This year, South Africa arrived at the WEF with real successes instead of empty promises, suggested Ramaphosa.
President Cyril Ramaphosa says the difference between a temporary lift in growth and a sustained shift in South Africa’s economic trajectory lies in “expanding investment.”
Ramaphosa’s comments come after last week’s World Economic Forum in Davos, Switzerland.
Last year, South Africa arrived at the WEF with a plan to drive economic reform. This time, the country returned with real successes instead of empty promises.
Economic recovery
Writing in his newsletter on Monday, Ramaphosa highlighted infrastructure investment and structural reforms as the decisive lever to turn short-term recovery into long-term, inclusive growth.
He pointed to encouraging economic indicators, but then pivoted to a call to action: progress is fragile unless translated into sustained investment and structural transformation.
“As we enter a new year, the momentum of our economic recovery is gathering pace. In the last months of 2025, we saw a number of indicators that our collective efforts to rebuild our economy are bearing fruit.
“The economy has posted four consecutive quarters of growth. There has been a steady reduction in unemployment, while recent data from Statistics South Africa show that poverty and inequality have declined considerably. Confidence in our economy is rising, the stock exchange has been performing well, and the average inflation rate is the lowest in two decades,” Ramaphosa said.
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‘No time to rest’
Ramaphosa said while these signs of progress are encouraging, “there is no time to rest.”
“The difference between a temporary lift in growth and a sustained shift in our economic trajectory lies in expanding investment. With a strengthening currency and rising commodity prices, we have wind in our sails. Now we must steer our ship towards greater prosperity for all South Africans.”
Ramaphosa said last week, at its first meeting of the year, the Presidential Economic Advisory Council (PEAC) made clear proposals on how to achieve this goal.
Positive developments
The body, which includes local and international economists, academics and practitioners, provides strategic and evidence-based advice on policy decisions that promote economic stability, growth and inclusivity.
“The council said that Government should translate recent positive developments into enduring growth by simultaneously boosting public infrastructure spending and lowering the cost of doing business.”
African continent
Ramaphosa added that South Africa needs to sharpen its competitiveness and expand markets, particularly on the African continent.
“We must capitalise on the positive momentum of recent months by building strong partnerships, strengthening delivery, and closing the gap between policy intent and implementation. Only if our own institutions are strong can we compete and remain responsive in a rapidly changing world.”
Ramaphosa said in the coming days, his Cabinet will hold its annual lekgotla to outline the actions that will be taken across government and with social partners to “achieve these goals.”
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