Pretoria: President Cyril Ramaphosa has called for renewed focus on investment and infrastructure development to ensure that South Africa’s recent economic gains translate into sustained and inclusive growth. In his weekly newsletter to the nation, the President highlighted the momentum in South Africa’s economic recovery as the country entered the new year, supported by several positive indicators recorded toward the end of 2025.
According to South African Government News Agency, the economy has recorded four consecutive quarters of growth, while unemployment levels have continued to decline. Recent data released by Statistics South Africa also show a notable reduction in poverty and inequality. President Ramaphosa emphasized the rising confidence in the economy, citing a strong performance of the stock exchange and the lowest average inflation rate in two decades.
President Ramaphosa pointed out that South Africa’s exit from the Financial Action Task Force (FATF) grey list last year marked a significant improvement in institutional credibility, positively influencing investor sentiment. This progress was further solidified by a sovereign credit ratings upgrade, reflecting strengthened fiscal credibility.
While acknowledging these positive developments, President Ramaphosa stressed the importance of expanding investment to ensure sustained economic growth. He warned against complacency, urging for proactive measures to maintain the momentum. With a strengthening currency and rising commodity prices, he argued that the country has favorable conditions to drive prosperity for all South Africans.
The President highlighted the proposals from the Presidential Economic Advisory Council (PEAC) to convert recent gains into long-term growth. The council recommended increasing public infrastructure investment and reducing the cost of doing business. He emphasized the need for well-executed infrastructure projects that unlock growth, reduce business costs, and create jobs.
The President expressed strong support for ongoing structural reforms in critical sectors such as electricity, logistics, and water. These reforms have led to improvements in load shedding, rail, and port performance, promoting competition, efficiency, and lower costs across the economy.
Electricity reforms were identified as central to inclusive growth, with a competitive electricity market essential to lowering energy costs. Improvements in rail, ports, and freight corridors were also seen as vital for boosting exports, industrialization, and job creation.
The government has laid a strong foundation for increased infrastructure investment through streamlined regulations, public-private partnerships, and strengthened institutions like Infrastructure South Africa and the Infrastructure Fund. More than R1 trillion has been committed to public infrastructure projects over the next three years.
President Ramaphosa emphasized the need to strengthen State-owned enterprises and enable them to invest at higher levels, especially in an increasingly volatile and uncertain international environment. He underscored the importance of improving competitiveness and expanding markets, particularly within the African continent.
The President called for building strong partnerships, strengthening delivery, and closing the gap between policy intent and implementation to capitalize on recent positive momentum. He stressed that strong institutions are essential for competing and remaining responsive in a rapidly changing world.
Looking ahead, President Ramaphosa stated that the government would intensify efforts to grow investment and create jobs, building on the achievements so far. He mentioned that the Cabinet’s upcoming annual Lekgotla would outline coordinated actions across government and with social partners to ensure tangible improvements in the lives of South Africans.