18 February 2026
Honourable Speaker of the National Assembly and Chairperson of the NCOP;
His Excellency, the President of the Republic of South Africa Honourable Cyril Ramaphosa;
Honourable Members,
Distinguished guests!
Honourable President, the State of the Nation Address you delivered a few days ago was not an ordinary address. It was a resounding account that echoes a message of optimism and renewed hope in our economic trajectory in the context of a volatile global economic climate.
South Africa stands at the dawn of a new era because of the decisive interventions that place the economy on a path of recovery despite multiple external pressures, shocks and setbacks. As you noted emphatically Mr President that, “Our economy is growing again, and this growth is gathering pace.” To support this assertion the SONA highlights key indicators of sustained growth, stability and recovery.
In terms of the economic outlook, international bodies – not least the International Monetary Fund – increased its forecast for South Africa from 1.2% to 1.4% for 2026 and this trend is set to increase further in 2027. The World Bank also issued an improved 2026 projection for South African gross domestic product (GDP) growth by 0.3 percentage points to 1.4%, and to 1.5% next year.
These are hard economic facts, not fiction and definitely not voodoo economics. Yes, this progress is remarkable, but it is by no means adequate to significantly tackle poverty, unemployment and inequality, however we must build on this momentum to take our economy and our country to greater heights. The building blocks of this momentum and the concomitant advancements in trade, investment flows stem from the foundation of careful economic planning and the bold programme of structural reforms in key sectors.
Madam Speaker, the objective of speeding up economic transformation, inclusive growth and job creation remains a fundamental strategic imperative of the African National Congress as clearly articulated in the January 8th Statement. This strategic imperative is aligned with the key priorities contained in the Medium-Term Development Plan (MTDP) which elevates inclusive economic growth and job creation.
The main drivers of sustainable economic growth include a vibrant productive industrial base. Therefore, the investments in the manufacturing value chain remain an integral part of accelerating economic development. Emphasis is firmly placed on reindustrialisation, aggressive infrastructure investment, energy security and localisation. These are the hallmarks of the economic recovery which has been meticulously driven by His Excellency the President.
South Africa’s exit from the Financial Action Task Force (FATF) grey list improved investor sentiment which bodes well for our economic recovery, resilience and stability. This is a milestone we cannot afford to overlook.
Our country is indeed on a path of recovery and the days of economic stagnation due to major binding constraints in energy and logistics as well as low investor confidence are receding. Major improvements in the electricity supply and logistics (Transnet) are expected to support industrial production as a backbone of economic growth.
A significant boost for re-industrialisation and localisation is exemplified by the ACTOM (the largest manufacturer and supplier of electro-mechanical equipment in Sub-Saharan Africa) with the investment of over R400 million in 2025. This investment lends significant weight to the strategic necessity of pulling investment into our economy. The investment forms part of the overall pledges worth billions of rands that were made at the fifth South African Investment Conference held in Johannesburg in April this year. These contributed in bringing the total value of investment pledges over a five-year investment mobilisation period to R1.51 trillion, thereby exceeding the initial target of R1.2 trillion set by President Cyril Ramaphosa.
Reindustrialisation programme is underpinned by infrastructure investment. In this respect the MTDP review reports that:
- Public-sector infrastructure spending is projected at R1.03 trillion over the Medium-Term Expenditure Framework (MTEF).
- The Infrastructure Fund approved 26 blended-finance projects valued at R101.6 billion.
- The Budget Facility for Infrastructure approved 10 projects worth R37.1 billion.
These are not imaginary things, these are not fairytales, but these are concrete steps and actions that ensure that our economy is poised to thrive. These are incontrovertible facts and no amount of pessimism or negativity can change this reality of our forward march towards economic prosperity.
The approach to boosting local industrial base is driven through the localisation initiative which is anchored on sectoral master plans in targeted sectors such as automotive; steel, chemical, and agro-industry; and green technologies. According to the MTDP review report notable progress has been made through Sector Masterplans as follows:
- R44.2 billion in investments secured between April and September 2025.
- A pipeline of 15 battery mineral projects valued at R40 billion.
- A R4.2 billion BMW investment linked to Plug-In Hybrid Electric Vehicle production.
Madam Speaker, as the ANC we inherited a country that was deliberately segregated socially, economically and spatially. The fundamental task of eliminating the core and periphery distortion requires deliberate and careful planning as a way to ensure geographically balanced economic activity. To this end the objective remains leveraging Special Economic Zones (SEZs) as catalysts for investment, utilising the new model derived from the Spatial Industrial Development (SID) Strategy.
Special Economic Zones are designated geographical areas for targeted economic activities. The main aim of SEZs is to drive industrialization and regional development by attracting investment and boosting exports, with total income surging to R25 billion in 2024, a 32.2% increase from 2023. Key zones like Coega, Dube TradePort, and the Tshwane Automotive SEZ (TASEZ) have created approximately 27,000 direct jobs, focusing on manufacturing, automotive, and logistics.
The bedrock of building an inclusive economy is transformation to ensure broad participation of the previously marginalised groups. It is on this basis that the support for the Black Industrialists programme needs to be intensified to exceed its modest targets and drive genuine transformation. Our Development Finance Institutions have been instrumental in supporting this strategic drive with over 800 businesses supported and roughly R32 billion invested recently.
Madam Speaker, Former President Nelson Mandela said during the SONA in 1996, “We must work together to ensure the equitable distribution of wealth, opportunity, and power in our society.”
Interventions that support entrepreneurship and thriving enterprises including cooperatives continue to gather pace. In this regard, 45,105 jobs were created and 41,753 sustained through Micro, Small and Medium Enterprises (MSMEs) interventions. In addition, more than 103,356 MSMEs continue to receive support.
In terms of supporting tourism sector, we must highlight that Tourism performance continues to demonstrate resilience and versatility:
- 7.6 million international arrivals recorded between January and September 2025.
- Hotel occupancy reached 52.6%, surpassing pre-COVID levels.
- The Electronic Travel Authorisation (ETA) system was launched.
To crown these achievements in your Speech Mr President you highlighted a further milestone when you recognised that, “Our tourism sector made history last year, recording the arrival of 10.5 million visitors.”
In conclusion Mr President I wish to reaffirm your statement that yes, “We have indeed turned a corner. Now we must look ahead and move with speed.” Certainly our economic prospects are less gloomy as was the case in previous years and now we are on a path of recovery. Forward ever, backwards never!
Malibongwe!
Ngiyabonga. Enkosi. Thank you.