Cape Town, South Africa
South Africa’s fiscal ship is taking on water — and the Economic Freedom Fighters (EFF) say it’s time for the captain to abandon ship.
In a fiery statement, EFF national spokesperson Sinawo Thambo has called for the immediate resignation of Finance Minister Enoch Godongwana, accusing him of plunging the country’s financial management into chaos after the collapse of critical budget legislation.
The Fallout of a Fiscal Flip-Flop
Thambo’s demand comes just days after the government reversed its controversial plan to raise VAT by 0.5%, a core element of its 2025 Fiscal Framework. That reversal forced the withdrawal of two essential bills — the Division of Revenue Bill and the Appropriations Bill — effectively leaving the national budget in limbo.
According to Thambo, this amounts to the implosion of the entire fiscal strategy.
“What happens to his fiscal anchor and his entire fiscal strategy? Do we get a new fiscal framework? If so, how?” he asked, pressing the Treasury for clarity.
R75 Billion Question
The now-defunct fiscal plan was built around achieving a primary budget surplus and regaining investor confidence, largely through increased VAT collections and modest tweaks to personal income taxes.
With the VAT hike off the table and no immediate replacement plan presented, Treasury now faces a R75 billion shortfall. Godongwana has promised to make up the difference through spending cuts, but critics say that’s not enough — or even realistic — without a comprehensive new plan.
A Growing Leadership Crisis?
While the EFF and Democratic Alliance (DA) celebrated their roles in blocking the VAT increase, Thambo’s latest remarks shift focus from policy victory to governance failure, painting a picture of a Treasury in freefall and a minister out of depth.
Opposition leaders and analysts alike are now questioning whether Godongwana can still lead the economic recovery, or whether it’s time for a fresh face to steer the country through mounting financial uncertainty.
As the political pressure mounts, one thing is clear: South Africa’s budget crisis is no longer just about numbers — it’s about leadership.
