Cape town: Cabinet has welcomed the 2025 Medium-Term Budget Policy Statement (MTBPS) as part of continuing government efforts to drive economic growth, create jobs and address the cost of living. Delivered by the Minister of Finance, Enoch Godongwana, on Wednesday in Parliament, the MTBPS announced a shift from an inflation target range to a specific inflation target of 3%.
According to South African Government News Agency, the benefits of a low inflation target at a personal income level include the prevention of cost-of-living spirals, promotion of price stability, protection of purchasing power, support for equitable income distribution, and protection of savings. At a macroeconomic level, the aim is to support gross capital formation and enhance currency stability, which are important for investor confidence and economic growth. The National Treasury/Reserve Bank technical team that recommended this change in Monetary Policy position considered the drawbacks of this shift but advised that this is the best approach for the country at the current period, as stated by Minister in The Presidency Khumbudzo Ntshavheni during a media briefing in Cape Town.
The MTBPS also reaffirmed the government’s commitment to improving the provision of critical services such as health, education, and protection of the poor through social grants, while also driving investments in public infrastructure such as energy, water, and transport.
In a groundbreaking milestone for the country’s pharmaceutical sector, South Africa’s Biovac has produced a Cholera vaccine – the first vaccine to be produced in the country. Cabinet congratulated Biovac and the Departments of Health and Science, Technology, and Innovation for this achievement. Biovac’s ability to produce the Cholera vaccine in South Africa demonstrates the country’s advancement in pharmaceuticals, science, and technology, marking a graduation from vaccine packaging to full vaccine manufacturing capability. The partnership of Biovac with the Human Sciences Research Council and the Council for Scientific and Industrial Research (CSIR) showcases the mobilisation of government’s capabilities to address the country’s challenges.
With Statistics South Africa (Stats SA) reporting that 248,000 more jobs were created in the third quarter of 2025, Cabinet welcomed this development. The increasing number of employed persons now stands at 17.1 million, and the official unemployment rate declined by 1.3 percentage points, to 31.9%, in the quarter. More jobs were recorded in the construction, community and social services, and trade sectors, reflecting job creation momentum in key areas of the economy.
South Africa’s tourism continues a positive trajectory as the country welcomed 7,634,261 international tourists between January and September 2025, marking an impressive increase of 1,108,222 visitors compared with the same period in 2024. Key growth markets contributing to this increase include the Middle East, Europe, Africa, North America, and Asia.
Cabinet also welcomed Eskom’s announcement that the National Nuclear Regulator has approved a 20-year licence extension for Koeberg Unit 2, enabling its operation until 9 November 2045. This milestone strengthens South Africa’s long-term energy security and reflects Eskom’s commitment to world-class nuclear safety standards. Additionally, the National Energy Regulator of South Africa’s (Nersa) announced the registration of 181 new generation facilities during the second quarter of the 2025/26 financial year, representing a combined capacity of 1,401 MW and an estimated investment value of R30.78 billion.