The 2026 Medium-Term Budget Policy Statement (MTBPS) sends a positive signal on fiscal stability, infrastructure investment and increasing private-sector participation. The real measure of success, however, will be the extent to which these developments translate into tangible growth for South Africa’s small and medium-sized enterprises (SMEs).
Infrastructure Investment
Among Enoch Godongwana’s most significant announcements for the business sector are government’s continued commitment to infrastructure investment, efforts to accelerate public-private partnerships and reforms aimed at improving the business environment. The Minister also reaffirmed that public debt is now declining as a percentage of GDP, following government’s commitment to stabilise debt, highlighted positive rating actions by all three major global credit-rating agencies during this year, and pointed to an infrastructure pipeline of approximately R217 billion through the Infrastructure Fund, alongside more than R100 billion in projects approved through the Budget Facility for Infrastructure.
While these developments contribute to a more stable operating environment, their impact will ultimately depend on implementation and the extent to which SMEs are able to participate in emerging economic opportunities.
“Infrastructure projects create opportunities far beyond construction. They can stimulate demand across logistics, professional services, manufacturing, technology and business services, creating important avenues for SME growth and job creation. The key will be translating investment commitments into practical opportunities that are accessible to businesses of all sizes,” says Umesh Madhav, Head of Business Banking Coverage at Standard Bank South Africa.
Importantly, the opportunity for SMEs lies not only in direct project participation, but also in the broader value chains that support infrastructure delivery, including transport, maintenance, engineering support services, equipment supply, consulting, ICT and other business services.
Fuel Relief
The MTBPS also provides welcome relief for businesses grappling with rising fuel costs. Government announced a temporary reduction in the fuel levy of R3 per litre for diesel and R1.50 per litre for petrol from 4 November to 1 December 2026, before a lower level of relief applies through to 5 January 2027. Treasury estimates that the intervention will provide approximately R10 billion in support to households and businesses. For SMEs, particularly those operating in transport, logistics, distribution, agriculture and other fuel-intensive sectors, the measure should help ease pressure on operating costs, cash flows and margins in the short term.
Public-Private Partnerships
The growing emphasis on public-private partnerships and alternative funding models also reflects an increasing recognition of the role that the private sector will play in driving economic expansion and supporting development objectives.
Economic Growth
At the same time, challenges remain. The MTBPS forecasts economic growth of 1.2% in 2026, rising to 1.6% in 2027 and 2.0% by 2029, underscoring the need for effective implementation of reforms, improved service delivery and greater inclusion of SMEs in economic value chains.
As South Africa seeks to convert policy intent into economic outcomes, the extent to which businesses of all sizes are able to meaningfully participate in infrastructure programmes, emerging value chains and broader investment opportunities will be an important determinant of sustainable and inclusive growth.