Ramaphosa Highlights Economic Gains as SA Pushes Reform Momentum

According to the latest Statistics South Africa data, the official unemployment rate declined to 31.9% between July and September, down from 33.2% in the previous quarter.

 

President Cyril Ramaphosa has used his weekly Presidential newsletter to spotlight what he described as “green shoots” in South Africa’s economic landscape — early but significant signs that the nation is moving onto a firmer path of recovery and long-term growth. Pointing to improved employment figures, healthier public finances, an upgraded sovereign credit rating, and visible reform progress across critical sectors, the President said the data shows a “country and an economy on the rise.”

Encouraging Employment Trends and Sector Growth

According to the latest Statistics South Africa data, the official unemployment rate declined to 31.9% between July and September, down from 33.2% in the previous quarter. This represents one of the most notable drops in recent years and signals renewed momentum in job creation after prolonged strain on the labour market.

Nearly 250,000 more people found employment during the third quarter, with the construction sector alone accounting for approximately 130,000 new jobs. The construction industry’s upswing is partly linked to increased infrastructure investment, ongoing energy projects, and public-private partnerships aimed at stimulating economic activity.

Ramaphosa emphasised that although unemployment remains alarmingly high, the latest movement shows that the reforms and targeted interventions of recent years are beginning to bear fruit.

Stronger Fiscal Position and Healthier Public Finances

The President also highlighted the Medium Term Budget Policy Statement (MTBPS) as a pivotal indicator of national financial stability. South Africa is on track to achieve its third consecutive primary budget surplus, meaning the state’s revenue collection — excluding interest payments — now exceeds expenditure.

He noted that this marks a significant shift from prior years of escalating debt and deficit pressures. Improved revenue collection, better enforcement at SARS, stabilisation of public spending, and a gradual economic rebound have collectively contributed to this fiscal turnaround.

A consistent primary surplus, Ramaphosa argued, strengthens government’s capacity to manage national debt, direct resources toward social services, and restore confidence among global investors and domestic stakeholders.

Sovereign Credit Rating Upgrade Signals Renewed Confidence

In a milestone development, rating agency S&P Global upgraded South Africa’s sovereign credit rating from BB- to BB, and the local currency long-term rating from BB to BB+ — the first upgrade in nearly 20 years. Credit rating upgrades typically translate into lower borrowing costs for a country, reducing the fiscal burden and enabling greater investment in development programmes.

S&P cited several positive trends underpinning the upgrade:

• Improving operational performance at Eskom

• Robust tax revenue collection

• Renewed momentum behind structural reforms

• Clear improvements in electricity supply stability

The President described this as a critical confidence boost that supports South Africa’s economic recovery narrative.

Operation Vulindlela: The Engine of Structural Reform

Central to Ramaphosa’s message is the ongoing impact of Operation Vulindlela, launched to fast-track structural reforms and reshape the performance of core economic sectors. Initially focused on energy, freight logistics, telecommunications, and immigration frameworks, the initiative has expanded into a broader Phase II designed to modernise local governance and improve the investment climate.

Progress highlighted includes:

• Energy reform: Eskom stabilisation, expanded renewable energy investment, and eased regulations for private generation.

• Freight and logistics: Significant improvements at major ports and advancement of private sector participation in rail operations.

• Digital transformation: Work underway to accelerate spectrum availability, reduce broadband costs, and modernise ICT infrastructure.

• Visa regime improvements: Reforms aimed at attracting skilled workers, investors, and tourists through a more agile immigration system.

The University of Stellenbosch’s Bureau of Economic Research has modelled that full implementation of Vulindlela’s reform pipeline could increase South Africa’s long-term growth rate by up to 3.5%. Analyst JP Landman described the progress as “a journey that has started working,” noting clear improvements in institutional performance and economic infrastructure.

A Recovery Shaped by Partnership and Resilience

Ramaphosa reflected on South Africa’s emergence from a prolonged era of State capture, governance decline, and economic stagnation. Despite facing global shocks — including the COVID-19 pandemic, supply chain disruptions, energy shocks, and geopolitical tensions — the country has managed to rebuild important foundations.

He credited much of this progress to strengthened cooperation between government, business, labour, and civil society, a partnership framework that has enabled reforms to gain traction even during adverse conditions.

“These far-reaching economic changes have a direct and material impact on the lives of every South African,” the President wrote, emphasising that reforms are meant to translate into improved service delivery, job creation, and better living conditions.

Sustaining Momentum for Inclusive Growth

Looking forward, Ramaphosa stressed that sustaining this upward trajectory will require continued reform implementation, fiscal discipline, and collaborative problem-solving across sectors. The government aims to drive inclusive growth, address spatial inequality, expand employment opportunities, and strengthen the social compact.

While acknowledging that South Africa’s challenges remain significant, he insisted that the country is now firmly on a path of rebuilding state capability, restoring investor confidence, and creating a foundation for long-term prosperity.