Deputy Minister David Masondo: Launch of SA-TIED Phase III

Deputy Minister of Finance Dr David Masondo delivers remarks at the launch of SA-TIED Phase III

Programme Director,
Excellencies,
Representatives of the European Union and the United Kingdom,
Colleagues from UNU-WIDER,
National Treasury officials l
Distinguished guests, ladies and gentlemen,

Good afternoon.

It is a pleasure to join you as we reflect on the progress of SA-TIED and launch Phase III of this important initiative.

We meet at a time when South Africa faces persistent structural challenges such as low growth, high unemployment, and deep inequality, alongside rising fiscal pressures and global uncertainty.

In this context, the central question is not only whether we act, but how we act, and on what basis decisions are, made.

At its core, SA-TIED is anchored on a simple but powerful principle: that good policy must be grounded in credible evidence.

Reflection on SA-TIED Phase II

Over the past several years, SA-TIED Phase II has demonstrated the value of this principle.

It has shown that when policymakers and researchers work together, not in isolation, but in partnership, we are better able to understand the challenges we face; and design responses that are both practical and effective.

Through this programme we have strengthened collaboration between key government institutions, including the National Treasury and the South African Revenue Service, and leading academic and research partners.

Together, we have worked to close critical knowledge gaps in areas central to South Africa's development, including fiscal policy, labour markets, trade, and the energy transition.

But perhaps most importantly, SA-TIED has helped to bridge a long-standing gap between research and policy.

Too often, research remains theoretical and disconnected from implementation.

SA-TIED has ensured that research is co-created with policymakers and directly informs decision-making within the state.

This represents a meaningful shift in how we approach economic policy.

The role of data and evidence

A key pillar of this progress has been the use of data and analytical tools.

Through the National Treasury Secure Data Facility, we have enabled access to high-quality administrative data, allowing for more rigorous and practical analysis.

In particular, the use of administrative tax data has been a significant innovation.

South Africa has been among the first in the Global South to establish a tax data lab, enabling us to evaluate policies with far greater precision.

This allows us to move beyond assumptions and focus on what actually works.

It also strengthens accountability, because policies can be assessed on the basis of evidence.

Importantly, this model is beginning to influence other countries in the region, reinforcing South Africa's role in policy innovation.

Partnership as a strategic asset

Another defining feature of SA-TIED is its partnership model.

This programme is not only about producing research, but also about embedding evidence within the processes of government.

It is built on long-term collaboration between policymakers and researchers, grounded in trust and shared purpose.

Our partnership with UNU-WIDER has been central to this success.

UNU-WIDER brings global expertise, strong research networks, and methodological rigour, which have strengthened the quality and relevance of the work produced.

We also extend our appreciation to the European Union and the United Kingdom for their continued support.

These partnerships demonstrate that well-aligned collaboration can build lasting institutional capability.

Why Phase III matters now

We are launching Phase III at a critical moment.

Globally, economic conditions remain uncertain. Domestically, we are advancing structural reforms to unlock growth, strengthen infrastructure, and improve state capability.

In this environment, evidence becomes even more important. It enables better prioritisation. It supports more efficient allocation of resources. And it ensures that reforms deliver measurable outcomes.

Reforms and the current global oil shock

The structural reforms are paying off. We have liberalised the energy market, and we no longer depend solely on Eskom for our electricity supply.

Can you imagine if we were still relying on diesel to generate power to ward off load shedding, especially in the context of rising diesel prices? South Africa would likely be facing very high energy costs, widespread blackouts, and an increased burden on the fiscus.

These structural reforms, along with the resolution of Eskom's R420 billion debt, have enabled Eskom to invest in repairing and maintaining its energy generation infrastructure. As a result, we are currently not experiencing load shedding.

It is therefore essential that we continue to reform our economy to withstand global headwinds and external shocks. We must also implement additional measures, such as increasing investment in renewable energy and gas, to diversify our energy sources and reduce the risk of future energy disruptions.

Strategic focus of Phase III

Phase III, running from 2026 to 2029, will consolidate and expand the gains already achieved.

The programme will continue to focus on key areas, including public revenue mobilisation, poverty, inequality, and labour markets; Macro-fiscal analysis; and climate-related challenges across food, energy, and water

Importantly, Phase III introduces a new focus on public expenditure. This is critical.

As fiscal space becomes more constrained, the question is no longer only how much we spend, but how effectively we spend. Improving the efficiency and impact of public expenditure will be central to achieving inclusive growth.

Three strategic priorities

Phase III will be anchored on three core priorities.

First, deepening research for evidence-based policymaking including strengthening the link between research and implementation.

Second, strengthening data infrastructure by expanding access to administrative datasets and ensuring long-term sustainability.

Third, building state capability through training, skills development, and greater integration of research within government.

Ultimately, sustainable reform depends not only on good ideas, but on the capacity to implement them.

Conclusion

Colleagues, The defining feature of our time is uncertainty.

In such an environment, governments must be agile, responsive, and informed.

SA-TIED represents exactly the kind of institutional innovation required to meet this challenge.

As we launch Phase III, we reaffirm a simple principle :Better evidence leads to better policy. And better policy leads to better outcomes for our people.

National Treasury remains committed to sustaining this partnership and ensuring that evidence continues to inform the delivery of reform in South Africa.

Let me conclude by thanking all partners in government, academia, and development partners, for their continued contribution.

We look forward to building on this foundation in the years ahead.

I thank you.

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