CAPE TOWN — South Africa’s government has set a bold agenda for the next five years to foster rapid and inclusive economic growth with a focus on job creation, poverty reduction, and equality. President Cyril Ramaphosa emphasized the crucial role of government restructuring and increased infrastructure investment during his presentation of the Presidency’s Budget Vote in Parliament.
According to South African Government News Agency, Infrastructure South Africa will play a pivotal role in this initiative by integrating private sector expertise and resources into public projects. He highlighted the Infrastructure Fund's new approaches to blended financing, which aim to use government funds to attract private, developmental, and international financial support. The President pointed out the significant progress made in partnership with Independent Power Producers, which has helped mitigate the severity of load shedding.
In 2018, the government launched an ambitious plan to mobilize R1.2 trillion in new investments over five years. By the end of the fifth South Africa Investment Conference last year, this target was surpassed with commitments totaling over R1.5 trillion. The President noted that these investments have led to the establishment and expansion of numerous factories and projects, creating thousands of jobs.
As part of enhancing the business environment, a dedicated red tape reduction team, led by Mr. Sipho Nkosi, was established within the Presidency. This team has worked closely with various government departments and the private sector to streamline business processes, particularly in provincial governments and three city municipalities. This initiative is part of a broader effort supported by Operation Vulindlela, a joint project between the Presidency and National Treasury, which has driven key reforms in network industries and supported economic recovery.
These reforms have laid a foundation for sustained economic growth and social improvement, with significant potential to alleviate load shedding, enhance logistics systems, reduce data costs, and improve water supply. Moreover, they aim to strengthen the financial and operational performance of strategic state-owned enterprises and encourage private investment in infrastructure.
An independent study by the Bureau of Economic Research suggests that these reforms could increase South Africa’s real Gross Domestic Product growth to 3.5 percent by 2029. President Ramaphosa underscored the positive impact on business confidence and investment, which in turn fosters job creation and economic demand, creating a cycle of growth and prosperity.
Looking ahead, the government will commence the second phase of Operation Vulindlela, focusing on reforming local government systems, enhancing digital public infrastructure, and addressing spatial inequality. This phase aims to ensure the comprehensive implementation of ongoing reforms and tackle structural challenges to achieve transformative economic growth.