Ramaphosa has made it his business to woo international investors and, through his annual South African Investment Conference, he raised R1.5 trillion from 2019 to 2023. (GCIS)
South Africa is open for business. Specifically to interested international investors as it focuses on growing the economy to ensure everyone has work and no one goes hungry.
President Cyril Ramaphosa, delivering his State of the Nation address in parliament on Thursday night, said to achieve these goals the government was pushing ahead to secure R940 billion worth of investment in rapid infrastructure development. This included construction and revitalisation of roads, rail and ports and reforms at state-owned entities such as Transnet and Eskom.
As leader of the government of national unity Ramaphosa has made it his business to woo international investors and, through his annual South African Investment Conference, he raised R1.5 trillion from 2019 to 2023.
“We want a nation with a thriving economy, an economy that benefits all, to create this virtuous cycle of investment growth and jobs. We must lift economic growth to above 3%,” Ramaphosa said.
The International Monetary Fund has projected 1.5% real GDP growth for South Africa in 2025, compared with the treasury’s forecast of 1.8% average GDP growth from 2025 to 2027.
Inflation cooled to an average annual rate of 4.4% in 2024, ending the year at 3.3%, while three 25 basis point interest rate cuts since September have eased pressure on households and bode well for the economic outlook for 2025.
“To achieve higher levels of economic growth, we are undertaking massive investment in new infrastructure while updating and maintaining the infrastructure that we have. We are engaging local and international finance institutions and investors to unlock R100 billion in infrastructure financing.”
Ramaphosa reiterated the government’s medium-term plan to spend R940 billion on infrastructure, including R375 billion on state-owned entities, over the next three years.
“A project preparation bid window has been launched to fast-track investment readiness. This includes revised regulations for public-private partnerships, which will unlock private sector expertise and funds,” he said.
“This funding will revitalise our roads and bridges. It will build dams and waterways, it will modernise our ports and airports and also power our economy, through the infrastructure fund.”
He said 12 blended finance projects worth nearly R38 billion had been approved in the past year. These included projects in water and sanitation, student accommodation, transport, health and energy.
“We are steadily removing the obstacles to meaningful and faster growth. The economic reforms we are implementing through Operation Vulindlela have created a new sense of optimism and confidence in our economy. Investors are looking at South Africa with much more [interested] eyes, as they see the reforms we are implementing,” he said.
Ramaphosa said the government would work with business, labour and other social partners to “finish the work that we started”.
“Over the coming year, we will initiate a second wave of reform to unleash more rapid and inclusive growth. Our immediate focus is to enable Eskom, Transnet and other state-owned enterprises that are vital to our economy, to function optimally.
“We are repositioning these entities to provide world-class infrastructure while enabling competition in operations, whether in electricity generation, freight rail or port terminals. We will continue with the fundamental reform of our state-owned enterprises to ensure that they can effectively fulfil their social and economic mandates.”
This included putting in place “a new model to strengthen governance and oversight of our public entities”.
“We will ensure public ownership of strategic infrastructure for public benefit while finding innovative ways to attract private investment to improve services.”
Ramaphosa added that the government was establishing a dedicated state-owned entity reform unit to coordinate this work.
Measures implemented through the Energy Action Plan had reduced the severity and frequency of load-shedding and there had been more than 300 days without power interruptions since March 2024.
“While the return of load-shedding for two days last week was a reminder that our energy supply is still constrained, we remain on a very positive trajectory, whether people like it or not.
He said the Electricity Regulation Amendment Act, which came into effect on 1 January, marked the beginning of a new era in the country’s energy architecture.
“This year, we will put in place the building blocks of a competitive electricity market. Over time, this will allow multiple electricity generation entities to emerge and to compete. We will mobilise private sector investment in our transmission network to connect more renewable energy to the grid. The minister will tell us that we still need to install 14 000km of transmission lines,” he said.
“We therefore need to mobilise finance from a number of sources to enable this to happen. As we reform our energy system, we are continuing to build successful multilateral partnerships in the global effort to halt the devastating impact of climate change.”
