A comprehensive, original article based on Deputy Minister Z. Godlimpi’s NCOP Budget Vote Speech for 2025/26, focusing on economic transformation, IDC funding, critical infrastructure, living-cost relief, Master Plans, and institutional strengthening.
Introduction: Honouring Legacy, Embracing Constitutional Mandate
Honourable Chairperson, Minister Parks Tau, Select Committee Chair, Hon. Boshoff, esteemed Members of Parliament:
This July carries weighty symbolism in South Africa’s history: it marks the birthday of Nelson Mandela and solemnly recalls the passing of Inkosi Albert Luthuli—both Nobel Peace Laureates, united by their vision of freedom and equality. Mandela and Luthuli embody the spirit of the Freedom Charter, whose guiding principle—“The People Shall Share in the Country’s Wealth”—is enshrined in our Constitution.
Their legacy compels us: as Madiba warned, “political liberation was not easy to achieve… so will it not be an easy walk” to realize socio‑economic upliftment. This Budget Vote Speech for the 2025/26 financial year is not just a budget—it is a constitutional directive to effect transformation.
1. Constitution as a Blueprint for Transformation
South Africa’s Constitution is fundamentally directive, not neutral. It mandates redress and proactive transformation. Opposing transformation inherently opposes the Constitution itself.
Our democracy is rooted in the Freedom Charter’s values—equality, justice, redistribution. The state has an obligation to provide frameworks that dismantle inequality and build access. In this context, the Department of Trade, Industry and Competition’s (dtic) Budget Vote is a roadmap for inclusive industrial development and economic repositioning.
2. The Economic Context: Structural Constraints & Unemployment
South Africa’s economy remains constrained by chronic structural issues:
- Manufacturing has stagnated, undermined by weak domestic demand, logistics bottlenecks, energy instability, and rising cost of doing business.
- Unemployment stands at 32.9%, disproportionately affecting Black adults, women, and youth—reinforcing historical inequities.
- Economic participation remains limited: ownership, access to finance, and participation in productive assets continue to favor historically advantaged groups.
Recognizing these barriers, the dtic focuses its 2025/26 programmes on breaking down these structural blocks and accelerating inclusive participation in the economy.
3. IDC: Catalytic Funding for Transformation
Key to this strategy is the Industrial Development Corporation (IDC). For the upcoming financial year, the IDC has committed R12 billion to catalyst funding:
- R7.4 billion for Black industrialists,
- R3.5 billion for women-owned enterprises,
- R1.5 billion for youth-led businesses.
These allocations are designed to confront ownership inequality head-on and ensure that economic control begins to reflect the demographics of our nation.
4. Provincial Transformation in Action: IDC Initiatives Across the Country
To make transformation concrete, consider these IDC-supported initiatives across provinces:
- KwaZulu-Natal: Support for SMME sugarcane growers and avian export-linked avocado farmers.
- North West: Launching second rounds of support for Black grain producers.
- Eastern Cape: Partnerships advancing green hydrogen projects and agro‑processing investments.
- Free State: Collaboration with provincial government to revitalise agricultural infrastructure.
- Gauteng: Pipeline development through supplier development and business referrals.
- Western Cape: Backing of Black industrialists in poultry, plastics, and solar sectors.
- Limpopo: A R50 million aggregator farming project projected to create over 400 jobs.
- Mpumalanga: Support for green enterprises in biofuels, recycled bricks, and furniture manufacturing.
These projects reflect a deliberate spatial transformation agenda, aligning economic growth with historical equity goals.
5. Strategic Infrastructure & Incentive Investments
Out of the dtic’s R11 billion budget for 2025/26:
- 35.15% is allocated to business incentives,
- 10.2% (≈R5.2 billion) is earmarked for infrastructure support under the Incentives Programme.
Catalytic Projects:
- Nyanza Light Metals in KwaZulu-Natal is establishing the continent’s first titanium dioxide pigment plant in the Richards Bay IDZ—anchored by a R4 billion investment and a R200 million Technical Services Centre.
