South Africa lowers 2026 growth forecast to 1.2%, temporarily cuts fuel tax
In short
South Africa's finance minister, Enoch Godongwana, announced on 21 October in Cape Town that the 2026 growth forecast is cut to 1.2%. He also announced a temporary cut in the fuel tax to ease pressure from higher international oil prices. CLS reported the cut will run for two months from November.
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Jiemian, citing Xinhua, reported that South African finance minister Enoch Godongwana announced on 21 October in Cape Town, which the report calls the country's legislative capital, that the 2026 growth forecast is lowered to 1.2%. He also announced a temporary cut in the fuel tax to ease pressure from rising international oil prices. [ 3 ]
CLS reported on 21 October that South Africa will lower the fuel tax for two months from November. Yicai's report carried a headline on the lower growth forecast and the temporary fuel tax cut. The documents do not say how large the cut is. [ 1 , 2 ]
Why it matters
The announcement pairs a lower growth outlook with a temporary fuel tax cut aimed at rising oil prices. The documents give no figures for the size of the tax cut.
Key facts
- Finance minister Enoch Godongwana made the announcement on 21 October in Cape Town. [ 3 ]
- South Africa's 2026 economic growth forecast was lowered to 1.2%. [ 3 ]
- The fuel tax is being cut temporarily to ease pressure from higher international oil prices. [ 2 , 3 ]
- CLS reported that the fuel tax will be lowered for two months from November. [ 1 ]
Still unclear
- The size of the fuel tax cut. None of the documents gives the amount.
- The two-month duration and November start of the cut. Only CLS gives this timing; the other documents say only that the cut is temporary.
What local media are saying
Timeline, local time
- CLS published its report that South Africa will lower the fuel tax for two months from November (21 October). [ 1 ]
- Yicai published its report on the lower growth forecast and temporary fuel tax cut (22 October). [ 2 ]
- Jiemian published a Xinhua-sourced report giving the minister's announcement in Cape Town on 21 October (22 October). [ 3 ]