#Sona2025: Ramaphosa economic recovery plan built on infrastructure, mining, and energy

President Cyril Ramaphosa delivered his #Sona2025 address at Cape town's City Hall. Source: x.com

Key projects include the Mtentu Bridge, which will be Africa’s tallest, and the Polihali Dam, designed to deliver 490,000,000m³ of water annually into the Vaal River System.

These initiatives aim to secure water supplies across provinces and bolster regional development.

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To accelerate infrastructure readiness, Ramaphosa said that his administration is “engaging local and international financial institutions and investors to unlock R100bn in infrastructure financing.”

Additionally, the government has revised public-private partnership (PPP) regulations to harness private sector expertise and funding.

Breathing new life into the mining industry

The mining sector revitalisation project is also well underway.

“We are breathing new life into the mining industry, which remains one of our most important and valuable endowments,” said Ramaphosa.

A new mining rights system will be implemented this year, promising a modern and transparent approach to unlock investment in exploration and production.

He also committed to creating a policy framework to support critical minerals beneficiation, ensuring South Africa reaps the full benefits of its vast mineral wealth.

By beneficiating these minerals here in South Africa, we can make use of the extraordinary wealth that lies beneath our soil for the benefit of our people

Building the economy on stable energy supply

“We need to put the risk of load shedding behind us once and for all by completing the reform of our energy system to ensure long-term energy security,” he said.

The Electricity Regulation Amendment Act, which came into effect on 1 January 2025, introduces a competitive electricity market.

“Over time, this will allow multiple electricity generation entities to emerge and compete,” explained Ramaphosa.

The government is mobilising private sector investment in transmission infrastructure to expand grid capacity for renewable energy.

South Africa’s Just Energy Transition is also steaming ahead with over $13bn committed in international pledges to help meet the country’s carbon reduction commitments while supporting economic growth.

Rebuilding vital networks

“We are revitalising our port terminals and rail corridors through the Freight Logistics Roadmap, leveraging private capital to restore them to world-class standards,” he said acknowledging the negative effects of infrastructure bottlenecks that have hampered these sectors and, ultimately, SA’s economic growth.

In the water sector, R23bn has been secured for large-scale projects, including Phase 2 of the Lesotho Highlands Water Project and preparations for the Ntabelanga Dam in the Eastern Cape.

“It is impossible to live without water, and it is impossible for the economy to grow without water,” said Ramaphosa.

“By working together, we are steadily removing the obstacles to meaningful and faster growth.”

A GNU hope

Minister of Public Works and Infrastructure, Dean Macpherson, will be a key component to driving this economic plan.

Macpherson was effusive in his praise for the president’s words in a statement shared with Bizcommunity:

I welcome the President's support for the work that we have been doing in the Department of Public Works and Infrastructure to turn South Africa into a construction site, which will undoubtedly help grow the economy and create much-needed jobs. His support for the work that we have been doing with the National Treasury to reform public-private partnership regulations will go a long way to attracting additional infrastructure financing, in line with our commitment to secure an additional R100bn in infrastructure investment over the next four years. As the Department, we remain fully committed to meaningfully contribute to the country's vision of increasing South Africa's economic growth to above 3%, which will lead to much more and much-needed jobs.

The Government of National Unity truly represents renewed hope for South Africa's future, and by working together, we are building a better country.