South Africa’s economic reform efforts are gaining traction, supported by increased freight rail cargo volumes, investment in the automotive sector, strengthened manufacturing capacity and a modest upward revision to projected Gross Domestic Product (GDP) growth.
“While the upward revision to South Africa’s economic growth forecast remains modest, it reflects growing confidence in the country’s economic recovery efforts despite weaker global growth and geopolitical tensions in the Middle East,” Minister in The Presidency, Khumbudzo Ntshavheni, said on Thursday, in Pretoria.
The Minister said Cabinet welcomed the International Monetary Fund’s (IMF) updated macroeconomic forecast, which revised South Africa’s projected GDP growth upward to 1.1%.
“Cabinet noted that this positive adjustment reflects a stabilising domestic economy that continues to demonstrate resilience,” Ntshavheni said.
The Minister was briefing members of the media on the outcomes of the Cabinet meeting held on Wednesday, 29 July 2026.
During the first quarter of the 2026/27 financial year, Transnet Freight Rail (TFR) recorded a 4.4% year-on-year performance improvement.
TFR ended the quarter having moved 42.0 million tons, compared with 40.2 million tons in the previous year.
“Notably, TFR achieved this performance despite the introduction of an additional 11-day scheduled maintenance shutdown on the Iron Ore Line. Notwithstanding this, TFR moved a higher volume of tonnage, demonstrating a significant improvement in operational efficiency and throughput,” she said,
Cabinet also welcomed Toyota South Africa Motors’ R10.4 billion investment in its Prospecton plant in eThekwini to produce the ninth-generation Hilux.
Ntshavheni said the investment strengthens the automotive manufacturing sector, supports nearly 27 000 jobs across the supplier network and sustains more than 4 300 direct assembly jobs for the employees working at Toyota’s Prospecton manufacturing plant.
The capital injection comes alongside the Chery Group’s recent acquisition and revitalisation of the former Nissan manufacturing facility in Rosslyn, Gauteng.
Chery Group has announced plans to manufacture the Chery, Jaecoo and Jetour brands at the newly acquired Rosslyn facility.
“Initial production is scheduled to commence in mid-2027, with operational capacity ramping up the following year to achieve an annual output of 15 000 units.
“The Chery Group’s acquisition secures 692 manufacturing jobs and is projected to create nearly 3 000 direct and indirect opportunities across logistics, engineering, supply chains and support services. These long-term commitments also solidify South Africa’s position as a robust manufacturing and regional export hub,” Ntshavheni said.
Digitalised Trusted Employer Scheme
Cabinet further welcomed the official launch of Phase II of the Trusted Employer Scheme (TES), which is aimed at fast-tracking visa processing for verified employers without compromising national security or immigration controls.
The Minister emphasised that qualifying employers must demonstrate significant domestic investment, prioritise the employment of South African citizens and permanent residents, invest in local skills development and align with priority economic sectors.
The dedicated online application portal for TES Phase II, “Home Affairs @ home”, forms part of government’s broader digital transformation strategy.
“At some point, this digital portal will transition into the country’s full Electronic Travel Authorisation (ETA) ecosystem. Qualifying employers are invited to submit Expressions of Interest (EOI) between 20 July 2026 and 4 September 2026,” Ntshavheni said. -SAnews.gov.za
