Government and business have entered a new phase of their joint reform partnership, with a target of lifting South Africa’s economic growth above 3%.
President Cyril Ramaphosa launched Phase Three of the Government-Business Partnership last week.
The latest phase focuses on investment, production and employment, with a goal of creating one million additional jobs by 2030.
“Phase One was about stabilisation. Phase Two was about reform. Phase Three must be about growth,” he said.
A Previous Growth Target Was Missed
This is not the partnership’s first attempt to lift economic growth above 3%.
Phase Two, launched in October 2024, aimed to reach growth of more than 3% by the end of 2025. The economy grew by 1.1% during the year.
Some estimates now suggest the economy is contracting. The missed target has prompted scepticism from several commentators about the renewed growth plan.
Partnership Expands Into Four Sectors
The partnership will continue its work across energy, logistics and crime.
Phase Three adds four areas identified as having greater growth potential:
- Tourism
- Agriculture and agro-processing
- Mining
- Infrastructure
Ramaphosa said the next challenge was turning progress in electricity supply and logistics into investment, productive activity and employment.
Government Points to Recent Progress
South Africa has recorded 455 consecutive days without load shedding.
The country has also been removed from the Financial Action Task Force grey list and received its first S&P sovereign credit upgrade in more than two decades.
The next test involves converting these improvements into stronger economic output and new jobs.
Growth Needed to Address Unemployment
South Africa has struggled to maintain economic growth at a level strong enough to absorb people entering the labour market.
The partnership estimates that around 300,000 net new work-seekers enter the labour force each year.
Growth below 3% is viewed as insufficient to make a meaningful difference to unemployment.
The unemployment rate rose to 33.6% during the second quarter. The number of unemployed people increased by 345,000 from the previous quarter.
Infrastructure Plan Targets R3 Trillion
Government is targeting R3 trillion in infrastructure investment.
Ramaphosa said access agreements had been concluded with 11 private train operators as rail reforms begin opening the freight network.
The changes aim to improve rail capacity and lower costs.
Delivery Plans Due Before the End of 2026
Detailed delivery plans and performance measures for each new focus area are expected during the fourth quarter of 2026.
These plans will provide the first clear basis for measuring progress towards growth above 3% and one million additional jobs by 2030.
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