The delay in the much-anticipated budget speech has opened the floor for fresh economic discourse, says Dr Pali Lehohla, a professor of practice at the University of Johannesburg and a research associate at Oxford University. Speaking on the matter during an interview on Radio Islam International, Dr Lehohla highlighted the importance of re-evaluating South Africa’s economic strategy in light of this postponement.

SARS commissioner’s role in economic strategy

Addressing the role of South African Revenue Service (SARS) Commissioner Edward Kieswetter in shaping the budget, Dr Lehohla praised Kieswetter’s proactive stance.

“I think what he has done as an insider, almost, I wouldn’t say single-handedly, causing the budget speech to collapse is a good sign,” Dr Lehohla said, pointing out that Professor Kieswetter’s warnings about the 2019 budget speech went unheeded, and its objectives never materialised.

In the case of the 2025 budget speech, Professor Kieswetter makes the argument that focusing solely on improving tax collection efficiency is insufficient and stressed the need for broader economic growth driven by well-designed policies.

“Now, Kieswetter is actually making the point that you cannot threaten an ox by weighing it all the time. You have got to do something radically different. And he’s not that radically mistaken, but he’s saying, well, focusing on increasing tax collection, or rather efficiency in tax, it’s an important aspect,” Dr Lehola said.

According to Dr Lehohla, economic expansion must be state-led, with the private sector playing a secondary role, rather than being placed at the centre of policy-making.

Historical growth lessons and current economic Conditions

Dr Lehohla drew comparisons to the 2002–2007 period, during which South Africa experienced substantial economic growth of 5-6% annually. He attributed this success to strong government-led infrastructure development and high global demand for South African minerals. Despite similar external conditions prevailing today, he argued that ineffective leadership is preventing the country from capitalising on these opportunities.

He criticised the current policy approach, asserting that the government should take the lead in economic planning, rather than deferring to the private sector. According to him, this shift in policy focus has hindered growth and prevented the country from repeating its past economic successes.

Eskom’s leadership and energy policy criticism

Discussing the appointment of former Eskom CEO Andre de Ruyter, Dr Lehohla raised concerns about the decision-making process behind his selection. He claimed that de Ruyter’s tenure was detrimental to South Africa’s electricity infrastructure, suggesting that his leadership was aligned with external interests rather than the nation’s development needs.

Dr Lehohla also questioned the effectiveness of recent energy policies, particularly the increase in the use of renewable energy sources such as solar power. While not opposed to solar energy, he argued that poor policy sequencing and planning have led to disruptions in the electricity grid, negatively affecting industries and production capabilities.

Call for government-led economic policy

Concluding his remarks, Dr Lehohla emphasised that South Africa’s economic revival depends on strong state intervention, consistent infrastructure investment, and policy stability. He warned against allowing a select few in the private sector to dominate economic decision-making, stating that such an approach fosters corruption and diverts focus from national development goals.

Finance Minister Enoch Godongwana is set to deliver the 2025 Budget Speech on 12 March 2025, following the postponement on 19 February 2025.

Listen to the full interview on Sabaahul Muslim with Moulana Junaid Kharsany.