Growth downgrade, election politics dominate MTBPS reactions

The Democratic Alliance (DA) says bolder and far-reaching economic reforms are essential to grow South Africa’s economy to at least 3.5%.

Finance Minister Enoch Godongwana announced this in his Medium Term Budget Policy Statement (MTBPS) in the National Assembly at Parliament, Cape Town, on Wednesday.

He says government has revised down its economic growth forecast for 2026 to 1.2% from 1.6% projected in the February budget.

DA Member of Parliament Kingsley Wakelin says the current growth level means very little for economic growth and job creation.

Wakelin says, “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, we need to grow to at least 3.5%.” VIDEO | Interview with Wakelin: ‘RHETORICAL AND A WASTE OF TIME’ The uMkhonto weSizwe Party (MKP) has described the MTBPS as rhetorical and a waste of time.

MKP MP, Thulani Gamede, says, “Looking at the dates, the start date of that reduction on the 4th of November, what does it say to you? It tells you that the Minister of GNU (Government of National Unity) was actually here to campaign for his own organisation and their own GNU.” Gamede says, “We know that they work together; by now they are trying by all means that they win in their corner so that they govern the country.

They don’t care about our South African people; they don’t care about the livelihood of our people.” FUEL LEVY The Economic Freedom Fighters (EFF) says Godongwana is using the reduction in fuel levy to promote the African National Congress’ (ANC) chances at the polls next month.

EFF MP, Sinawo Thambo, says the party believes that the fuel reduction is being abused to garner votes for the ANC in the upcoming Local Government Elections.

Thambo says, “He’s using it to ensure that he enhances his political party’s chances at the polls on the 4th of November because why does he not adjust a fuel levy today (Wednesday) and wait for the 4th of November, which is voting day, and then adjust it downwards within a month, and then our people go back to the same situation.” He says, “So they’re utilising the power they have as the state to enhance their electoral chances at the polls, and it’s something that must be frowned upon, and that’s why we want parliament to have much more power over it.” VIDEO | Tambo reacts to Godongwana’s speech: LOWER FOOD PRICE United African Transformation(UAT) leader, Dr Wonderboy Mahlatsi, says the MTBPS failed to provide a comprehensive strategy to lower food prices for millions of poor South Africans.

Mahlatsi says it is not nearly enough to assist struggling households.