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ActionSA is disappointed by Minister Godongwana’s announcement of short-term fuel relief measures, which we believe do not go far enough to ease the devastating cost-of-living crisis and fail to address the fundamental problems that continue to undermine South Africa’s economy.

The temporary fuel levy relief, amounting to R10 billion and set to expire on 1 January 2027, falls desperately short of addressing the impact of high fuel prices. These costs have driven up the prices of food, basic goods and services, and virtually every part of the economy that depends on transportation.

This crisis is compounded by the ineptitude of a government that bizarrely allowed our strategic oil reserves to be sold off while failing to invest in and drive strategic opportunities in our energy markets. The result is that South Africa remains dangerously dependent on external supply, leaving households and businesses exposed to global price shocks, with no credible plan to strengthen our energy security or shield the economy from future disruptions.

However, credit must be given to the Finance Minister for heeding ActionSA’s repeated calls for additional resources to be allocated to SARS. The additional R4.4 billion allocated to SARS is a significant step towards closing the tax gap, an issue ActionSA has consistently advocated for since entering Parliament. The additional R17.1 billion in revenue already secured demonstrates the value of properly capacitating SARS.

South Africa’s growth forecast has been revised downwards from 1.6% to 1.2%, while global growth is projected at 3.1% and Sub-Saharan Africa at 4.5%. Two and a half years into the GNU, the government has failed to present a credible plan to address low economic growth, rising unemployment, increasing poverty and constrained fiscal space. The practical impact is that we are not even creating enough jobs to absorb new graduates entering the labour market, let alone provide opportunities for those who are already unemployed.

ActionSA looks forward to more concrete plans in the February Budget Speech to capacitate the National Illicit Economy Task Team, announced by the President during the State of the Nation Address. As the lone voice advocating for a holistic approach to combating illicit trade, ActionSA will continue to engage the Minister on the urgent need to tackle the illicit economy. South Africa needs decisive action, not further delays.

As predicted, the GNU has failed to present a clear plan to reverse the stagnation of our economy. Economic growth forecasts have been revised downwards in successive budget presentations, unemployment and poverty continue to rise, and the government’s fiscal room to manoeuvre remains severely constrained. South Africa cannot afford another budget cycle without a credible plan to get the economy growing, create jobs and ease the burden on households.

Issued by ActionSA Member of Parliament Alan Beesley