South Africa is entering a new phase in its economic renewal. After years of grappling with structural constraints, the country is beginning to see the tangible results of reform. Energy reliability is improving, logistics performance is recovering, infrastructure investment is moving from plans to construction, and business confidence is strengthening.
For much of the past decade, growth was constrained by persistent bottlenecks in energy, transport and infrastructure. These challenges increased the cost of doing business, weakened competitiveness and dampened investor confidence. Government responded with a series of bold reforms aimed at addressing these constraints at their source.
The clearest evidence of progress is in the energy sector, where South Africa is now on the cusp of nearly 500 consecutive days without load shedding, following the five interventions announced by President Cyril Ramaphosa in 2022. This has resulted in Eskom’s Energy Availability Factor reaching its highest level since 2020, more than 6,100 MW having been restored to the grid, unplanned outages have fallen sharply, and diesel expenditure has declined by over 80 percent. Reliable energy provides the certainty businesses need to invest, expand production and create jobs.
Infrastructure delivery is also gathering pace. A portfolio of 263 projects valued at almost R2 trillion is advancing through various stages of development, while 37 projects worth R69 billion have been completed over the past 18 months. More importantly, South Africa is increasingly demonstrating the ability to convert infrastructure plans into infrastructure delivery, strengthening connectivity, service provision and economic activity.
The next phase is to translate these structural gains into faster and more inclusive growth. This is the focus of Phase 3 of the Government Business Partnership, launched last month against the backdrop of key achievements such as South Africa’s exit from the FATF grey list and recent sovereign credit-rating upgrades.
The partnership moves beyond stabilisation towards growth. Its objective is to unlock investment, accelerate economic activity and support the creation of more than one million jobs by 2030. Targeted interventions across energy, logistics, mining, tourism, agriculture and infrastructure will be complemented by measures to combat crime and corruption, strengthen competitiveness and expand opportunities for young people.
Ambitious targets have been set. These include operationalising the South African Wholesale Electricity Market by early 2027, unlocking a 32 GW grid connection pipeline, increasing freight volumes to 180 million tonnes, mobilising an estimated R500 billion in transport and logistics investment, unlocking more than R50 billion in mining capital expenditure, and growing international tourist arrivals to 3.8 million by the end of 2027.
This partnership reflects a simple but powerful principle that sustainable growth requires collaboration. Government creates an enabling environment through policy certainty, infrastructure and public services, while business provides the capital, innovation and expertise needed to expand productive activity. Together, they can unlock the investment, industrial growth and employment opportunities required to drive long-term prosperity.
Recent economic data serves as a reminder that the journey is not yet complete. Following six consecutive quarters of growth, the economy contracted by 0.2 percent in the second quarter of 2026. Weaknesses in mining, manufacturing and trade, together with subdued investment and rising imports, continue to weigh on performance.
This short-term fluctuation should not obscure the deeper structural progress underway. Reforms in energy, logistics and infrastructure are beginning to address some of the most significant constraints to growth. The task now is to ensure these improvements translate into higher investment, stronger productivity, more jobs and rising living standards.
South Africa has laid important foundations for a more competitive and resilient economy. The challenge ahead is not simply to sustain reform, but to convert reform into momentum. With continued collaboration, accountability and execution, the country has an opportunity to move from recovery to sustained, inclusive growth.
David Jacobs is Chief Director: Cluster Communication at GCIS
