Business Community Reaction to the 2026 National Budget

The business community, represented by the Small Business Institute (SBI) and the South African Chamber of Commerce and Industry (SACCI), noted that this year’s presentation was significantly more stable than the “controversy-dotted” budget of 2025.

• Realistic Growth Projections: Business leaders acknowledged the Minister’s realistic, albeit disappointing, focus on GDP growth. The economy remains stuck on a 1% growth trajectory, a result of severe long-term damage that experts suggest will not see a meaningful recovery (above the 2% range) until at least 2028.

• Fiscal Stability: There is a general sense of relief that the budget was “incident-free,” signaling a return to a more predictable fiscal environment.

Impact on Small, Medium, and Micro Enterprises (SMMEs)

John Dludlu, CEO of the Small Business Institute, highlighted specific points of interest for the small business sector:

• Tax Relief: The business community welcomes the increase in thresholds for Capital Gains Tax, which is viewed as a positive step for small business owners and investors.

• Support and Funding: While the high-level budget has been set, the sector is now looking toward the Department of Small Business Development for clarity on specific fund allocations and the role of DFIs in supporting SMME growth.

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