Rise Mzansi leader Songezo Zibi has offered a measured reaction to South Africa’s 2026 Budget, describing it as largely unsurprising while highlighting several positive elements alongside ongoing concerns about insufficient economic growth.
In an interview following Finance Minister Enoch Godongwana’s budget presentation, Zibi noted that the budget followed closely after adjustments finalized in January, leaving little room for major surprises among those closely monitoring fiscal developments.
Zibi, who serves as president and chairperson of Scopa (the Standing Committee on Public Accounts), praised three specific aspects of the budget from Rise Mzansi’s perspective.
First, he welcomed progress toward better regulation and taxation of the gambling industry. Rise Mzansi has long campaigned for more effective taxation on gambling, with revenues directed toward supporting victims of gambling addiction. The public comment period on related proposals ends this Friday, after which the National Treasury is expected to introduce tax measures for more efficient taxation of the sector.
Second, Zibi highlighted an additional allocation of approximately R5.1 billion (referred to as 5A 1 billion rand in discussion) to the Passenger Rail Agency of South Africa (PRASA). He emphasized the importance of this funding amid high transport costs, a major driver of inflation and living expenses. The investment aims to increase train frequency in major cities such as Johannesburg, eThekwini (Durban), and Cape Town, potentially reducing peak-time intervals to as little as every 10 minutes, providing relief for commuters.
Third, as a native of the King Sabata Dalindyebo (KSD) area in the Eastern Cape, Zibi commended the allocation for a neuro-oncology unit at the Nelson Mandela Academic Hospital. This development addresses a critical gap, as cancer patients from the region currently travel long distances to facilities in places like Western Cape or Gauteng for specialized treatment.
Despite these positives, Zibi expressed concern over the projected economic growth rate. The budget forecasts real GDP growth of 1.6% in 2026, improving from an estimated 1.4% in 2025, with medium-term averages around 1.8% and reaching 2% by 2028. He described this as still too low, arguing that South Africa needs to achieve 6% growth rapidly to generate sufficient jobs and address unemployment.
Zibi attributed persistently conservative growth forecasts to a pattern observed across multiple finance ministers, where projections tend to be optimistic initially but fall short in reality. He stressed the need for structural reforms to accelerate growth, particularly in the transport sector.
He pointed to a shift in government thinking on rail infrastructure, aligning it more closely with the road network model: government should build, own, and operate rail systems while licensing private operators (similar to truck owners on roads). Zibi noted that expectations cannot rest solely on Transnet to handle everything. Key to success, he said, is ensuring concessioning and licensing processes are open, transparent, quick, and subject to robust oversight.
On public services, Zibi addressed funding for frontline workers such as nurses, teachers, and police. While acknowledging challenges, he advocated for leveraging private investment in public goods under government supervision and oversight. This approach, he argued, could free up resources for priorities like high-speed internet and tablets in schools—especially in black communities—to equip students for the 21st century. He also highlighted the need to end situations where patients sleep on hospital floors due to insufficient capital expenditure in health, and to direct funds toward water infrastructure and other essentials.
Zibi dismissed ideological resistance to such models, asserting that with proper transparency and continued government ownership of core infrastructure, these steps can boost economic growth and better invest in South Africans.
Overall, while acknowledging elements of continuity, predictability, and stability in the budget, Zibi emphasized that true success depends on tangible improvements in jobs, services, and inclusive growth rather than fiscal spreadsheets alone.