By Thapelo Molefe
Government has hailed a record R2 trillion in tax revenue collection as a sign of economic recovery, even as it moved to cushion consumers from rising fuel costs linked to global conflict.
Minister in the Presidency Khumbudzo Ntshavheni on Thursday said Cabinet had welcomed the milestone achieved by the South African Revenue Service (SARS), describing it as a boost to fiscal stability and a reduction in reliance on debt.
“This milestone demonstrates improved tax compliance and administrative efficiency, but also signals underlying economic growth,” Ntshavheni said during a post-Cabinet briefing on Thursday.
She said the growth was partly driven by strong performance in the mining sector and came alongside five consecutive quarters of economic expansion, with GDP rising by 1.1% in 2025.
But the positive economic signals were tempered by mounting global risks, particularly the ongoing US-Israel-Iran war, which the Cabinet warned could push up fuel and food prices.
In response, government has already implemented a short-term reduction in the fuel levy after price hikes took effect on Wednesday.
A ministerial task team has also been established to develop broader interventions.
Ntshavheni said the team is assessing the impact of rising fuel costs on food security, electricity tariffs and the overall cost of living.
“We are looking at short, medium and long-term interventions, including rebuilding South Africa’s refining capacity,” she said.
She stressed that the country’s fuel supply remains stable and warned that recent shortages at filling stations were due to panic buying rather than supply disruptions.
“South Africans are discouraged from panic buying and fuel hoarding. We have adequate supply,” she said.
At the same time, Cabinet pointed to strong investor confidence following the 6th South African Investment Conference, where R898 billion in pledges were secured across 81 projects.
President Cyril Ramaphosa has since raised the government’s investment target to R3 trillion over the next five years, citing strong early commitments.
The investments are expected to create more than 230,000 jobs, reinforcing government’s focus on inclusive growth.
Cabinet also approved several policy reforms aimed at strengthening the economy, including a revised White Paper on Citizenship and Immigration, a draft Artificial Intelligence policy, and amendments to the Electronic Communications Act to improve competition in the telecoms sector.
Ntshavheni said these reforms are intended to modernise the regulatory environment and support digital transformation.
Despite improvements in revenue and investment, Cabinet acknowledged governance challenges remain, noting only marginal gains in audit outcomes and slow progress in resolving material irregularities.
Meanwhile, over 2,200 members of the South African National Defence Force have been deployed to support police in combating illegal mining and crime across several provinces.
Looking ahead to the Easter weekend, Cabinet urged road safety and reassured citizens of heightened law enforcement visibility.
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