Ramaphosa Pledges Faster Economic Reforms as SA Faces Global Uncertainty

According to the President, the macroeconomic environment has strengthened, tax revenues remain robust, public finances are healthier and national debt has stabilised.

President Cyril Ramaphosa has reaffirmed government's commitment to accelerating economic growth, creating jobs and attracting investment, even as global instability threatens South Africa's recovery.

Speaking during the Presidency Budget Vote in the National Assembly, Ramaphosa said government remains focused on inclusive economic growth, poverty reduction, lowering the cost of living and building a capable and ethical State. He noted that South Africa's economic outlook has improved significantly after years of challenges.

According to the President, the macroeconomic environment has strengthened, tax revenues remain robust, public finances are healthier and national debt has stabilised. He also highlighted recent improvements in the country's international credit outlook, including Moody's upgrade of South Africa's outlook from stable to positive and S&P's first credit rating improvement for the country in two decades.

Major infrastructure drive and investment commitments boost confidence

Ramaphosa said the Presidency continues to coordinate the national investment drive, which has secured substantial commitments through the South Africa Investment Conference.

The sixth South Africa Investment Conference, held in March, attracted investment pledges exceeding R890 billion across various sectors of the economy. He welcomed the strong participation of domestic investors, saying local confidence often encourages international investment.

The President stressed that economic growth must translate into better lives for citizens through job creation and expanded opportunities. To support this goal, government has launched what he described as the largest infrastructure build programme in the country's history.

Over the next three years, government plans to invest R1 trillion in roads, dams, schools, hospitals, clinics, energy projects, logistics and transport infrastructure. Government is also implementing measures to protect jobs in struggling industries such as automotive manufacturing, cement production and steel while expanding export opportunities for South African products.

Energy gains, tourism growth and land reform face global challenges

The President highlighted energy security as one of government's major successes, noting that South Africa has now gone more than a year without load shedding. He said Eskom has returned to financial and operational viability, while additional electricity generation capacity continues to be added to the national grid.

Improvements in logistics through Transnet reforms are also helping ease bottlenecks at ports and rail networks, benefiting key sectors including mining, agriculture and manufacturing. Agriculture remains a strong contributor to growth, recording an 11% increase in export earnings between January and March compared with the same period last year.

Ramaphosa also announced a land reform initiative aimed at strengthening black farmers through the release of agricultural land with title deeds to qualifying beneficiaries. Tourism is showing positive momentum as well, with South Africa recording a record 10.5 million international tourist arrivals last year.

However, the President warned that escalating conflict in the Middle East and rising oil and fertiliser prices could increase inflation and raise living costs. He acknowledged recent employment declines and cautioned that economic conditions may remain difficult in the short term.

Despite these challenges, Ramaphosa said government will continue implementing economic reforms and accelerating measures designed to stimulate growth and create jobs.