President Cyril Ramaphosa’s 2025 State of the Nation Address on Thursday outlines ambitious plans to revolutionise key industries including renewable energy, tourism, and digital services, while implementing crucial economic reforms through Operation Vulindlela. Here's what you need to know about the transformation ahead:
Green Manufacturing, Renewable Energy, and Electric Vehicles: The government intends to harness solar and wind resources to become a leader in renewable energy and green manufacturing, which will enable the production of globally competitive products and create numerous jobs.
Hemp and Cannabis: The government wants South Africa to lead in the commercial production of hemp and cannabis.
Mining: The government plans to revitalise the mining industry by implementing a new, modern, and transparent mining rights system to unlock investment in exploration and production and establish a policy and regulatory framework for critical minerals. Beneficiating these minerals within South Africa can leverage the country's natural resources for the benefit of its people.
Digital Services and Business Process Outsourcing: The government aims to support the growth in digital services and business process outsourcing, which has created jobs for young people, by investing in skills development for the industries of the future.
Tourism: The South African government plans to grow the tourism sector through visa reforms, increasing the number of flights to key destinations, and marketing South Africa as the best country in the world to visit. To enhance the visa system, the government will launch an Electronic Travel Authorisation system which uses artificial intelligence and automation to reduce corruption and ensure quick processing of tourist visas. The government has already cleared over 90% of a backlog of more than 300 000 visa applications. These changes send a message that South Africa is open for business and tourism.
These industries are part of a broader industrial policy focused on localisation, diversification, digitisation, and decarbonisation. The government also aims to fully implement the African Continental Free Trade Area to reduce trade barriers and position South Africa as a central player in the growing African market
The economic reforms currently being implemented in South Africa, according to the 2025 State of the Nation Address, include:
1 Operation Vulindlela: These reforms are creating optimism and confidence in the economy.
2. Rebuilding and restructuring network industries: Positive results are emerging in the functioning of network industries, alongside investment opportunities leading to job creation.
3. SOE Reform: Fundamental reform of state-owned enterprises is underway to ensure they effectively fulfil their social and economic mandates. A dedicated SOE Reform Unit will coordinate this work.
4. Energy Action Plan: Measures implemented have reduced the severity and frequency of load shedding. The Electricity Regulation Amendment Act, effective from January 1, marks the beginning of a competitive electricity market.
5. Freight Logistics Roadmap: Port terminals and rail corridors are being revitalised, leveraging private capital to restore them to world-class standards.
6. Rail Network Access: The release of a Network Statement in December 2024 will enable private rail operators to access the freight rail system.
7. Visa System Enhancements: The visa system is being enhanced to make it easier for skilled people to invest and to grow tourism. An Electronic Travel Authorisation system will be launched to enable a secure, fully digital visa application process.
8. Public Procurement Act Regulations: Fast-tracking the regulations of the Public Procurement Act to ensure businesses owned by women, youth, and persons with disabilities receive equitable opportunities in government contracts.
9. Mining Rights System: Implementation of a new, modern, and transparent mining rights system is on track.
The Medium-Term Development Plan will advance three strategic priorities:
1 To drive inclusive growth and job creation.
2 To reduce poverty and tackle the high cost of living.
3 To build a capable, ethical and developmental state
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