As we approach the end of another turbulent year it is tempting to focus on what has gone wrong.
South Africa’s challenges ― including economic stagnation, political uncertainty and global volatility ― are well known. Yet amid the anxiety there are reasons to think optimistically about the future if we are willing to look beyond the headlines and embrace new ways of thinking.
Three developments stand out as beacons for a more hopeful 2026:
- The release of King V, effective from the start of 2026, is more than just another update to South Africa’s corporate governance code. It is a call to action and a template for effective and ethical leadership that all of us, in business and beyond, can aspire to. Frankly, it should be mandatory holiday reading for anyone with a stake in the country’s future. What sets King V apart is its decisive shift away from a narrow focus on financial returns. It insists that nonfinancial metrics ― such as social, environmental and governance factors ― must be considered, even when they do not have an immediate effect on the bottom line. This is not only a matter of compliance it is about redefining what success looks like in the South African context.
- A credible new inflation target. The National Treasury’s endorsement of a 3% inflation target, along with the South African Reserve Bank’s move to adopt a 2%–4% inflation band, is a significant step. For investors this is potentially as consequential as the increase in offshore investment limits for retirement funds from 30% to 45%. A credible inflation target signals policy discipline, especially when paired with structural reform. It can help reduce rand volatility, anchor inflation expectations and ultimately drive down real funding costs. It also gives investors and savers greater confidence that South Africa is committed to improving economic competitiveness rather than adopting more populist policies.
- Reducing dependence on old paradigms. After 30 years in power the ANC is beholden to entrenched interests that are not necessarily aligned to broader positive societal outcomes. For South Africa to break free from these constraints and unlock real growth, the ANC cannot remain the dominant or sole voice. There is a growing sense that its dominance is waning, and that is healthy for democracy. Similarly, the world economy has leaned too heavily on the US and global institutions are recognising the need to diversify influence and reduce reliance on a single power.
The real prize for getting this right is not only a higher growth rate, though moving from 1% to 4% would be transformative; it is a fundamental shift in how we approach the country’s future. Effective and ethical leadership, credible policy, and the courage to break with outdated paradigms are not abstract ideals, they are practical levers for progress.
As we close out the year optimism is not about ignoring our challenges but about recognising the agency we have. It means demanding more from our leaders, supporting policies that build confidence and stability, and questioning the narrow view that capitalism is only about financial returns or technical solutions.
While technical skills and “off-balance sheet” funding from the private sector matter they are not sufficient on their own. What we need is a new generation of leadership rooted in sustainability and a broader sense of value that understands long-term prosperity depends on the health of our society and environment.
If we can broaden our perspective and act with intent, we have a real chance to move beyond mere survival and towards a future defined by shared prosperity.
• Crosoer is chief investment officer at PPS Investments.
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