CAPE TOWN – President Cyril Ramaphosa delivered a comprehensive State of the Nation Address on Thursday evening, declaring that South Africa has reached a “turning point” and outlining an ambitious programme to transform the country’s fortunes through economic growth, public safety, and government reform.
Speaking at Cape Town City Hall, the President acknowledged recent progress while confronting persistent challenges head-on, from gang violence to water shortages, announcing concrete steps to address each crisis.
The South Africa economy is showing signs of recovery, with the rand strengthening against the dollar. In addition, borrowing costs are falling. Inflation is at its lowest level in 20 years, the President said.
“Inflation is at its lowest level in twenty years, interest rates are coming down, and our borrowing costs have declined. The rand has strengthened against the dollar, reflecting growing optimism in the South Africa economy.”
Rand strengthening signals recovery in South Africa economy
The President highlighted improvements in financial markets and investor confidence. “The Johannesburg Stock Exchange has performed exceptionally well over the past year,” he said. He added that government reforms under Operation Vulindlela had created jobs and attracted investment, supporting the recovery of the economy in South Africa.
“Economic growth must be inclusive,” Ramaphosa said. “While we have experienced four consecutive quarters of GDP growth, it has to grow much faster to meet our social and economic challenges. We have created over 2.5 million opportunities through the Presidential Employment Stimulus, mainly for young people and women. These efforts benefit not only communities, but also the broader South Africa economy.”
Job creation boosts economy
Unemployment remains a challenge, Ramaphosa said. “For too many people, life remains hard. Jobs are scarce and opportunity is out of reach. That is why, as we rebuild the economy, we are creating work and livelihood opportunities on a large scale through public and social employment programmes.” These opportunities aim to boost the South Africa economy through employment.
He highlighted the Youth Employment Service, which has placed more than 200,000 young people in year-long work experience roles.
Crime and security threats remain a concern
Ramaphosa warned that organised crime poses the “most immediate threat to our democracy, our society and our economic development.” He announced a strengthened approach to gang violence and illegal mining, with ongoing threats to the South Africa economy and society.
“I have directed the Minister of Police and the SANDF to develop a tactical plan on where our security forces should be deployed in the Western Cape and Gauteng within the next few days,” he said.
He also addressed corruption: “We cannot tolerate corruption. The rule of law depends on a police service that is ethical, responsive, and rooted in the communities that it serves.” Tackling corruption is vital for the success of the South Africa economy.
Water and municipal services key to growth
The President said failing municipal services and water shortages could hinder economic growth. “I have directed the Minister of Water and Sanitation and her deputy, as well as the Minister of Cooperative Governance and Traditional Affairs, to attend to the water shortage problem and engage with our communities,” he said. Addressing municipal water supply is essential for the growth and stability of South Africa’s economy.
A total of R156 billion has been committed over the next three years for water and sanitation infrastructure. Ramaphosa added: “If a municipality is not willing or able to provide a service to its residents, it must be done by another structure that can. We will hold to account those who neglect their responsibility.”
Ramaphosa concluded by emphasising unity and resilience. “Confidence is rising among investors, businesses, and consumers. These improvements show what is possible when we work with unity and purpose. We have a unique window of opportunity to translate these gains into sustained growth in the South Africa economy.”.
