Nedbank Chairman Calls for Swift Conclusion to South Africa’s Budget for Stability

Nedbank Group Chairman Daniel Mminele stated that the ongoing disagreement over South Africa’s budget has left businesses in a state of “disarray.” He called on lawmakers to resolve their differences to maintain policy certainty.

Political parties, both within the coalition government and outside of it, have expressed their unwillingness to support the proposed increase in value-added tax by 50 basis points for the upcoming fiscal year and the following one, as announced by Finance Minister Enoch Godongwana of the African National Congress on Wednesday.

Mminele, a former deputy governor of the central bank, remarked in an interview with NewzRoom Afrika, “This puts us in an entirely new and unprecedented situation, where parliamentary committees must navigate a process that is unfamiliar to everyone involved.” He added, “We hope this can be resolved swiftly to provide us with the necessary certainty.”

Last month, parties instructed Godongwana to revisit his revenue and spending proposals after they failed to gain approval, marking the first budget delay in over thirty years. This conflict has escalated tensions within the so-called government of national unity, which had earned investor trust through commitments to implement pro-business strategies aimed at revitalizing the economy.

“We can take some assurance from the fact that the minister presented the budget documents today, allowing the process to advance and negotiations to continue,” stated the Nedbank chairman. “However, we cannot afford to be complacent about having a budget — we currently do not have one.”

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