South African President Cyril Ramaphosa has delivered a message of optimism to the nation, highlighting progress in the economy and outlining priorities for 2026 following a challenging year in 2025.
In his New Year’s address, President Ramaphosa acknowledged the hardships faced by South Africans, including unemployment, inequality, poverty, high living costs, gangsterism, gender-based violence, femicide, and service delivery challenges. “I acknowledge these difficulties plainly and give assurance that your struggles are known and understood. We are continuing to take a variety of actions to address these challenges,” he said.
The president emphasized that the government’s efforts rely on collaboration between public institutions, businesses, labor groups, civil society, and engaged citizens, with the goal of building a stronger South Africa together. He highlighted notable improvements in the national economy, pointing to easing inflation, a stronger rand, and a historic credit rating upgrade for the first time in two decades. He noted that this upgrade will allow the government to mobilize funding for infrastructure projects and social development at lower borrowing costs.
The president also cited progress in the country’s structural transformation programme, launched five years ago. Key developments include Eskom posting over R20 billion in profits in its latest financial cycle and managing several months without load shedding, while South Africa’s rail and port networks are showing improved efficiency, supporting better goods movement across the country.
Infrastructure development remains a central focus for 2026, with over R1 trillion earmarked over the next three years for roads, ports, rail, energy, and water systems. The government has also partnered with the private sector to expand the Youth Employment Service (YES), creating over 200,000 work experience opportunities for young South Africans, with further growth expected.
The president stressed that an improving business environment, combined with efforts to eliminate corruption, is crucial for economic growth and job creation. “Rooting out corruption is our overriding priority. Specialised task teams have made breakthroughs against illegal mining, kidnapping, economic infrastructure crimes, and construction site extortion,” he said. The president confirmed that the recommendations of the Madlanga Commission will guide reforms within the South African Police Service (SAPS) and other law enforcement agencies.
The National Dialogue initiative, launched amid controversy in 2025, will continue into 2026, guided by a Steering Committee of community representatives overseeing national consultations to strengthen unity and social cohesion.
Financial analysts share the president’s cautious optimism. The rand is projected to remain stable against the US dollar, supported by local credit rating improvements and international interest rate trends. Following a 150-basis-point rate cut from the South African Reserve Bank (SARB), further cuts are expected in 2026 amid low inflation, with economic growth forecast to reach 1.4%, up from an estimated 1.2% in 2025.
Concluding his address, The President urged South Africans to remain united: “Despite the challenges we face, our country is getting stronger, our economy is improving. As we prepare to welcome a new year, let us remain united to build the South Africa of our dreams.”
