Business Leadership South Africa (BLSA), which represents the country’s largest corporations, says the economy has entered the new year on its strongest footing in more than a decade, buoyed by high commodity prices, sustained electricity reliability, stable public finances and easing interest rates.
In her weekly newsletter on Monday, BLSA CEO Busi Mavuso said these conditions provide a solid platform for accelerated growth.
According to data released by Stats SA in December, GDP grew 0.5% in the third quarter of last year, with the economy projected to expand by between 1.1% and 1.3% in 2025.
“These positive factors, combined with ongoing political stability within the government of national unity (GNU), should consolidate into improved confidence, investment and a virtuous cycle of increased economic activity,” said Mavuso.
“But to truly unlock higher growth, there are three critical areas where we must see tangible progress this year: logistics infrastructure, local government service delivery and criminal justice effectiveness. Success on these fronts would position South Africa to finally achieve sustained economic growth above 2%, something we haven’t managed for over a decade.”
But to truly unlock higher growth, there are three critical areas where we must see tangible progress this year: logistics infrastructure, local government service delivery and criminal justice effectiveness.
— Busi Mavuso, BLSA CEO newsletter
During the ANC’s 114th anniversary celebrations at Moruleng Stadium in the North West on Saturday, party leader President Cyril Ramaphosa said the party had identified six tasks for the year. These include fixing local government and improving basic services; accelerating economic transformation, inclusive growth and job creation; and waging war on crime, corruption, and gender-based violence and femicide (GBVF).
He said the government is making significant headway in improving the efficiency of railways and ports, noting, “Rail freight volume increased from 150-million tonnes in 2023 to 174-million tonnes in 2025.”
Mavuso said she wants to see the first privately owned rolling stock running on the country’s rails this year.
“Eleven private operators have been selected to operate 41 routes across six corridors, offering a way to significantly expand the capacity and reliability of our rail network,” she said.
“Transnet and the operators are now in commercial negotiations to finalise access agreements for up to 10 years. The first operations are due to start in the second half of 2026. This will create the reliability that mining companies, agricultural exporters and manufacturers need to commit to expansion.”
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Port concessioning shows similar momentum, she said, noting that in December, Transnet finalised its first port concession deal for Durban Container Terminal Pier 2, to be managed by Philippine ports giant International Container Terminal Services for 25 years. The terminal handles more than 40% of South Africa’s container volumes, making investment in capacity and efficiency potentially transformative.
A similar deal was signed to award a concession for Cape Town’s liquid bulk terminal to FFS Tank Terminals, while further concessions are expected to foster competition among ports and rail operators, improving services and efficiency.
“These breakthroughs must deliver a shift in logistics system reliability comparable to what we’ve achieved in electricity over the last five years. We need to see South Africa’s ports move up the global rankings for efficiency while reducing the cost of getting goods to markets,” the BLSA CEO said.
Regarding the much-anticipated local government elections later this year, Mavuso called on voters to demand “concrete commitments on infrastructure maintenance, financial management and service delivery — not just political promises”.
