MEDIA RELEASE
2025-11-14

SUMMARY: The Labour Party of South Africa (Labour Party) has expressed utter disappointment in the Medium-Term Budget Policy Statement delivered this week. The Party criticised the budget as being detached from South Africa’s harsh realities of unemployment, poverty, and inequality, accusing the government of favouring elites and masking deeper economic instability. Instead, the Labour Party calls on all South Africans to open their eyes, see the failed government under the ANC and the GNU, and vote for the Labour Party to see real meaningful change.

On 12 November 2025, the Minister of Finance, Enoch Godongwana tabled the 2025 Medium-Term Budget Policy Statement (MTBPS) before the National Assembly, promising a clampdown on illicit trade which has evaded about R400b in taxes from the year 2020.

The reform agenda founded on the government’s Growth and Inclusion (GAIN) framework, the flatline inflation target of 3%, and the continued privatisation of energy, logistics, and municipal functions marks the most aggressive neoliberal restructuring post 1994.

The introduction of the National Treasury’s first Procurement Payments Dashboard was announced as some sort of victory and progressive step. “They seem to miss the point.

The core issue is not just procurement transparency, but the tender system which is still operating in key services where it should be purely public services”, said the interim president of the Labour Party, Joseph Mathunjwa.

“The MTBPS is no victory for the working class as it exacerbates austerity measures resulting in job losses, wage freeze, and the erosion of basic services”, Mathunjwa added

The rand according to Reuters was recorded at R17,07 strengthening from R17,14 after Godongwane’s delivery. “Many South Africans are still curious about what seems to beclear manipulation of the rand, benefiting only an elite group and causing the majority of South Africans to suffer. Perhaps the Minister could have spent some time addressing the Nation on this issue” , noted Mathunjwa.

In September 2025, the Labour Party released a statement on the South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) decision to stay the interest rate at 7%, instead of cutting it by another 25 basis points. Notably, a reason tabled in support of not cutting the interest rate by a further 25 basis points was because of the 3% inflation target and that the inflation released earlier this year in August (3.3%) would justify the hold.

Now, two days ago the target range between 3% to 6% was overhauled with a decision to adopt a flat target of 3% with a 1% flexibility on either side as a tolerance band, which will be implemented over the next two (2) years.

“Who are they fooling? They think that as South Africans we forget. The range they had in place for years did not serve the majority and the September MPC decision was already an indication of the decision Godongwana is now said to have taken only days ago”, Mathunjwa noted. “A lower target does not mean anything good for the working class, as it will merely mean that interest rates will stay higher for longer. Where the Reserve Bank used to cut interest rates when it fell within the band of 3% to 6%, it will now only cut when it goes below 3%”, he explained.

Some commentators keep on saying that State-Owned Enterprises (SOEs) are the source of troubles and a financial drain to the government. “We don’t agree. SOEs are key to building any country. The challenges faced by our SOEs would be non-existent if there wasn’t a hidden privatisation agenda by the government to benefit an elite few”, Mathunjwa said.

“If the lives of ordinary South Africans were really a concern, we would see that through genuine investment in SOEs and public infrastructure to ensure sustainable economic growth and job creation”, he added.

At face value Godongwane’s speech seems to be hopeful and positive, marking the expectation of government debt to stabilise over 2025/2026 at 77.9% of GDP and the overall narrowing of the budget deficit from 4.5% to 2.7% in 2028/2029.

However, these are expectations and projections. The sad reality is that, as recorded in Stats SA, over 25 million (over 40%) of South Africans rely on social grants for survival than they do on salaries. The reality is that five (5) of the nine (9) poorest provinces have over half of its households receiving grants as a source of income, as recorded by Stats SA.

Also recorded by Stats SA, showing the reality, is that the unemployment rate is still over 30% with youth aged 15-24 and 25-34 counting to have the highest unemployment rates at 58,5% and 38,4%, respectively.

The reality is that the cost of living continues to rise, which has increased by almost 8% over the past year and electricity tariffs went up to 12,7%. These statistics are not projections; even though they are not perfect and flawless, they do reflect the reality of the state of South Africa.

“There was an expectation to release the mini -budget speech in 2026, yet Godongwane insisted saying that the time is right to release it now” , Mathunjwa stated. “The question is: Why? There is the ongoing Madlanga Commission, G20 expenditures that will have real effects on the status of the country’s finances and the Minister’s priority is to present so-called balanced books while inequality deepens”, he speculated.

“If South Africans are awake, they will understand what this really means: job losses, wage freezes and deepened poverty” , Mathunjwa said. “It is time to open our eyes and see the reality of a failed government under the ANC and their GNU. It is time to vote for the Labour Party to make meaningful change. The power is in your hands! It is possible!

We must insist on an accountable government and compassionate leaders who will lead us with respect and dignity”, he concluded.

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