Cape Times içinde 2025-03-13 için içindekiler tablosu

VAT will be raised by 0.5% this year and by 0.5% the year thereafter, but a range of measures have been proposed by the government to alleviate the impact of these increases on lower-income households. The National Treasury had earlier this year proposed a 2% increase from the current 15% VAT rate, but the proposal was shot down by the political parties in the Government of National Unity due to the potentially severe impact on lower-income groups. Consequently, the February Budget was postponed until Wednesday so that other ways could be found to increase government revenues. In addition, the government has decided not to adjust the personal income tax brackets and rebates for inflation in 2025/26, which will see employees paying more tax. Finance Minister Enoch Godongwana said in a…

There were angels lurking in the detail of South Africa’s delayed March 2025 Budget. While most attention focused on the scrapping of the 2 percentage point rise in the VAT rate proposed in February 2025 - replaced by a phased increase of half a percentage point this coming fiscal year and another half in the following year - some gems were hiding in the 273-page Budget Review. In my opinion, the standout revelation was the notable decline in irregular expenditure at the provincial level, dropping from R55 billion in 2022/23 to R20.7bn in 2023/24. Unauthorised expenditure also fell, from R3.1bn in 2022/23 to R2.2bn in 2023/24, while fruitless and wasteful expenditure decreased sharply from R626.6 million in 2022/23 to R193.1m million in 2023/24. Another major highlight is that the…

Economists saw the step-up 0.5 percentage point VAT increase over the next two financial terms as not only messy, but an indication of government running out of headroom for revenue generation. The increase, a compromise on an outright 2% VAT increase proposed in the deferred budget from last month, is proposed by Finance Minister Enoch Godongwana to raise R28 billion in 2025/6. It included a VAT increase of 0.5% from May 1, 2025, with a further 0.5% increase from April 1, 2026. South Africa is not out of line with the global average VAT rate. Johann Els, the chief economist at Old Mutual Group, said, "Regarding VAT, the initial proposal of a 2% VAT rate increase has now been revised down to 1%, spread over two years - 0.5% from…

The private commercial property sector has agreed that the government could achieve savings through better management of its property portfolio, calling for an urgent audit to curb unwarranted and wasteful expenditure. This follows remarks by Parliament’s Portfolio Committee chairperson, Songezo Zibi, who said on Monday during a pre-budget economic cluster media briefing that the government was paying over the odds in rental costs. Zibi highlighted that departments in the government’s social cluster account for more than 50% of leased space, with these leases typically involving larger offices - exceeding 2000m² - primarily in central business districts (CBDs) and main centres, at an average rental rate of R126/m². Leases for departments in the Economic and Governance Clusters, meanwhile, range between 1 500m² and 1600m² at an average of R120/m². Just over…

The government’s tax revenue collection fell only R16.7 billion short of expectations from last year’s Budget forecast due in part to lower diesel import VAT receipts as load shedding subsided, and R1.85 trillion of tax revenue is expected to be realised. Although corporate tax receipts benefited from better-than-expected profitability, slower import growth led to underperformance in import VAT collections. Fuel levy receipts contracted amid falling demand and large diesel refund payments. Import VAT collections fell by more than 20 percent between 2022/23 and 2023/24 as nominal imports slowed sharply. While this has since moderated, tax receipts contracted by 1 per cent in the first 11 months of 2024/25 compared with the same period in the previous year. Volumes of domestic and imported diesel contracted as load-shedding subsided. Significant diesel refund…

Finance Minister Enoch Godongwana announced that R941.5 billion has been allocated over the medium-term expenditure framework (MTEF) period to support the equitable provision of public health services, including free primary healthcare. Godongwana said that the budgets for basic education, health and the police are projected to grow in nominal annual average terms at 5,9% 5,9% and 5,2% respectively over the MTEF period - this is the three-year spending plans of national and provincial governments. Godongwana explained that about 44,7% of the R941.5bn allocation for health is directed to funding district health services, particularly primary healthcare facilities such as clinics and community health centres, which also provide outreach services. "This level of care is recognised as the most efficient and effective due to its focus on disease prevention and proximity to…

Eskom continues to rely heavily on government support through a debt-relief arrangement, according to the National Treasury’s 2025 Budget. Finance Minister Enoch Godongwana yesterday tabled the 2025 Budget before the National Assembly, saying: "The Eskom debt relief arrangements are also effective and contribute to the improved fiscal position. Eskom is now in a much better financial position than in 2023 when the debt relief was originally announced." He said as a result of these improvements, Treasury had decided to simplify the final phase of the debt relief package. The last R70 billion debt takeover will now be replaced with R40bn in 2025/26, and R10bn in 2028/29. This will result in a saving for the government of about R20bn. Treasury said over the five-year period, the government will have provided Eskom…

