President Cyril Ramaphosa says South Africa’s economy is showing clear signs of recovery, pointing to renewed investor confidence and sustained growth as key indicators that the country is “turning a corner”.
Speaking at the opening of Ninety One's new offices in Cape Town on Thursday, President Ramaphosa said the investment was a strong vote of confidence in the country’s economic future.
“This investment signals a long-term commitment to South Africa and its future. It is a tangible demonstration of confidence in our economy, and a step forward in our national ambition to be a global financial services hub,” he said.
The President highlighted improving economic indicators, including four consecutive quarters of Gross Domestic Product (GDP) growth, a stabilising national debt and three years of primary budget surpluses.
He said these developments, alongside structural reforms, were positioning South Africa as an increasingly attractive destination for global investors.
“Across the world, investors are looking at South Africa with renewed interest, as an emerging market with strong institutions, sound policy and a solid track record of reform.
“The tangible improvements in our economic performance that we are experiencing now are the result of a sustained, multi-year effort to reform our economy and to fix what was broken,” President Ramaphosa said.
The financial sector, he noted, remains a cornerstone of the economy, contributing more than a fifth of GDP, generating around 25% of corporate income tax, and supporting nearly three million jobs.
The President said government was working to strengthen the sector and position the country as a global financial services hub, particularly for firms seeking a base for African and emerging market operations.
He also pointed to progress in key reforms, including improvements in energy supply, rail and port operations, and efforts to attract private sector investment.
“The crippling electricity crisis has ended, investment is on the rise, and the economy is creating more jobs.
“We have implemented far-reaching reforms in our energy sector to enable private investment and are moving to restructure Eskom and establish a fully independent Transmission System Operator to create a level playing field for competition,” he said.
Government plans to spend more than R1 trillion on infrastructure over the next three years, to unlock further private investment through public-private partnerships and financing mechanisms.
President Ramaphosa added that collaboration between government and business had been central to the country’s recent progress, particularly in stabilising state-owned enterprises and restoring governance following years of state capture.
He said milestones such as South Africa’s removal from the Financial Action Task Force grey list and its first sovereign credit rating upgrade in nearly two decades were further signs of economic improvement.
The President described Ninety One’s expansion as an example of the strength of South Africa’s financial sector and local talent.
“With its long and established presence at home combined with a global footprint, Ninety One can play a leading role in elevating the prominence, stature and scale of our financial sector.
“This company stands as proof that we more than have what it takes, that our local talent is world-class, and that our ambitions are well-placed,” he said. – SAnews.gov.za
