President Cyril Ramaphosa has signalled growing confidence in South Africa’s economic and energy outlook, saying the country is moving closer to ending load reduction measures while pursuing major infrastructure investment aimed at boosting growth and job creation.
Speaking during the Presidency Budget Vote debate in Parliament, Ramaphosa outlined government priorities focused on economic recovery, investment attraction and improving service delivery.
For years, electricity shortages and load shedding have been among the biggest obstacles to economic expansion, affecting businesses, households and investor confidence. While load shedding has eased significantly in recent years, some communities continue to experience load reduction programmes designed to protect local electricity networks from overload.
Ramaphosa said government is now working to bring those measures to an end as broader economic conditions improve.
“The macroeconomic environment has improved, revenue collection remains strong, public finances are healthier and national debt has stabilised,” the president told lawmakers.
However, he cautioned that global uncertainty remains a concern.
Recent conflict in the Gulf region has created new risks for the international economy, particularly through higher energy costs and disruptions to global trade routes. According to Ramaphosa, these developments could slow economic growth and make job creation more challenging in the short term.
Ratings upgrades strengthen investor confidence
The president highlighted a series of positive developments that have improved confidence in South Africa’s economy.
Earlier this year, ratings agency Moody’s upgraded South Africa’s outlook from stable to positive. The move followed an upgrade by S&P Global Ratings six months earlier, marking the country’s first credit rating improvement in nearly two decades.
Ramaphosa said these assessments reflect growing confidence in the country’s economic reforms and fiscal management.
He also pointed to the success of the sixth South Africa Investment Conference, which secured investment commitments worth more than R890 billion.
A significant portion of these pledges came from local investors, a trend the president described as particularly important.
“When domestic investors demonstrate confidence in the economy, international investors are more likely to follow,” he said.
R1 trillion infrastructure programme planned
One of the centrepieces of government’s economic strategy is a planned R1 trillion infrastructure programme that Ramaphosa described as the largest infrastructure rollout in South African history.
Over the next three years, government intends to build and refurbish roads, dams, schools, hospitals and clinics while expanding energy, transport and logistics infrastructure.
The president said infrastructure development would not only improve public services but also stimulate economic activity and create employment opportunities.
Ramaphosa also highlighted progress in the transport and logistics sector, where cooperation between Transnet and the National Logistics Crisis Committee has helped improve rail and port performance.
The improvements have reduced bottlenecks that have long affected the mining, agriculture and manufacturing industries.
Agriculture has been among the sectors benefiting from these changes. Export earnings from agricultural products increased by 11% between January and March compared with the same period last year.
South Africa is now the world’s largest citrus exporter by volume, according to the president.
Ramaphosa added that access to productive agricultural land remains a critical component of economic growth and poverty reduction. Land Reform and Rural Development Minister Mzwanele Nyhontso is expected to provide further details on plans to convert agricultural leases into title deeds.
Source: Parliament of South Africa