MTBPS Reactions – Experts weigh in!
Jurgen Eckmann, Wealth Manager at Consult by Momentum
“The Minister’s upbeat tone reflects what many investors have been hoping to hear for years: that South Africa’s finances are finally on a stronger footing. The recent removal from the FATF grey list was a welcome development for investor confidence, though whether it will translate into a surge in foreign direct investment remains to be seen.
For the first time since 2008, government debt is expected to stabilise, and the country will post a primary budget surplus, meaning we’re funding core spending from tax revenue rather than new debt. That’s a important shift, showing that the fiscus is starting to live within its means.The revised inflation target of 3%, alongside lower debt-service costs, shows an intent to create room for reduced borrowing costs over time – though in the near term, this tighter target may require interest rates to stay elevated for slightly longer. The Minister will have to balance inflation management with supporting growth, which could slow in the short term before the benefits filter through.
In terms of state capability, the new Targeted and Responsible Savings (TARS) initiative is a positive step. By reducing duplication and waste, it lays the groundwork for more disciplined municipal and departmental spending. Involving the private sector in driving this kind of efficiency could further help ensure that resources are used more effectively, with less wastage.
Overall, the numbers point to cautious optimism. A more disciplined fiscus, improved policy certainty, and gradual structural reform should help build investor confidence and, ultimately, a healthier economy.”
Nkosinathi Mahlangu, Youth Employment & Entrepreneurship Specialist at the Momentum Group Foundation
“The Minister’s focus in the Mid-term Budget Speech on infrastructure as a catalyst for growth is encouraging. Large-scale investments in energy, water and logistics can be powerful engines for job creation, particularly for young people seeking technical and vocational opportunities. The commitment to stabilise and professionalise municipal utilities, alongside reforms to modernise public services, will also potentially build a pipeline of skilled youth capable of maintaining essential infrastructure and supporting local delivery.
The Early Retirement Programme offers further potential by creating room for new entrants into the public service, enabling institutional renewal and knowledge transfer across generations.
However, the Statement remains thin on the mechanisms that will intentionally link these opportunities to young people – and on the data needed to measure real progress. There is no reference to youth unemployment figures, NEET rates or youth labour absorption targets. There is also no referencing what the government set out to achieve and what has actually been delivered in previous speeches. Without metrics, the youth employment narrative risks becoming a moral rather than measurable commitment.
While fiscal stability and reform lay the groundwork for growth, South Africa’s recovery depends on turning policy into pathways for inclusion, and hopefully we will see more detail around this in next year’s Budget Speech.”
David McDonald, CEO at SolarAfrica
“Allowing private investment in high-voltage transmission lines is a big step forward for South Africa’s energy future. For too long, the private sector’s ability to help strengthen the grid has been limited to generation – now we can finally help expand the network that moves that power. It’s a tangible, long-overdue change that opens the door to real progress on energy security.
At SolarAfrica, we’re already seeing how this kind of collaboration works in practice. Our SunCentral solar farm in the Northern Cape includes the new Aquila Main Transmission Substation, which we’re developing with Eskom to feed up to 2 GW of renewable power into the grid for wheeling across the country. It’s exactly the kind of public-private model that gets South Africa moving – more capacity on the grid, more clean power for business, and ultimately, more stability for the economy.”
