Medium-Term Budget Policy Impact for SMEs

Tito Mboweni Medium-Term Budget Speech

According to banking giant, FNB, the Medium-Term Budget Policy Statement delivered by Finance Minister, Tito Mboweni, on Wednesday highlights the need for fiscal rehabilitation to; rebuild, rehabilitate and recover.

“Short term focus is on building infrastructure, expanding electricity generation, allocating digital spectrum and supporting rapid industrialisation,” said Palesa Mabasa, FNB Gauteng South West – Segment Head.

For SMEs this could mean,

  • Increased opportunities for those who are players in the infrastructure value chain;
  • Improved electricity supply leading to less interruptions due to load shedding/load reduction; and
  • Cheaper data costs assisting in ecommerce and running overheads to decrease.

Mabasa added that in the long term, the R12.6bn that has been allocated to fund employment initiatives will lead to increased economic stimulus and GDP growth.

“SMEs must ensure they are positioned to take advantage of this by ensuring all compliance and procurement requirements are up to date and correct,” she described. 

“The success of our economy lies in the speedy and full implementation of the Reconstruction and Recovery Plan as well as the Medium-Term Budget Policy Statement.”

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