Ramaphosa’s urgent message to businesses in South Africa

President Cyril Ramaphosa met with business leaders and business groups last week, making it clear that the government’s partnership with the private sector is setting job creation as its end game – and he wants results fast.
In his letter to the nation on Monday, 20 January 2025, the president said that the government’s partnerships with businesses through Operation Vulindlela and its other partnerships through the Presidential Coordinating Council have already borne fruit.
This has been seen most notably in the areas of electricity—with over 300 days of no load shedding and vital electricity reforms being put into law—while rail and port issues are actively being addressed and dealt with.
The president said that these partnerships have become the centre of government’s work, with the next phase already underway.
However, during his first meeting with local business leaders ahead of the World Economic Forum, the president stressed that job creation is the critical end goal of these reforms and the government’s partnership with the private sector.
Business Leadership South Africa (BLSA) chief executive Busi Mavuso, who attended the meetings, said that the ‘material’ ambition of phase 2 of the partnership is to “deliver economic growth of 3% by the end of this year”.
Businesses and the government have committed to this goal. Underlying that goal, though, is that this level of growth would lead to job creation and trigger a “positive self-reinforcing sentiment” that supports growth.
There is also the message that partners must act rapidly if the country hopes to realise that ambition.
While strides have been made, more needs to be done, and soon, she said.
“We have achieved the end of load shedding, but we need to build additional electricity capacity by expanding the grid and adding another 4,000 MW this year.
“We need to boost the recovery of rail capacity to enable 193 Mt to move through our rail system from 152 Mt last year. We have to get off the FATF grey list. We need to unlock R100 billion of investment this year.
“We must also continue the effort to drive the recovery of the criminal justice system, bolstering the investigation and prosecution of complex white-collar crimes,” the CEO said.
“The message from the president was clear: he wants to see an acceleration of delivery.”
According to Muvaso, ultimately, the president indicated that the effort from the government and the private sector must result in more jobs, especially for young people.
“The partnership’s efforts need to consider the employment impact of different options and ensure that all opportunities are grasped to create jobs. This is certainly the intended outcome of the reforms that will enable growth.
“With growth comes expansion as businesses invest to take advantage of opportunities. Investment leads to increased economic capacity, which creates jobs at scale,” she said.
Investment drive
Feeding into the government and the private sector’s plans, the partners are presenting these ambitions to global investors and leaders at the World Economic Forum in Davos this week.
Mavuso said that business and political representatives will be meeting with their counterparts from around the “to make the case more directly for South Africa”.
Investors have already shown keen interest in South Africa’s GNU and push for reforms.
In December, the country reported the first net inflows by foreign investors to its debt and equity markets since 2022, encouraged by the coalition government and commitments to boosting economic growth.
Portfolio inflows totalled R45.6 billion in the third quarter, compared with an outflow of R20.1 billion in the prior three months.
Mavuso said that there is room for this to continue in 2025.
“This year is our opportunity to tell the world that South Africa is back in business and worthy of investment attention,” she said.
Ramaphosa said that the message the country will be taking to Davos is an ongoing commitment to partnerships between the government and the private sector in pursuit of growth and development.
This message will continue through the year as South Africa hosts the G20, he said.