Boipelo Ndimande, Chief Financial Officer at Consult by Momentum
The reversal of the VAT hike is a welcome relief for South Africans grappling with the rising cost of living – but it doesn’t mean we’re out of the woods. The fuel levy increase of 16c per litre (petrol) and 15c (diesel) will have a knock-on effect on transport and food prices, which will pinch household budgets.
Globally, the finance minister flagged rising geopolitical tensions and weaker economic forecasts, with the IMF revising 2025 growth projections down by 0.5 percentage points since January. At the same time, new trade barriers and policy uncertainty could fuel inflation and extend high interest rate cycles in both developed and emerging markets.
Against this backdrop, the importance of having a well-diversified, long-term financial plan cannot be overstated. The landscape is volatile, as the Minister pointed out today, and investors should avoid knee-jerk decisions. Instead, work with a qualified financial adviser to ensure your portfolio is positioned to weather these headwinds while keeping you on track toward your personal financial goals.
Nkosinathi Mahlangu, Youth Employment Portfolio Head at the Momentum Group Foundation
Today’s Budget reflects a government trying to balance competing pressures under incredibly difficult economic conditions. The decision to preserve social and developmental priorities despite fiscal constraints is welcomed, especially the continued investment in early childhood development, education and infrastructure – all of which are foundational to long-term socio-economic progress.
That said, for a country grappling with one of the world’s highest youth unemployment rates, the lack of specific, bold measures targeting young people was disappointing. There was no mention of the Youth Employment Tax Incentive, a key tool to encourage private sector hiring, and while the extension of the Social Relief of Distress (SRD) grant is positive, we need far greater clarity on how this will meaningfully transition recipients into jobs.
The proposed job-seeker allowance and review of Active Labour Market Programmes are promising, but they now need urgency, scale and alignment across departments if they are to deliver impact.
We also welcome the R1 trillion infrastructure pipeline, which offers job creation potential – particularly in sectors like construction with lower barriers to entry. But a clear implementation strategy is needed to ensure these opportunities reach young people, especially those in underserved communities.
Ultimately, the success of this Budget will hinge on how well these policy commitments translate into practical, on-the-ground solutions. What young people need most right now is visibility, inclusion and a tangible path to opportunity.
Arno Jansen van Vuuren, Managing Director at Futurewise
While the much-debated VAT hike has now been shelved, it’s encouraging to see that government has still prioritised education – particularly early childhood development – through some clever fiscal footwork. By increasing the general fuel levy and trimming unallocated spending, Treasury has created space to deliver where it counts.
The Budget allocates an additional R10 billion to expand access to early education and raise the ECD subsidy from R17 to R24 per child per day, benefiting an estimated 700,000 more children. A further R9.5 billion is earmarked to retain teachers and boost staffing in provincial education.
These investments point to an understanding that education is foundational to long-term economic resilience & growth. For families, it underscores the importance of planning ahead to support their children’s education journey; especially as public funding will always face competing demands. Structured education saving, backed by the right protection, remains one of the most powerful ways to secure a child’s future.
David McDonald, CEO at SolarAfrica
Today’s Budget was a breath of fresh air for the renewable energy sector, with R219.2 billion allocated to strengthening South Africa’s electricity supply network – from generation to transmission and distribution. The explicit recognition that renewable energy projects are helping to stabilise power supply and reduce loadshedding affirms the role that Independent Power Producers (IPPs) like SolarAfrica play in building energy resilience.
We are particularly encouraged by the continued progress on grid access and the upcoming multi-line transmission package, which will provide additional capacity and enable faster integration of renewable projects into the system.
Equally important is the gazetting of new public-private partnership (PPP) regulations, which take effect next month. These reforms will cut red tape and allow the private sector to more effectively partner with government to deliver scalable energy solutions – exactly what is needed to meet growing demand and speed up infrastructure development.
In a constrained fiscal environment, leveraging private capital and expertise doesn’t just make good business sense – it’s vital for growth.
