Following Minister Enoch Godongwana’s long-awaited National Budget Speech (Budget version 3.0!) on Wednesday, 21 May 2025, here are insights and reactions of several experts across various sectors, including property, personal finance, youth employment and socio-economic development, education and energy.
WORDS & PHOTOS: SUPPLIED
Herschel Jawitz
It’s going to be an important and informative 10 days for ‘South Africa Inc.’, with Budget 3.0, the Ramaphosa-Trump meeting, and an interest rate announcement next week—all of which have significant consequences for the economy, future certainty, and consumer and business confidence.
Over the last six months, we have seen a noticeable improvement in the residential market and buyer demand, largely driven by lower interest rates, excellent buying opportunities in most parts of the country, and improved consumer confidence. Sales volumes have increased, and in provinces like Gauteng, property prices have finally bottomed out and are slowly beginning to rise.
OOBA, one of South Africa’s largest mortgage originators, reports that the ‘modest recovery in national house price inflation’ has continued into the first quarter of 2025, with the average purchase price improving by 2.2% year-on-year to R1.66 million. Additionally, the average purchase price for first-time buyers has increased by 4.5% year-on-year to R1.24 million, reflecting improved affordability.
The latest FNB House Price Index (HPI) ‘reveals a continued, albeit modest, upward trajectory in home values, averaging 2.2% year-on-year in April, up from 2.0% in March. This marks the fastest pace in approximately two years (since March 2023), although overall volumes remain about 16% below pre-pandemic levels in 2019.
While the outcome of the VAT fiasco is ultimately positive and has demonstrated the resilience of a coalition government, the prospect of a VAT increase caused consumer confidence to decline again. Added to this is the political noise between the USA and South Africa, along with reports that our inflation target may be lowered—potentially impacting future rate cuts. Markets thrive on certainty, and the residential market is no different.
The final passage of Budget 3.0, a favourable outcome from the Trump-Ramaphosa meeting, and clarity next week from the Reserve Bank regarding inflation and potential interest rate directions will help restore certainty and boost consumer confidence. Already, the prospect of these developments has strengthened the rand, which has dipped below R18 to its best levels in 2025.
All of these factors are positive for the residential property market and long-term demand for property.
Boipelo Ndimande, Chief Financial Officer at Consult by Momentum
Boipelo Ndimande
The reversal of the VAT hike is a welcome relief for South Africans grappling with the rising cost of living – but it doesn’t mean we’re out of the woods.
The fuel levy increase of 16c per litre (petrol) and 15c (diesel) will have a knock-on effect on transport and food prices, which will pinch household budgets.
Globally, the finance minister flagged rising geopolitical tensions and weaker economic forecasts, with the IMF revising 2025 growth projections down by 0.5 percentage points since January.
At the same time, new trade barriers and policy uncertainty could fuel inflation and extend high interest rate cycles in both developed and emerging markets.
Against this backdrop, the importance of having a well-diversified, long-term financial plan cannot be overstated.
The landscape is volatile, as the Minister pointed out today, and investors should avoid knee-jerk decisions.
Instead, work with a qualified financial adviser to ensure your portfolio is positioned to weather these headwinds while keeping you on track toward your personal financial goals.
Yael Geffen
I’m reminded of the saying “Indian giver” – with apologies for shooting straight out of PC – reviewing today’s third-time-lucky budget speech. The good news is no VAT increase. The bad news is that the fuel levy is rocketing to make up for the dosh the government’s not going to squeeze out of the suffering populace in the shops.
If middle class car owners were intended to take the brunt, bad news. Those who’ll be hardest hit are South Africans using public transport.
The greater question regarding the budget is why deliver the speech today and include a grim economic forecast just hours ahead of President Cyril Ramaphosa’s landmark meeting with US President Donald Trump, that could change our economic outlook in an instant?
The ruling party should have thought of that. Clearly, that joined up thinking wasn’t in the corridors of power.
Nkosinathi Mahlangu, Youth Employment Portfolio Head, Momentum Group Foundation
Nkosinathi Mahlangu
Today’s Budget reflects a government trying to balance competing pressures under incredibly difficult economic conditions. The decision to preserve social and developmental priorities despite fiscal constraints is welcomed, especially the continued investment in early childhood development, education and infrastructure – all of which are foundational to long-term socio-economic progress.
That said, for a country grappling with one of the world’s highest youth unemployment rates, the lack of specific, bold measures targeting young people was disappointing. There was no mention of the Youth Employment Tax Incentive, a key tool to encourage private sector hiring, and while the extension of the Social Relief of Distress (SRD) grant is positive, we need far greater clarity on how this will meaningfully transition recipients into jobs.
