STATE OF THE NATION ADDRESS 2025 - A BLUEPRINT FOR GROWTH AND DEVELOPMENT

On 6 February 2025, President Cyril Ramaphosa delivered the State of the Nation Address (SoNA) at Cape Town City Hall, setting the stage for South Africa’s strategic direction in the coming year. Against the backdrop of a rapidly changing global landscape and domestic challenges, the speech provided a comprehensive assessment of national priorities, economic reforms, infrastructure investment, local government challenges, and social development initiatives.

To build a thriving nation, we must ensure that every South African has access to opportunity, security, and prosperity. The road ahead requires unity, resilience, and collective effort.– President Cyril Ramaphosa

Honouring the Fallen and Upholding Peace

The President began on a solemn note, honouring the 14 South African soldiers who lost their lives in a peacekeeping mission in the Democratic Republic of the Congo (DRC). He reaffirmed South Africa’s commitment to peace on the continent, emphasising that these soldiers died in service of securing stability for the Congolese people.

This moment of tribute underscored South Africa’s continued dedication to African peacekeeping efforts and multilateral diplomacy.

70 Years of the Freedom Charter: A Vision for Progress

Marking 70 years since the adoption of the Freedom Charter, President Ramaphosa reaffirmed its guiding principles of equality, economic justice, and participatory governance. He highlighted that these values remain relevant as South Africa navigates economic uncertainty, climate change, rapid technological advancements, and geopolitical tensions.

The President outlined his government’s focus on a National Dialogue, where citizens, business leaders, and civil society will come together to shape the nation’s future in a time of global transformation. He called for unity in diversity, urging all stakeholders to prioritise collective progress over political divisions.

Economic Growth and Infrastructure Development

One of the speech’s key themes was economic growth and job creation. The President stressed the importance of inclusive economic development and outlined the government's three strategic priorities:

1. Driving inclusive growth and job creation

2. Reducing poverty and tackling the high cost of living

3. Building a capable, ethical, and developmental state

A major focus was the Medium-Term Development Plan, which outlines an ambitious strategy to:

• Boost economic growth beyond 3%

• Invest in infrastructure and publicprivate partnerships (PPPs)

• Enhance municipal service delivery

• Expand the role of state-owned enterprises (SOEs)

President Ramaphosa highlighted that R940 billion would be spent on infrastructure over the next three years, including R375 billion allocated to SOEs.

This funding will revitalise roads, bridges, dams, ports, and power infrastructure, with major projects such as:

• Mtentu Bridge – Set to be Africa’s tallest bridge, enhancing connectivity in the Eastern Cape

• Polihali Dam – A critical project ensuring water security for several provinces.

• Revitalisation of small harbours –Unlocking economic opportunities for coastal communities.

To accelerate implementation, a Project Preparation Bid Window has been launched, along with revised PPP regulations to unlock private sector investment.

Local Government Reform and Municipal Challenges

A significant portion of the address focused on municipal governance, acknowledging persistent challenges in service delivery. The President recognised that many municipalities lack technical expertise and resources, leading to deteriorating infrastructure and unreliable service provision.

To address these issues, the government will:

• Ring-fence utilities for water and electricity services to ensure efficient investment and maintenance.

• Develop an updated White Paper on Local Government to modernise governance structures.

• Review municipal funding models, ensuring financial sustainability.

• Expand support to struggling municipalities, learning from successful interventions like the Presidential eThekwini Working Group.

The introduction of digital governance tools and a revamped gov.za platform aims to enhance government accessibility and service delivery. A new digital identity system will simplify citizens’ access to government services, improving public administration efficiency.

Energy Reforms and Ending Load Shedding

Reflecting on 300 consecutive days without load shedding since March 2024, the President confirmed that energy security remains a top priority. However, he acknowledged recent disruptions as a reminder of ongoing supply constraints. The Energy Action Plan is set to introduce a competitive electricity market, allowing multiple electricity generators to compete.

Key energy reforms include:

• Mobilising private sector investment in the national transmission grid.

• Expanding renewable energy projects under the Just Energy Transition, backed by USD 13 billion in international funding.

• Enhancing Eskom’s operational efficiency while encouraging private sector participation in power generation.

Freight and Logistics Revitalisation

The Freight Logistics Roadmap aims to restore rail and port infrastructure, a critical step for ensuring efficient trade and economic growth. Transnet’s performance has stabilised, and new port equipment is expected to enhance cargo handling efficiency. The government will continue unlocking private sector investment in freight corridors to improve connectivity and reduce transport bottlenecks.

Water Security and Infrastructure Expansion

Recognising water shortages as a critical issue, President Ramaphosa announced major water infrastructure investments:

• R23 billion allocated for seven large-scale water projects.

• Phase 2 of the Lesotho Highlands Water Project nearing completion.

• Preparation for the Ntabelanga Dam to boost irrigation and domestic water supply in the Eastern Cape.

• A National Water Resource Infrastructure Agency to unlock further investment.

Public Employment and Economic Transformation

The Presidential Employment Stimulus has created 2.2 million work opportunities, with over 80,000 jobs added in the last year through the Social Employment Fund. The government aims to leverage:

• Industrial policy reforms to boost local manufacturing and renewable energy production.

• African Continental Free Trade Area (AfCFTA) agreements to expand exports.

• R20 billion annual transformation fund to support black-owned enterprises and SMEs.

Education and Skills Development

The President celebrated the highest matric pass rate in history (87%) and announced several key reforms in education and training

• Expansion of early childhood development (ECD) and literacy programmes.

• Focus on mother-tongue-based bilingual education to improve learning outcomes.

• Increased funding for TVET colleges and artisan training to address skills shortages.

Our most urgent task is to grow our economy so that we can create jobs, reduce poverty, and improve the lives of all South Africans. – President Cyril Ramaphosa

A modernised student funding model will support 10,000 missing middle students, ensuring higher education accessibility for workingclass families.

Healthcare Reforms and NHI Rollout

The National Health Insurance (NHI) remains a flagship policy, with 2025 focusing on:

• Establishing a national digital health record system.

• Launching Ministerial Advisory Committees on healthcare standards.

• Expanding hospital infrastructure, with new district hospitals under development.

Security, Crime Prevention, and Corruption

The fight against crime and corruption remains a government priority:

• Operation Shanela continues tackling violent crime and gunrelated violence.

• The SAPS Detective Service to recruit 4,000 personnel to improve case resolution.

• New smart policing technologies, including AI-driven crime prevention tools.

• Strengthening the Investigating

Directorate Against Corruption (IDAC) to prosecute state capture cases.

South Africa’s Role on the Global Stage

With South Africa assuming the G20 Presidency, the government will advance an agenda focused on solidarity, equality, and sustainable development. President Ramaphosa reaffirmed support for African integration, global trade partnerships, and peace efforts, including South Africa’s role in Palestine, Ukraine, and DRC peace processes.

Building a Nation that Works for All...

The 2025 State of the Nation Address reaffirmed South Africa’s commitment to economic revitalisation, infrastructure investment, energy security, social development, and governance reform. With a focus on inclusive growth, technological advancements, and stronger institutions, the government aims to foster a resilient, dynamic, and prosperous nation that works for all its citizens.