On trade, the African Continental Free Trade Area (AfCFTA) remains a pillar of South Africa’s economic strategy. With the country positioning itself as a regional hub for green manufacturing, electric vehicles, and digital services, Ramaphosa reiterated South Africa’s ambition to lead Africa’s industrialisation wave. A growing sense of optimism among South African CEOs further underscores the positive trajectory for 2025.

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• In fact, top-of-mind issues for voters are unemployment, loadshedding, corruption, and crime,12 which have all taken a toll on the country’s growth performance for years.
• This has also been attributed to progress in addressing some of the bottlenecks that have previously limited South Africa’s economic growth.
• Importantly, he will also outline the work of government to address the looming crisis of water security that poses a threat to the quality of life and economic prospects of all South Africans.

The finance, real estate, and business services sectors were significant contributors, increasing by 1.3% and adding 0.3 percentage points to the overall GDP growth. Specific economic activities like financial intermediation, real estate, and other business services saw increased activity. The trade, catering, and accommodation industry also saw a rise of 1.2%, contributing 0.1 percentage points, reflecting increased activities in wholesale, retail trade, and accommodation.

Through the implementation of the Energy Action Plan, we have emerged from the energy crisis which held our nation’s growth and development to ransom. The International Monetary Fund (IMF) and South African Reserve Bank (SARB) have both revised their projections, with the IMF forecasting a 1.1% growth for 2024, a slight increase from previous estimates. Looking further ahead, both the IMF and SARB predict stronger growth in 2025, with the SARB’s projections standing at 1.7%.

State of the US consumer: January 2025

Guided by a Statement of Intent, these parties have committed to pursue rapid, inclusive and sustainable economic growth, create a more just society by tackling poverty and strengthen the capacity of the state to deliver services for all South Africans. The reduction in load shedding has had a particularly positive impact on manufacturing and mining, which contribute significantly to GDP. The manufacturing sector, in particular, is poised for recovery as energy constraints ease and supply chains stabilise.

South African Rand Gains Strength Ahead of Key Economic Data Releases

Ramaphosa acknowledged the systemic failures in public service delivery, from failing municipalities to persistent corruption in state institutions. Acknowledging the urgent need for reform, he announced a new model for public service recruitment, strengthening the Public Service Commission’s role in appointing directors-general and SOE executives. This year our nation will host the prestigious G20 Summit in November 2025 which will feature prominently in the address by the President. It will be a call by the President, for all South Africans to get involved to make this summit a success and ensure its outcomes have a life changing impact on the less fortunate people of the world. Law enforcement efforts such as Operation Shanela and Operation Vala Umgodi are making strides in dealing with organised crime, illegal mining, extortion at construction sites and other priority crimes that have plagued our communities.

Eurozone economic outlook, September 2024

For sustained progress, the IMF emphasizes the importance of the GNU implementing structural reforms effectively. Without these, confidence may falter, financing costs could rise, and economic growth could remain sluggish. Government welcomes the country’s economic growth, as reflected in the latest Gross Domestic Product (GDP) figures. According to data released by Statistics South Africa (Stats SA), the GDP increased https://www.liberty.co.za/ by 0.4% in the second quarter of 2024, following a 0.0% growth in the first quarter.

Business

Of the 10 industries reported on by Statistics South Africa (StatsSA), four saw contractions in 2023, while three recorded marginal positive increases (less than 1%). Even though investor sentiment and domestic confidence have improved, structural reforms and growing fixed investments are still imperative for South Africa’s long-term prosperity and key to achieving sufficient GDP growth to support the economy. Unexpectedly, real GDP growth fell by 0.3% in the third quarter of 2024, which also lowers the expected growth outcomes for 2024 to less than 1%.

Infrastructure reform extends to energy, where South Africa’s ongoing transition away from Eskom’s monopoly is set to redefine the electricity sector. “We must put the risk of loadshedding behind us once and for all,” Ramaphosa affirmed, touting the Electricity Regulation Amendment Act, which enables private investment in generation and transmission networks. The government also aims to mobilize over $13 billion in international climate funding to support the Just Energy Transition (JET). South Africa’s Presidency https://www.sanlam.co.za/ of the G20 will advance the interests of the African continent and the Global South. At the heart of our efforts is promoting sustainable development, inclusive economic growth, justice, peace, stability, multilateralism and human rights across the globe.

AfDB Predicts Stronger Growth for the African Economy in 2025

On expenditure, real GDP rose by 0.5% in the second quarter, an improvement from the 0.1% decrease in the first quarter of 2024. Household consumption emerged as the largest positive contributor to overall growth, demonstrating the renewed confidence and spending power of South African households. From a production perspective, the finance, real estate, and business services industry played a pivotal role, contributing 0.3% to the overall GDP growth. Other notable contributors include the manufacturing sector, trade, and the electricity, gas, and water supply industry, which saw a remarkable growth of 3.1%, driven by increased electricity https://fnb.co.za/ generation and water distribution. Protectionist trade policies, geopolitical tensions, and supply chain disruptions remain potential risks. However, experts believe that South Africa is better equipped to navigate these challenges due to its focus on structural reforms and proactive fiscal measures.

By adjusting for these factors where required, World Economics provides a more accurate picture of South Africa’s true economic size and potential. Recent data from the third quarter has shown real GDP growth dipping sasol south africa limited to 0.3% despite cautious optimism. South Africa has huge potential in renewables like solar, wind and biomass, thanks to its diverse geography.