SA’s economy held back by structural inefficiencies: Ramaphosa

President Cyril Ramaphosa says South Africa’s slow economic growth is being held back by deep-rooted structural and regulatory inefficiencies — but reforms are on the horizon.

Speaking at the Union Buildings in Pretoria on Tuesday during the launch of Phase II of Operation Vulindlela, Ramaphosa acknowledged that the country’s economy is not growing fast enough to create sufficient employment or achieve inclusive prosperity.

“We need to grow faster as an economy,” he said.
“And for that, we must confront the structural challenges that have long stood in our way.”

A New Direction in Budget 2025

Ramaphosa previewed Finance Minister Enoch Godongwana’s upcoming budget, set for February 21, as a pivotal moment for the country’s future.

“The minister will deliver Budget 3.0… and it’s a budget that will make us look forward. For the first time in many years, we will spend up to a trillion rand on infrastructure over the medium term,” Ramaphosa said.

He added that this investment would mark a significant shift in the state’s approach to economic revitalization, targeting job creation and inclusive development.

Operation Vulindlela Phase II: Reform with Purpose

Operation Vulindlela, a joint initiative by the Presidency and National Treasury, was launched in 2020 to fast-track structural reforms. Phase II, now underway, will expand on that mandate with a sharper focus on procurement reform, digital infrastructure, and basic service delivery.

Godongwana echoed Ramaphosa’s sentiments, stating that government procurement inefficiencies continue to slow down reform progress.

“Procurement in government remains a challenge,” he said.
“The reform agenda will also focus on strengthening local government, improving basic services, and harnessing digital public infrastructure as a driver of inclusive growth.”

Infrastructure as a Catalyst for Growth

The planned R1 trillion infrastructure investment over the medium term signals a renewed commitment to rebuilding the economy through improved service delivery and a dynamic regulatory environment.

By addressing persistent inefficiencies and strengthening digital and financial governance systems, the Ramaphosa administration hopes to create the right environment for sustainable economic activity.

{Source: SABC News}

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