President Cyril Ramaphosa delivering the 2025 State of the Nation Address in Parliament at the Cape Town City Hall on Thursday night. Picture: Supplied/GCIS
The Banking Association of South Africa (BASA) and Business Unity South Africa (BUSA) have welcomed President Cyril Ramaphosa’s focus on economic growth during his State of the Nation Address (Sona) on Thursday.
Khulekani Mathe, BUSA CEO, said the Sona reaffirmed and reinvigorated the government’s commitment to the reform agenda spearheaded by Operation Vulindlela and supported by business.
He highlighted the significance of the African Continental Free Trade Area and the need for a vigorous revitalisation of the country’s industrial policy—a call for action that resonates with the private sector’s potential to confront South Africa’s challenges head-on.
Mathe’s remarks spotlighted the ongoing reforms and partnerships that have seen sectors like energy, freight rail, and ports welcoming private sector participation
“The success of the reforms and partnerships, which have opened energy, freight rail, and ports to private sector participation, demonstrates the vital role business can play in addressing the country’s most pressing challenges,” Mathe said.
He also praised the Sona’s commitment to enhancing access to government services through digital public infrastructure and the long-awaited implementation of a digital identity system.
While he noted that many of the concepts discussed during the address were not novel, Mathe emphasised their importance in reassuring the populace regarding the continuity of successful government initiatives.
“Despite frustrations with the pace of change, the SONA underlined a significant restructuring of housing policies aimed at enabling South Africans to purchase or rent homes where they choose,” he said.
The proposal to release more underutilised State properties for affordable housing is indicative of a thoughtful approach to addressing one of the country's most pressing socio-economic challenges.
Mary Vilakazi, chair of BASA, echoed these sentiments, highlighting Ramaphosa’s pledge to overcome existing barriers obstructing economic progress and insisting that the ambitions laid out could indeed be realised.
“Sona reveals plans to lift economic expansion to above three percent and create a virtuous cycle of investment, growth and jobs. This can be achieved,” she said.
“Replicating the successes of partnerships to restore energy security and rail freight is possible if the government moves with urgency on its plans to facilitate private sector investment in economic infrastructure.”
Vilakazi added that the announced efforts to reform the public service and build the capability of the State were key. She said economic and social development in South Africa will not take off without a government that works for the people.
“BASA and its members look forward to more detail on the revised and innovative regulations for public-private partnerships, which will unlock private sector expertise and funds,” Vilakazi said.
“South African banks and businesses have long made it clear that policy certainty and pragmatic regulations will unlock the investment needed to finance productive economic infrastructure, such as roads, ports, and water infrastructure.”
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