The much anticipated Cape Town Carnival’s 15th anniversary celebrations include a number of headline performers, with YoungstaCPT, DJ Ready D, Bravo Le Roux, Paxton Fielies and the SA Youth Choir set to entertain crowds. The Mother City’s colourful celebration of creativity, culture and the performing arts, returns to Green Point on Saturday. There will be appearances by the DHL Stormers, the Drag Cartel and Rio’s Carnival’s Queen of the Drums, Erika Januza. The City’s Fire and Rescue Services as well as Law Enforcement officers will form part of the carnival opening. They will be joined by around 1 500 performers from across the city, who will entertain thousands of spectators on Green Point Main Road and Somerset Road for the three-hour carnival. A celebration of creativity and culture, the Cape…

Police are investigating a case of damage to infrastructure after ten train coaches were set alight between Woodstock and Cape Town railway stations Tuesday night. Police spokesperson Frederick van Wyk said: “Train coaches parked on the train line between Woodstock and Cape Town Railway Station. These train coaches had been burned in previous incidents. Ten of these train coaches burned on March 11 at 9.15pm. The fire was extinguished by the Fire Department. No injuries were reported during the fire. No suspects are known at this stage. A case of damage to infrastructure was registered at Cape Town Central SAPS.” Passenger Rail Agency of South Africa (Prasa) spokesperson, Zinobulali Mihi, confirmed they are investigating the matter. City Fire Services spokesperson, Jermaine Carelse said: “Following an initial assessment, the first…

Paris St Germain boss Luis Enrique said both his team and Liverpool deserved a place in the Uefa Champions League quarter-finals after a thrilling, nail-biting battle in the competition's last 16. The Spaniard beamed with pride as his squad rallied from a goal down after last week's first leg to defeat English Premier League leaders Liverpool 4-1 in a penalty shootout at Anfield on Tuesday. "Both teams deserved to go to the next phase. They played better than us here, but I think my team, at Anfield, in a special stadium, showed great personality and character," he said. "We tried to play our best, but it was difficult because they are so intense. Even in the penalty shootout, they showed great character. I think it clearly shows the kind of…

Infrastructure investment received R46.7 billion in additional government funding in Wednesday’s Budget, which will form part of R1.03 trillion planned to be spent over three years. This investment aims to speed up economic growth, financial inclusion, and infrastructure development. Finance Minister Enoch Godongwana said R402bn will be spent on transport and logistics, R219.2bn on energy infrastructure, and R156.3bn for water and sanitation. In transport, the SA National Roads Agency will spend R100bn to keep the roads in good condition. Big infrastructure spending plans have been a feature of the government’s Budget in recent years, but delivery has fallen far short of the plans. This has severely reduced activity levels for the engineering and construction sectors, contributing to the steady degradation and backlogs in infrastructure. According to the Budget Review, between…

Finance Minister Enoch Godongwana has announced that the National Treasury will embark on a significant overhaul of the nation’s budget process. This initiative aims to reassess the foundational assumptions that guide budget allocations, with the goal of optimising public expenditure and ensuring it aligns more closely with the current needs of the country. The announcement comes amid concerning projections regarding the country’s financial health, with gross government debt expected to reach R5.69 trillion - approximately 76.1% of the gross domestic product (GDP) - this year. The debt levels are anticipated to stabilise at 76.2% of GDP by the fiscal year 2025/26. In tandem, debt-service costs are projected to surge from R389.6 billion in 2024/25 to R478.6bn by 2027/28, comprising roughly 21.7% of revenue in 2024/25. Godongwana said the proposed budgetary…

Metair Investments, a South African automotive components and energy storage group, saw its shares rocket 15.86% to R5.99 on the JSE by 10.35am on Tuesday, after it unveiled a long-awaited capital restructuring plan. The stock has fallen by a whopping 45.28% in the year to date. The announcement, ahead of a March 31 deadline flagged last year, offers a lifeline to the debt-laden firm, with the market’s exuberance signaling confidence in the firm's strategy to deleverage its balance sheet amid a challenging automotive landscape. The restructuring, greenlit by Metair’s board and lenders on March 10, pivots the group’s net debt of around R5.5 billion into a more manageable structure. Although Metair reported in the six-month period ended June 30, 2024, that its net debt was R5.5bn, this was reduced by…

An Africa Expert Panel, chaired by former Finance Minister Trevor Manuel, has been established by South Africa's Presidency of the G20 from the beginning of December in an effort to raise initiatives to tackle the unprecedented debt crisis among many African countries. South Africa assumed the G20 Presidency from December 2024 until the end of November 2025. The G20 comprises 19 of the world's most systemically important countries and includes the African Union and European Union. The Presidency means that the G20 meetings, such as the G20 Finance Minister and Reserve Bank Governor meetings held in Cape Town last month, are being held on African soil for the first time and provide an opportunity for South Africa to focus the G20 on issues pertinent to Africa. The government said Wednesday…

