Cape Town: Growing the economy and job creation are at the top of the seventh administration’s agenda, President Cyril Ramaphosa said on Thursday. ‘We want a nation with a thriving economy that benefits all. To create this virtuous cycle of investment, growth and jobs, we must lift economic growth to above three percent,’ the President said, as he delivered the State of the Nation Address (SONA) in Cape Town.
According to South African Government News Agency, the President announced the adoption of the Medium-Term Development Plan, a strategic blueprint for the next five years. This plan emphasizes three key priorities: driving inclusive growth and job creation, reducing poverty and tackling the high cost of living, and building a capable, ethical, and developmental state.
To boost economic growth, the government is committed to significant investments in infrastructure. The President highlighted efforts to engage local and international financial institutions and investors to unlock R100 billion in infrastructure financing. A project preparation bid window has been launched to expedite investment readiness, including revised regulations for public-private partnerships to harness private sector expertise and funds.
Over the next three years, the government plans to allocate more than R940 billion to infrastructure, with R375 billion earmarked for state-owned enterprises. This investment aims to modernize roads, bridges, dams, waterways, ports, and airports. Through the Infrastructure Fund, 12 blended finance projects worth nearly R38 billion have been approved, focusing on water and sanitation, student accommodation, transport, health, and energy sectors.
The President also detailed progress on significant infrastructure projects, such as the construction of the Mtentu Bridge, set to become Africa’s tallest bridge, and the Polihlali Dam, which will enhance water supply to several provinces. Additionally, efforts are underway to revitalize small harbors and unlock economic opportunities for coastal communities.
The government continues to implement economic reforms through Operation Vulindlela, a joint initiative of the Presidency and National Treasury. This initiative seeks to modernize network industries and support economic recovery. The President noted improvements in network industries and emerging investment opportunities, promising a second wave of reforms for rapid and inclusive growth.
The Energy Action Plan, another key initiative, has reportedly reduced the severity and frequency of load shedding. The Electricity Regulation Amendment Act, effective from January 1, marks the beginning of reforms in the electricity sector, aiming to establish a competitive electricity market and attract private sector investment in the transmission network.
Transnet’s performance has stabilized, with the introduction of a Network Statement allowing private rail operators access to the freight rail system. This move is expected to boost the transportation of goods by rail, benefiting South Africa’s export sectors and contributing to job creation and revenue generation.