SONA 2025 in a nutshell – the only things you need to know

President Cyril Ramaphosa delivered his State of the Nation Address (SONA), outlining major plans to drive South Africa’s economic growth, improve infrastructure, and enhance social welfare programs.

Key announcements included a significant infrastructure investment, the rollout of a digital ID system, and commitments to the National Health Insurance (NHI) scheme, a Basic Income Grant (BIG), and a R100 billion Black Economic Empowerment (BEE) fund.

A key focus of Ramaphosa’s address was economic growth, with the president setting a 3% GDP growth target.

However, economists predict a more conservative growth rate of between 1.4% and 2%, depending on the success of infrastructure rollout initiatives.

To boost the economy, the government has pledged to invest over R940 billion in infrastructure projects over the next three years.

This investment is expected to address critical infrastructure deficits, create jobs, and stimulate economic activity.

Of this total, R375 billion will be allocated to state-owned enterprises (SOEs) for the construction of roads, bridges, dams, waterways, and ports.

In a significant shift, Ramaphosa announced that public-private partnerships would play a central role in infrastructure development.

The government aims to secure an estimated R100 billion in infrastructure investment deals over the medium term.

The Infrastructure Fund also secured blended finance packages worth R36 billion last year, which will support major projects such as:

• The Polihali Dam (a critical component of the Lesotho Highlands Water Project).
• The Mtentu Bridge—which is set to become Africa’s tallest bridge.
• The Boegoebaai Harbour in the Northern Cape.

Further, Ramaphosa emphasised opening key network sectors—electricity, energy, and ports—to private-sector competition while modernising Eskom and Transnet based on successful East Asian SOE models.

However, despite securing R23 billion for seven major water infrastructure projects, he acknowledged that significantly more investment is needed to address the country’s ongoing water crisis.

Here’s a breakdown of the key points from his speech:

Digital ID System

A major development in South Africa’s digital transformation is the government’s plan to invest in digital public infrastructure.

Ramaphosa announced the relaunch of the gov.za platform, which will allow South Africans to access government services anytime, anywhere.

At the core of this initiative is the implementation of a new digital identity system, developed in collaboration with the South African Revenue Service (SARS), the South African Reserve Bank, and the Department of Home Affairs.

“These measures will transform the relationship between citizens and government and create one government accessible to every person at a touch,” Ramaphosa said.

Basic Income Grant (BIG)

Ramaphosa reaffirmed the government’s commitment to expanding the Social Relief of Distress (SRD) grant, initially introduced in 2020, to support low-income South Africans.

The grant, which has increased from R350 to R370, currently supports over 10 million recipients.

“The Social Relief of Distress Grant is an essential mechanism for alleviating extreme poverty,” the president said.

He added that the government plans to use this grant to establish a long-term, sustainable income support system for unemployed South Africans.

With the country’s unemployment rate still exceeding 32%, implementing a permanent Basic Income Grant remains a pressing issue for economic policy and social welfare.

R100 Billion BEE Fund

Ramaphosa provided further details on the government’s controversial transformation fund, officially committing R100 billion over five years to support black-owned and small businesses.

This fund, aimed at driving economic transformation, has faced criticism, particularly from opposition parties who fear it may be mismanaged.

DA spokesperson Toby Chance previously raised concerns that the fund could become a “slush fund” prone to corruption, similar to the misallocation of South Africa’s R500 billion COVID-19 relief funding.

Despite these concerns, Ramaphosa reaffirmed the government’s commitment to economic transformation and empowerment through this initiative.

National Health Insurance (NHI)

The president also reiterated the government’s commitment to implementing the National Health Insurance (NHI) scheme.

He confirmed that preparatory work is underway, including:

• The development of a single electronic health record system.
• The establishment of Ministerial Advisory Committees on health technologies and healthcare benefits.
• The creation of an accreditation framework for health service providers.

While the speech reiterated the government’s stance on NHI, it notably avoided addressing concerns about the scheme’s impact on private healthcare providers and medical aid schemes.

Instead, Ramaphosa emphasised the state’s long-standing goal of achieving universal healthcare to reduce inequality and improve healthcare access for all South Africans.