Ramaphosa Urges Sustained Economic Recovery Through Investment and Infrastructure

President Ramaphosa Highlights Economic Momentum

President Cyril Ramaphosa has underscored the critical need for sustained investment and infrastructure development to solidify South Africa's economic recovery and foster long-term growth. His remarks, made in his weekly newsletter on January 26, 2026, come as the nation observes encouraging signs of economic rebound.

Ramaphosa pointed to several positive indicators from the latter half of 2025, including four consecutive quarters of economic growth, a steady reduction in unemployment, and a decline in poverty and inequality levels. He also noted rising confidence in the economy, a well-performing stock exchange, and the lowest average inflation rate in two decades. Further boosting investor sentiment, South Africa recently exited the Financial Action Task Force grey list and received a sovereign credit ratings upgrade.

Investment and Infrastructure: Pillars of Sustained Growth

Despite the positive momentum, President Ramaphosa cautioned that 'the difference between a temporary lift in growth and sustained shift in our economic trajectory lies in expanding investment.' The Presidential Economic Advisory Council (PEAC) has recommended that the government boost public infrastructure spending and work to lower the cost of doing business.

In line with these recommendations, the government has committed over R1 trillion of public funds for infrastructure projects over the next three years. This includes a planned expenditure of more than R940 billion on infrastructure, with R375 billion allocated to State-Owned Enterprises (SOEs). The Infrastructure Investment Plan targets six key sectors:

• Energy
• Water and Sanitation
• Transport
• Digital Infrastructure
• Human Settlements
• Agriculture and Agro-processing

Currently, 34 out of 50 strategic infrastructure projects are in various stages of implementation, representing R281 billion of a total budget of R340 billion. Additionally, 12 major infrastructure projects were launched at the Sustainable Infrastructure Development Symposium South Africa (SIDSSA) in Cape Town on March 19, 2024, forming part of the 2024/2025 infrastructure pipeline.

Addressing Challenges and Future Outlook

While the outlook is cautiously optimistic, South Africa continues to grapple with significant economic challenges. These include persistent electricity shortages, constraints in the transport sector, and high living costs, which contributed to a GDP growth of 0.6% in 2023. Other hurdles encompass policy uncertainty, a lack of regulatory oversight, a tight fiscal position, corruption, violent crime, and shortages of skilled labor.

Looking ahead, GDP growth is projected at 1.3% in 2024 and 1.6% in 2025. Experts suggest that comprehensive reforms in energy, logistics, and crime could potentially elevate GDP growth to 3.3% in 2025, with the potential to create an estimated 470,000 jobs. President Ramaphosa emphasized the need to strengthen SOEs to facilitate higher investment levels and announced that the Cabinet will hold its annual Lekgotla to strategize on achieving these economic goals.