Pretoria: As the year draws to a close and South Africa stands on the threshold of a new year in 2026, the prevailing sentiment regarding the economy is one of confident optimism. Despite the formidable challenges the economy has navigated, the nation is now definitively turning the corner, accelerating towards a more stable and prosperous economic future.
According to South African Government News Agency, it’s the spirit of resilience and ingenuity that has enabled South Africa to overcome recent difficulties. The ability to swiftly adapt to shifting circumstances and unite despite differences is now yielding results, with clear signs of a strengthening economy. In a recent address to the nation, President Cyril Ramaphosa highlighted the positive developments, noting the decline in unemployment and improvements in public finances, which are allowing for a steady reduction in national debt.
For the first time since 2008, government debt is starting to level off, with an expected stabilization at 77.9 percent of GDP next year. A primary budget surplus is projected for this financial year, indicating that the country is no longer borrowing to cover day-to-day costs. By the 2028/29 fiscal year, this surplus is expected to grow, freeing up resources for essential services and economic growth initiatives.
Job creation remains a top priority, with more than 248,000 new jobs created in the third quarter of 2025, raising total employment to over 17.1 million. This marks the highest employment level recorded this year, signaling progress towards full economic recovery. The economy has also posted its fourth consecutive gain, with GDP expanding by 0.5 percent in the third quarter, indicating a stabilizing and resilient economic landscape.
The recovery is broad-based, with contributions from various sectors including mining, agriculture, trade, retail, and accommodation. Agribusiness confidence has also improved, with the Agbiz/IDC Agribusiness Confidence Index rising by five points to 67 in the final quarter of the year.
Initiatives like the Youth Employment Service (YES) have placed over 202,558 young South Africans in quality work experiences, driven by partnerships with more than 1,900 corporate partners. This initiative is a key driver of economic transformation, focusing on digital and technological skills development.
The positive trajectory has been further reinforced by an upgrade in South Africa’s outlook by S and P Global Ratings, reflecting the success of reforms and financial management. Additionally, Eskom’s consistent energy supply, with 169 consecutive days without load shedding, underscores the progress being made.
Bold reforms through Operation Vulindlela are driving economic progress by improving infrastructure, expediting energy projects, and reducing bureaucratic obstacles. Structural changes, such as the establishment of a separate Transnet Rail Infrastructure Manager, are enhancing competition and efficiency in freight transport.
Efforts to control inflation are putting more money back in people’s pockets, while removal from the Financial Action Task Force grey list enhances South Africa’s international reputation and investor appeal.
Recent hosting of the G20 Summit showcased South Africa’s world-class infrastructure and potential, boosting its global image. The progress made is tangible, with strengths now outweighing challenges, and continued collaboration among government, business, workers, and communities is essential to maintain momentum.
As South Africa enters a time of new possibilities, the ongoing efforts to reform, invest, and innovate promise a strong, equitable, and flourishing economy for all.
*Mnukwa is the Acting Director-General of the Government Communication and Information System (GCIS).*