South Africa’s Finance Minister, Enoch Godongwana, garnered the attention of the property sector as he delivered his 2025 National Budget Speech on Wednesday. His announcement of planned government spending on infrastructure drew praise from industry leaders who see a direct correlation between infrastructural improvements and economic growth. Dr Andrew Golding, the CEO of the Pam Golding Property group, said, “It was positive to note that the critical need for infrastructural improvements has been highlighted in the National Budget, as investment in sound infrastructure with a focus on energy, clean water supply and effective sanitation, well-maintained roads and other transport facilities, as well as affordable and effective broadband connectivity, promotes economic growth, and fosters employment opportunities.” “It also ultimately attracts new businesses and both residential and commercial property development and helps…

Finance Minister Enoch Godongwana has announced an allocation of R5 billion towards the continued deployment of South African National Defence Force (SANDF) troops in the eastern Democratic Republic of the Congo (DRC). The move comes amid the continued spotlight on the deployment of SANDF troops in the region after 14 SANDF soldiers were killed in clashes with Rwandan-backed M23 rebels. Godongwana explained that the budget for the peace and security function grows by 4,7 per cent annually, from R250,4 billion in 2024/25 to R287 billion in 2027/28. This increase is primarily to fund SANDF troop deployment in the DRC, enhance capacity in the judiciary and prepare for the 2026 local government elections. "We will continue working with the Department of Defence on ways to change the composition of expenditure to…

A MAMMOTH task now awaits the ANC to garner enough support to pass the budget tabled by Finance Minister Enoch Godongwana, whose attempts to hike the VAT from 15% to 16% over two years has been met with a stern pushback by majority parties within the Government of National Unity (GNU). The DA, the second largest party in the GNU has already indicated that they would not support the current budget while the Good Party confirmed it would give Godongwana’s budget its backing. Outside the GNU, the EFF and MK Party made their intention to oppose the budget known. For the budget to be passed, the ANC, which has 39% of the vote, would need 50% plus one. Tabling the 2025/26 budget in Parliament, Godongwana said there were…

LOCAL is lekker, it is often said. A phrase that probably every adult South African has used at some point. The problem though is that at times this phrase is detrimental as we also tend to use it to support our decisions to “keep things local” even when it would do us a world of good to look externally. To cut to the chase - that is one of the problems facing South African football at the moment; domestic clubs are keeping it too local when it comes to the appointment of coaches especially in the Premiership. Yes indeed times are tough out there for anyone, especially not a journalist like myself who is living with endless job threats from AI and social media tools, to advocate for local teams…

GDP growth has averaged less than 2%, far below the level required to meet our expanding list of needs Finance Minister Enoch Godongwana delivered a pivotal Budget Speech aimed at steering South Africa towards economic recovery and inclusive growth amidst fiscal deterioration and rising debt levels. With the country grappling with stagnated economic growth and pressing social needs, Godongwana’s address presented a mixed bag of fiscal discipline, significant infrastructure investment, and unpopular revenue-enhancing measures. Godongwana said the reality of a mere 0.6% gross domestic product (GDP) growth in 2024 and the expectation of a 1.8% growth over the medium-term stressed an urgent need for structural reforms and macroeconomic stability. “A bigger, faster growing economy, and the larger fiscal resources that comes with it, would give us more fiscal room to…

South Africa’s 2025 Budget Review revealed a mild near-term fiscal slippage, with a weakening in the government’s debt-to-GDP projections and fiscal deficits, before reverting to previous forecasts of fiscal consolidation. Gross government debt is consequently now projected to stabilise at 76.2% of gross domestic product (GDP) in 2025/26, up slightly from the earlier estimate of a peak at 75.5% in the same year, as outlined in last year’s Medium-Term Budget Policy Statement (MTBPS). The rand showed little reaction, hovering around R18.40 against the dollar following the Budget announcement. The budget deficit for 2025/26 is now estimated at -4.6% of GDP, widening from the prior forecast of -4.3%, though it is expected to narrow to -3.5% by 2027/28. VAT has risen by 0.5%, with no adjustment for fiscal drag. The National…

Growthpoint Properties, South Africa’s largest listed real estate investment trust (REIT), reported a better-than- expected 3.9% rise in distributable income per share (DIPS) to 74 cents for the six months to December, buoyed by robust rental growth and falling vacancies in its logistics and industrial portfolio. The interim dividend climbed 3.7% to 61 cents per share, reflecting a 6.2% jump in South African net property income to R2.9 billion. The standout performer was the V&A Waterfront, a flagship Cape Town asset co-owned with the Government Employees Pension Fund, where net property income surged 16.6% on a like-for-like basis. “V&A delivered a 16.6% like-for-like increase in net property income, due to increased tourism and the positive impact this had on retail, hotels and attractions,” the company said. In line with the…