- Mamba Cement in Limpopo produces over 1 million tons annually and supports SMMEs, while investing in bulk water infrastructure for the Raphuti community.
- In the North West, a 200 MW solar PV project by African Pioneer Group injects R3.6 billion into local economies, enhancing energy security and livelihoods.
These projects are central to the reindustrialisation drive, promoting localisation and sustainable economic development.
6. Tackling the Cost-of-Living Crisis
Honourable Chairperson, the current cost-of-living crisis is intensifying hardship—particularly for the poor and working-class—driven by rising food, energy, and logistics costs.
dtic’s Response: Regulatory, Protective, Proactive
- The Competition Commission is implementing recommendations from the Fresh Produce Market Inquiry, targeting opacity in food prices and systemic exclusion of small and Black producers.
- The National Consumer Commission has issued 45 compliance notices, ramping up food safety enforcement, recall procedures, and consumer education.
- The National Credit Regulator is intensifying oversight on unsecured lending—cracking down on illegal lenders and launching financial literacy campaigns in vulnerable communities.
These interventions are critical in establishing market fairness and protecting consumers from price gouging and abuse.
7. Master Plans Driving Targeted Industrial Transformation
Sugar Master Plan
- Phase I (completed March 2024) supported over 15,000 small-scale growers, disbursing R239 million in transformation support and allocating R74.7 million for Premium Price Payments in 2025/26.
- Phase II priorities:
- Securing local offtake at 1.55 million tons,
- Enhancing trade protection,
- Unlocking R1–R2 billion in downstream agro-processing investments,
- Finalizing pricing block exemptions,
- Stabilizing the Health Promotion Levy,
- Supporting 12,000 emerging growers via structured transformation programmes.
Poultry Master Plan
- Built a broiler capacity of 22.5 million birds per week.
- Registered 6% export growth and established 20 Black contract growers.
- The next phase addresses the R9.5 billion economic loss from avian influenza through:
- Biosecurity implementations, including local vaccine production,
- Forming a Biosecurity Council,
- Expanding export access,
- Introducing blended finance for producers,
- VAT exemption on bone‑in poultry parts to ease household affordability,
- Tariff protections against unfair imports.
Together, these plans exemplify how public-private frameworks can drive industrial inclusion and transformation.
8. Strengthening Technical Institutions
In the coming year, dtic will intensify reforms and capacity building across key technical institutions:
- SABS will establish over 350 new standards, facilitating certification access for SMMEs.
- NMISA will modernise measurement capabilities essential for emerging sectors like green hydrogen.
- NRCS will escalate inspections to eliminate unsafe consumer goods.
- SANAS will reinforce accreditation aligned with AfCFTA trade requirements.
These reforms are aimed at building a responsive regulatory environment, supporting localisation, export-readiness, and institutional accountability.
9. Broader Impacts and Legacy of Transformation
This Budget Vote is not merely financial—it is symbolic of our constitutional project. Guided by the wisdom of Madiba and Inkosi Luthuli, we reaffirm that political liberation must evolve into socio-economic justice.
Deputy Minister Godlimpi’s speech underscores that transformation is no longer optional—it is imperative, codified by law and demanded by history.
Further Reading and Reference
To gain a deeper understanding of the policy framework guiding these transformative goals—including their constitutional foundation and implementation strategy—you can explore the official South African Government publications on inclusive economic growth and structural reform at the South African Government website.
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Conclusion: A Collective Commitment to Inclusive Growth
Honourable Chairperson, we stand at a crossroads—domestic inequality and global uncertainty challenge our resolve. Yet precisely in such moments we reaffirm our constitutional pledge: to translate the ideals of the Freedom Charter into tangible outcomes for all citizens.
Chief Luthuli reminded us:
“History also teaches us that no power on earth can stop progress, and our struggle is for progress.”
As we navigate these challenges, may the values of Madiba and Luthuli guide us toward an economy that shares wealth equitably, restores dignity, and builds opportunity for every South African.
I thank you.
