Pretoria: South Africa's economic reform efforts are gaining traction, supported by increased freight rail cargo volumes, investment in the automotive sector, strengthened manufacturing capacity, and a modest upward revision to projected Gross Domestic Product (GDP) growth.
According to South African Government News Agency, Minister in The Presidency, Khumbudzo Ntshavheni, announced on Thursday in Pretoria that the upward revision to South Africa's economic growth forecast reflects growing confidence in the country's economic recovery efforts despite weaker global growth and geopolitical tensions in the Middle East. The International Monetary Fund's (IMF) updated macroeconomic forecast has revised South Africa's projected GDP growth upward to 1.1%, a positive adjustment that showcases a stabilizing domestic economy demonstrating resilience.
During the first quarter of the 2026/27 financial year, Transnet Freight Rail (TFR) recorded a 4.4% year-on-year performance improvement, moving 42.0 million tons compared to 40.2 million tons the previous year. This achievement was made despite an additional 11-day scheduled maintenance shutdown on the Iron Ore Line, highlighting significant improvements in operational efficiency and throughput.
Cabinet also welcomed Toyota South Africa Motors' R10.4 billion investment in its Prospecton plant in eThekwini to produce the ninth-generation Hilux. This investment strengthens the automotive manufacturing sector, supports nearly 27,000 jobs across the supplier network, and sustains more than 4,300 direct assembly jobs at Toyota's Prospecton manufacturing plant.
The Chery Group's recent acquisition and revitalization of the former Nissan manufacturing facility in Rosslyn, Gauteng, was also highlighted. The Chery Group plans to manufacture the Chery, Jaecoo, and Jetour brands at the newly acquired Rosslyn facility, with initial production scheduled for mid-2027. This move secures 692 manufacturing jobs and is projected to create nearly 3,000 direct and indirect opportunities across logistics, engineering, supply chains, and support services, solidifying South Africa's position as a robust manufacturing and regional export hub.
Additionally, Cabinet celebrated the official launch of Phase II of the Trusted Employer Scheme (TES), aimed at fast-tracking visa processing for verified employers while maintaining national security and immigration controls. Qualifying employers must demonstrate significant domestic investment, prioritize the employment of South African citizens and permanent residents, invest in local skills development, and align with priority economic sectors. The dedicated online application portal for TES Phase II, 'Home Affairs @ home', is part of the government's broader digital transformation strategy, eventually transitioning into the country's full Electronic Travel Authorization (ETA) ecosystem. Qualifying employers are invited to submit Expressions of Interest (EOI) between 20 July 2026 and 4 September 2026.