The key economic milestones reflected in the 2026 Budget indicate that government’s implementation of structural reforms to support economic recovery has strengthened the country’s global standing.
This is due to government’s efforts to promote faster economic growth, anchored on four pillars: maintaining macroeconomic stability, implementing structural reforms, investing in growth-enhancing infrastructure, and building State capacity.
South Africa’s consolidated budget deficit narrowed to 4.5% of Gross Domestic Product (GDP) for 2025/26, an improvement from 4.8%.
The deficit falls to 4% in 2026/27 and 3.1% the year after.
“Many important things emerged from the Budget Speech yesterday but one truly stood out for me, and I hope it stood out for most of the people... For the first time in 17 years, government debt is stabilising. Never have we been happier to hear the word ‘stabilising’ than we were yesterday. And South Africa has exited the grey list,” Brand South Africa (Brand SA) Deputy Chairperson of the Board of Trustees, Zama Mkosi, said on Thursday.
According to the budget, gross debt stabilised as a share of GDP in 2025/26, at 78.9%. In 2026/27, it falls further to 77.3% of GDP and declines to 76.5% by 2028/29.
“It is the most important signal that a country sends to its citizens on how public resources are to be utilised. In today’s global environment, where capital is cautious, and competition for investment is intense, credibility matters,” Mkosi said.
She was addressing the post-Budget breakfast in Cape Town, held after the tabling of the 2026 National Budget by the Minister of Finance, Enoch Godongwana.
“The Budget Speech is about more than just numbers... It is truly a statement of intent. It is a statement of transparency and accountability for public finances, and at the same time, it reflects choices and trade-offs. As we know, it reflects a renewed outlook on South Africa’s reform agenda,” Mkosi said.
South Africa’s reform agenda is driven by Operation Vulindlela, an initiative focusing on urgent structural changes to accelerate economic growth, stabilise energy supply, fix logistics, and improve municipal service delivery.
National Treasury's commitment to a clear reform agenda and a disciplined fiscal strategy has resulted in the stabilsation of public debt, South Africa’s removal from the Financial Action Task Force (FATF) greylist, the first credit rating upgrade in 16 years and the easing of borrowing costs, creating space for growth and development.
“These [economic milestones] are not abstract technical indicators. They are important signals of restored credibility, renewed confidence, and a country that is truly regaining its economic footing. From a nation-brand perspective, these signals matter.
“How South Africa is perceived internationally and even domestically, affects the cost of capital, investor confidence, and our ability to attract long-term partnerships.
“It also shapes whether our challenges are seen as permanent or as part of a reform process, rather than as risks that we are not in control of as a country,” she said.
This is a key function for Brand SA. The entity is responsible for building the country’s brand reputation to improve its global competitiveness, with the intention to contribute towards economic growth, job creation, poverty alleviation, and social cohesion by encouraging local and foreign investment, tourism, and trade through the promotion of Brand South Africa.
“This is where Brand South Africa’s mandate becomes relevant. Our role is not just to comment on fiscal detail, but to ensure that South Africa’s progress, reforms, partnerships, and opportunities are clearly understood both domestically and globally.
“We work to strengthen coherence in how the country is positioned. We are here to amplify the credible progress that has been made and to ensure that confidence is supported by consistent messaging and measurable outcomes.
“Reputation is not built overnight, nor is it sustained by mere rhetoric. It is built through alignment — alignment between policy and implementation, and alignment between ambition and delivery,” Mkosi said. -SAnews.gov.za
