ACDP expects Godongwana to deliver market-friendly MTBPS

CAPE TOWN - The African Christian Democratic Party (ACDP) says it expects Finance Minister Enoch Godongwana to deliver a medium-term budget policy statement (MTBPS) on Wednesday afternoon that will be pleasing to the markets, in view of the positive sentiment generated by the Government of National Unity (GNU).

This will be the first MTBPS in Parliament in which the African National Congress (ANC) has not had an outright say.

Although not part of the GNU, the ACDP said it had noticed improvements since the new government took over, including stabilising the country’s electricity grid, a major impediment to economic growth. 

Parliamentary whip, Steve Swart, said he expects Godongwana to stick to the fiscal consolidation measures he introduced in the previous administration. 

"We expect that the minister will announce a market-friendly medium-term budget policy statement, which will largely stick to the fiscal consolidation path to stabilise government debt levels, yet announcing further steps to stimulate economic growth, revenue collection and job creation, such as expanding infrastructure spending over the medium term."

Swart said that although the country was not out of the woods yet, the green shoots were encouraging. 

"We’ve had more than 200 days without load shedding, and the logistics crisis at our ports and rail is being resolved. We also now have a Government of National Unity, with new ministers and new initiatives. The ACDP believes these developments will improve economic growth, revenue collection and job creation prospects."