Finance Minister Enoch Godongwana took centre stage on Wednesday, tabling the 2025 Budget before the National Assembly with a clear message: South Africa’s state-owned enterprises are getting a lifeline, but not a free ride. Godongwana spotlighted logistics parastatal Transnet as a key focus of new public-private partnership (PPP) regulations set to kick in on June 1, 2025. These rules, finalised after much anticipation, aim to slash red tape, boost capacity for managing PPPs, and lay down clearer guidelines for unsolicited bids while tightening fiscal risk oversight. Godongwana said the regulations will allow national departments to set up sector-specific PPP units, driving private sector participation (PSP) to shore up the balance sheets of struggling state firms. Transnet and the Department of Transport are already eyeing market engagement on PSP projects, targeting…

The National Treasury has set aside R11 billion to pay for early retirement of at least 30 000 government employees over the next two fiscal years in a bid to manage the public sector wage bill. The early retirement incentive was first announced in the 2024 Medium-Term Budget Policy Statement (MTBPS) as a measure to reduce compensation costs while rejuvenating the public service. Finance Minister Enoch Godongwana told Parliament on Wednesday that the government was reactivating early retirement of public sector employees without penalties to help manage wage costs. Godongwana said the plan was to manage headcounts by incentivising employees over 55 years-old to retire and moderate compensation spending as new recruits join the public service at entry-level salary grades. He said the early retirement initiative was thus allocated R4.4bn…

Finance Minister Enoch Godongwana made big cuts in social grant allocations over the next three years as he scrambled to find money to finance the extension of the Social Relief of Distress (SRD) grant for a year. The cuts were necessitated by the National Treasury revising the increase from the initial proposal of a 2% increase in VAT to the now proposed 0,5% increase for the next two years. Tabling the budget, Godongwana revised the allocations downward for increases for all the types of social grants compared to what was proposed in the postponed budget. This emerged when he announced that the social relief of distress grant will be extended by another year until March 31, 2026. “The Covid-19 SRD, in its current form, will be extended by a year…

Finance Minister Enoch Godongwana is sticking to his initial plan on infrastructure investment, committing an estimated R1,03 trillion to projects over the next three years. It was reported last month that Godongwana was going to allocate R1 trillion after the planned budget speech did not take place. In his revised address yesterday, the minister stuck to his original plan. Over the next three years, an estimated R1,03 trillion will be spent on public infrastructure projects by state-owned companies, other public entities, and national, provincial and local governments. The minister said R402 billion will be for transport and logistics, with R100 billion of investments in the South African National Roads Agency Limited (Sanral). An amount of R219,2 billion will be spent on energy infrastructure, and R156,3 billion will flow to water…

A state witness has testified that Joshlin Smith’s mother, Racquel ‘Kelly’ Smith, had planned to sell her children in August 2023 for as little as R5000. Saldanha Bay resident and evangelist Steven Coetzee gave evidence before the Western Cape High Court yesterday, which is sitting at the White City Multipurpose Centre in Diazville. His testimony was part of the ongoing trial in which Smith, her boyfriend Jacquen ‘Boeta’ Appollis, and Steveno ‘Steffie’ van Rhyn are facing charges of kidnapping and human trafficking. Their friend and former accused, Laurentia Lombaard, is expected to testify as a state witness. Coetzee said he first met Smith in 2016 at a funeral. They spoke briefly, during which she asked if he could help her find a job. “I didn’t speak to her again until…

Rassie Erasmus says he is encouraged by the positive dynamics between the younger and older players at the alignment camp that ended in Cape Town on Wednesday because the player load will be shared by all during the 15-match season. The Springbok coach added that his plan to use the skillset of all the coaches and management team members to contribute to a well-oiled machine, is already bearing fruit. The invited players assembled in Cape Town on Monday night and participated in two days of gym and boardroom sessions, which followed on a productive coaches’ workshop last weekend. “The purpose of the alignment camps are to get everyone on the same page about what the year looks like, to set our goals, and delve into what we are expecting from…

Mamelodi Sundowns’ Miguel Cardoso says he has his focus fully on Orlando Pirates following their convincing win against AmaZulu on Tuesday. Sundowns regained their 18-point lead at the top of the Betway Premiership log with a 2-0 win against Usuthu at the Lucas Moripe Stadium as the Buccaneers were held to a 0-0 draw away against Stellenbosch FC at the Athlone Stadium on Tuesday night. Both sides are set to meet in what could potentially be a title decider at the FNB Stadium on Sunday (15:30 kick-off). The Portuguese mentor has been steadily steering the Sundowns ship since taking over from Manqoba Mnqithi to what looks like a likely eighth consecutive league title. And through a few storms and persistent winds, his team has conquered all the challengers and their…