NEW GROWTH OPPORTUNITY FOR SA’S QUARRYING SECTOR
S outh Africa’s 2026 national budget marks a cautiously optimistic chapter in the country’s long- term economic journey. Finance Minister Enoch Godongwana’s budget speech delivered to Parliament emphasised fiscal stability, prudence and a renewed focus on investment-led growth, a foundation that bodes well for industries tied to infrastructure and construction, including the often overlooked quarrying sector. At its core, the 2026 budget reflects a turning point in South Africa’s public finances. After years of rising debt, the govern- ment projects that the debt-to- GDP ratio will peak and begin to decline, while government reve- nues continue to exceed non-in- terest expenditures, generating a growing primary budget surplus. This signals to investors and businesses alike that South Africa is committed to responsible fiscal management without resorting to punitive tax increases. For the quarrying industry - which supplies the raw materials
projects opens new avenues for private capital participation in infrastructure delivery. Quarry companies are well placed to benefit from this model - not only as suppliers of materials but as partners in integrated project value chains where local content and reliable supply are priorities. Another positive takeaway is the withdrawal of planned tax increases that had been pencilled into earlier drafts of the budget. By relieving businesses of higher tax burdens and adjusting per- sonal tax brackets for inflation, the government has signalled a more competitive tax environment for investment and consumption alike. While quarrying is not always at the forefront of fiscal policy dis- cussions, tax certainty and relief help improve industry cash flows, support reinvestment and contrib- ute to business confidence. Fiscal stability also enhances the broader economic backdrop in which quarrying operates. With improved revenue collections - in part supported by mineral price gains - South Africa is in a better position to fund growth-promoting policies while strengthening its credit outlook. It is true that the full impact of the budget will unfold over time, and challenges such as logistics bottlenecks and energy reliabil- ity remain unresolved in many regions. But the strategic align- ment of fiscal discipline, infra- structure investment and market confidence contained in Budget 2026 creates a more supportive climate for sectors anchored to physical development — among them, the essential quarrying industry. For an industry that sits at the intersection of economic growth and spatial transformation, the budget’s priorities offer a rare confluence of stability, demand and participation that could unlock new opportunities for sustainable expansion.
fundamental to roads, bridges, commercial developments and housing - this environment of fiscal steadiness and investment certainty is vital. Quarry operators thrive when demand for aggre- gates and industrial minerals is robust, and that demand is often linked to public investment in infrastructure and private sector construction activity. One of the most consequen- tial elements of the budget for quarrying is the government’s firm commitment to infrastructure expenditure. Over the medium term, public investment is set to exceed R1-trillion, spread across transport systems, logistics corridors, energy networks and municipal infrastructure projects. These are exactly the kinds of capital works that require signif- icant volumes of crushed stone, sand and other quarry products, creating sustained demand for quarrying activity and associated employment. Moreover, the budget’s empha- sis on public-private partnerships (PPPs) to help deliver major
EDITOR AND PUBLISHER Wilhelm du Plessis quarrying@crown.co.za ADVERTISING Erna Oosthuizen ernao@crown.co.za DESIGN Ano Shumba
CIRCULATION Karen Smith MANAGING DIRECTOR Karen Grant PRINTED BY: Tandym Print
PUBLISHED QUARTERLY BY: Crown Publications P O Box 140
Bedfordview, 2008 Tel: +27 11 622 4770 www.crown.co.za
TOTAL CIRCULATION Q4 2025: 4 299
The views expressed in this publication are not necessarily those of the editor or the publisher.
Wilhelm du Plessis – Editor quarrying@crown.co.za
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MODERN QUARRYING QUARTER 1 | 2026
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