President Cyril Ramaphosa has cautioned South Africans to prepare for more difficult economic conditions, warning that global developments beyond the government’s control are likely to slow economic progress and place additional pressure on households.
Addressing the National Assembly during the Presidency’s budget vote on Tuesday, Ramaphosa said government efforts to attract investment and improve South Africa’s international standing had yielded positive results, but external challenges continue to threaten economic recovery.
The President highlighted progress made through the government’s investment drive, revealing that the sixth investment conference had secured pledges amounting to R890 billion.
According to Ramaphosa, a significant portion of these commitments came from domestic investors, which he said demonstrates confidence in the country’s economic prospects and helps encourage further international investment.
He noted, however, that investment commitments do not immediately translate into economic growth, job creation or improved living conditions.
Ramaphosa warned that ongoing geopolitical tensions, particularly the conflict involving Israel, the United States and Iran, are expected to continue affecting global markets and placing upward pressure on fuel, fertiliser and other essential costs.
These developments, he said, are likely to delay efforts aimed at stimulating economic growth and improving living conditions for South Africans.
Providing Parliament with an update on commitments made during his State of the Nation Address, Ramaphosa explained that the Presidency’s primary role is to provide strategic direction and coordinate government efforts rather than directly implement programmes.
Despite ongoing economic uncertainty, the President said government remains focused on addressing South Africa’s unemployment crisis, which continues to be one of the country’s most pressing challenges.
While acknowledging the progress made in attracting investment and strengthening economic confidence, Ramaphosa said South Africans should expect difficult conditions to persist in the near term as global economic pressures continue to weigh on the country’s recovery efforts.
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