South Africa’s Rescheduled Budget Speech: What to Expect on March 12 and Its Impact on the Economy

Written By: Shaveera John

The South African Budget Speech is one of the most critical economic events of the year, shaping fiscal policy, investor sentiment, and business strategy. The unprecedented failure to deliver the speech as scheduled in February sent shockwaves through the economy, raising concerns about governance stability and fiscal direction. Now, with the rescheduled budget speech set for March 12, 2025, all eyes are on the government’s next move.

Will this budget provide the much-needed clarity on economic recovery, taxation, and public spending? Or will it reinforce existing concerns about South Africa’s economic stability?

This article explores what to expect from the upcoming budget speech, its potential impact on businesses, foreign investors, and the economy, and how firms can prepare for the shifts ahead—particularly in accounting, finance outsourcing, and interim finance resourcing.

The Economic Context: A Country in Need of Direction

South Africa’s economy remains under immense pressure. The rand weakened, business confidence dipped, and the Johannesburg Stock Exchange (JSE) saw fluctuations following the initial disruption of the budget speech. Beyond this immediate fallout, structural challenges persist, including:

• A slow growth rate – GDP growth projections remain subdued, with loadshedding, logistics inefficiencies, and skills shortages hampering productivity.
• Fiscal constraints – Government debt levels remain high, with concerns about rising borrowing costs.
• Uncertainty around taxation – With fiscal pressures mounting, businesses and individuals are bracing for potential tax hikes.

Given this backdrop, the upcoming March 12 budget speech must deliver policy certainty to restore confidence in the market.

What to Expect in the Rescheduled Budget Speech

The Finance Minister will need to strike a balance between economic recovery efforts and fiscal discipline. Here are the key areas likely to be addressed:

1. Taxation: Who Will Bear the Burden?

South Africa’s tax revenue collections have fallen short due to economic stagnation, raising concerns about potential tax hikes. Businesses and consumers are particularly wary of increases in:

• Corporate tax – Additional tax burdens on businesses could impact investment and hiring.
• Personal income tax – With rising living costs, any tax increases will strain household budgets further.
• Value-Added Tax (VAT) – While politically sensitive, an increase from the current 15% could generate significant revenue.

2. Government Spending and Debt Management

With soaring public debt levels, government spending will be under intense scrutiny. Expect the budget to address:

• SOE Bailouts – Will Eskom, Transnet, or other state-owned enterprises receive additional financial support?
• Infrastructure Investment – Allocations to roads, rail, and energy projects could spur economic growth.
• Social Grants – Rising unemployment and economic hardship may prompt increased social support measures.

3. Economic Growth and Business Support

The budget is expected to include initiatives aimed at stimulating economic growth, particularly for SMEs and key industries. Areas to watch:

• Incentives for businesses – Tax breaks or relief for key sectors such as manufacturing, renewable energy, and digital services.
• Policy certainty for foreign investors – Clearer guidelines on investment regulations and incentives.
• Reforms in procurement and outsourcing – Government may look to finance outsourcing as a cost-saving measure.

4. Public Sector Wage Bill and Fiscal Discipline

With a bloated public sector wage bill, the Finance Minister is likely to address cost-cutting measures, possibly including:

• Hiring freezes in government
• Performance-based salary adjustments
• Efficiency reforms in public administration

While these measures may boost fiscal discipline, they could also face strong political resistance from labor unions.

How This Budget Will Impact Businesses

1. Policy Certainty for Business Planning

For companies in finance, accounting, and interim finance, the budget speech will provide clarity on tax obligations, incentives, and sector-specific policies. Firms must be prepared to adjust their financial strategies accordingly.

2. Outsourcing as a Cost-Effective Solution

With businesses facing potential tax hikes and increased costs, outsourcing finance functions can provide a cost-effective alternative to in-house teams. Malander’s finance outsourcing services help businesses navigate financial complexity with expert guidance.

3. Interim Finance Solutions for Agility

As businesses adapt to economic fluctuations, interim finance professionals offer a flexible solution. Whether for short-term capacity needs or project-based financial expertise, Malander’s interim finance resourcing solutions provide skilled professionals to bridge gaps efficiently.

The Global Perception: Can South Africa Rebuild Trust?

The failure to deliver the budget speech on time raised concerns among global investors, further tarnishing South Africa’s credibility. Key risks include:

• Potential Credit Rating Downgrades – Rating agencies like Moody’s, S&P, and Fitch will closely monitor how the government manages its fiscal commitments.
• Investor Confidence – Delays in policy announcements create uncertainty, which discourages foreign direct investment.
• Comparisons to Other Struggling Economies – South Africa risks being perceived as fiscally unstable if governance concerns persist.

To restore confidence, the government must deliver a clear, actionable budget with a realistic path to economic stability.

How Businesses Can Prepare for the Budget’s Impact

1. Stay Ahead of Tax and Regulatory Changes
   Businesses should consult accounting advisory firms to prepare for potential tax policy shifts. Malander’s accounting experts can provide tailored guidance on how to optimize financial structures.
2. Adopt an Agile Finance Model
   With an unpredictable economic landscape, businesses should consider finance resourcing solutions, including outsourced CFO services and interim finance professionals to remain adaptable.
3. Strengthen Cost Efficiency Through Outsourcing
   Given potential tax and cost pressures, finance function outsourcing can help businesses streamline operations, improve compliance, and maintain financial stability.

Final Thoughts: Moving Forward with Clarity

The March 12 budget speech is more than just a policy announcement—it is an opportunity for South Africa to restore economic confidence. If handled correctly, it could provide the clarity that businesses, investors, and consumers desperately need.

While the past few weeks have been turbulent, the rescheduled budget speech presents a chance to refocus on sustainable economic growth. Businesses must stay informed, agile, and ready to adapt—and Malander Advisory is here to support them every step of the way.

Contact Malander Advisory today for expert guidance in finance resourcing, accounting, and outsourcing solutions to ensure your business is well-positioned for whatever the future holds.