Ramaphosa Calls for Economic Growth to Translate into Jobs and Improved Living Standards

Johannesburg, The Gulf Observer: South African President Cyril Ramaphosa has said the success of the Government-Business Partnership will ultimately be measured by whether economic growth translates into job creation, higher incomes and improved living conditions for households across the country.

Speaking at the launch of Phase Three of the Government-Business Partnership in Johannesburg on Thursday, Ramaphosa said the initiative must now move beyond economic stabilisation and structural reforms to deliver sustained and inclusive economic growth.

He stressed that economic recovery must be reflected in the daily lives of South Africans rather than only in stronger corporate balance sheets, improved markets and favourable economic indicators.

“South Africans cannot live on the promise of future growth. They need to experience progress in the present,” the President said, calling for urgent action to ensure that reforms and partnerships produce tangible results.

Ramaphosa said Phase Three must transform the progress achieved during the partnership’s earlier phases into increased investment, productive economic activity and employment.

He outlined a chain of economic outcomes, saying confidence should lead to investment, investment to production, production to jobs and jobs to improved living standards.

The President said the immediate objective was to raise economic growth above 3%, while emphasizing that this should be regarded as a threshold rather than the ultimate goal.

He also stressed that the quality and composition of economic growth were as important as its overall rate. The partnership, he said, must prioritize sectors capable of generating employment on a large scale, expanding industrial capacity and supporting small and medium-sized enterprises.

Particular attention should be given to black industrialists, women-owned businesses and enterprises owned by young people, while ensuring that economic opportunities reach rural communities, townships and smaller towns.

From Crisis Management to Economic Growth

The Government-Business Partnership was established in 2023, when the government and private sector joined forces to address major constraints on South Africa’s economic performance, including the energy crisis, deteriorating freight logistics, crime and corruption.

The partnership has brought together government and business expertise and resources to support structural reforms and restore confidence in the economy. More than 130 chief executives and companies have participated through organizations including Business Unity South Africa, Business for South Africa and Business Leadership South Africa.

The first phase concentrated on economic stabilization, particularly in the energy and logistics sectors and in efforts to combat crime and corruption. The second phase expanded the focus to implementing reforms and improving the business operating environment, with youth employment subsequently added as a priority.

Ramaphosa said the partnership had demonstrated the potential of government and business to achieve meaningful progress when they work around clearly defined national objectives, establish priorities, mobilize expertise and maintain accountability.

He cited more than a year without load shedding, improved power station performance, progress in freight logistics, the opening of rail infrastructure to private operators and South Africa’s removal from the Financial Action Task Force grey list as notable achievements of the earlier phases.

However, he cautioned that these gains did not mean the reform agenda had been completed.

“We cannot declare victory while critical reforms remain incomplete,” he said.

Phase Three Focuses on Investment and Jobs

The central framework for Phase Three is Inclusive Growth, Jobs and Confidence, with greater emphasis on converting improved investor sentiment and structural reforms into tangible economic activity.

The President said the government had set an ambition to mobilize R3 trillion in investment, while reforms were being accelerated through Operation Vulindlela in areas including electricity, freight logistics, water, telecommunications and the visa system.

Phase Three will also broaden the partnership’s sectoral focus to tourism, agriculture and agro-processing, and mining, which Ramaphosa said offered significant potential to attract investment, generate foreign revenue, strengthen local production and create jobs.

Tourism, he said, could generate employment across accommodation, transport, food services, entertainment, retail and the creative industries. Agriculture and agro-processing could strengthen food security while creating employment across the country.

Mining would remain a key pillar of the economy, with opportunities arising from growing global demand for critical minerals as countries transition toward cleaner energy systems.

Ramaphosa stressed that the benefits of economic growth must extend beyond established economic centers and reach villages, townships, small towns, heritage sites and national parks.

Reform Must Improve People’s Lives

The President said the ultimate test of the Government-Business Partnership would not be the number of reforms implemented or improvements in economic indicators, but the impact those reforms have on ordinary citizens.

“The true measure of reform is not the number of policies we announce. It is the change that reform produces in people’s lives,” he said.

He highlighted the needs of unemployed young people, small businesses, farmers, workers and communities, saying progress must translate into employment opportunities, reliable electricity, efficient municipal services, access to finance and markets, water security, functioning transport infrastructure and rising incomes.

Ramaphosa also said businesses had a responsibility to respond to improved confidence by increasing investment, expanding production, developing local suppliers and creating jobs.

Government, he added, must provide policy certainty, efficient regulation, capable institutions and reliable public infrastructure.

The President emphasized that the partnership must operate within the law and in the public interest, without special favours or privileged access, stressing that its credibility would depend both on its results and on the manner in which those results were achieved.

He called for Phase Three to be characterized by urgency, disciplined implementation, measurable targets and accountability.

“We have shown that we can stabilise. We have shown that we can reform. We must now show that we can grow,” Ramaphosa said, urging the government and business community to ensure that confidence is translated into investment, investment into jobs and economic growth into shared prosperity.