President Cyril Ramaphosa has underscored that the 2024 budget is designed to fast-track the country's economic and social renewal, while acknowledging that government cannot shoulder this burden in isolation. The president stressed the growing importance of private sector collaboration to achieve these goals.
Writing in his weekly newsletter, Ramaphosa noted that Finance Minister Enoch Godongwana's fiscal plan builds upon efforts to stabilise public finances and lays the groundwork for inclusive economic expansion, employment creation and the alleviation of poverty. "A stable macroeconomic environment increases investor confidence and increases the government's ability to invest in growth and poverty alleviation without compromising sustainability," he stated.
Ramaphosa was candid about the limitations of state funding, particularly regarding large-scale infrastructure development. "The government alone cannot finance the scale of infrastructure that our country needs. We are therefore mobilizing investments from the private sector and other sources and creating the opportunity for partnerships between the public and private sectors," he said. He added that while private investment would be welcomed in areas such as electricity, rail and ports, "the state will retain ownership of strategic national infrastructure".
Over the coming three-year period, in excess of one trillion rand is earmarked for infrastructure spending across roads, rail networks, energy, water and sanitation. Ramaphosa indicated this investment would lower costs, boost productivity and bolster the country's export capacity.
The president also acknowledged the dire financial state of numerous municipalities, attributing their struggles to weak revenue collection, mismanagement and failures in service delivery. Billions of rand will be directed towards reforming water, electricity and sanitation services, subject to stringent performance requirements.
"As we focus on our recovery, we will continue to be guided by fiscal discipline, structural reform, targeted investment and an overarching commitment to improve the living conditions of every South African," Ramaphosa concluded.
