A new World Bank report projecting economic growth for South Africa over the next two years is an indication that government’s reform agenda is bearing fruit.
This after the international development organisation reported that South Africa’s economy is expected to grow by some 1.4% in 2026 – increasing to 1.7% in 2027.
“Government welcomes the World Bank’s assessment that shows economic growth in South Africa strengthened to 1.3 % in 2025, supported by a more reliable electricity supply, a strong agricultural harvest, and improved business confidence toward the end of the year.
“The World Bank’s outlook further projects that growth will increase to 1.4% in 2026 and 1.5% in 2027. This reflects the positive impact of continued reform momentum, particularly in the energy and logistics sectors, alongside rising public investment,” government said in a statement.
Private consumption as well as private-sector investment is expected to contribute to growth, spurred by streamlined public spending and work to remove bottlenecks in supply constraints.
“South Africa’s performance reflects a broader regional trend, with Sub-Saharan Africa’s growth rising to 4% in 2025 and forecast to reach 4.3% in 2026 and 4.7% in 2027. South Africa’s growth outlook contributes to the Southern African regional economic stability, given its central role in trade, investment flows and value chains across neighbouring economies.
“The World Bank’s outlook affirms that sustained reforms are beginning to yield positive results. Government remains committed to accelerating inclusive growth that translates into jobs, economic opportunity and improved living conditions for all South Africans.
“Government will continue to work with social partners, the private sector and international development institutions to strengthen reforms, unlock investment and build a resilient, inclusive and sustainable economy,” the statement concluded. – SAnews.gov.za
