Pretoria: The South African government’s efforts to stimulate economic growth and eliminate longstanding barriers are starting to show promising results. The country’s energy sector is witnessing early signs of recovery, and South Africa has achieved its first credit rating upgrade in two decades, accompanied by a strengthening rand.
According to South African Government News Agency, Presidential Spokesperson Vincent Magwenya reported on Monday that Phase 2 of Operation Vulindlela, an initiative led by President Cyril Ramaphosa, is beginning to bear fruit. The initiative aims to unlock economic growth and remove obstacles that hinder progress. Magwenya indicated that the government’s immediate goal is to grow the economy, create jobs, reduce poverty, and improve the lives of all South Africans.
During a media briefing in Pretoria, Magwenya provided a snapshot of the government’s achievements for 2025, which are being evaluated against the State of the Nation Address (SoNA) delivered by President Ramaphosa in February 2025. In this address, the President announced that the Government of National Unity (GNU) had adopted the Medium-Term Development Plan (MTDP) for 2024-2029. The MTDP outlines three main priorities: driving inclusive growth and job creation, reducing poverty and addressing the high cost of living, and building a capable, ethical, and developmental state.
Magwenya highlighted key indicators of economic recovery, noting that the rand has remained stable against major currencies, breaching the level of R17 to the US dollar. The Gross Domestic Product grew by 0.5% in the third quarter, signaling economic expansion. He also referenced a report from Statistics South Africa showing a decrease in unemployment by 1.3 percentage points to 31.9%, with significant job growth in the construction sector.
The government plans to invest R1 trillion in infrastructure projects over the next three years. Energy supply stability is a crucial component of this economic turnaround, and the Youth Employment Service has successfully funded and placed 200,000 young South Africans in quality first-job experiences.
South Africa’s credit rating received a boost when Standard and Poor’s upgraded the country’s foreign currency long-term sovereign credit rating to BB from BB-, and the local currency long-term sovereign credit rating to BB+ from BB. Additionally, the International Monetary Fund has raised its growth forecast for the country to 1.3% in 2025 and 1.4% in 2026.
Tourism is also on the rise, with an 18% increase in foreign visitors year-on-year from 2024. The majority of visitors hailed from the US, followed by the UK, Germany, the Netherlands, and France. The South African Revenue Service reported a net revenue collection of R924.7 billion by September 30, 2025, reflecting a year-on-year growth of R78.6 billion and an overall surplus of R18 billion.
Magwenya acknowledged the challenges facing the government, especially at the local level, and emphasized President Ramaphosa’s commitment to addressing these issues. The President and Cabinet have engaged with seven of the nine provincial executives to tackle key local government challenges. Accusations of corruption in the criminal justice system are currently being examined by the Madlanga Commission, and the Justice, Crime Prevention, and Security Cluster is actively working on measures to combat crime and ensure citizen safety.
The government’s priorities include reducing poverty and tackling the high cost of living, with efforts focused on helping households manage food price volatility and making public transport more affordable. These challenges are not unique to South Africa but are also faced by many countries globally, as evidenced by discussions at the G20 meetings.
Magwenya concluded by stating that the briefing was not a comprehensive review of the government but rather a high-level overview of successes and challenges since February 6, 2025.