The cabinet has welcomed the South African Revenue Service’s (Sars) record collection of more than R2-trillion in net tax revenue, describing it as a fiscal milestone that strengthens the country’s financial position and reduces reliance on debt.
In a media briefing following cabinet meetings held on March 25 and concluded on April 1, minister in the Presidency Khumbudzo Ntshavheni said the revenue milestone had been achieved in a shorter period than the previous R1-trillion benchmark reached in 2018.
“Sars collected just over R2-trillion in net revenue, a record milestone that was achieved in the fastest period since the R1-trillion net revenue collection milestone,” she said.
The government attributed the increase to improved tax compliance, administrative efficiencies and reforms implemented following the recommendations of the Sars commission of inquiry.
Ntshavheni said the strengthened revenue base enhances fiscal capacity, creating additional space to fund public services while supporting overall economic stability. The increase was also linked to continued activity in key sectors, including mining, which remains central to the economy.
She highlighted the ongoing economic recovery, with SA recording five consecutive quarters of growth. Annual GDP growth reached 1.1% in 2025, supported by a 0.4% expansion in the final quarter.
Investment
In terms of investment, Ntshavheni pointed to the outcomes of the sixth South Africa Investment Conference, held on March 31 in Johannesburg. The conference secured R898bn in investment pledges across 81 projects, with participation by more than 1,000 delegates representing 50 countries.
The government indicated that these commitments are expected to create more than 230,000 permanent jobs.
The latest pledges are part of a revised investment drive targeting R3-trillion over five years, following the near achievement of the initial R1.2-trillion target.
Since 2018, the investment conference has mobilised R1.56-trillion in commitments, exceeding original projections. Projects worth about R400bn have been completed, while others are in progress.
The cabinet also welcomed a $350m (about R5.6bn) credit guarantee facility from the International Bank for Reconstruction and Development, to support infrastructure development. The facility will initially focus on electricity infrastructure, with plans to expand into water, transport, education and health.
Fuel supply risk
On energy security, Ntshavheni addressed the effects of the conflict involving the US, Israel and Iran, noting potential risks to fuel supply and prices. The government confirmed that domestic fuel supply remained stable, despite temporary shortages attributed to panic buying and logistical constraints.
A ministerial task team has been established to co-ordinate responses, including a temporary reduction in the fuel levy to cushion consumers against price increases.
Postbank
In financial sector developments, the cabinet welcomed the formal licensing of Postbank by the Financial Sector Conduct Authority (FSCA). The move is expected to expand access to affordable financial services, particularly for underserved and financially excluded communities, while advancing the development of a state-owned retail bank.
Ntshavheni further outlined interventions aimed at improving service delivery in metropolitan municipalities through a new reform programme targeting electricity, water, sanitation and waste management.
The Treasury has allocated R54bn in performance-based incentives over six years, with funding tied to measurable improvements.
Poor internal controls
On governance, the cabinet noted a marginal improvement in audit outcomes for the 2024/25 financial year. Clean audits increased from 142 to 151, while fruitless and wasteful expenditure declined significantly from R3.54bn to R14m.
However, concerns remain over persistent weaknesses in internal controls and slow implementation of corrective measures across departments and entities.
In the area of legislation, the cabinet approved several policy and legislative developments, including a revised white paper on citizenship, immigration and refugee protection. The proposed framework seeks to consolidate existing legislation into a single system, introduce the “first safe country” principle, and allow for the designation of certain economic sectors for South African citizens.
Additional measures approved include a strengthened anti-money-laundering and counter-terrorism financing bill, amendments to telecommunications legislation to improve competition, and a whistleblower protection bill aimed at expanding safeguards and support mechanisms.
Ntshavheni also confirmed progress on land reform, reporting that more than 83,000 land claims had been settled since 1995, restoring about 3.5-million hectares. The government has invested R58bn in land purchases, grants and financial compensation.
Public safety
On public safety, the cabinet welcomed the deployment of more than 2,200 South African National Defence Force members to support police operations against illegal mining across several provinces.
The briefing further addressed social and heritage matters, including the reburial of Khoi and San ancestral remains and the formal recognition of indigenous names in official identity documents.
Local government elections
The cabinet urged citizens to register to vote for the 2026 local government elections, with the Electoral Commission of SA (IEC) designating June 20 and 21 as a national voter registration weekend.
Ntshavheni concluded by urging caution over the Easter period, calling on motorists to prioritise road safety and warning against the illegal movement of livestock amid ongoing foot-and-mouth disease concerns.
Business Day
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