Now That Fiscal Reforms Are Working, Its Time for Ambitious Growth Reforms

Statement by Kingsley Wakelin MP – DA Spokesperson on Finance:

The DA believes that faster and more far-reaching growth reforms are now urgent. The 2026 MTBPS cuts this year’s growth forecast from 1.6% to 1.2%. This is not enough to move the needle on unemployment. Bold and far-reaching reforms beyond the Treasury are now essential, with a clear goal: growth of at least 3.5%.

The DA has fought for reforms that lower government debt, get value for taxpayer money and reduce the deficit, proposing a fiscal responsibility bill in both the 5th and 6th Parliaments. The DA therefore supports the steps taken by National Treasury in the MTBPS, particularly the commitment to a fiscal anchor, the ongoing growth of the primary surplus and debt stabilising for the first time in nearly two decades.

These are important steps towards restoring confidence in South Africa’s public finances after the fiscal deterioration from 2008 to 2024. However, fiscal stability must be the foundation for economic growth, not the limit of government’s ambition.

While we welcome the fiscal anchor, South Africa must go further with a binding, legislated rule and a hard numerical target, so debt cannot crowd out growth and essential services. A rule without a number is just a hope.

With growth reaching only 2% by 2029, the economy cannot create jobs at scale. South Africa cannot tax, borrow or redistribute its way to prosperity. We must grow our way there.

Structural reform must move faster. In electricity, this means a genuinely competitive market, urgent expansion of transmission, and independent producers competing on equal terms. In ports and rail, private operators must be able to invest, operate and compete under a fair and independent regulator.

But reform cannot stop at electricity, ports and rail. Broad-Based Black Economic Empowerment must be fundamentally reformed, as it too often benefits connected insiders while adding costs and barriers to investment. We want empowerment that prioritises genuine opportunity, skills, entrepreneurship and jobs, rather than enrichment and race-based compliance. Government must also cut red tape to make it easier to invest, employ people and do business.

We welcome the first overhaul of the Municipal Finance Management Act in 23 years and the proposed ring-fencing of revenue from municipal trading services. Municipalities cannot continue to treat electricity and water revenue as funding for bloated administrations while neglecting infrastructure. Where municipalities cannot deliver, private-sector participation must be pursued.

National Treasury has laid the foundation for growth. Now the rest of government must deliver the bold reforms that create the growth itself. South Africa needs both, and the DA will continue fighting for the reforms to deliver growth for all.