By Akani Nkuna
Cabinet has welcomed South Africa’s improved GDP figures, which show the economy grew by 0.8% in the second quarter of 2025, up from 0.1% in the first quarter.
According to Statistics South Africa’s report released on September 9, the growth was driven by manufacturing, mining, and trade, supported by higher household consumption.
Briefing the media in Pretoria on Thursday after a Cabinet meeting, Minister in the Presidency Khumbudzo Ntshavheni said the rebound reflected a broad-based recovery across key sectors.
“The 0.8% GDP growth reflects a broad-based recovery across key sectors,” Ntshavheni on Thursday.
“Eight industries recorded growth in the second quarter, with key sectors like manufacturing, mining, and trade returning to growth territory. Rising household consumption also reflects an improvement in disposable income and this is confirmed through improved reported inflation figures.”
Ntshavheni said Cabinet also welcomed Fitch’s decision to affirm South Africa’s long-term foreign and local currency debt ratings, maintaining a stable outlook. She noted that the ratings were supported by a favourable government structure and a credible monetary policy framework.
According to Fitch, progress under Operation Vulindlela Phase 2 – aimed at fixing network infrastructure, ending load-shedding, and halting the decline in freight volumes – was a key factor in boosting GDP growth.
Ntshavheni added that the affirmation signalled continued investor confidence in the country’s fiscal management and institutional stability.
“The ratings are supported by a favourable government debt structure that is mostly local currency denominated, with long maturities and strong institutions and a credible monetary policy framework,” she added.
The minister further added that National Pathway Management Network (NPMN) has enabled more than 230 000 young people to access work opportunities, skills development programmes emphasising that government efforts to combat youth unemployment was effective.
“More than 5.64 million young people registered on the NPMN, surpassing the initial target of 5 million. Over 1.91 million young people have accessed temporary earning opportunities, reflecting government’s sustained efforts to tackle youth unemployment are gaining traction,” said Ntshavheni.
Ntshavheni said Cabinet has also resolved to promote an entrepreneurial culture by strengthening micro, small, and medium enterprises.
This will be done through five key pillars: improving entrepreneurship education and skills, supporting technology and innovation, expanding access to finance and markets, streamlining regulations, and boosting awareness and networking.
“Overall, the strategy aims to increase formal economic participation, address high youth unemployment by promoting youth entrepreneurship and providing strategic direction and roadmap that integrate the work of other key departments and strategic partners,” Ntshavheni emphasised.
“In addition, the strategy aims to coordinate the ecosystem for entrepreneurship development in the country, including recommendations for entrepreneurship to be incorporated into the curricula of the departments of Basic and Higher Education as a viable career choice.”
Ntshavheni also reiterated that South Africa is positioning itself to host the G20 which will lobby the economical and developmental endeavours as whole. Where they will seek to create and forester relationship with major global economies to advance the African agenda.
“Our approach is that we are going to host the G20 that will represent not only South Africa but also represent the African continent. Because the next session of the G20 that will come around in 20 years’ time … this is our best shot as Africa to showcase our ability to host a platform of the nature of G20 countries that continue a percentage of the wealth of the world,” she said.
Ntshavheni also noted that Urban 20 (U20) Mayoral Summit from 12 – 14 September in Johannesburg, and the Global SME Finance Forum which took place from 15 – 17 September respectively were critical in advancing while ensuring that the priorities of cities are elevated within the G20 agenda.
“As an official side event of the G20 South Africa Presidency, the forum explored innovative financing mechanisms, including blended finance structures and guarantee programmes that could unlock previously inaccessible capital for local businesses,” said Ntshavheni.
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