Finance Minister Enoch Godongwana
SCORE: B+
Finance minister Godongwana’s leadership this year faced its first test during the tabling of the national budget. For the first time, the budget had to be re-tabled over a dispute about a proposed VAT increase, initiated by parties in the government of national unity.
The minister was required to strike a balance between stabilising South Africa’s fiscal outcomes and responding to calls from coalition partners to reconsider the VAT hike, particularly at a time when many South Africans were already struggling to afford basic needs.
Godongwana eventually resolved to scrap the proposed VAT increase entirely, helping restore political consensus within the coalition government. He also revised the final phase of Eskom’s debt-relief package, trimming its fiscal cost and reinforcing the treasury’s message of discipline around contingent liabilities.
The minister’s medium-term budget policy statement was tabled without dispute, but a key announcement was the lowering of the inflation target, which the South African Reserve Bank signalled in preceding monetary policy statements.
The decision demonstrated policy coordination and a long-term commitment to anchoring inflation expectations and reducing borrowing costs.
The minister’s handling of political situations held steady this year which is somewhat reassuring of his leadership of the country’s finances.