The proposed job-seeker allowance and review of Active Labour Market Programmes are promising, but they now need urgency, scale and alignment across departments if they are to deliver impact.
We also welcome the R1 trillion infrastructure pipeline, which offers job creation potential – particularly in sectors like construction with lower barriers to entry. But a clear implementation strategy is needed to ensure these opportunities reach young people, especially those in underserved communities.
Ultimately, the success of this Budget will hinge on how well these policy commitments translate into practical, on-the-ground solutions. What young people need most right now is visibility, inclusion and a tangible path to opportunity.
Arno Jansen van Vuuren, Managing Director, Futurewise
Arno Jansen van Vuuren
While the much-debated VAT hike has now been shelved, it’s encouraging to see that government has still prioritised education – particularly early childhood development – through some clever fiscal footwork.
By increasing the general fuel levy and trimming unallocated spending, Treasury has created space to deliver where it counts.
The Budget allocates an additional R10 billion to expand access to early education and raise the ECD subsidy from R17 to R24 per child per day, benefiting an estimated 700,000 more children. A further R9.5 billion is earmarked to retain teachers and boost staffing in provincial education.
These investments point to an understanding that education is foundational to long-term economic resilience & growth.
For families, it underscores the importance of planning ahead to support their children’s education journey; especially as public funding will always face competing demands.
Structured education saving, backed by the right protection, remains one of the most powerful ways to secure a child’s future.
David McDonald
Today’s Budget was a breath of fresh air for the renewable energy sector, with R219.2 billion allocated to strengthening South Africa’s electricity supply network – from generation to transmission and distribution. The explicit recognition that renewable energy projects are helping to stabilise power supply and reduce loadshedding affirms the role that Independent Power Producers (IPPs) like SolarAfrica play in building energy resilience.
We are particularly encouraged by the continued progress on grid access and the upcoming multi-line transmission package, which will provide additional capacity and enable faster integration of renewable projects into the system.
Equally important is the gazetting of new public-private partnership (PPP) regulations, which take effect next month. These reforms will cut red tape and allow the private sector to more effectively partner with government to deliver scalable energy solutions – exactly what is needed to meet growing demand and speed up infrastructure development.
In a constrained fiscal environment, leveraging private capital and expertise doesn’t just make good business sense – it’s vital for growth.
Read 2025 Budget Speech here.
Following Minister Enoch Godongwana’s long-awaited National Budget Speech (Budget version 3.0!) on Wednesday, 21 May 2025, here are insights and reactions of several experts across various sectors, including property, personal finance, youth employment and socio-economic development, education and energy.
WORDS & PHOTOS: SUPPLIED
Herschel Jawitz, CEO Jawitz Properties
Herschel Jawitz
It’s going to be an important and informative 10 days for ‘South Africa Inc.’, with Budget 3.0, the Ramaphosa-Trump meeting, and an interest rate announcement next week—all of which have significant consequences for the economy, future certainty, and consumer and business confidence.
Over the last six months, we have seen a noticeable improvement in the residential market and buyer demand, largely driven by lower interest rates, excellent buying opportunities in most parts of the country, and improved consumer confidence. Sales volumes have increased, and in provinces like Gauteng, property prices have finally bottomed out and are slowly beginning to rise.
OOBA, one of South Africa’s largest mortgage originators, reports that the ‘modest recovery in national house price inflation’ has continued into the first quarter of 2025, with the average purchase price improving by 2.2% year-on-year to R1.66 million. Additionally, the average purchase price for first-time buyers has increased by 4.5% year-on-year to R1.24 million, reflecting improved affordability.
The latest FNB House Price Index (HPI) ‘reveals a continued, albeit modest, upward trajectory in home values, averaging 2.2% year-on-year in April, up from 2.0% in March. This marks the fastest pace in approximately two years (since March 2023), although overall volumes remain about 16% below pre-pandemic levels in 2019.
While the outcome of the VAT fiasco is ultimately positive and has demonstrated the resilience of a coalition government, the prospect of a VAT increase caused consumer confidence to decline again. Added to this is the political noise between the USA and South Africa, along with reports that our inflation target may be lowered—potentially impacting future rate cuts. Markets thrive on certainty, and the residential market is no different.
The final passage of Budget 3.0, a favourable outcome from the Trump-Ramaphosa meeting, and clarity next week from the Reserve Bank regarding inflation and potential interest rate directions will help restore certainty and boost consumer confidence. Already, the prospect of these developments has strengthened the rand, which has dipped below R18 to its best levels in 2025.
All of these factors are positive for the residential property market and long-term demand for property.
Boipelo Ndimande, Chief Financial Officer at Consult by Momentum
Boipelo Ndimande
The reversal of the VAT hike is a welcome relief for South Africans grappling with the rising cost of living – but it doesn’t mean we’re out of the woods.
