The 67CEOs Foundation warmly welcomes the 2024 Medium-Term Budget Policy Statement (MTBPS) speech by Minister of Finance, Enoch Godongwana as an essential framework that addresses economic resilience while prioritising fiscal sustainability and growth. In alignment with our mission to empower African entrepreneurship and sustainable economic development, we commend the government’s efforts to address fiscal challenges through responsible and equitable policies. The MTBPS provides a critical opportunity to enhance inclusive growth, and we are eager to collaborate in implementing strategies that further economic empowerment for entrepreneurs and small businesses across the continent.
The 2024 Medium-Term Budget Policy Statement (MTBPS), presented by the South African government, addresses key challenges in South Africa’s economic and fiscal landscape. Amid global economic uncertainty, this policy seeks to reinforce fiscal responsibility, stabilise public finances, and ensure that economic growth is balanced with efforts to support the vulnerable sectors of society. The policy statement focuses on several major pillars:
1. Fiscal Discipline and Debt Reduction
One of the primary focuses of the 2024 MTBPS is the imperative to maintain fiscal discipline by controlling government spending and reducing debt levels. This disciplined approach is crucial in a climate of rising global interest rates and a slow-growing economy. The policy aims to lower the deficit by managing the wage bill, reducing unnecessary spending, and enhancing revenue collection measures. For executives and entrepreneurs, this disciplined stance is an encouraging signal, as stable public finances are critical to sustaining a favourable business environment and fostering investor confidence.
67CEOs Foundation’s Perspective: We see this as an opportunity for the government to invest in sustainable and growth-oriented sectors, particularly small and medium enterprises (SMEs). By prioritising fiscal responsibility, the government helps secure a more resilient economic environment in which small businesses can thrive.
2. Revenue Mobilisation and Tax Reforms
Another critical component of the MTBPS is the effort to bolster revenue through tax policy adjustments and more effective tax administration. The introduction of measures aimed at enhancing tax compliance and implementing global minimum tax rates reflects a commitment to fair taxation. The government intends to address revenue leakages and non-compliance, ensuring that revenue collection supports South Africa’s developmental agenda.
67CEOs Foundation’s Perspective: Transparent tax policies benefit entrepreneurs and foster a more competitive market. The Foundation believes that fair taxation should be implemented alongside incentives for SMEs that promote economic inclusivity and digital transformation, particularly in township and rural areas.
3. Supporting Social Programs and Inclusive Growth
The MTBPS emphasises the need to protect funding for social services, despite the fiscal challenges. By ensuring sustained investment in education, health, and social security, the government aims to provide a safety net for South Africa’s most vulnerable populations. The budget also allocates resources to enhance infrastructure, which will provide job opportunities and stimulate local economies.
67CEOs Foundation’s Perspective: This aligns closely with our values of removing barriers and enhancing access for all. By supporting sectors that foster inclusivity, we are creating a platform for small businesses and entrepreneurs to engage with the broader economy. Investing in infrastructure, for instance, also supports digital access—a crucial factor for the development of a resilient entrepreneurial ecosystem.
4. Job Creation and Economic Growth Initiatives
The MTBPS outlines initiatives aimed at bolstering job creation, with a particular focus on reducing youth unemployment. Programs to improve the ease of doing business, stimulate industrial growth, and support sectors like agriculture are central to this approach. The statement recognises that fostering an environment conducive to job creation is key to reducing poverty and inequality.
67CEOs Foundation’s Perspective: At 67CEOs, we believe that small businesses and entrepreneurs are pivotal to job creation. By nurturing a business environment where entrepreneurship can flourish, the government not only addresses unemployment but also empowers community-driven economic growth. We are dedicated to working with stakeholders to amplify opportunities for new business ventures in sectors like renewable energy and technology.
5. Energy Stability and Infrastructure Development
Recognizing the impact of energy instability on economic productivity, the government emphasises continued reforms within the energy sector to ensure reliable and affordable power. Infrastructure improvements are also prioritised, with funding allocated toward upgrading public transportation, enhancing digital infrastructure, and ensuring water security.
67CEOs Foundation’s Perspective: Energy and infrastructure are foundational to the growth of any economy. Small and medium enterprises suffer disproportionately from energy disruptions, and stable infrastructure will be essential to achieving our shared vision of a thriving, inclusive economy. The Foundation encourages further collaboration with private sector players to accelerate the implementation of renewable energy solutions.
Conclusion
The 2024 MTBPS presents a blueprint for South Africa’s economic recovery, emphasising fiscal responsibility, social investment, and growth stimulation. For South African executives and entrepreneurs, this statement reflects a commitment to creating a business-friendly environment that enables economic development while ensuring that no one is left behind.
67CEOs Foundation stands ready to collaborate with the government in areas that align with our mandate, including entrepreneurship development, economic inclusivity, and digital transformation. Together, through responsible policy and resilient business practices, we can achieve sustainable growth that benefits all South Africans.
The 2024 MEDIUM TERM BUDGET POLICY STATEMENT full speech is published here.
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