He said the country’s energy transition was “gaining momentum” as the international community had spent more than $13 billion, while significant private capital was being invested locally.
“We are determined to meet our carbon reduction commitments, and will do so at a pace and at a scale that our country can afford.”
Ramaphosa said the government was revitalising port terminals and rail corridors through the Freight Logistics Road Map, leveraging private capital to restore logistics infrastructure to world-class standards.
“Transnet performance has stabilised and is steadily improving,” he said.
Transnet’s Network Statement, released in December 2024, would, for the first time, enable private operators to use the freight rail system.
“Open access to the rail network will allow train operating companies to increase the volume of goods transported by rail, while our network infrastructure remains state owned. This will ensure that South African minerals, all the vehicles that we manufacture, our agricultural produce, reach international markets, securing jobs and earning much-needed revenue for our fiscus,” he said.
On water infrastructure woes, Ramaphosa acknowledged that “many people in our cities, towns and villages are experiencing more and more frequent water shortages as a result of failing water infrastructure”.
“It is impossible to live without water and it is impossible for the economy to grow without water. We are investing heavily in expanding our water resources,” he said.
The Infrastructure Fund had secured R23 billion for seven large water projects.
“We have ended delays in major water infrastructure projects like Phase 2 of the Lesotho Highlands Water Project and the uMkhomazi Dam. Work is under way to prepare for construction of the Ntabelanga Dam on the uMzimvubu River to supply additional water for domestic use and for irrigation in the Eastern Cape.”
The National Water Resource Infrastructure Agency would be fully established this year “to unlock much greater investment in water projects”.
Ramaphosa said the department of home affairs had cleared more than 90% of the backlog of 300 000 visa applications, sending “a strong message that South Africa is open for business and tourism”.
The implementation of the Electronic Travel Authorisation system would enable a secure, fully digital visa application process.
“This system will use artificial intelligence and automation to reduce the scope for corruption and enable rapid turnaround times for tourist visas.”
He said the tourism sector was growing rapidly and almost nine million people visited last year.
On the issue of transformation, Ramaphosa said for decades the economy had been held back by the exclusion of the vast majority of South Africans.
“Black South Africans were deprived of land, of capital, of skills, of opportunities. Our economy was starved of the potential of its people. And that is why we need to transform our economy and make it more inclusive,” he said.
“That is why our focus is on empowering black people, women and persons with disabilities because they were deliberately excluded from playing a key role in the economy of their own country.”
He reiterated the government’s commitment to set up a transformation fund worth R20 billion a year over the next five years to fund black-owned and small business enterprises.
“We will fast-track the regulations of the Public Procurement Act to ensure businesses owned by women, youth and persons with disabilities receive equitable opportunities in government contracts,” he said.
“We are unleashing the potential of our economy for sustained growth. We want a nation where there is work for all. Where every person can earn a decent living and realise their potential.
“We need to ensure that growth creates jobs for all, especially for young people … We want a nation where no one goes hungry.”
He said the Presidential Employment Stimulus had created almost 2.2 million work and livelihood opportunities.
But to create jobs the country must build industries of the future — green manufacturing, renewable energy, electric vehicles and the digital economy.
He said there was also scope to expand agricultural exports by supporting farmers and improving logistics, while the government wants the country to be a leader in the commercial production of hemp and cannabis.
“We are breathing new life into the mining industry, which remains one of our most important and valuable endowments,” Ramaphosa said.
This year, the government would finalise a modernised, comprehensive industrial policy, focused on opportunities in localisation, diversification, digitisation and decarbonisation, which would drive economic growth.
He said South Africa was readying to benefit from the African Continental Free Trade Area by harnessing cheap, renewable energy.
“We are working towards the full implementation of the African Continental Free Trade Area, which will tear down the barriers to trade on our continent. As the most industrialised economy in Africa, we are positioning ourselves to be at the centre of this new and growing market.
“We are harnessing the sun and the wind to make our country a leader in renewable energy and green manufacturing. With an abundance of cheap, green energy, we can produce products that are competitive anywhere in the world and create hundreds of thousands of new jobs in the process.”