By Thebe Mabanga
President Cyril Ramaphosa unveiled what he described as a bold and ambitious economic plan, albeit one that sounded familiar, during his State of the Nation Address (SONA) in Cape Town on Thursday.
The plan targets R2 trillion in new investment over the next five years and R3.5 billion in support for small businesses, which Ramaphosa said could generate up to three million jobs.
The President struck an upbeat tone about the economy’s recent performance, while acknowledging persistent weaknesses.
“Our economy is growing again, and this growth is gathering pace. While we have experienced four consecutive quarters of GDP growth, we know that it has to grow much faster to meet our social and economic challenges,” he said.
Ramaphosa cited South Africa’s first credit rating upgrade in 16 years last year as evidence of progress. He also pointed to inflation at its lowest level in more than two decades, a stronger rand and improved performance on the Johannesburg Stock Exchange (JSE) as signs of recovery.
However, his assertion that “as our economy grows, the unemployment rate declines” is unlikely to find broad support, with joblessness still above 30%.
South Africa, he said, is pursuing export-led, private sector-driven growth.
“Our industrial policy focuses on areas where we have competitive advantage, where we can create jobs and where we can drive up exports. Our trade policy is aimed at promoting sustainable development, growth and strengthening our international partnerships. In a world where countries are looking to diversify their supply chains, we have an opportunity to ramp up our exports across the globe.”
Ramaphosa said government has moved to revive the ferrochrome industry and protect jobs in steel, automotive and other sectors employing hundreds of thousands of South Africans.
He acknowledged that South Africa has endured 15 years of sluggish growth since the Global Financial Crisis, from which the country has yet to fully recover.
The President credited recent improvements to economic reforms implemented under Operation Vulindlela, particularly in energy and logistics, with plans to extend reforms to local government.
Ramaphosa said government will provide R2.8 billion in funding to support 180,000 small businesses, with a further R1 billion allocated to expand assistance.
South Africa will host its sixth investment conference at the end of March as part of efforts to attract fresh capital and accelerate growth.
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