{"id":3517425,"date":"2025-11-05T10:35:51","date_gmt":"2025-11-05T08:35:51","guid":{"rendered":"https:\/\/www.tlu.co.za\/?p=3517425"},"modified":"2025-11-05T10:35:51","modified_gmt":"2025-11-05T08:35:51","slug":"south-africas-policy-direction-must-be-clarified-urgently","status":"publish","type":"post","link":"https:\/\/www.tlu.co.za\/en\/south-africas-policy-direction-must-be-clarified-urgently\/","title":{"rendered":"South Africa\u2019s policy direction must be clarified urgently"},"content":{"rendered":"

Ahead of the Medium-Term Budget Policy Statement on 12 November 2025 at 14:00, TLU SA says that the majority of South Africa\u2019s challenges \u2013 crime, collapsing infrastructure, and a lack of expertise \u2013 can all be traced back to the policy environment.<\/span><\/h3>\n

\u201cThe Government of National Unity must now state clearly which course South Africa intends to follow,\u201d says Bennie van Zyl, General Manager of TLU SA. \u201cAre we on a trajectory of private property rights and a free-market economy, where individuals accept responsibility to participate within that space and have the opportunity to create prosperity? Or will we continue with socialist\u2013communist-inspired outcomes that discourage investment and prevent people from meaningfully participating in the economy?\u201d<\/span><\/h3>\n

According to TLU SA, this policy clarity is the starting point for any real economic recovery. \u201cIf we continue to maintain this socialist playing field, we are a very long way from growth, and we simply are not going to reach it,\u201d says Van Zyl.<\/span><\/h3>\n

TLU SA emphasises that the economic philosophy underpinning South Africa\u2019s policies must be clarified before any discussions about budgets or new initiatives can be meaningful. \u201cWe cannot grow the economy by throwing money behind theories while the practical principles are fundamentally wrong. It is time for the government to honestly acknowledge the direction it is truly pursuing.\u201d<\/span><\/h3>\n

Over the past few years, a consistent pattern has emerged in the execution of budgets: the funds allocated simply do not achieve their intended outcomes. In 2022\/23, the national government budgeted approximately R2.06 trillion, yet ultimately spent around R60 billion less. While debt servicing costs and salaries increased, infrastructure and capital projects lagged behind. Provinces spent close to 99% of their budgets, but the <\/span>quality<\/span><\/i> of expenditure \u2013 particularly in education and health infrastructure \u2013 remained poor. Meanwhile, municipalities underspent by nearly R58 billion, with more than 40% of them operating on unfunded budgets.<\/span><\/h3>\n

Exactly the same trend continued in 2023\/24. The national government again underspent, this time by roughly R70 billion, with tender delays and administrative errors directly stalling development. Provinces executed their operational spending, but capital investment stagnated once more. At local level, financial management deteriorated further, with over R50 billion not spent and rising irregular expenditure highlighted by the Auditor-General.<\/span><\/h3>\n

Even in 2024\/25, although the fiscal year is still underway, early figures indicate that underspending and weak revenue collection at municipal level are worsening. This means that infrastructure, service delivery, and local economic activity are placed under even greater pressure. The pattern is unmistakable: the problem is not a lack of money, but a lack of expertise, management, and accountability.<\/span><\/h3>\n

Van Zyl says that the loss of expertise in key positions is a direct consequence of misguided policy decisions. \u201cInstead of continuing to play the race card, we need to start playing the skills card, by appointing people who are able to do the job and who are willing to accept responsibility. Without expertise and discipline, no budget will succeed.\u201d<\/span><\/h3>\n

TLU SA also calls for a critical review of previous budget outcomes. \u201cHow much of the money that has been budgeted over the years has disappeared into unlawful tenders without producing any results?\u201d asks Van Zyl. \u201cWe cannot continue to celebrate budgets as instruments of growth while the government fails to fulfil its own constitutional responsibilities \u2013 ensuring safety, legal certainty, infrastructure maintenance, and a healthy investment climate.\u201d<\/span><\/h3>\n

Van Zyl says the budget will only make sense if it is built on the correct principles. \u201cIf we do not restore policy, expertise, and moral backbone, we are simply wasting time and money. South Africa will remain trapped in ideology while reality continues to deteriorate,\u201d he concludes.<\/span><\/h3>\n","protected":false},"excerpt":{"rendered":"

Ahead of the Medium-Term Budget Policy Statement on 12 November 2025 at 14:00, TLU SA says that the majority of South Africa\u2019s challenges \u2013 crime, collapsing infrastructure, and a lack of expertise \u2013 can all be traced back to the policy environment. \u201cThe Government of National Unity must now state clearly which course South Africa […]<\/p>\n","protected":false},"author":6,"featured_media":3517422,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_cloudinary_featured_overwrite":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3517425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"\nSouth Africa\u2019s policy direction must be clarified urgently - 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