Cape town: In the weekly Presidential newsletter, President Cyril Ramaphosa has described the green shoots in the economy as an indication that South Africa is a ‘country and an economy on the rise’. The President cited the recent downturn in unemployment and strengthening in government finances as an indication that the country is moving towards a place of strength.

According to South African Government News Agency, President Ramaphosa emphasized that the official unemployment rate had fallen to 31.9% between July and September, down from 33.2% in the previous quarter, with nearly 250,000 more people employed in the third quarter, notably in the construction sector. He also highlighted the Medium Term Budget Policy Statement pointing to a sustained turnaround in government finances, leading to a third consecutive primary budget surplus.

Additionally, the country’s sovereign credit rating was upgraded by S and P, which the President noted as a significant achievement that could lead to lower borrowing costs and more funds for economic and social investments. S and P attributed this upgrade to Eskom’s improved performance, strong tax collection, and the momentum of structural reforms.

President Ramaphosa further discussed Operation Vulindlela, a government initiative aimed at implementing transformative reforms to boost economic growth, initially focusing on network sectors and immigration reform. He detailed progress in logistics, energy, and digital transformation sectors, highlighting improvements in port performance and renewable energy investments.

The President referenced modelling from the University of Stellenbosch’s Bureau of Economic Research, which suggests that Operation Vulindlela could potentially increase South Africa’s long-term growth rate by up to 3.5%. He acknowledged the challenges faced, including a global pandemic and energy crisis, but maintained that economic recovery efforts are yielding positive results.

Reflecting on South Africa’s emergence from economic stagnation and State capture, President Ramaphosa credited the progress to strong partnerships between government, business, labour, and civil society. He emphasized the impact of these economic changes on the lives of South Africans, noting the importance of sustaining the recovery momentum to drive inclusive growth and improve citizens’ lives.