The Spark

On May 21, 2025, Finance Minister Enoch Godongwana presented his third attempt at the national budget, a document that, under the guise of fiscal responsibility, perpetuates the neoliberal agenda of austerity. This budget, far from addressing the systemic issues plaguing South Africa, reinforces the capitalist structures that prioritize capital accumulation over the welfare of the working class. The Illusion of Fiscal Responsibility Godongwana's budget is anchored in the ideology of fiscal consolidation, a term often used to justify spending cuts that disproportionately affect the working class. The proposed R28 billion in spending cuts are not mere numbers; they represent a direct assault on public services such as healthcare, education, and social welfare programs. These cuts are justified by the need to stabilize public debt, yet they fail to address the root causes of the fiscal deficit, such as tax evasion by the wealthy and corporations.( Reuters ) Taxation: A Tool for C...

In the name of fiscal prudence and debt stabilization, Finance Minister Enoch Godongwana delivered his third budget speech on May 21, 2025—a ritual obeisance to global capital that concretizes the ruling class’s war on the working masses. Behind the technocratic jargon of “sustainable debt path,” “revenue shortfalls” and “expenditure reprioritization” lies a naked class project: to preserve surplus value for financiers and monopolies by slashing the social wage, shrinking public sector capacity, and shifting the costs of economic crisis onto labour. From a Marxian standpoint, this budget is a manifesto of austerity-driven capital accumulation, thrust upon an already squeezed proletariat. 1. The Fetish of Debt and the Fetish of the Market Godongwana began by lamenting an R 75 billion fiscal gap—no mention of the trillions paid out in interest to bondholders since 1994. His solution: cut R 60 billion from “non-core” spending, delay infrastructure projects, and extract more from an ...

In mid-May 2025 President Cyril Ramaphosa flew to Washington, D.C., under the official banner of a “reset” of trade and diplomatic ties. State releases touted bilateral economic deals and “improved trade terms”. But as observers immediately noted, the backdrop was anything but routine. The Trump administration had slapped tariffs on South African exports and invoked a bizarre refugee resettlement order, while South Africa had just hauled Israel before the International Court of Justice for alleged genocide in Gaza. In practice the trip became less about tractors or trade deficits than about geopolitics and pressure on Pretoria’s Palestine policy. In fact, analysts pointed out that discussions were sure to “touch on South Africa’s stance on the Israel-Palestine conflict”. An insider memorably called the whole affair “a high-stakes act of political supplication” – driven by Washington’s demands and Trump’s anger – rather than any genuine equal exchange. In short, the Reset narrati...

From May 19 to 22, 2025, President Cyril Ramaphosa embarked on a high-stakes diplomatic mission to Washington, D.C., aiming to mend frayed relations between South Africa and the United States. This visit, however, appears less as a sovereign engagement and more as a concession to imperial pressures, risking the erosion of South Africa's hard-won post-apartheid gains.  A Delegation Reflecting Elite Interests Accompanying Ramaphosa were figures emblematic of South Africa's economic and political elite: billionaire Johann Rupert, golfing legend Ernie Els, and DA leader John Steenhuisen. Their presence underscores a delegation more attuned to appeasing U.S. capitalist interests than addressing the pressing needs of South Africa's working class and marginalized communities. Rupert's ties to U.S. business circles, Els's appeal to American cultural sensibilities, and Steenhuisen's political positioning suggest a concerted effort to align South Africa's policies ...

In capitalist South Africa the budget is a battleground of class interests. On May 21 Finance Minister Enoch Godongwana will table a revised 2025 budget – the third attempt after two earlier versions were derailed by coalition infighting and court rulings over a proposed VAT hike. With the VAT increase now scuttled, Treasury faces a R75 billion hole. To plug the gap, Godongwana plans roughly R60 billion in cuts, targeting critical departments and projects. In plain terms, clinics will wait and roads will crumble – the poor will suffer. This is no technocratic exercise: it forces a stark choice between bankers’ debt and workers’ needs, exposing the political economy’s contradictions. The working class cannot afford this merciless austerity. Social Cuts: Who Pays? Marxists know it is always the poor who pay first. Already-overstretched departments – health, education, police – now face the axe. Even the business lobby admits South Africa “cannot afford to cut the education, hea...

In a recent statement, South Africa’s Finance Minister Enoch Godongwana asserted that taxing the wealthy could trigger capital flight, thereby justifying the government's decision to forgo implementing a wealth tax. This position has sparked debate, especially when examined through a dialectical-materialist framework, which scrutinizes the material conditions and class dynamics underpinning societal structures. ( University of Johannesburg News ) The Material Basis of Wealth and Class South Africa's economic landscape is characterized by stark inequality, a legacy of apartheid and sustained by neoliberal policies that favor capital accumulation among the elite. The top 1% of South Africans control a disproportionate share of the nation's wealth, while a significant portion of the population lives in poverty. This concentration of wealth is not merely a statistical anomaly but a reflection of systemic structures that prioritize capital over labor. ( SowetanLIVE ) Godongwa...