Africa-Press – South-Africa. Business Leadership South Africa (BLSA) has lauded the Mid-Term Budget Policy Statement (MTBPS) tabled by Finance Minister Enoch Godongwana on Wednesday (12 November 2025).
The group highlighted Godongwana’ statement that this is ‘the first time since the 2008 financial crisis that public debt will not grow as a percentage of GDP’.
Those words from the Finance Minister are ‘profoundly significant’ for the country’s economic prospects, says BLSA.
“They are the culmination of painful decisions where the government has stuck to the fiscal path in the face of immense pressure to increase expenditure.”
In conversation with Stephen Grootes, BLSA CEO Busi Mavuso says organised business also welcomes the lowering of South Africa’s inflation target to 3%.
‘We’re glad the South African Reserve Bank (SARB) and National Treasury have found each other’, she enthuses, with alignment between monetary and fiscal policy key for economic development.
“When you think about it, a lower inflation target over time decreases inflation expectations, creating room for lower interest rates which would support household spending and business investment…. boosting economic growth and job creation.”
Mavuso does caution that, in the short term, the fiscal costs of a lower target – which will include lower nominal GDP and revenue growth, will make achieving fiscal targets more challenging.
‘It’s the long-term benefits we’re after here’, she emphasizes.
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