By Simon Nare
President Cyril Ramaphosa has admitted that the failure to reform South Africa’s economy has held back growth, while the electricity crisis has further deterred investment.
Ahead of oral questions, the ATM, Economic Freedom Fighters (EFF) and MKP members walked out of the National Assembly over the Constitutional Court’s Phala Phala ruling.
Answering oral questions in the National Assembly on Thursday, Ramaphosa said the structure of the economy has contributed to sluggish growth in the formal private sector and created barriers to small business formation.
“The other challenge, as I said, is the concentration of our economy in terms of ownership. Our economy is small, but it is too concentrated. That has been commented on by international bodies like the World Bank and the International Monetary Fund, who have said one of the key challenges of the South African economy is that it is too concentrated,” Ramaphosa told parliamentarians.
“Too many large companies control our economy, and the space has not been opened for many other small and medium enterprises to operate. And for that reason, honourable members, we are focusing on enhancing the capabilities of small and medium enterprises so that they can also operate.”
Ramaphosa said government was focusing on a range of interventions, including funding support for small and medium enterprises to enable them to grow and compete in the economy.
He said slow economic growth was undermining job creation, particularly for young people, adding that South Africa must consider a step change in addressing youth unemployment.
Responding to a question on whether the South African National Defence Force (SANDF) should be used to employ young people, Ramaphosa said the military was already part of broader government efforts to train and equip youth with skills through various programmes.
He said the SANDF was working with the private sector and other government departments, including through the South African National Service Institute, which is mandated to implement a comprehensive youth development programme.
“The programme seeks to recruit young people and equip them with a combination of classroom-based training as well as practical work experience. In the course of 2025, 58 matriculants were trained in a character-building programme,” he said.
Ramaphosa said the South Africa Investment Conference remained a key instrument for job creation within a broader government-wide strategy.
“This strategy includes our massive infrastructure investment, the revitalised industrial policy, an overhaul of our skills development system, removing the barriers to small business development and the completion of reforms in our network industries,” he said.
He added that this year’s conference had prompted government to raise its ambition, targeting R3 trillion in new investment over five years, saying the goal remained within reach.
On the joint deployment of soldiers and police under Operation Prosper, Ramaphosa said significant progress had been made in stabilising hotspots and disrupting organised crime in the Western Cape, Eastern Cape, North West, Gauteng and the Free State.
“Given the recent commencement of deployments in certain priority action areas, it is too early to draw definitive conclusions regarding impact. However, indicators suggest a reduction in selected crime categories within the operational areas.
He said more than 1 000 arrests had been made, including 550 in the Western Cape and 238 in the Eastern Cape, with a strong focus on dismantling drug networks, illegal mining syndicates, and tackling serious violent crime.
Ramaphosa said operational intensity had been sustained through more than 38 000 coordinated actions, including roadblocks and targeted tracing operations, resulting in the seizure of 18 firearms, 792 rounds of ammunition and 186 explosives.
“This directly weakens the operational capacity of criminal networks,” he said.
INSIDE POLITICS
