Austerity under fire as Godongwana pauses fuel levies and low-cost housing

Residents, activists, members of trade unions and civil society groups took to the streets of Cape Town earlier today against budget cuts. This was before the Medium Term Budget Policy Statement was delivered by the Minister of Finance, Enoch Godongwana. Led by Cry of the Xcluded, some of the protesters’ demands included the right to decent work, an end to exclusionary access to free basic services, an end to privatisation, an increase in health, education and policing, and an universal basic income amongst others.

Equal Education’s secretary general, Itumeleng Mothlabane said that the budget cuts in education have resulted in the existence of plain pit latrines in schools, overcrowded classrooms and learners having to walk on dangerous roads when they go to school.

“We reject a budget that continues to deprioritise the education of a poor black learner. We demand an increase in the allocation that is given to each and every learner. We demand an increase in the school infrastructure budget in Limpopo, KwaZulu-Natal, the Eastern Cape and all the rural provinces,” Mothlabane said.

Lusanda Dyan from Rural Women’s Assembly said they are calling for the allocation of land to women and youth in rural areas and funding of centres that offer assistance to victims of gender-based violence in the rural areas. “Give us 2 hectares of land, seeds and access to water and we will feed this country,” she said.

The protesters also demanded land with water redistribution, and for the government to deal with the housing backlog.

Member of the Movement for Change and Social Justice, Lindiwe Mvandaba said the austerity measures that are implemented by the government are a political choice. “We reject the R370 SRD [social relief of distress] grant because it is not enough for us to feed ourselves and families,” she said.

Speaking to Elitsha, SRD grant recipient, Bernice Benjamin from De Doorns said that she is only able to buy bread, electricity and a few toiletries with the R370 that she receives. Benjamin is currently unemployed and gets support from her parents who receive an old age grant. “My R370 and my parents’ old age pensions only allow us to buy food for two weeks. For the rest of the month, we have to buy food on the book [credit] and we have to get loans for electricity and other stuff that we need. If you borrow R100, you must return it as R150,” she said.

Another SRD grant recipient from Ceres, Wendy Samson said that her R370 is enough to pay her municipal bill only. “We demand that the grant be increased,” she said.

The South African Communist Party leader in the Western Cape and former provincial legislature member for the African National Congress, Benson Ngqentsu told the crowd that the aim of the budget cuts is to hollow the capacity of state entities so that the government can privatise them. “All police stations in this province and around the country do not have enough detectives and police vehicles,” Ngqentsu complained. He was a member of the standing committee on police oversight in the Western Cape legislature.

“We know that Godongwana will announce neo-liberal policies in local government in order to pave the way for privatisation. We therefore say no to the auctioning of solid waste, and water and sanitation departments,” he said.

Cosatu and Saftu united

Zwelinzima Vavi, the general secretary of the South African Federation of Trade Unions (Saftu), called for unity between the federation and the Congress of South African Trade Unions (Cosatu). Vavi shared the stage with the newly elected president of Cosatu, Mike Shingange.

“I want to propose that we have a meeting now in October and next month with Cosatu that will result in a joint 77 notice to the government and inform them that in February next year, during the budget speech, all workers in the Western Cape and around the country, will demand an end to austerity measures and we say voetsek Godongwana,” Vavi said.

Shingange said that the next austerity protest in February should lead to a national shutdown. “Workers have no luxury to be divided because of the badge on their T-shirt or colour of their T-shirt. The enemy knows no name of the union, colour or badge. They only know exploitation and will exploit workers irrespective of the union they belong to,” he said.

‘Mini-budget’ pauses fuel levies and low-cost housing

During the Medium Term Budget Policy Statement presentation, Godongwana announced that the SRD grant will be extended until March 2028. The former trade union leader turned finance minister told parliament that just over 5-billion is to be allocated to combat gender-based violence over three years, with most of the money going to the employment of more than 3,500 social workers.

From 4 November to 1 December, according to Godongwana, the fuel levies on diesel will be cut by R3 and on petrol by R1.50 per litre. Between 1 December and 5 January 2027, the levy will be R1.50/litre lower on diesel and R1/litre lower on petrol.

When it comes to low-cost housing, Godwongwana announced that the human settlements development grant, is to be paused while a new delivery model is designed.