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

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 »
Bassirou Diomaye Faye, President of Senegal. Photo @ Office of President, Senegal/Facebook
Is Senegal drifting towards default as political rift deepens?
Read More »
People traveling in a canoe in Ganvie, Benin. Photo @ Unsplash
Can Benin sustain its economic miracle under new finance minister as IMF support ends?
Read More »

Recent Politics

Senegal Finance Minister Cheikh Diba and IMF boss Kristalina Georgiva. Photo Kristalina Georgieva/X
Will Cheikh Diba’s market credibility outlast Sonko’s grip on Senegal?
Read More »
Hands preparing tea on a patterned rug with traditional bread and sugar in Abuja, Nigeria. Photo by Muhammad-Taha Ibrahim @Pexels
Nigeria’s sugar tax exposes Tinubu’s painful reform dilemma
Read More »
A scenic view of wind turbines at sunrise, capturing sustainable energy. Photo by Lorna Pauli @Pexel
Egypt’s green energy sprint masks a deepening gas crisis
Read More »

Latest Posts

Latest news insights