Denise van Huysteen, on behalf of the Nelson Mandela Bay Chamber of Commerce, comments on the 12 March Budget announcements:
“The rapid global geopolitical shifts from a trade, healthcare and Just Transition perspective, and the onset of trade wars, will have major implications for South Africa’s economy. In these unprecedented times, our country needs to be agile and proactive in responding to these changes and will need to dramatically speed up efforts to improve logistics, infrastructure issues and the turnaround of municipalities. Earning confidence from business and investors is critical in rebuilding the country’s economy, and the Budget is an important vehicle to further enable this.”
“The Chamber is relieved that the revised Budget Speech was finally tabled after being postponed in February, thus avoiding any further delays to what is a critical event for our national economy. The Budget must thus promote economic stimulation and improve the outcomes from government spending, so that accelerated focus can be placed on getting an enabling environment in place to encourage much needed, critical business investment, and job creation.”
“The increase in VAT comes at a time when businesses in our metro are already grappling with a fragile and challenging economic environment caused by local, national and global developments. As a result, this additional tax burden will likely force businesses to pass on the increased costs to consumers and will lead to higher prices for goods and services, reduced disposable consumer income and placing further financial pressure on households already struggling to make ends meet. We however note the Minister has restricted the VAT increase to 0,5% for 2025/26 year and that the 0,5% increase planned for 2026/27 will be reviewed as to whether it is really necessary at the time.”
“The Chamber welcomes the fact that corporate income tax will not be increased, especially given the fragility of our economy, since some businesses would have found themselves with no choice but to downsize or reduce their workforce, which would have been disastrous for our region, especially with an already alarmingly high unemployment rate.. The creation of job opportunities is crucial, and higher taxes risk further hindering these efforts, as they could discourage the very growth that is necessary for generating employment.”
“We further welcome the fact that public private partnership regulations will be amended to encourage more private sector participation particularly in the area of transport and logistics where the Chamber and its members have been lobbying for a more effective rail network to support key industries in our region such as the automotive and agricultural sectors. The focus should also be on improving tax collection efficiency, dramatically improving the productivity levels of government entities, reducing wasteful government expenditure and fostering innovation and investment in the economy.”
“The government must also prioritise creating a conducive environment for businesses to thrive by addressing infrastructure challenges and reducing unnecessary red tape. The shift to implementation is vital and government should continue collaborating with the business community to find ways to boost growth, support job creation and retain investments. We trust that the formal approval of the Budget by the relevant parliamentary committees will be facilitated expediently in order for the implementation to commence.”
Find Business Accommodation in Gqeberha HERE
Gqeberha (Port Elizabeth) is a beautiful city located on the coast in the Eastern Cape Province and is known as the “Friendly City”, with other towns in this district including Kariega (Uitenage) and Despatch. Forming part of the Nelson Mandela Bay Metro, Gqeberha has stunning beaches, historical museums and memorials, award-winning wildlife sanctuaries and super friendly people, making it a spectacular holiday destination.
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Sick Saurus
Growing population and insufficient status quo – Currently water and electricity coverage, along with housing, waste management, infrastructure and health care is insufficient to meet the needs of the South African population. The population growth and urbanization in South Africa will amplify current demand in the future, and the gaps hold business opportunities for Danish companies.