President Cyril Ramaphosa says South Africa has started 2026 with “growing momentum” but warned the recovery will only stick if the country turns recent gains into bigger investment, faster delivery and more jobs.

Four Quarters of Growth, but No Victory Lap

In his weekly newsletter, Ramaphosa pointed to four consecutive quarters of economic growth as a sign that efforts to rebuild the economy are gaining pace.

He said unemployment has been coming down and recent Statistics South Africa data shows poverty and inequality have also declined.

Why Ramaphosa Says Confidence is Rising

Ramaphosa linked the improving mood to a stronger-performing stock exchange and average inflation at its lowest level in two decades.

He also highlighted South Africa’s exit from the Financial Action Task Force (FATF) grey list late last year as a credibility boost that helps investor confidence.

Investment and Infrastructure are the Next Test

The President’s big message: progress is real, but it is fragile. He said the difference between a short-term lift and a lasting shift comes down to expanding investment.

He also said the Presidential Economic Advisory Council has pushed for a “simultaneous” increase in public infrastructure investment and a reduction in the cost of doing business.

Ramaphosa added that infrastructure spend must focus on well-executed projects that lower costs and create jobs, not spending for the sake of it.

Reforms, Delivery and the Next Steps

Ramaphosa credited reforms in electricity for helping end load shedding, and flagged logistics and water reforms as critical to keep costs down and improve performance.

He said government has already streamlined some regulations, strengthened public-private partnership work and secured over R1 trillion committed to public infrastructure projects over the next three years.

Next up, Cabinet’s annual Lekgotla is expected to set out coordinated actions with “social partners” aimed at job creation and investment growth in 2026.