Tag: EconomicGrowth

This year's medium-term budget was delivered against a more difficult economic backdrop than February's national budget. Higher fuel prices and renewed global inflation pressures have squeezed household budgets and clouded the growth outlook. Yet resilient tax collections have provided some support for the public finances.

South Africa places considerable weight on Micro, Small, and Medium Enterprises (MSMEs) as engines of employment and growth. However, their access to capital still falls short of the role we expect them to play. Consequently, development finance has become an important part of efforts to close this gap. Every Rand channelled into development finance carries an expectation of tangible economic outcomes.

During my time working at South African Breweries (SAB), I watched young graduates arrive on the factory floor holding hard-earned chemistry degrees. They possessed brilliant theoretical minds. They understood molecular bonds and complex reactions on paper. Yet, when a critical machine on the production line broke down, those degrees often could not get the line moving again.

Small and Medium Enterprises (SMEs) cannot grow without access to funding, and South Africa needs its SMEs to grow. What needs to change in the middle? The frame for South Africa’s economic growth in 2026 is one of modest recovery. The National Treasury’s 2026 Budget Review projects real Gross Domestic Product (GDP) growth of around 1.6%. The World Bank echoes these figures, at 1.4%, and expects growth to increase to 1.5% by 2027.

Small and Medium Enterprises (SMEs) are undeniably the lifeblood of South Africa's economy. They represent 91% of businesses in the formal sector and employ roughly 60% of the country's workforce. Yet, the entrepreneurial landscape remains notoriously harsh. More than 70% of South African SMEs fail between their first and fifth years.

Small and Media Enterprises (SMEs) are regularly rejected for funding, even when their businesses are profitable, because the system was not designed with their business reality in mind. SMEs contribute around 40% of the country's gross domestic product (GDP) and 60% of employment. Yet they face the SME funding gap, which is estimated at R350 billion. There is no shortage of funding in the system.

We know where the jobs are, and we know our young people are eager to work. So why aren’t we connecting the dots? South Africa has 200,000 agricultural jobs waiting to be filled. We also have a thriving Business Process Outsourcing (BPO) sector. This sector includes call centres, customer service, data processing and back-office administration. It can absorb entry-level workers at scale.

Two remarkable economic turnarounds demonstrate what becomes possible when countries support the right sectors, develop relevant skills and strengthen cooperation between government and business. We exist to create genuine and lasting economic opportunities for young South Africans. We constantly evaluate where we invest, what we support and why those decisions matter.

April’s Financial Literacy Month provides an opportunity to reflect on progress. It also highlights where the next phase of financial inclusion must focus. While access remains foundational, the real challenge lies in outcomes. Specifically, credit must deliver sustainable and positive results for consumers. Over the past decade, South Africa has expanded access to financial services. This progress has strengthened financial inclusion across the country.

Highlighting Commitment that Transcends Mere Compliance – An Enduring Dedication to Meaningful Economic Transformation in South Africa. Samsung has reaffirmed its commitment to South Africa’s transformation agenda. It has maintained its Level 1 B-BBEE (Broad-Based Black Economic Empowerment) rating for the eighth consecutive year. This achievement reflects a consistently high standard of transformation performance.