Ramaphosa talks tough on gangs, corruption

Ramaphosa pointed to four consecutive quarters of GDP growth, primary budget surpluses, easing inflation and lower borrowing costs.

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Consequential announcements: President Cyril Ramaphosa's 2026 SONA speech was shaped less by celebration than by warning. Photo: GCIS

(GCIS)

South Africa has exited the Financial Action Task Force grey list.

Credit ratings have improved. The Johannesburg Stock Exchange has strengthened.

The president declared that the country was on a clear path to stabilising national debt.

He reiterated that load-shedding was effectively behind the country and confirmed further restructuring at Eskom, including the establishment of an independent state-owned transmission entity.

By 2030, more than 40% of electricity generation is expected to come from renewable sources.

Independent transmission projects will begin this year to unlock private investment in the grid.

Infrastructure is central to the administration’s growth strategy.

The government has committed more than R1 trillion in public infrastructure spending more than three years, the largest such allocation in the country’s history. Public-private partnerships in rail and ports are advancing. Nearly 30 companies have expressed interest in proposed high-speed rail corridors linking Johannesburg to Durban and Johannesburg to Musina.

The message was clear. Investment is returning and fixed capital formation is being rebuilt after years of decline.

Yet the scale of the challenge remains stark. Growth has resumed but remains modest.

On current trajectories it is insufficient to meaningfully reduce unemployment, which remains above 30% on the official definition and exceeds 40% on the expanded measure.

Ramaphosa acknowledged that jobs remained scarce and that opportunity was out of reach for millions.