Pretoria: While the government's efforts to support economic recovery are gaining momentum, more needs to be done to significantly reduce unemployment. This is according to the Minister in the Presidency for Planning, Monitoring, and Evaluation, Maropene Ramokgopa.
According to South African Government News Agency, the Minister stated that South Africa is making progress, but more must be done to ensure economic recovery translates into jobs, income, and improved well-being for all. On Friday in Pretoria, she provided an update on the government's performance against the Medium-Term Development Plan (MTDP) 2024-2029, covering the period from April to September 2025. This plan measures performance against the government's priorities for the seventh administration, which include driving inclusive economic growth, job creation, reducing poverty, tackling the high cost of living, and building a capable, ethical, and developmental state.
The government has achieved a primary budget surplus, signaling its commitment to fiscal discipline. Additionally, Operation Vulindlela has played a critical role in removing structural constraints to economic growth. Ramokgopa reported progress in energy reforms, logistics, and water infrastructure coordination, contributing to improved system performance and increased private-sector investment confidence.
South Africa recorded a 0.8% Gross Domestic Product (GDP) growth in the second quarter of 2025, the strongest quarterly performance since 2022, despite global economic volatility. The unemployment rate declined by 1.3 percentage points to 31.9%, with 248,000 jobs added in the third quarter of 2025. However, youth unemployment remains extremely high at 58.5%, indicating deep structural labor market challenges. Poverty and inequality persist, with a Gini coefficient of 0.63.
South Africa's exit from the Financial Action Task Force (FATF) grey list, after successfully implementing key reforms to combat money laundering and the financing of terrorism, has improved investor confidence. Ramokgopa highlighted key sectors that continue to show progress, including R44.2 billion in new investments secured across sector masterplans. The automotive sector saw the launch of the BMW X3 Plug-In Hybrid Electric Vehicle, backed by a R4.2 billion investment, while the battery minerals pipeline is valued at R40 billion.
In the Micro, Small, and Medium Enterprise (MSME) and informal economy, 45,105 jobs were created, and 41,753 were sustained through MSME programs. In tourism, international arrivals increased to 7.6 million between January and September 2025, with tourism visa reforms underway through the Electronic Travel Authorization (ETA) system. Regarding energy security, more than 175 consecutive days without load shedding were recorded during the reporting period, with the Energy Availability Factor improving to 63.29%, reaching 70% on several days.
Government has set aside R1.03 trillion for public infrastructure over the Medium-Term Expenditure Framework (MTEF). The Minister emphasized that infrastructure investment remains a key lever for inclusive growth in the country. The Infrastructure Fund has approved 26 blended finance projects worth R101.6 billion, and the Budget Facility for Infrastructure (BFI) approved 10 major projects worth R37.1 billion for implementation. Despite this progress, delays persist due to municipal capacity constraints, procurement inefficiencies, and inadequate project preparation. High municipal debt levels, at 94.6 billion rand as of March 2025, pose risks to infrastructure sustainability, and grid expansion delays threaten future energy security despite recent improvements.
Local government performance is also under scrutiny. According to the Minister, efforts continue to strengthen the performance of local government as financial challenges in municipalities persist. An Inter-Ministerial Committee has been established to support distressed municipalities, and local government reforms are being introduced through the review of the current legislative and regulatory framework, with the development of a White Paper on Local Government (LGWP).
