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 said the country entered the new year with growing momentum in its economic recovery, supported by several positive indicators recorded toward the end of 2025.
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.
"Confidence in our economy is rising. The stock exchange has been performing well and the average inflation rate is the lowest in two decades," he said.
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According to the President, South Africa's exit from the Financial Action Task Force (FATF) grey list late last year marked a significant improvement in institutional credibility and sent a positive signal to investors. This progress was further reinforced by a recent sovereign credit ratings upgrade, reflecting strengthened fiscal credibility.
While welcoming these developments, President Ramaphosa cautioned against complacency, stressing that sustained economic growth depends on expanding investment.
"While these signs of progress are encouraging, there is no time to rest. The difference between a temporary lift in growth and sustained shift in our economic trajectory lies in expanding investment.
"With a strengthening currency and rising commodity prices, we have wind in our sails. Now we must steer our ship towards greater prosperity for all South Africans," he said.
The President said the Presidential Economic Advisory Council (PEAC), at its first meeting of the year, had outlined key proposals to convert recent gains into long-term growth. The council recommended a simultaneous increase in public infrastructure investment and a reduction in the cost of doing business.
He emphasised that infrastructure investment must focus on well-executed projects that unlock growth, lower business costs and create jobs, rather than increased spending alone.
Strong support was also expressed for ongoing structural reforms in critical sectors such as electricity, logistics and water. These reforms have contributed to the end of load shedding and improvements in rail and port performance, while promoting competition, efficiency and lower costs across the economy.
The President highlighted electricity reforms as central to inclusive growth, noting that a competitive electricity market is essential to lowering energy costs. Improvements in rail, ports and freight corridors were also identified as vital to boosting exports, industrialisation and job creation.
He said government has already laid a strong foundation for increased infrastructure investment by streamlining regulations, facilitating public-private partnerships and strengthening institutions such as Infrastructure South Africa and the Infrastructure Fund. More than R1 trillion has been committed to public infrastructure projects over the next three years.
"We need to build on this foundation by strengthening our State-owned enterprises and enabling them to invest at much higher levels.
"We must do all of this at a time when the international environment is increasingly volatile and uncertain. Global growth is expected to remain subdued over the medium term and many countries are facing heightened trade and geopolitical tensions," the President said.
He underscored the need for South Africa to improve competitiveness and expand markets, particularly within the African continent.
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"We must capitalise on the positive momentum of recent months by building strong partnerships, strengthening delivery, and closing the gap between policy intent and implementation. Only if our own institutions are strong can we compete and remain responsive in a rapidly changing world," he said.
Looking ahead, President Ramaphosa said government would intensify efforts to grow investment and create jobs, building on the gains achieved so far.
He said Cabinet's upcoming annual Lekgotla would outline coordinated actions across government and with social partners to ensure that economic progress delivers tangible improvements in the lives of South Africans.
"Through these actions, by working together, we will ensure that the progress we've seen in the last year will have an impact on the lives of South Africans this year," the President said. - SAnews.gov.za