The fuel levy increase of 16c per litre (petrol) and 15c (diesel) will have a knock-on effect on transport and food prices, which will pinch household budgets.
Globally, the finance minister flagged rising geopolitical tensions and weaker economic forecasts, with the IMF revising 2025 growth projections down by 0.5 percentage points since January.
At the same time, new trade barriers and policy uncertainty could fuel inflation and extend high interest rate cycles in both developed and emerging markets.
Against this backdrop, the importance of having a well-diversified, long-term financial plan cannot be overstated.
The landscape is volatile, as the Minister pointed out today, and investors should avoid knee-jerk decisions.
Instead, work with a qualified financial adviser to ensure your portfolio is positioned to weather these headwinds while keeping you on track toward your personal financial goals.
Yael Geffen, CEO Lew Geffen Sotheby’s International Realty
Yael Geffen
I’m reminded of the saying “Indian giver” – with apologies for shooting straight out of PC – reviewing today’s third-time-lucky budget speech. The good news is no VAT increase. The bad news is that the fuel levy is rocketing to make up for the dosh the government’s not going to squeeze out of the suffering populace in the shops.
If middle class car owners were intended to take the brunt, bad news. Those who’ll be hardest hit are South Africans using public transport.
The greater question regarding the budget is why deliver the speech today and include a grim economic forecast just hours ahead of President Cyril Ramaphosa’s landmark meeting with US President Donald Trump, that could change our economic outlook in an instant?
The ruling party should have thought of that. Clearly, that joined up thinking wasn’t in the corridors of power.
Nkosinathi Mahlangu, Youth Employment Portfolio Head, Momentum Group Foundation
Nkosinathi Mahlangu
Today’s Budget reflects a government trying to balance competing pressures under incredibly difficult economic conditions. The decision to preserve social and developmental priorities despite fiscal constraints is welcomed, especially the continued investment in early childhood development, education and infrastructure – all of which are foundational to long-term socio-economic progress.
That said, for a country grappling with one of the world’s highest youth unemployment rates, the lack of specific, bold measures targeting young people was disappointing. There was no mention of the Youth Employment Tax Incentive, a key tool to encourage private sector hiring, and while the extension of the Social Relief of Distress (SRD) grant is positive, we need far greater clarity on how this will meaningfully transition recipients into jobs.
The proposed job-seeker allowance and review of Active Labour Market Programmes are promising, but they now need urgency, scale and alignment across departments if they are to deliver impact.
We also welcome the R1 trillion infrastructure pipeline, which offers job creation potential – particularly in sectors like construction with lower barriers to entry. But a clear implementation strategy is needed to ensure these opportunities reach young people, especially those in underserved communities.
Ultimately, the success of this Budget will hinge on how well these policy commitments translate into practical, on-the-ground solutions. What young people need most right now is visibility, inclusion and a tangible path to opportunity.
Arno Jansen van Vuuren, Managing Director, Futurewise
Arno Jansen van Vuuren
While the much-debated VAT hike has now been shelved, it’s encouraging to see that government has still prioritised education – particularly early childhood development – through some clever fiscal footwork.
By increasing the general fuel levy and trimming unallocated spending, Treasury has created space to deliver where it counts.
The Budget allocates an additional R10 billion to expand access to early education and raise the ECD subsidy from R17 to R24 per child per day, benefiting an estimated 700,000 more children. A further R9.5 billion is earmarked to retain teachers and boost staffing in provincial education.
These investments point to an understanding that education is foundational to long-term economic resilience & growth.
For families, it underscores the importance of planning ahead to support their children’s education journey; especially as public funding will always face competing demands.
Structured education saving, backed by the right protection, remains one of the most powerful ways to secure a child’s future.
David McDonald, CEO SolarAfrica
David McDonald
Today’s Budget was a breath of fresh air for the renewable energy sector, with R219.2 billion allocated to strengthening South Africa’s electricity supply network – from generation to transmission and distribution. The explicit recognition that renewable energy projects are helping to stabilise power supply and reduce loadshedding affirms the role that Independent Power Producers (IPPs) like SolarAfrica play in building energy resilience.
We are particularly encouraged by the continued progress on grid access and the upcoming multi-line transmission package, which will provide additional capacity and enable faster integration of renewable projects into the system.
Equally important is the gazetting of new public-private partnership (PPP) regulations, which take effect next month. These reforms will cut red tape and allow the private sector to more effectively partner with government to deliver scalable energy solutions – exactly what is needed to meet growing demand and speed up infrastructure development.
In a constrained fiscal environment, leveraging private capital and expertise doesn’t just make good business sense – it’s vital for growth.
Read 2025 Budget Speech here.