Godongwana downgrades economic growth to 1.1%

Godongwana downgrades economic growth to 1.1%

Finance Minister Enoch Godongwana said on Wednesday that economic growth of 1.8% is forecast over the medium term. 

Finance Minister Enoch Godongwana
GCIS

Tabling his Medium-Term Budget Policy Statement in the National Assembly, he downgraded the growth forecast for 2024 to 1.1% from 1.3% in February. 


 


The mini-budget outlined the government's strategy to lift the economy to a higher and more inclusive growth path. 


 


Godongwana said the strategy is anchored on maintaining macro-economic stability, implementing structural reforms, supporting growth-enhancing infrastructure and building state capability.


 


“Inclusive economic growth is at the centre of the work of the government of national unity and at the top of the national agenda,” he told MPs. 


 


“This policy statement analyses the trade-offs and choices that the nation is confronted with, charting the path toward growth, transformation and action.”


 


As part of the government's economic strategy, Godongwana announced the restructuring of the Budget Facility for Infrastructure, which will now function as a centralised gateway for large-scale infrastructure projects seeking fiscal support.


 


The minister said the reconfiguration is aimed at streamlining processes to accelerate development and support sustainable growth across sectors.


 


"From 2025, the facility will have a continuous evaluation process instead of one window per annum. The National Treasury will, in January 2025, publish a circular to guide the submission of proposals.


 


“The government is making a concerted effort to increase the pool of funders to diversify public infrastructure financing through new mechanisms and instruments.


 


“These include build-operate-transfer structures and other concessions.


 


“We are developing a blended finance risk-sharing platform that includes a credit guarantee vehicle that will help de-risk public-sector projects while reducing government’s contingent liabilities.”


 


Godongwana also revealed that National Treasury is establishing dedicated capacity to plan, prepare and design programmes that will generate a credible pipeline of projects that can be taken to the market.


 


"The Department of Water and Sanitation Water Partnerships Office has two priority programmes for non-revenue water and recycling wastewater that require private investments.


 


“Similarly, the Department of Transport, Transnet and the Passenger Rail Agency of South Africa are finalising a list of priority projects that will be issued to the market in 2025/26.


 


“The resolution of the Gauteng Freeway Improvement Project has unlocked a project pipeline to the value of R85 billion for the non-toll network over the next three years," added Godongwana.


 

ALSO READ 

Listen to more local news below Jacaranda
Jacaranda FM

Show's Stories