President Cyril Ramaphosa delivered his 2025 State of the Nation Address (SONA) against the backdrop of South Africa’s evolving political and economic realities. Addressing Parliament in Cape Town City Hall today, he outlined an ambitious framework for national renewal, emphasizing economic revitalization, infrastructure investment, and the country’s place in the shifting global order.



The address came at a critical moment: the first full year of South Africa’s Government of National Unity (GNU), rising geopolitical tensions, and an economy striving to recover from years of stagnation. While Ramaphosa painted a picture of resilience and reform, the challenges of implementation remain a formidable test.



Economic Recovery And Infrastructure



Ramaphosa placed economic growth and job creation at the heart of his administration’s priorities. “Our most urgent task is to grow our economy so we can create jobs, reduce poverty, and improve the lives of all South Africans,” he stated, setting a 3% GDP growth target as a crucial milestone. However, this target may be difficult to achieve given existing economic constraints.



South African economist Dawie Roodt offers a measured perspective. “If we get kicked off AGOA, it’s not the end of the world, but everything adds up. We could see economic growth well below 1.5%, and that will have serious consequences,” he tells FORBES AFRICA. While the government’s infrastructure plans are extensive, structural challenges may pose obstacles to reaching this ambitious growth rate.



With GDP growth struggling to surpass 1.5% in recent years, achieving the government’s 3% target will be a significant challenge. While infrastructure spending is a key strategy, Roodt cautioned that it alone may not be enough to drive the necessary economic expansion.



To stimulate growth, his government has committed to a R940 billion ($51 billion) infrastructure investment over three years, including R375 billion ($20.3 billion) in spending by state-owned enterprises (SOEs). Projects range from modernizing ports and railways to the completion of the Polihali Dam in the Lesotho Highlands, ensuring water security for key industrial hubs.



Infrastructure reform extends to energy, where South Africa’s ongoing transition away from Eskom’s monopoly is set to redefine the electricity sector. “We must put the risk of loadshedding behind us once and for all,” Ramaphosa affirmed, touting the Electricity Regulation Amendment Act, which enables private investment in generation and transmission networks. The government also aims to mobilize over $13 billion in international climate funding to support the Just Energy Transition (JET).



State Capacity And Governance Reform



Ramaphosa acknowledged the systemic failures in public service delivery, from failing municipalities to persistent corruption in state institutions. Acknowledging the urgent need for reform, he announced a new model for public service recruitment, strengthening the Public Service Commission’s role in appointing directors-general and SOE executives.



Municipal service failures remain a pressing concern, with unmaintained roads, disrupted electricity, and inadequate water provision plaguing local governance. In response, the government will establish ring-fenced utilities for water and electricity in struggling municipalities to ensure revenue is reinvested into infrastructure.



South Africa–U.S. Relations And Foreign Policy



The speech took on a notable diplomatic tone, reflecting South Africa’s role in an increasingly fragmented global order. Ramaphosa reaffirmed South Africa’s commitment to multilateralism, highlighting its G20 presidency as an opportunity to champion Africa’s economic interests on the global stage.



However, relations with the U.S. remain complex. The Biden administration’s recent decision to suspend some HIV and TB program funding for Africa — which accounts for 17% of South Africa’s HIV spending — was met with concern. “We are looking at various interventions to address the immediate needs and ensure the continuity of essential services,” Ramaphosa stated, underscoring the country’s reliance on international partnerships.



South Africa’s stance on Palestine and its International Court of Justice (ICJ) case against Israel has also drawn U.S. scrutiny. While South Africa upholds its position on human rights and territorial sovereignty, Washington’s view on the country’s geopolitical alignment remains cautious, particularly given its engagement with BRICS and growing economic ties with China and Russia.



Jobs, Trade, And Business Confidence



Addressing unemployment, particularly among youth, Ramaphosa reaffirmed the expansion of the Presidential Employment Stimulus, which has created 2.2 million work opportunities. However, he emphasized that private-sector growth is crucial to sustainable employment, urging businesses to engage with the SAYouth.mobi platform and expand workplace experience programs.



On trade, the African Continental Free Trade Area (AfCFTA) remains a pillar of South Africa’s economic strategy. With the country positioning itself as a regional hub for green manufacturing, electric vehicles, and digital services, Ramaphosa reiterated South Africa’s ambition to lead Africa’s industrialisation wave.



Economist Roodt further emphasizes the risks beyond trade: “If the U.S. stops buying our government bonds, that’s when we’ll be in real trouble. The rand will tank, inflation will spike, and the entire financial system could come under strain.”



The mining sector, a historical backbone of the economy, is also poised for reform. A modernized mining rights system, expected this year, aims to unlock investment in exploration and critical minerals, strengthening South Africa’s position in the global commodities market.



Challenges Ahead



Despite the optimistic tone, economic realities pose significant risks. With GDP growth struggling to surpass 1.5% in recent years, achieving the 3% target will require more than infrastructure spending. Structural challenges — from inefficiencies in SOEs to regulatory red tape — continue to hamper investor confidence.



Furthermore, political stability within the GNU remains untested. With ideological differences between the ANC, DA, IFP, and other coalition partners, policy coherence will be a major determinant of success.



Ramaphosa’s message was clear: South Africa has the potential to emerge stronger, but execution will determine its trajectory. Whether the government’s ambitious reforms translate into real economic growth and global competitiveness will be the ultimate test.

