Programme Directors,
Deputy Minister Dr David Masondo,
Members of the media,
Captains of industry,
Ladies and gentlemen.
Good morning members of the media, investors and analysts, ladies and gentlemen.
As we launch this progress report for the third quarter outlining the steps we have taken to advance the economic reform agenda, it is important to step back and situate this report within the broader moment South Africa finds itself in.
Our country is operating in a constrained global environment. Growth globally remains uneven. Geopolitical tensions, trade fragmentation, climate shocks, and tighter financial conditions continue to place pressure on emerging economies. Domestically, we continue to contend with the legacy of infrastructure underinvestment, uneven service delivery, and the imperative to restore confidence in the state’s capacity to implement.
Against this backdrop, the progress reflected in this report matters.
It matters because South Africa’s growth outlook is not determined only by external conditions, but by our ability to remove long-standing structural constraints that have held the economy back for more than a decade. It matters because ratings agencies, investors, businesses, and citizens are increasingly looking not at policy intent, but at whether reforms are being executed consistently and credibly.
Without repeating what has already been said, I want to emphasise two points.
The first is that reform momentum has strengthened, and that the State is increasingly moving from planning to delivery.
As President Cyril Ramaphosa has said, we are seeing important green shoots in the economy. Four consecutive quarters of positive economic growth, declining unemployment, a strengthening currency, and rising commodity prices are all acting as powerful tailwinds for our economic recovery.
The reform programme that we are pursuing through Operation Vulindlela is essential to ensure that these positive indicators result in a sustained shift in our economic trajectory rather than a temporary lift in growth. Ultimately, these reforms – whether in the energy, water and logistics sectors or in the immigration system – are about unlocking much higher rates of fixed investment in the economy and powering long-term growth.
Colleagues,
The second is that these reforms aim to improve the lives of all South Africans. That is why in Phase II of Operation Vulindlela, we have focused on achieving more inclusive and not only more rapid economic growth.
The reduction in load shedding which has resulted from reforms in the energy sector has had a tangible impact on every household and business. Likewise, reforms in the rail system have supported the recovery of passenger rail services, with the majority of corridors now up and running and providing cheaper public transport for people in every major city.
Going forward, as we advance the more recent reforms in housing policy and the local government system, we will make progress on many of the issues that are most critical to poor households – improving the delivery of basic services, making our cities work effectively, and accelerating the delivery of well-located and dignified housing so that people can live closer to work and contribute to the economy.
Finally, what this progress report shows is that now is a good time to invest in South Africa.
Distinguished guests,
For more than a decade, we have experienced low levels of economic growth and high levels of uncertainty. This year, however, we are turning a corner, largely as a result of our commitment to far-reaching economic reform.
By strengthening our economic fundamentals and creating an environment for growth, we can protect our economy from global disruptions and take advantage of the opportunities that are emerging alongside them.
All of this combines to make a strong case for investment, in order to capitalise on South Africa’s growth story.
Thank you once again for joining us today, and for continuing to engage with Operation Vulindlela as we continue the work of reform.
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