SONA 2025 | Ten points to take from Ramaphosa’s speech
- Staff Writer
- Feb 12
- 4 min read
By Staff writer
On Thursday evening President Cyril Ramaphosa delivered the 2025 State of the Nation Address (SONA) at Cape Town City Hall, outlining the Government of Nation Unity’s (GNU’s) vision for economic growth, infrastructure development, and social transformation. He said the GNU is committed to fostering inclusive growth, strengthening state institutions, and enhancing South Africa’s global standing. Here are ten key takeaways from the address.
1. Inclusive Growth and Job Creation
The President reaffirmed the government’s commitment to driving inclusive economic growth, targeting a 3% annual GDP increase.
He highlighted public-private partnerships and investment in key sectors such as green manufacturing, the digital economy, and tourism as pivotal drivers of job creation.
He said the Presidential Employment Stimulus has created over 2.2 million work opportunities, with plans to expand initiatives targeting youth employment.
“During the past year, young people secured 235,000 work opportunities through the National Pathway Management Network, which is underpinned by the SAYouth.mobi platform.
“We now need to build on these innovative programmes to create jobs for youth at even greater scale.
“To create jobs, we must leverage our unique strengths and our unrealised potential to build the industries of the future – green manufacturing, renewable energy, electric vehicles and the digital economy,” Ramaphosa said.
2. Municipalities and Service Delivery
Ramaphosa acknowledged ongoing service delivery failures, particularly in municipalities struggling with governance and financial sustainability.
The government will establish professionally managed, ring-fenced utilities for water and electricity services to improve service delivery.
Additionally, the administration will consult widely on an updated White Paper on Local Government to modernize municipal governance structures.
“In many cities and towns across the country, roads are not maintained, water and electricity supply is often disrupted, refuse is not collected and sewage runs in the streets.
“Starting this year, we will work with our municipalities to establish professionally managed, ring-fenced utilities for water and electricity services to ensure that there is adequate investment and maintenance.”
3. Development and Infrastructure
Over R940 billion will be invested in infrastructure over the next three years, with R375 billion allocated to state-owned companies. Major projects include the completion of the Mtentu Bridge and the Polihali Dam, both crucial for economic development and water security. The government will leverage private-sector partnerships to accelerate infrastructure projects and ensure sustainable funding mechanisms.
4. Reforming State-Owned Entities (SOEs)
To improve efficiency, governance, and financial sustainability, the government is repositioning key SOEs, including Eskom and Transnet.
A dedicated SOE Reform Unit will be established to oversee transformation efforts, ensuring strategic infrastructure remains publicly owned while attracting private investment to improve service delivery. The government will also introduce new governance frameworks to strengthen accountability.
“Our immediate focus is to enable Eskom, Transnet and other state-owned enterprises that are vital to our economy to function optimally.
“We are repositioning these entities to provide world-class infrastructure while enabling competition in operations, whether in electricity generation, freight rail or port terminals.
“We will ensure public ownership of strategic infrastructure for public benefit while finding innovative ways to attract private investment to improve services and ensure public revenue can be focused on the provision of public services.”
5. Electricity and Energy Systems
Ramaphosa highlighted that South Africa has experienced over 300 consecutive days without load shedding since March 2024.
“While the return of load shedding for two days last week was a reminder that our energy supply is still constrained, we remain on a positive trajectory.
“We now 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 implementation of the Electricity Regulation Amendment Act on 1 January, marks a significant shift toward a competitive electricity market.
The government aims to secure long-term energy stability through investments in renewable energy and private-sector participation in the transmission network.
6. Addressing the Water Crisis
With water shortages increasingly affecting South Africans, the government has prioritized water security.
The Infrastructure Fund has secured R23 billion for large-scale water projects, including the Lesotho Highlands Water Project and the uMkhomazi Dam.
A new National Water Resource Infrastructure Agency will be established to attract investment in critical water projects.
Additionally, a licensing system for water service providers will be introduced to ensure compliance with quality standards.
7. Digitalisation of the Visa System
To boost tourism and attract skilled professionals, South Africa will launch an Electronic Travel Authorization (ETA) system, enabling fully digital visa applications.
Using artificial intelligence and automation, the system will streamline visa approvals, enhance security, and reduce corruption.
He said government has already cleared 90% of the backlog of 300,000 visa applications, signaling a commitment to improving accessibility for international visitors and investors.
“These changes send a strong message that South Africa is open for business and tourism. We want a nation in which prosperity and opportunity is shared by all.”
8. Advancing Digital Infrastructure
The administration is accelerating investment in digital infrastructure to improve service delivery and economic competitiveness.
A relaunch of the gov.za platform will enable South Africans to access government services online, while a new digital identity system will enhance security and efficiency.
Digital investments also extend to business process outsourcing, a rapidly growing sector that has created thousands of jobs for young people.
9. Transformation Fund for Economic Inclusion
A new R20 billion Transformation Fund will be established to support black-owned businesses, small enterprises, and historically disadvantaged entrepreneurs.
The fund aims to promote economic inclusivity, particularly for women, youth, and persons with disabilities.
Ramaphosa said government will also expedite Public Procurement Act regulations to ensure equitable opportunities in state contracts.
“We will continue to provide training to women entrepreneurs to enable them to compete for government tenders.
“In November last year, we launched the National Skills Fund Disabilities Programme.
“In its first phase, this transformative initiative will empower over 10,000 persons with disabilities through tailored training programmes, stipends and specialised tools.”
10. Strengthening International Relations
Ramaphosa emphasized South Africa’s role in global diplomacy, particularly as the chair of the G20.
He reaffirmed the country’s commitment to multilateralism, human rights, and economic integration across Africa.
Additionally, South Africa continues to support peace efforts in the Democratic Republic of the Congo and has called for a ceasefire in the Russia-Ukraine conflict.
The country’s recent action against Israel at the International Court of Justice underscores its commitment to global justice.
Additional Reporting By: News24
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