Economic reforms being implemented by Pretoria are “bearing fruit,” Cyril Ramaphosa has said
South African President Cyril Ramaphosa on Monday highlighted declining unemployment and poverty levels as signs that the country’s economy is on a recovery path, while urging urgent action to turn the gains into long-term improvements in people’s lives.
”Over the last months of 2025, we saw a number of indicators that our collective efforts to rebuild our economy are bearing fruit,” the president said.
”There has been a steady reduction in unemployment, while recent data released by Statistics South Africa shows that levels of poverty and inequality have declined considerably.”
Ramaphosa pointed to other encouraging signs, including four consecutive quarters of economic growth, low inflation rates, and rising investor confidence following South Africa’s exit from the Financial Action Task Force grey list.
Despite these gains, the president warned that more needed to be done to ensure sustainable progress. ”The difference between a temporary lift in growth and sustained shift in our economic trajectory lies in expanding investment,” he said.
He outlined recommendations from the Presidential Economic Advisory Council (PEAC), which advised the government to boost public infrastructure spending and lower the cost of doing business.
”Increasing infrastructure investment is not simply about spending more. It is about delivering projects that reduce the cost of doing business, unlock growth and create jobs,” Ramaphosa said.
Critical reforms in electricity, logistics, and water were highlighted as essential to sustaining the recovery. ”Our electricity reforms are critical to this effort. A competitive electricity market is essential to bringing down the cost of electricity. And lower electricity prices are critical for both inclusive growth and social development,” he said.
Ramaphosa also stressed the need to strengthen state-owned enterprises and expand public-private partnerships to maintain momentum.
”We have committed more than R1 trillion of public funds for infrastructure projects over the next three years,” he said.
The President concluded with a call to action for government and social partners to ensure that economic growth translates into tangible benefits for South Africans.
”During the course of this year, we need to double down on our efforts to grow investment and create jobs. We must seize the momentum we built and translate this into long-term gains for our economy.”
Cabinet is expected to discuss detailed strategies for implementation at its annual Lekgotla later this month.
