Cabinet Hails Eskom’s Recovery, SA Growth Momentum & Approves Key Roadmaps

Cabinet applauded Eskom’s continued turnaround after the power utility reported a R24.3-billion profit after tax for the six months ending September 2025—a 37% increase from the same period last year.

The South African Cabinet has expressed strong confidence in the country’s improving economic trajectory, welcoming Eskom’s strengthened financial and operational performance, sustained GDP growth, job creation momentum, and the approval of key national implementation plans aimed at driving inclusive economic development.

---

Eskom Posts Major Recovery: Profit Surges 37%

Cabinet applauded Eskom’s continued turnaround after the power utility reported a R24.3-billion profit after tax for the six months ending September 2025—a 37% increase from the same period last year.

During a post-Cabinet briefing in Pretoria, Minister in the Presidency Khumbudzo Ntshavheni said this performance highlights the effectiveness of Eskom’s recovery plan implemented under the Operation Vulindlela structural reforms programme.

Key improvements include:

• Only four days of load-shedding during the six-month period

• Electricity supply reliability improving from 96% in 2024/25 to 98% to date

• Stronger management oversight and strategic leadership from the Minister of Electricity and Energy

Ntshavheni emphasised that Eskom’s rebound reflects growing system stability, better plant performance, and sustained operational reforms aimed at ending load-shedding and restoring energy security.

---

Positive Economic Indicators: Growth and Jobs Rise

Cabinet welcomed Statistics South Africa’s 3rd Quarter GDP results, which showed the economy expanded by 0.5% between July and September 2025—the fourth consecutive quarter of growth.

Growth was driven by strong performance in key sectors:

• Mining

• Agriculture

• Services

• Finance

• Government services

• Manufacturing

The period also saw significant job creation, with the Quarterly Labour Force Survey reporting:

• 248 000 new jobs added

• 360 000 fewer unemployed people

In addition, the Youth Employment Service (YES) initiative reached a major milestone, surpassing 200 000 job placements. To date, 202 558 young South Africans have been placed in 12-month quality work opportunities through partnerships with more than 1 900 corporates.

The Minister further noted the IMF’s upward revision of South Africa’s growth forecast to:

• 1.3% in 2025 (previously 1.1%)

• 1.4% in 2026 (previously 1.2%)

This reflects stronger confidence in South Africa’s economic reform trajectory.

---

Cabinet Approves Major Implementation Plan for Growth & Inclusion

In a significant move, Cabinet approved the implementation plan aligned to the 7th Administration’s Medium-Term Development Plan, aimed at accelerating inclusive economic growth and improving service delivery.

The plan consolidates multiple government initiatives into a streamlined framework built on three pillars:

1. Economic Reforms – Strengthening economic fundamentals and unlocking investment

2. Public Service Reforms – Building a capable, efficient, and citizen-centred state

3. Industrial Policy Reforms – Creating and expanding new growth sectors

Minister Ntshavheni stated that this coordinated approach will give the plan the same momentum as the highly impactful Operation Vulindlela reform programme.

---

Roadmap Adopted for South Africa’s Critical Minerals Strategy

Cabinet also approved the implementation roadmap for the South African Critical Minerals Strategy, a key initiative to capitalise on the global demand for minerals essential to:

• Digital technologies

• Defence systems

• Healthcare innovation

• Electric vehicles

• Consumer electronics

The strategy focuses on six pillars:

• Geoscience mapping & exploration

• Value addition & localisation

• Research, development & innovation

• Infrastructure & energy security

• Financial instruments

• Regulatory harmonisation

The Minister noted that effective implementation will boost economic growth, industrialisation, and job creation, positioning South Africa as a global supplier of strategic minerals.

---

A Strengthened National Outlook

With Eskom’s recovery gaining momentum, economic growth stabilising, job creation rising, and long-term national strategies being rolled out, Cabinet reaffirmed its commitment to steering South Africa toward inclusive growth, energy stability, and sustainable industrial development.