As 2025 draws to a close, we can look back on a year that, for all its complications, has been characterised by renewed progress on the part of the government.
Hard-won fiscal discipline and accelerating structural reform combined to deliver a message of profound economic resilience. We have demonstrated to the world, and to ourselves, that when business and the government are aligned on the necessity of reform, we can overcome seemingly intractable challenges and achieve global standing.
This year’s defining characteristic was South Africa’s ability to deliver an improved measure of confidence. The continuance of the government of national unity was instrumental in providing the political certainty required for the economy to breathe. Despite global headwinds and domestic turbulence, we are finally seeing green shoots in GDP, fixed investment and business confidence.
These are precisely the indicators we needed to see to convert sentiment into sustained growth. This positive trajectory suggests that the private sector is, once again, betting on its future. The revival is not accidental. It is the direct result of a determined effort to restore policy credibility.
Central to our renewed economic narrative is the unwavering commitment shown by the Treasury to fiscal discipline — one of the most powerful signals we can send to global capital. The Treasury is on track for another primary budget surplus, lowering borrowing costs and signalling that public finances are being brought under control. That credibility underpinned strong demand for South Africa’s latest eurobond issue and supported sentiment after the S&P sovereign rating upgrade to BB from BB‑, with a positive outlook. Moody’s remains cautious, which is an important reminder that discipline must endure and reforms must continue.
Fiscal responsibility has been matched by a meaningful increase in private sector investment. While public sector infrastructure delivery remains a challenge, there are early signs that the public investment pipeline is starting to clear. This synergy between increased private capital expenditure and renewed public infrastructure investment is the engine required for sustained long-term growth.
Our most crucial state-owned enterprises also showed signs of a turnaround. Eskom’s return to profitability, despite maintenance and sustainability challenges, is an example of what focused effort can achieve
South Africa finally reaped the rewards of structural reform this year, achieving milestones that cemented our credibility on the global stage.
Removal from the Financial Action Task Force greylist was monumental, fundamentally improving our standing in the global financial community. It illustrated what can be achieved when clear accountability and co-operation define the process.
Our most crucial state-owned enterprises also showed signs of a turnaround. Eskom’s return to profitability, despite maintenance and sustainability challenges, is an example of what focused effort can achieve.
Similarly, at Transnet we have seen progress amid the operational challenges. The transport ministry’s decision to allocate rail slots to 11 train operating companies is a transformative step toward establishing third-party access and levelling the playing field in our logistics network. The test lies in execution.
We have seen progress through Operation Vulindlela in areas such as energy and visa reform. Amending regulation 16 of the public-private partnership (PPP) framework now makes it easier to do PPP projects, empower advisory support and clarify roles to attract private investment.
From our perspective as Business Leadership South Africa (BLSA), the one defining achievement this year for business and policy reform was the launch of the BLSA Reform Tracker. We built it to do a simple but powerful thing: measure whether reforms are actually moving from speeches and circulars into delivery. The tool tracks 240 government deliverables across energy, logistics, visas, governance and criminal justice, and publishes a quarterly view of progress. Importantly, it is a data‑driven way to hold the government, business and social partners to account, because investment responds to implementation.
BLSA’s co-chairing role in the B20, the official G20 dialogue platform for the global business community, was a leap forward for South African business. Successfully hosting the G20 and B20 summits allowed us to showcase South Africa’s potential, while the leaders’ declaration aligned strongly with the B20’s recommendations, particularly those focused on African economic development. This role allowed us to leverage global policy insights and ensured that the perspective of South African business informed global debates.
It is right to celebrate these successes, but our upbeat outlook is tempered by a clear-eyed view of where we are still failing.
The expiration of the African Growth & Opportunity Act presents a significant US trade challenge. We must intensify our strategy of restoring workable US trade relations, accelerating global trade diversification beyond traditional partners, accessing new African markets, and strengthening economic ties and competitiveness within the African continent.
Both the government and the private sector must continue to prioritise the African Continental Free Trade Area, as its mechanisms are nearing completion and offer significant opportunities for growth.
Domestically, the crisis in local government remains a crippling structural challenge. Crumbling infrastructure and the failure to deliver essential services severely hamper business operations and the quality of life for our citizens. Widespread financial mismanagement and persistent corruption in municipalities demand urgent attention and a decisive clean-up.
The unemployment crisis requires faster structural changes and greater collaboration between the skills development, private enterprise and education sectors. Finally, while we have seen signs of progress in tackling crime and corruption, we still have a long way to go. The Madlanga commission is a step in the right direction. It should emerge with recommendations to strengthen the criminal justice system and subject those implicated to their just deserts.
Despite hurdles, the early signs that South Africa is turning the corner are visible. But implementation takes time. Successful reform depends on maintaining political commitment, resourcing delivery units, resolving blockages quickly and constant accountability. With investment beginning to revive, 2026 must be the year we turn rising confidence into real, economy-wide growth.
• Mavuso is CEO of BLSA
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