South African budget prompts cheer and wider divisions

Significance

However, cuts to the social grants budget and a continued focus on the planned three-year wage freeze for civil servants has annoyed (among others) the ruling ANC's ‘Tripartite Alliance’ partners, the Congress of South African Trade Unions (COSATU) and the South African Communist Party (SACP).

Impacts

• Pressure will grow on a joint National Treasury-Presidency initiative, ‘Operation Vulindlela’, to hasten long-promised structural reforms.
• The success of the government’s mass vaccination programme will depend on its efficacy and willingness to work with the private sector.
• The government's modest economic recovery projections could prove too optimistic if vaccine roll-out falters or further COVID-19 waves hit.