South Africa’s annual State of the Nation Address (SONA) was delivered on 12 February 2026, with President Cyril Ramaphosa outlining key economic developments, future plans, and challenges the country faces as it seeks to strengthen its economy and support business growth.
Economic Growth and Stability
President Ramaphosa began by highlighting that the South African economy is in a stronger position than a year ago. He pointed to four consecutive quarters of GDP growth, lower inflation, and a strengthening rand as evidence of improving economic conditions. The president also noted progress towards stabilising national debt and cited improvements in credit ratings and investor confidence.
Despite these positive signs, the president acknowledged that growth must be higher and faster to address unemployment and widespread economic challenges. This sets the tone for policy priorities over the coming year, with an emphasis on sustainable and inclusive growth.
Fiscal and Investment Signals
Ramaphosa said that financial institutions in South Africa are among the best in the world, capable of competing regionally and internationally. This was used to underline confidence in the financial sector and to encourage further domestic and foreign investment.
In his address, the president also referenced national programmes like Operation Vulindlela, a reform initiative aimed at accelerating economic reforms in key sectors including energy and logistics, to attract investment and deepen competition.
Business and Sectoral Support
Several sectors were mentioned as areas of opportunity and focus:
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Digital Economy and Financial Services: Ramaphosa highlighted growth in the services sector, including digital and financial services, as engines for future job creation and economic diversification.
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Tourism: With over 10.5 million international visitors last year, tourism was positioned as a key driver of jobs and foreign exchange earnings. Ramaphosa called for stronger promotion of cultural and natural attractions, and for improvements in safety to support tourism growth.
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Agriculture: The address confirmed government efforts to manage agricultural crises, including a large-scale vaccination plan for cattle affected by foot-and-mouth disease, to protect exports and rural livelihoods.
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Green Growth and Manufacturing: Government announced incentives such as a 150% tax deduction for investment in new energy vehicles starting in March, and support for local battery production. This positions South Africa’s green economy as a priority for future investment.
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Mining and Critical Minerals: With rich reserves valued at over R40 trillion, mining was identified as a “sunrise industry”, with plans to prioritise geological mapping and exploration funding to harness its economic potential.
Policy Context and Business Expectations
Ahead of SONA, economists and business groups called on government to turn rhetoric into action with tangible economic reforms and infrastructure investment to support growth and private sector confidence. Many emphasised the need for clear, actionable timelines and a focus on implementation rather than promises.
Business associations also highlighted challenges facing micro, small and medium enterprises (MSMEs), including the need for payment discipline in government procurement and improved regulatory certainty to foster confidence and growth among smaller firms.
Fiscal Framework and Future Budget
While SONA did not deliver the 2026 National Budget details, Ramaphosa’s economic themes align closely with the upcoming budget speech by Finance Minister Enoch Godongwana. The address reinforced expectations for continued focus on debt stabilisation, infrastructure investment, improved tax compliance, and fiscal discipline under the Medium-Term Expenditure Framework.
