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

Prime Minister Abiy Ahmed inaugurated the dam. Photo by Office of the Prime Minister - Ethiopia
Has Ethiopia won the Nile argument? Washington returns
Read More »
A lively street protest in Nigeria with activists waving flags and holding signs. Photo by Tope J. Asokere @Pexels
Can Nigeria contain election cash? CBN rebuilds inflation defences
Read More »
Oil tankers silhouetted against a vibrant sunset over the Pacific Ocean. Photo by Soly Moses @Pexels
Who should control Namibia’s oil? Presidency power grab divides nation
Read More »

Latest Posts

Latest news insights