*As first published by Business Times on 13 December 2025.

As 2025 draws to a close we can look back on a year that, for all its complications, has been characterised by meaningful renewed progress from government. Hard-won fiscal discipline and accelerating structural reform combined to deliver a message of profound economic resilience. We have demonstrated to the world, and to ourselves, that when business and government are aligned on the necessity of reform, we can overcome seemingly intractable challenges and achieve global standing.

The defining characteristic of this year was South Africa’s ability to deliver an improved measure of stability and confidence. The continuation of the Government of National Unity (GNU) was instrumental in providing the political certainty required for the economy to breathe. Despite ongoing global headwinds and domestic turbulence, national stability fostered an environment where we are finally seeing green shoots in gross domestic product (GDP), fixed investment and business confidence.

These are precisely the indicators we needed to see to convert sentiment into sustained growth. This positive trajectory suggests that the South African private sector is, once again, betting on its future. The revival is not accidental. It is the direct result of a determined effort to restore policy credibility.

Central to our renewed economic narrative is the unwavering commitment shown by the Treasury to fiscal discipline. This is one of the most powerful signals we can send to global capital. Treasury is on track for another primary budget surplus, lowering borrowing costs and signalling that public finances are being brought under control. That credibility underpinned strong demand for South Africa’s latest Eurobond issuance and supported sentiment after the S&P sovereign rating upgrade to BB from BB‑, with a positive outlook. Moody’s remains cautious, which is an important reminder that discipline must endure and reforms must continue.

Fiscal responsibility has been matched by a resurgence of private sector activity. We have seen a meaningful increase in private sector investment. While public sector infrastructure delivery remains a challenge (and I have previously identified this as a necessary weak link that must be strengthened), there are early signs that the public investment pipeline is starting to clear. This synergy between increased private capital expenditure and the early indications of renewed public infrastructure investment is the engine required for sustained long-term growth.

2025 was also defined as the year South Africa finally reaped the rewards of structural reform, achieving milestones that cemented our credibility on the global stage.

The successful exit from the Financial Action Task Force (FATF) greylist was a monumental success. We addressed all 22 action items in just 32 months, illustrating what can be achieved when clear accountability and cooperation define the process. This achievement immediately lowered transaction costs and fundamentally improved our standing in the global financial community.

Our most crucial state-owned enterprises also showed signs of a turnaround. Eskom’s comeback is an example of what focused effort can achieve. Despite maintenance and sustainability challenges, the utility returned to profitability for the first time in eight years. This is a vital strengthening of our economic foundation.

Similarly at Transnet we have seen progress amid the operational challenges. The transport ministry’s decision to allocate rail slots to 11 new train operating companies across 41 routes is a transformative step toward establishing third-party access and levelling the playing field in our logistics network. The test will be in execution: moving the tonnes, shortening port dwell times and ensuring concessions are not stuck in procedural limbo.

Reform has extended to important areas of governance too. We have seen progress through Operation Vulindlela in areas like energy and visa reform.  Regulation 16 of the Public-Private Partnership (PPP) framework was amended to make it easier to do PPP projects, empower advisory support and clarify roles to attract private investment. We have reestablished the Investigating Directorate Against Corruption (formerly the Scorpions, the unit that was shut down to pave way for state capture), and the State IT Agency (SITA) monopoly was ended, allowing government departments to procure IT services independently, fostering competitive service delivery.

We also saw capacity rebuilding in the criminal justice system. Exiting the FATF greylist reflected operational improvements across law enforcement, prosecutorial capability and supervision of the financial sector.

From our perspective as Business Leadership South Africa (BLSA), if there is one defining achievement of this year for business and policy reform in South Africa, it is the launch of the BLSA Reform Tracker. We built it to do a simple but powerful thing: measure whether reforms are actually moving from speeches and circulars into delivery. It tracks 240  government deliverables across energy, logistics, visas, governance and criminal justice, and publishes a quarterly view of what is on track, where we are stalled and where momentum is building. It is a data‑driven way to hold government, business and social partners to account, because investment responds to implementation.

BLSA’s co-chairing role in the B20, which was the official G20 dialogue platform for the global business community,  was a leap forward for South African business. Successfully hosting the G20 and B20 summits allowed us to showcase South Africa’s potential, and we were proud to see the Leaders Declaration align strongly with the B20’s recommendations, particularly those focused on African economic development. This role allowed us to leverage global policy insights and ensured that the perspective of South African business informed global debates.

It is right to celebrate these successes. But we must remain frank about the obstacles that stand in our way. Our upbeat outlook is tempered by a clear-eyed view of where we are still failing.

The expiration of the African Growth and Opportunity Act (Agoa) trade programme after 25 years presents a significant US trade challenge. We must intensify our strategy of restoring workable US trade relations, accelerating global trade diversification beyond traditional partners, accessing new African markets to boost exports and regional integration, and strengthening economic ties and competitiveness within the African continent.

BLSA continues to urge both government and the private sector to prioritise the African Continental Free Trade Area (AfCFTA), as its mechanisms are nearing completion and offer significant opportunities for growth. The agreement promises benefits by reducing trade barriers, harmonising rules of origin and creating a single African market.

Domestically, the crisis in local government remains a crippling structural challenge. Crumbling infrastructure and the failure to deliver essential services like water severely hamper business operations and the quality of life for our citizens. Widespread financial mismanagement and persistent corruption in municipalities demand urgent attention and a decisive clean-up.

The challenge of unemployment remains relentless, requiring faster structural changes and greater collaboration between the skills development, private enterprise and education sectors. Finally, while we have seen signs of progress in tackling crime and corruption and reforming the criminal and justice system, we still have a long way to go. The Madlanga Commission is a step in the right direction. This must not be a talk shop. Rather it should emerge with recommendations to strengthen the criminal justice system, including consequence management for those implicated. The shocking revelations emerging from the commission demand that the appointment of the next National Director of Public Prosecutions (NDPP) is made carefully. It is concerning that there are candidates on the shortlist whose integrity and suitability for this critical role are questionable. A suitable, strong, independent NDPP can and must restore trust in the rule of law, reduce the cost of doing business and help dismantle the legacy of state capture.

Despite hurdles, the early signs that South Africa is turning the corner are visible. But implementation takes time. Successful reform depends on maintaining political commitment, resourcing delivery units, resolving blockages quickly and constant accountability. The Reform Tracker exists precisely to help us sustain that focus and keep momentum visible. With investment beginning to revive, 2026 must be the year we turn rising confidence into real, economy-wide growth. The time for deliberation is over. The time for accelerated implementation is now.

Ends