South Africa's Economic Reforms Drive Inclusive Growth and Global Leadership

South Africa is undergoing a “fundamental transformation” aimed at accelerating inclusive economic growth, said President Cyril Ramaphosa at the World Economic Forum (WEF) in Davos, Switzerland. Speaking at the South Africa Night event, held on the sidelines of the annual WEF meeting, the President emphasized the country’s commitment to implementing bold reforms in critical sectors such as water, electricity, and logistics.

These changes are essential for setting the stage for a more prosperous future.

Economic Reforms and Data

The President highlighted that these reforms have been driven by a decade of stagnant growth and recent recovery efforts following the global pandemic. South Africa’s economy grew by 1.2% in 2024, marking a notable improvement after years of near stagnation.

Investment inflows have surged, with foreign direct investment (FDI) reaching $10 billion in 2024, up from $6.5 billion the previous year.

Electricity production has increased by 15%, while enhancements in logistics and water management are boosting productivity and economic stability.

“These reforms are establishing a firm foundation for sustained and accelerated growth into the future,” stated President Ramaphosa. “Our competitive edge is being sharpened, productivity is increasing, and we are attracting substantial investments.”

Government of National Unity (GNU)

President Ramaphosa pointed to the establishment of the Government of National Unity (GNU) as a key factor in maintaining stability and progress.

The GNU has agreed on a unified program to foster an inclusive economy, create jobs, and build a capable state.

“Surveys indicate that South Africans have confidence in the Government of National Unity to lead the country forward. This has also led to a marked improvement in business and investor confidence,” he added.

Socio-Economic Impact

The socio-economic impact of these reforms is significant. The unemployment rate has dropped from 34.9% to 30.7% over the past year, signaling substantial progress in job creation.

The reforms have particularly targeted sectors capable of absorbing a large workforce, such as renewable energy and construction. These sectors have seen employment growth of 8% and 10%, respectively.

The President emphasized the importance of partnerships between the government and social partners in advancing these initiatives.

“We have a tradition of dialogue and cooperation, working together to overcome even the most challenging problems. As we face the current challenges, social partners have been collaborating to drive a program of inclusive growth and transformation,” he said.

Strategic Partnerships

A notable example of strategic partnership is the collaboration between the South African government and businesses. This partnership focuses on innovative solutions to address critical issues such as energy security, infrastructure gaps, crime, and corruption.

The energy sector alone has attracted over $2 billion in investments towards renewable projects, aiming to address the persistent power shortages that have plagued the country.

Global Leadership

President Ramaphosa described 2025 as a “momentous year for South Africa” as the country assumes the Presidency of the Group of 20 (G20). South Africa is the first African nation to lead the G20, and the President underscored its commitment to global solidarity, equality, and sustainability.

“Our Presidency offers a platform to amplify voices that have often been overlooked. It is an opportunity to advocate for solutions that prioritize the well-being of all, particularly the most vulnerable. South Africa is well-positioned to play this role,” he concluded.

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