On 25 February 2026, Finance Minister Enoch Godongwana delivered his fifth Budget Speech and his second under the Government of National Unity. This year, the Budget was delivered on time. We summarise below the key points most relevant to our clients.

The 2026 Budget marks a turning point for public finances. Government debt has more than tripled since 2008/09 but is set to peak at 78.9% of GDP this year before falling. The budget deficit continues to narrow from 5.1% of GDP in 2021/22 to 4.5% in 2025/26 and is projected to fall further to 2.9% by 2028/29.

The economy is forecast to grow by 1.6% in 2026, rising to 2.0% by 2028. Several factors support this outlook: the South African Reserve Bank’s new 3% inflation target; S&P Global’s credit-rating upgrade following South Africa’s removal from the FATF grey list; and energy-sector reforms, including no load-shedding since May 2025 and over 23,900 MW of private renewable energy investment secured.

The government’s economic plan has four pillars: maintaining stability through the lower inflation target; advancing energy, transport and telecoms reforms under Operation Vulindlela; strengthening state capacity to deliver services; and increasing infrastructure spending. The government recognises, however, that current growth is insufficient to reduce unemployment meaningfully or to expand public services.

Download the full overview from Werksmans from the link above