JOHANNESBURG - The overriding priority for government must be increasing South Africa’s GDP growth rate and reducing unemployment, rather than focusing primarily on debt stabilisation, according to economist Duma Gqubule.
Gqubule says government and Finance Minister Enoch Godongwana are “gaslighting” South Africans into believing the economy has turned a corner, while the lived reality for many citizens remains unchanged.
On Wednesday, Godongwana is expected to table the 2026 Budget in Parliament, where he will outline government’s plans for economic growth, public spending, and fiscal stability in what is expected to be a closely watched address.
Gqubule says the budget should prioritise GDP growth to create more jobs.
“The Budget Speech takes place within the context of an unprecedented economic crisis. Our GDP has grown by 1.1 percent a year for 17 years. That is unbelievable. By the end of 2025, our GDP per person was lower than it was in 2007. We are heading for two decades of decline in average living standards,” Gqubule said.
He pointed to rising unemployment as evidence of economic pressure, with unemployment currently affecting about 12.4 million people.
“The government and the finance minister are gaslighting South Africans to believe that the economy has turned the corner. You will hear a story about unemployment and debt stabilising, which are completely untrue. Nothing has changed for the lived reality of South Africans people.”
Gqubulesaid while government is focused on debt stabilisation, South Africa does not have a debt crisis but rather a growth crisis.
“We have a GDP growth problem. The Budget is not an accounting exercise that is disconnected from the real economy. If we must break the bank to get the economy growing, we must break the bank. The side order that comes with the economy that is not growing is that the debt increases as a percentage of GDP. If we focus on growing the economy’s GDP, we create more jobs,” he said.
Gqubule said government should invest more in people and infrastructure.
“Infrastructure has got high GDP and jobs multiple. We should be expanding on public employment programs; we must create more jobs, we can’t continue like this.”