South Africa’s Ramaphosa Signals Economic Turnaround

(MENAFN) South African President Cyril Ramaphosa said on Monday that easing joblessness and falling poverty rates indicate the national economy is gradually stabilising, while stressing that swift and decisive measures are still required to convert recent progress into lasting improvements for citizens’ livelihoods.

Reflecting on recent trends, the president noted, ”Over the last months of 2025, we saw a number of indicators that our collective efforts to rebuild our economy are bearing fruit,” pointing to positive outcomes emerging from coordinated recovery initiatives.

He further emphasised improvements in the labour market and social conditions, saying, ”There has been a steady reduction in unemployment, while recent data released by Statistics South Africa shows that levels of poverty and inequality have declined considerably.” These figures, he suggested, demonstrate meaningful forward movement after a prolonged period of economic strain.

Ramaphosa also highlighted additional optimistic developments, such as four straight quarters of economic expansion, contained inflation, and improved investor sentiment following South Africa’s removal from the Financial Action Task Force grey list, all of which have helped strengthen confidence in the economy.
However, he cautioned that these advances could fade without continued effort, underscoring the need for deeper structural change. ”The difference between a temporary lift in growth and sustained shift in our economic trajectory lies in expanding investment,” he said, underscoring the central role of long-term capital inflows.

The president referenced guidance from the Presidential Economic Advisory Council (PEAC), which urged the state to increase public infrastructure investment and reduce operational burdens on businesses to stimulate broader economic activity.

Clarifying the intent behind this strategy, Ramaphosa explained, ”Increasing infrastructure investment is not simply about spending more. It is about delivering projects that reduce the cost of doing business, unlock growth and create jobs,” framing infrastructure as a catalyst rather than mere expenditure.

He concluded by stressing that fundamental reforms in energy supply, transport logistics, and water systems remain vital to maintaining momentum.

”Our electricity reforms are critical to this effort. A competitive electricity market is essential to bringing down the cost of electricity. And lower electricity prices are critical for both inclusive growth and social development,” he said, linking affordable power directly to long-term economic and social progress.

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