Uncertainty hangs over SA Budget, but compromise likely

South Africa’s 2025 Budget speech was (finally) delivered but it’s not at all clear whether the plans will be approved given the DA’s opposition to the proposed VAT hike. We think there is more horse trading to be done, with Finance Minister Godongwana suggesting that he is willing to bridge the tax and spending gaps between the DA and ANC. While we expect a compromise to eventually be reached, that will not happen without further fiscal slippage; the debt-to-GDP trajectory will remain on an upward trajectory.

We will be online at 4.30pm GMT to discuss the key takeaways from South Africa’s budget and to take your questions. Register for the event here.