Minister in the Presidency for Planning, Monitoring and Evaluation Maropene Ramokgopa. Photo: Supplied.
Despite widespread corruption continuing to cripple many South African municipalities, the government on Friday expressed confidence in the effectiveness of its interventions towards strengthening municipal performance.
While outlining the progress in implementing the country’s medium-term development plan running from 2024 to 2029, Minister in the Presidency for Planning, Monitoring and Evaluation Maropene Ramokgopa acknowledged persistent financial challenges facing local government.
The plan provides a framework aligning planning, budgeting implementation, monitoring and evaluation across all spheres of government. It focuses on three key priorities – driving inclusive economic growth and job creation; reducing poverty and tackling the high cost of living; and building a capable, ethical and developmental state.
Ramokgopa said efforts to strengthen financially-crippled municipalities were continuing, with the establishment of an interministerial committee to support those in distress.
“Deployment of rapid response technical teams for failing municipalities, introduction of mandatory financial recovery plans for unfunded budgets and the reform of the local government fiscal framework to address unfunded mandates, are also included in the set of recommendations,” the minister said.
Ramokgopa said analysis pointed to “a government making steady progress in several priority areas”, including improved coordination across the government, “where clear performance indicators are in place.
“At the same time, we have observed that progress tends to be hampered by several challenges that include capacity constraints, delayed implementation and uneven performance across sectors and regions.”
She noted that despite global economic volatility, South Africa had recorded 0.8% GDP growth in the second quarter of 2025 — the strongest quarterly performance since 2022 — while the unemployment rate eased to 31.9% with 248 000 jobs added in the third quarter.
“However, youth unemployment remains extremely high at 58.5% – signalling deep structural labour market challenges,” Ramokgopa conceded. “Poverty and inequality remain entrenched with a Gini coefficient of 0.63.”
A Gini coefficient of 0.63 indicates an extremely high level of income inequality within a population, often associated with developing nations or areas with high unemployment.
“South Africa is making progress but more must be done to ensure economic recovery translated into jobs, income and improved well-being for all,” she added.
Citing key progress findings in driving inclusive growth and job creation, Ramokgopa said structural reforms in energy, logistics and tourism were beginning to show a positive early impact, while investment levels remained constrained.
“Economic recovery continued during the review period but growth remains below the level required to significantly reduce unemployment. Infrastructure investment remains a key lever for inclusive growth in the country,” she said.
Ramokgopa cheered South Africa’s exit from the Financial Action Task Force grey list, which had improved investor confidence. She noted, however, that business confidence remained subdued and this was largely due to logistics constraints and energy costs.
She said that more than half – 55% – of the recommendations made in the Zondo report on state capture “have reached completion or substantial completion” but she admitted to capacity constraints across parts of the criminal justice system.
“There remain persistent levels of violent crime and GBVF (gender-based violence and femicide),” Ramokgopa said.
South Africa’s progress under the medium-term development plan was illustrated in clear improvements in energy stability as well as recovery of the tourism sector, industrial growth and social protection.
“However, deep structural constraints, particularly in local government, logistics, youth unemployment and spatial development, continue to impede inclusive growth,” she said. “While progress has been made, we are clear that more must be done, with urgency, discipline and focus.”
By integrating governance, economic transformation, social development, justice and international cooperation, the government “seeks to deliver inclusive growth, social equity, and a capable state”.