South Africa Looks to 2026 with Hope and Resolve
Natalie Nyathi
President Cyril Ramaphosa addressed the nation on New Year’s Eve, calling on South Africans to embrace 2026 with renewed hope, unity, and confidence, while openly acknowledging the significant challenges that persist for many.
His message reflected on the progress made in 2025, outlined key priorities for the coming year, and emphasized the importance of collective effort in building a stronger South Africa.
Ramaphosa recognized the difficulties faced by many South Africans, including unemployment, poverty, inequality, and the high cost of living. He also highlighted concerns about crime, gang violence, gender-based violence, and failures in basic service delivery. He assured the nation that the government is aware of these struggles and is actively working to address them.
Despite the challenges, Ramaphosa pointed to encouraging signs of economic recovery. He noted easing inflation, a stronger rand, and South Africa’s sovereign credit rating upgrade , the first in nearly two decades.
This upgrade is expected to lower the cost of government borrowing, freeing up resources for infrastructure investment and social development. The President emphasized the importance of job creation, particularly for young people, and highlighted initiatives such as the Presidential Employment Stimulus and the Youth Employment Service.
Economists offer a cautiously optimistic outlook for South Africa’s economic growth in 2026, with GDP growth forecasts around 1.5%. However, they stress the need for continued policy reforms and increased investor confidence to tackle socioeconomic challenges and achieve higher, job-rich growth. The government has set a target of at least 3.5% GDP growth by 2030, driven by both consumer spending and fixed investment.
Infrastructure investment remains a key priority, with over R1 trillion budgeted for the next three years to improve roads, ports, rail, energy, and water systems. Improvements at Eskom have led to months without load shedding, easing pressure on households and businesses. Infrastructure South Africa (ISA) is preparing and packaging 34 projects with an estimated capital value of R259-billion, with these projects hopefully coming to market over the next 12 to 18 months.
The Infrastructure Africa Business Forum, scheduled for March 2026 in Cape Town, will focus on strategies to de-risk infrastructure investments and promote sustainable development across the continent.
Ramaphosa emphasized that rooting out corruption remains an overriding priority. He highlighted the work of the Special Investigating Unit and the Asset Forfeiture Unit in recovering billions of stolen money and the progress made by specialized task teams against illegal mining, kidnapping, and infrastructure-related crimes.
The government is committed to cleaning up law enforcement agencies and will implement the recommendations of the Madlanga Commission to address political interference and criminal influence.
However, some reports suggest that South Africa has reduced its focus on anti-corruption initiatives, with a diminished engagement with transparency initiatives.
Ramaphosa emphasized the importance of national dialogue and unity in shaping the country’s future. The National Dialogue aims to bring South Africans together to define the agenda for an inclusive conversation about the next chapter in their democracy. This process will be guided by an Eminent Persons Group and supported by community representatives to ensure inclusivity and integrity.
Ramaphosa highlighted South Africa’s successful hosting of the G20 Summit in 2025, which strengthened the country’s international standing and ensured that the voices of Africa and the Global South were recognized.
The G20 Social Summit, held in Johannesburg in November 2025, brought together governments, civil society, labor, youth, women, persons with disabilities, philanthropy, and grassroots organizations to address global issues impacting people’s daily lives. South Africa held the G20 Presidency from 1 December 2024 to 30 November 2025, focusing on the theme “Solidarity, Equality, Sustainability.”
Ramaphosa concluded his message with a call to action, urging South Africans to work together to build the country of their dreams. He delivered a special message to men, calling on them to respect women and girls and to reject gender-based violence and femicide.
As South Africa enters 2026, Ramaphosa’s message offers a blend of realism and optimism. While acknowledging the significant challenges that remain, he emphasizes the progress made and the potential for a brighter future if South Africans unite and work together.
