Finance minister Tito Mboweni delivers his Budget Speech at Parliament. Picture: REUTERS/SUMAYA HISHAM
Finance minister Tito Mboweni delivers his Budget Speech at Parliament. Picture: REUTERS/SUMAYA HISHAM

SA’s oldest national black business chamber Nafcoc has welcomed finance minister Tito Mboweni’s 2019 budget, describing it as “a bold new path”.

“The increased investment of R481.6m in incubation programmes at Seda will ensure that the critical sustainability of SMMEs is increased, as these are the entities in which much-needed jobs need to created,” Nafcoc president Sabelo Macingwane said.

Macingwane noted the recapitalisation of the SA Revenue Service (Sars) and the removal of policy uncertainty as steps in the right direction.

“The removal of policy uncertainty will return investor confidence to the economy, which can impact positively and help the growth process, and create a bigger cake for entrepreneurs to take advantage of,” he said. 

Macingwane further praised the minister’s commitment to removing stifling regulation and complicated taxes to free South African entrepreneurship spirit as something that its members had been crying out for.

Mboweni should also be applauded for the decision to decrease in the cost of data, he said. “This will make the fourth industrial revolution possible in SA, igniting entrepreneurship and making us Africa’s technological hub.

“On the downside, the increase in fuel levy is regrettable, as a lot of our members in [the] transport and other sectors suffer the consequences of rising fuel costs,” he said. “We will work with [the] government to find ways on how this can be arrested and in the process find a new sustainable model.

“Fuel levies and the so-called sin taxes have become the blunt instrument used by all financial ministers to plug the gaps in the country’s revenue. As Nafcoc we do not think that the consequences of these increases are considered well enough.”

Nafcoc praised Mboweni for allocating resources to enable the state to strengthen its capacity to turn the  economy around.

“We welcome the focus the economy and fiscal prudence. This shows that the government is serious about creating a stable foundation for economic growth and development to bring about a change trajectory for SA,” Macingwane said.