Source: Government of South Africa
Government is following through on its commitment to invest more than R1 trillion in infrastructure over the next three years to renew the country’s roads, port, rail, energy and water systems.
This is according to President Cyril Ramaphosa who presented The Presidency Budget Vote for the 2025/2026 financial year in the National Assembly in Parliament on Wednesday.
The Budget Vote focused on the 7th administration’s three strategic priorities, including promoting inclusive growth, job creation, tackling poverty and the high cost of living, and building a capable, ethical, and developmental state.
“South Africans benefit when the economy grows, when jobs are created, when established industries expand and new industries emerge,” the President said.
The President emphasised that government is hard at work to boost infrastructure investment to ensure that infrastructure development becomes the “true flywheel of economic growth.”
Through the Infrastructure Fund, he said government is investing in the roads that link communities to economic centres and the water projects that supply expanding cities and towns.
“We have amended the regulations for Public Private Partnerships to make it easier for the private sector to invest in infrastructure ranging from renewable energy generation to housing.
“This infrastructure has a direct impact on people’s lives, providing the services they need, reducing the cost of living, improving the business environment and encouraging economic activity,” the President said.
President Ramaphosa noted that the country continues to face high levels of unemployment and economic growth that is too low to create jobs and reduce poverty. In addition, the country faces the corrosive effects of corruption and pervasive crime, to which the poorest are most vulnerable.
“It is with these challenges in mind that we formed a Government of National Unity (GNU) to place our country on a path of growth and transformation, a path of peace and prosperity.
“As we established the GNU, we understood that we were embarking on a new era in the life of our democracy. We understood that there would be complex dynamics and novel challenges that we would need to navigate,” he said.
The President highlighted that the GNU adopted the Medium-Term Development Plan (MTDP), which outlines clear actions that will be undertaken over the next five years in pursuit of three strategic priorities.
“Across all ministries, all departments and all national entities, there is a commitment to implement the actions on which we have agreed and to move with urgency and purpose to address the needs of South Africans.
“Most importantly, there is a shared understanding that we need to rise above our differences and to work together to make progress on our most important challenges,” the President said.
The President explained that the approach of the Government of National Unity is to enhance national cohesion and nation building and to build partnerships across society to advance the common interests of all South Africans.
He said the National Dialogue is being convened in response to calls from individuals and formations from across society.
The initiative has received wide support and has been endorsed by the GNU as a significant national process to develop a social compact that will enable the country to meet the aspirations of the National Development Plan.
“We are all called upon to use this National Dialogue as an instrument of development, transformation, progress, national cohesion and nation building. The National Dialogue does not displace the democratic processes mandated by our Constitution, nor the electoral mandates that parties carry into Parliament and the Executive,” he said.
As the National dialogue process continues, the President said the GNU will continue to take action to address the immediate concerns that all South Africans share – to grow the economy, to create jobs, to tackle corruption and crime, and to fix local government.
“Everything that this government does – from trade negotiations to economic reforms, from the professionalisation of the public service to support for farmers and small businesses – is directed towards meeting the needs of South Africa’s people and securing their future.
“The role of the Presidency is to coordinate the work of government towards this end, and to make sure that our commitments are translated into action. Our most important priority is to grow the economy and create jobs,” President Ramaphosa said.
The President added that efforts to improve visa administration, digital payments, tourism, and industrial diversification would unlock growth and investment.
“We are pursuing the Critical Minerals and Metals Strategy recently approved by Cabinet to ensure that the country’s mineral wealth creates jobs and produces value here in South Africa,” the President said.
The development of new sectors was also a key focus.
“Our National Policy on the Commercialisation of Hemp and Cannabis aims to improve the livelihoods of people living in rural areas, targeting 10 percent annual growth in this emerging industry,” he said.
Highlighting tourism’s recovery, he noted that over 9 million international tourists visited South Africa last year, spending more than R90 billion.
“This is thanks in large part to reforms in our visa system, targeted tourism promotion in key markets and support to local companies,” he said.
President Ramaphosa reaffirmed that the Presidency continues to lead implementation of economic reforms through Operation Vulindlela.
In the energy sector, working together with all stakeholders, the President noted outstanding progress in reducing the severity and frequency of load shedding.
“There was a time when daily load shedding was the norm. Now, it is very much the exception,” he said.
He said government is putting in place the foundations for a competitive electricity market to unlock massive new investment in energy generation.
“This will result in lower electricity costs for all South Africans and more renewable energy to power our economy.”
In addition, the President said South Africa has received international pledges worth R230 billion towards its just energy transition, with investments in transmission, renewables and localised development. – SAnews.gov.za
MIL OSI Africa –