South African President Cyril Ramaphosa has emphasized the need for sustained investment and infrastructure development to ensure the country’s recent economic gains translate into long-term growth. In his weekly newsletter, the President noted that South Africa has entered the new year with growing momentum in its economic recovery, supported by positive indicators such as four consecutive quarters of growth and declining unemployment levels.
The economy has also seen a notable reduction in poverty and inequality, with the stock exchange performing well and the average inflation rate being the lowest in two decades. The country’s exit from the Financial Action Task Force (FATF) grey list and a recent sovereign credit ratings upgrade have further boosted investor confidence.
However, President Ramaphosa cautioned against complacency, stressing that sustained economic growth depends on expanding investment. He emphasized the need for well-executed infrastructure projects that unlock growth, lower business costs, and create jobs. The Presidential Economic Advisory Council has outlined key proposals to convert recent gains into long-term growth, including a simultaneous increase in public infrastructure investment and a reduction in the cost of doing business.
The President highlighted the importance of structural reforms in critical sectors such as electricity, logistics, and water, which have contributed to the end of load shedding and improvements in rail and port performance. He also emphasized the need for a competitive electricity market to lower energy costs and promote inclusive growth.
To build on the foundation laid by government, President Ramaphosa called for strengthening state-owned enterprises and enabling them to invest at higher levels. He also underscored the need for South Africa to improve competitiveness and expand markets, particularly within the African continent, in the face of a volatile and uncertain international environment.
The government plans to intensify efforts to grow investment and create jobs, building on the gains achieved so far. The upcoming annual Lekgotla will outline coordinated actions across government and with social partners to ensure that economic progress delivers tangible improvements in the lives of South Africans. By working together, the President is confident that the progress made in the last year will have a positive impact on the lives of South Africans in the year ahead.
