Supported also by Switzerland’s State Secretariat for Economic Affairs, it is in line with South Africa’s National Development Plan and Integrated Urban Development Framework. Key Development ChallengesSouth Africa has taken considerable strides to improve the well-being of its citizens since its transition to democracy in the mid-1990s, but progress has stagnated in the last decade. The percentage of the population living below the upper-middle-income country poverty line fell from 68% to 56% between 2005 and 2010 but has since trended slightly upwards, to 57% in 2015, and is estimated to have reached 62.6% in 2023. Principal international trading partners of South Africa—besides other African countries—include Germany, the United States, China, Japan, the United Kingdom, Bangladesh and Spain.[110] Chief exports include corn, diamonds, fruits, gold, metals and minerals, sugar, and wool. Machinery and transportation equipment make up more than one-third of the value of the country’s imports.

Address by President Cyril Ramaphosa during the South Africa Night at the World Economic Forum, Davos, Switzerland

While the mining sector’s contribution to GDP has declined in recent years, it remains an important source of export earnings. While the GNU’s formation has signaled a break from a purely ANC-driven government, ideological divides persist. The International Monetary Fund (IMF) projects GDP growth at 1.5%, a slight improvement over the 0.8% growth of 2024. South Africa held its first non-restricted racial elections in 1994, leaving the newly all-African elected African National Congress (ANC) government the daunting task of trying to restore order to an economy harmed by sanctions, while also integrating the previously disadvantaged segment of the population into it. May it inspire us all to move forward, united in our shared humanity and determination to build a  better future. While each party campaigned on different platforms, the Government of National Unity has agreed on a common programme to grow an inclusive economy, create jobs and build a capable state.

With the correct government support, South Africa can increase the jobs in the manufacturing, testing, and analysis sectors of the growing Space industry. South Africa grapples with significant challenges, including high unemployment, poverty, and inequality, with the latter still marked by the legacy of apartheid. Additionally, issues like crime, corruption, and political uncertainty have an impact on the investment climate and economic stability. Moreover, in recent years, the country has suffered african gold capital from frequent power disruptions and rolling electricity blackouts (known locally as load shedding), which have weighed on economic activity. The South African economy is essentially based on private enterprise, but the state participates in many ways.

Africa’s Pulse

A concrete example of this is the strategic partnership between the South African government and business. As we confront the challenges of the present, social partners have been working together, in various forms and forums, to drive a programme of inclusive growth and transformation. Surveys have shown that South Africans have confidence in the Government of National Unity to take the country forward. However, Blackmore points out, this is still below what is required to make a meaningful impact on economic inclusion to absorb a significant proportion of the unemployed into the labour market.

Service industry

Mining has been the main driving force behind the history and development of Africa’s most advanced economy. Large-scale and profitable mining started with the discovery of a diamond on the banks of the Orange River in 1867 by Erasmus Jacobs and the subsequent discovery and exploitation of the Kimberley pipes a few years later. Gold rushes to Pilgrim’s Rest and Barberton were precursors to the biggest discovery of all, the Main Reef/Main Reef Leader on Gerhardus Oosthuizen’s farm Langlaagte, Portion C, in 1886, the Witwatersrand Gold Rush and the subsequent rapid development of the goldfield there, the biggest of them all. Whether addressing climate change, economic inequality or the pursuit of sustainable development, we are bound together by shared aspirations and mutual responsibilities. In summary, while 2025 presents significant challenges for South Africa, there are also opportunities for growth and revitalisation. By navigating policy issues and fostering stability, the country can position itself for a more prosperous future.

President Cyril Ramaphosa: South Africa Night at World Economic Forum

Companies should use macroeconomic scenarios for planning to stay agile and prepare for deviations from baseline expectations. This can range from simple desktop or tabletop exercises to in-depth strategic workshops involving multiple business units, helping business leaders adapt to changing market and operating conditions. With millions of young people excluded from the workforce, South Africa’s demographic dividend risks becoming a liability. “There’s still significant political confusion within the ANC as to what policy ideology should africa gold capital investment dominate. The country’s borders were reopened on 1 October 2020, with some exceptions to tourists travelling from specific European countries and the US, due to high levels of COVID-19 activity taking place there. This collaboration focuses on innovative solutions to tackle critical issues such as energy security, infrastructure gaps, crime and corruption, and job creation.

While initially focused on Knowledge Work (Analytics and Technical https://alexanderforbes.co.za Assistance) and Development Policy Loans, it is slowly broadening with new investment projects and program-for-results recently approved or under development. Economic policy has been aimed primarily at sustaining growth and achieving a measure of industrial self-sufficiency. High rates of inflation and declining investment, however, have complicated the economic situation. Trade sanctions exacerbated these problems, but they continued even after the end of apartheid and sanctions. Dependence on imports renewed inflationary pressure while limiting the government’s ability to meet pressing social demands.

Sectors

Structural challenges and weak growth have undermined progress in reducing poverty, heightened by the COVID-19 pandemic. The achievement of progress in household welfare is severely constrained by rising unemployment, which reached 33.5% in the second quarter of 2024, above the already high pre-pandemic rates. Not uncommon in Africa, gender equality seems to be a very cogent problem in the South African workforce. This is characterised by several comprehensive government programs and organisations that provide resources and services to females, both adult and adolescent. The government has been accused of either putting in too much effort,[88] or not enough effort,[89] to tackle the problem of farm attacks as opposed to other forms of violent crime. Els also predicted an improved environment for fixed investment growth regarding infrastructure and private production capacity.

• South African companies which provide services related to the Space industry, also increasing, and with the correct government legislation and support, this sector is expected to grow in South Africa.
• Els expects that interest rates will be lower over the short term and anchored lower over the longer term.
• Partners include the United Nations, African Development Bank (AfDB), New Development Bank, International Monetary Fund (IMF), Department for International Development (DfID), Kfw Development Bank, African Development Bank and the State Secretariat for Economic Affairs of Switzerland (SECO).
• He also predicts that Inflation will slow further, but at a more moderate rate than in 2024, with more repo rate cuts in the first half of the year in developed countries as well as in emerging economies.

Projections may evolve with new data, influencing the economic landscape as it develops throughout the year. The economy is forecast to grow far more slowly than the regional average in the coming years. Although this is partly due to a more limited scope for rapid catch-up growth compared to many other SSA economies, given South Africa’s relatively higher GDP per capita, it is also a consequence of the country’s multiple structural weaknesses.