Budget 2024: Missed Opportunities for Entrepreneurs & Property Market Growth

The Gist

• Stronger Entrepreneurial Support Needed: More funding should be allocated to organisations that nurture entrepreneurship, a key driver of job creation and economic growth.
• Raising the Transfer Duty Threshold: Increasing the R1.1M threshold would reduce upfront home-buying costs, boosting demand and stimulating real estate market growth.
• Economic Confidence & Stability: The budget lacked concrete plans to stimulate growth, inspire investor confidence, and create a more dynamic property sector.

The 2024 budget speech fell short of delivering concrete solutions to stimulate economic growth, particularly in the entrepreneurial and property sectors. While business leaders were hopeful for bold reforms, the speech lacked significant measures to drive job creation and enhance market confidence.

Stronger Support for Entrepreneurs

Entrepreneurs play a crucial role in job creation, yet the budget failed to allocate sufficient funding to the organisations and channels that support small businesses. With unemployment remaining one of South Africa’s biggest challenges, empowering entrepreneurs with better access to resources, funding, and support networks could have made a meaningful impact.

"A key aspect we hoped to see in the budget speech was a stronger focus on pragmatic and sustainable solutions to address the jobs crisis. Supporting entrepreneurs - who have the potential to drive employment - is widely recognised as one of the most effective ways to create jobs," says Chante Venter, Co-Founder & CEO of Wise Move, a South African startup supporting over 500 small to medium-sized moving companies.

Raising the Transfer Duty Threshold to Boost the Property Market

The residential property market is a strong indicator of the overall economic climate. However, current tax policies and high transaction costs continue to deter buyers and investors.

"The market thrives on confidence, but buyers, sellers, and investors need to feel assured by reasonable tax measures, favourable policies, and a stable political climate," says Adriaan Grové, CEO of MyProperty.

One of the key policy changes that could have stimulated the market was raising the transfer duty threshold, which currently stands at R1.1 million. Adjusting this threshold would reduce upfront costs for homebuyers, particularly first-time buyers, and encourage more activity in the sector.

"Lowering transaction costs makes homeownership more accessible, helping first-time buyers enter the market and creating a ripple effect across mid- and high-end property segments," Grové explains. "A more liquid real estate market benefits everyone, from estate agents and conveyancers to banks and construction firms, ultimately boosting VAT and tax revenues in the long run."

A Missed Opportunity for Economic Growth

South Africa’s economic growth depends on policies that encourage investment, homeownership, and entrepreneurship. Unfortunately, the 2024 budget did not go far enough to provide the confidence and incentives necessary to drive these key sectors forward.

While some positive steps were taken, a more strategic approach to supporting small businesses and making real estate transactions more accessible could have had a lasting impact on the country’s economy.‍