SA’s Government–Business Partnership is moving into Phase 3 of its reform agenda, with an initial target of 3% annual GDP growth to arrest growth in unemployment, followed by a 5% growth target that is expected to reduce unemployment by 1.9 million jobs over five years.
Speaking at a briefing to launch Phase 3 of the partnership, Business Leadership South Africa (BLSA) chair Adrian Gore outlined some of the green shoots that have presented SA with a unique opportunity to embark on this ambitious growth programme.
“There is genuine potential for growth,” said Gore, who is CEO of Discovery Group.
“Load shedding has ended, logistics is recovering, credibility is being restored, the green shoots are real. It proves when business and government work together this country solves problems many people consider unsolvable.”
These green shoots include six quarters of positive growth, two ratings upgrades by S&P and Fitch, a 13% recovery in the value of the rand in 2025 – the best in 16 years – and an inflation rate of 3.2%, the lowest in two decades.
This is reflected in the drop in 10-year bond yields from 10.38% in January 2025 to 8.1%, which has reduced the cost of capital for companies and public borrowing.
Read/listen:
SA’s growth prospects remain subdued – BMR
Investment, not regulation, will drive growth – Kganyago
Business welcomes Sachs appointment as reform momentum builds
SA has been stuck at around 1.1% growth for a decade, a rate insufficient to absorb the 300 000 people entering the job market each year.
“Phase 3 is a step change to actively driving growth so we can compete globally, grow and create jobs,” said Gore, adding that the focus is now on growth as the primary driver of employment.
Four sectors have been identified for their potential impact on growth and jobs: infrastructure, mining, tourism and agriculture. These sectors have the ability to create jobs rapidly without requiring lengthy educational preparation. For example, for every 13 visitors to SA, one permanent job is created.
ADVERTISEMENT
CONTINUE READING BELOW
SA is a world leader in platinum group metals (PGMs) and other critical minerals, which can be leveraged to accelerate growth. It is also among the top five globally for reserves of gold, vanadium and diamonds.
Mining contributes 6% of GDP, accounts for 470 000 jobs and generates annual exports of R800 billion.
The same applies to agriculture and agri-processing, with SA a world leader in citrus and macadamia nuts, with the advantage of being able to harvest during the northern hemisphere’s off-season. The country also has world-class farming techniques that can be readily scaled.
Read/listen:
Transnet rail recovery starting to show up in rising coal exports
Expectations grow for SA credit ratings upgrades
SA is off the grey list, but will this stop corruption?
Grey list exit: SA can’t rest on its laurels
Another area of potential growth is infrastructure, where SA has a R2 trillion investment backlog waiting to be funded over the next decade.
It has a crucial advantage in Africa in the form of deep domestic capital markets, allowing bankable infrastructure projects to be converted into investable assets.
“What started as a platform to address multiple crises has evolved into a platform for growth and shared prosperity,” said President Cyril Ramaphosa at the launch.
“This partnership has endured because our ambition for SA is strongly aligned. We both seek an economy that is growing, an economy that is creating jobs, and an economy that includes those who have been left outside it for too long.
“Through our efforts, our economy is again showing signs of sustained recovery. More rapid and inclusive economic growth is within our reach.”
ADVERTISEMENT:
CONTINUE READING BELOW
Watch the address here:
Speaking to Moneyweb at the launch of Phase 3, Gore said Phase 1 of the partnership was about “steadying the ship”, with a focus on fixing Eskom and the energy sector, as well as transport and logistics, crime and corruption.
That task is not yet complete. Phase 2 focused on reforming key sectors.
“Phase 3 is now focused on four distinct segments with regard to economic growth. The country has considerable potential. It’s kind of late, but we have to drive jobs and drive growth.”
The intention is to create one million jobs by 2030 and push economic growth above 3% a year.
Read/listen:
Unemployment rate jumps to four-year high of 33.6%
Eskom unbundling stalls as board digs in over lender complexity
Cape Town still leads the jobs race – what eThekwini can learn
eThekwini records the lowest official unemployment rate of any SA metro
SA renews business-government pact to boost growth
Key to making this happen is the “confidence multiplier” of vastly improved results in the fight against crime and in the management of the justice system, which remains a critical focus area for the partnership.
