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Ramaphosa Calls for Business Acceleration in South Africa

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South Africa’s President Cyril Ramaphosa has called for urgent action from the private sector, emphasizing that job creation and economic growth must be the ultimate outcomes of government-business partnerships.

In a meeting with business leaders ahead of the World Economic Forum (WEF) in Davos, the president highlighted the successes of initiatives like Operation Vulindlela and the Presidential Coordinating Council, which have tackled critical issues like electricity, rail, and ports.

Phase 2 of Government-Business Collaboration

During his address on Monday, 20 January 2025, Ramaphosa stressed that the next phase of these partnerships would focus on:

  1. Achieving 3% economic growth by the end of 2025.
  2. Building additional electricity capacity by adding 4,000 MW to the grid.
  3. Recovering rail capacity to move 193 million tonnes (Mt) of goods this year.
  4. Removing South Africa from the FATF grey list.
  5. Unlocking R100 billion in investments to drive economic growth.

Business Leadership South Africa (BLSA) CEO Busi Mavuso stated that these reforms aim to create a “positive self-reinforcing sentiment” that encourages sustained economic expansion and job creation.

Ending Load Shedding: A Significant Milestone

South Africa has celebrated over 300 consecutive days without load shedding, a marked improvement credited to electricity reforms under Operation Vulindlela. However, Ramaphosa warned that maintaining this success requires:

  • Expanding the national electricity grid.
  • Ensuring sustained investment in infrastructure upgrades.

Focus on Job Creation

A key takeaway from Ramaphosa’s meeting was the urgent need to prioritize job creation, particularly for the youth.

“The partnership must result in more jobs. Employment impact should be central to all reforms,” said Mavuso.

Economic growth and investment are seen as catalysts for large-scale employment, ensuring that businesses seize opportunities created by improved infrastructure and governance.

Global Investment and South Africa’s Comeback Story

At the World Economic Forum, South Africa is showcasing itself as a re-emerging player in the global economy.

  • Recent R45.6 billion in net foreign portfolio inflows in Q3 2024 underscore renewed investor confidence.
  • Representatives aim to position South Africa as a worthy investment destination by highlighting reforms and coalition government progress.

The momentum is expected to continue as South Africa hosts the G20 summit later this year, reinforcing its commitment to economic growth and development.

President Ramaphosa’s clear message to the private sector is a call to accelerate delivery and results in tackling South Africa’s most pressing challenges.
With a collaborative approach between the government and business, the country aims to realize its ambitious targets for growth, investment, and job creation.

As the world watches, 2025 could mark a turning point for South Africa’s economy—if the government and private sector rise to the challenge.

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