South Africa’s President Cyril Ramaphosa’s State-of-the-Nation Address

South Africa’s 2025 State of the Nation Address: Economic Vision, Global Relations, and National Challenges

South African President Cyril Ramaphosa on Thursday night delivered his sixth annual State of the Nation Address (SONA) in Cape Town’s City Hall, taking a nostalgic approach to the event as part of commemorating 30 years of democracy, as well as addressing what is likely to be the most highly-contested general election the country has seen since democratic rule.



The occasion attracted intense scrutiny from opposition political parties, analysts, and commentators alike, as the country seeks to steer through severe socioeconomic and political challenges.



Ramaphosa&#8217;s address attempted to highlight the ruling African National Congress’ (ANC) critical role in South Africa&#8217;s progress post-apartheid. However, this endeavor revealed a profound disconnect between the government&#8217;s narrative and the lived realities of ordinary South Africans, according to some analysts, conflating the ruling ANC and the state. While the President highlighted key achievements such as the provision of housing and water to millions of people previously disenfranchized by the apartheid state, he acknowledged the challenges currently faced by the country, including “loadshedding, addressing the challenges in the logistics sector, tackling crime and corruption, and accelerating job creation” in his speech.



“Whenever Ramaphosa spoke about achievements, he conflated the party and the state – the &nbsp;highlighting figures that fought for democracy that were also part of the ANC, like Mandela and Tambo. But when he spoke about failures and challenges, he referred to the state,” says independent policy and risk analyst Marisa Lourenço to FORBES AFRICA. “This is typical of liberation movements-turned-ruling parties, which, at least in postcolonial Africa, draw their legitimacy from the past rather than the present, especially when their rule has overseen the decay of essential services, an energy crisis, and state capture.”



Critics of Ramaphosa’s address include both major opposition parties, with the Democratic Alliance (DA) condemning the address as “populist posturing and policy proposals, including the doubling down on state-centric policy and legislation and the arrogance of a president who is completely out of touch with ordinary South Africans,” according to a statement by the party’s leader John Steenhuisen.



Another leading opposition party, the Economic Freedom Fighters (EFF), saw all of its members boycott SONA after a court application to dismiss its leader Julius Malema’s suspension from Parliament was dismissed earlier that day, following his conviction of contempt of Parliament for storming the stage during Ramaphosa’s 2023 SONA delivery.



Lourenço continued her analysis of Ramaphosa’s conflation of the state and the ANC, stating, “Not only does it place the ANC at the center of all accomplishments, including the transition to democracy, but it also implies that without the ANC, South Africa would be a worse place to live – and actually, that the democratic freedoms enjoyed since 1994 could be stripped away. It transmits the idea that we have only just emerged from the other side – the apartheid era – and that our democracy is still quite tenuous. In this way, then, the only way to preserve democracy is to ensure that the party which fought for it remains in power for another five years.”



The ANC is facing the most realistic challenge to its rule since South Africa became a democracy in 1994, with recent polls indicating that the party may retain less than 40% of the public vote in the elections set to take place sometime this year. Gustavo de Carvalho, a Senior Researcher at the South African Institute of International Affairs, says that one key takeaway from SONA is that it sets the tone of the ANC’s approach to the upcoming elections. “It showcases a comparison between today and 1994,” he tells FORBES AFRICA. “It&#8217;s clear that it is not only about commemorating the 30th anniversary of democracy but also about controlling the narrative that the ANC in this current administration has not improved as much as expected in terms of the economy and many of the social indicators.”



De Carvalho also notes that the fact that a date for the election has not yet been announced might indicate that the ANC is doing its best to make as much of the electioneering time available. “And I think for the ANC at this stage, the stalling of the dates for the elections provides them some time in terms of trying to shift certain narratives to regain some of the voters that have been under a lot of pressure and attention from other political parties.”



The run-up to the 2024 general election has seen the birth of multiple new political parties to add to the established opposition groups, with an ANC breakaway party being formed under former South African President Jacob Zuma in the form of the uMkhonto we Sizwe (MK) party, and Rise Mzansi as notable events, spawned out of severe dissatisfaction with the current political space and the ANC’s inability to resolve challenges such as wealth inequality, crime, and the electricity crisis.



While President Ramaphosa put forward many possible solutions to these challenges during his speech and cited historical achievements by the ANC as reasons to believe in a future under their governance, de Carvalho’s analysis is quite blunt. “On how effective the measures proposed by President Ramaphosa might be… do we believe in what he has to say?”



Lourenço concurs, reinforcing her earlier point about the language of the address ‘drawing legitimacy from the past rather than the present’, stating, “Ramaphosa spoke about better equipping law enforcement and also the importance of economic empowerment for women but didn’t mention the role that education plays in all of this. Improved access to education is not only absolutely vital in starting to close the gap between the rich and the poor in South Africa, going some way towards preventing at least some types of financially motivated crimes, but is also an area in which the government has absolutely failed in the post-apartheid era.”



President Ramaphosa’s SONA address comes at a time when South Africans are dealing with a multifaceted set of challenges, and while the ruling ANC has managed to deliver increased services and equality to many, they have reportedly failed to meet many of the promises made in democratic South Africa, with unemployment, infrastructural challenges, and crime becoming a scourge on society. The rise of new political movements, as well as President Ramaphosa&#8217;s nostalgic callback to the ANC&#8217;s achievements and deflection of criticisms, has led analysts to be critical of the address. However, one thing is certain: the election year ahead is likely to be hotly-contested and fraught with high stakes, signifying a critical juncture for South Africa&#8217;s democracy.

Tag: State of the Nation

FORBES AFRICA SOCIAL MEDIA

South Africa’s 2025 State of the Nation Address: Economic Vision, Global Relations, and National Challenges

Analyzing Ramaphosa’s State Of The Nation Address Amidst South Africa’s Socioeconomic Challenges