godongwana. ©Imago / Alamy Stock Photo
  • Political deadlock over VAT hike threatens Government of National Unity
  • Investors await clarity as economic uncertainty fuels market volatility

Johannesburg, South Africa – South Africa’s Finance Minister Enoch Godongwana’s national budget has exposed deep divisions within the Government of National Unity (GNU), with coalition partners, opposition parties, and civil society rejecting proposed tax hikes. The most contentious measure is a planned 0.5 percentage point increase in value-added tax (VAT) in 2025/26, followed by a similar rise in 2026/27—though the second hike may be reconsidered if alternative revenue-raising measures prove effective.

This article is free to read.

Sign up for free or sign in to continue
reading. Unlike our competitors, we don't force you to pay
to read the news but we do need your email address to
make your experience better.

Create your free account or sign in


Recent Business

Cocoa pod and beans outdoors. Photo by Ákos Helgert @ Pexels
How Nigeria's cocoa strategy could end decades of oil dependence
Read More »
A vibrant display of traditional dance in Botswana. Photo by Xitsundzuxo Himina @ Pexels
Why Botswana’s inflation surge signals wider risks for commodity economies
Read More »
Molten metal pouring from ladle in industrial foundry. Photo by Bence Szemerey @Pexels
Can Kipushi’s zinc boom in Congo redraw Africa’s commodity power balance?
Read More »

Recent Politics

Nigerian youth on the street. Photo by Salem Ochidi @ Unsplash
Why Nigeria’s Osun vote could foreshadow 2027 turmoil
Read More »
Patrice Talon, Former President of Benin Photo @Patrice Talon/Facebook
Who really governs Benin? Ex-president Talon still holds the keys
Read More »
Football fans on the street of Marrakesh, Morocco. Photo by Graddes @ Unsplash
Will Morocco’s $20bn World Cup gamble deliver growth?
Read More »

Latest Posts

Latest news insights