President Cyril Ramaphosa has launched Phase Three of the Government-Business Partnership, shifting its focus from economic stabilisation and structural reform towards investment, growth and job creation.
Source: The Presidency X account
Speaking at the launch in Johannesburg on 20 August, Ramaphosa said the new phase would build on progress made in addressing South Africa’s electricity, freight logistics, crime and corruption, and youth employment challenges.
“Phase One was about stabilisation. Phase Two was about reform. Phase Three must be about growth.”
The partnership was established in 2023 as government and business sought to address constraints including load shedding, declining rail and port performance and weaknesses in South Africa’s systems for combating money laundering and the financing of terrorism.
Ramaphosa said the partnership had demonstrated that government and business could make progress by agreeing on priorities, mobilising expertise and holding each other accountable.
Phase Three is organised around three pillars: economic growth enablers, growth drivers and confidence multipliers.
Energy and transport and logistics remain the key growth enablers, while mining, tourism, infrastructure, and agriculture and agro-processing form the new growth drivers.
Crime and corruption, local government challenges, youth employment and the national growth narrative make up the confidence multipliers.
Four sectors identified as growth drivers
Phase Three is centred on Inclusive Growth, Jobs and Confidence, with an immediate objective of lifting economic growth above 3%.
The partnership aims to contribute towards the creation of one million additional jobs by 2030. The target comes as unemployment remains at 33.6%, with about 300,000 new work-seekers entering the labour market each year.
The new phase expands the partnership’s work into tourism, agriculture and agro-processing, mining and infrastructure.
“These sectors have been selected because they have significant potential to attract investment, earn foreign revenue, strengthen localisation and create employment at scale,” Ramaphosa said.
Business Leadership South Africa (BLSA) chairperson and partnership co-convenor Adrian Gore said the new phase represented a shift from removing constraints on the economy towards actively driving growth in sectors where South Africa could compete globally, grow and create jobs.
The expansion does not mean the partnership will move away from its existing priorities. Energy and logistics remain key growth enablers, while crime and corruption and youth employment remain part of the programme.
Freight reforms remain critical to growth
Ramaphosa said progress had been made in the freight logistics sector following the establishment of the National Logistics Crisis Committee and adoption of the Freight Logistics Roadmap.
Rail access agreements have been concluded with 11 private train-operating companies, marking a step towards a more competitive freight rail system.
However, he said further reform was needed.
“Our mines, farms and factories depend on railways and ports that operate efficiently, reliably and at globally competitive cost.”
Energy reform also remains on the agenda. South Africa has now gone more than a year without load shedding, while private investment in new generation capacity has increased.
“We must not confuse the absence of load shedding with the completion of energy reform.”
Ramaphosa said the country still needed to expand the transmission grid, bring new generation capacity online, address municipal electricity distribution and ensure electricity remained affordable.
Tourism targeted for investment and jobs
Tourism is one of the sectors being brought into the partnership’s growth programme because of its potential to generate employment across a range of industries.
“Tourism is one of the fastest ways to generate jobs across a wide range of skills.”
Ramaphosa said government and business needed to address barriers to tourism growth, including air access, visa processing, destination marketing, tourist safety and investment in tourism infrastructure.
The partnership will also seek to extend tourism’s economic benefits beyond established destinations.
“We must ensure that the benefits of tourism extend beyond the established destinations to our villages, townships, small towns, heritage sites and national parks.”
Agriculture and agro-processing to strengthen value chains
Agriculture and agro-processing will also form part of Phase Three, with the focus extending from production to stronger domestic and export value chains.
Ramaphosa identified water, transport, biosecurity, agricultural finance and market access as constraints that need to be addressed.
“We must build competitive agro-processing value chains that enable us to export more processed products rather than only raw agricultural commodities.”
He also called for stronger connections between smallholder and emerging farmers and finance, technology, extension services, commercial supply chains and export markets.
Mining positioned for critical minerals opportunity
Mining remains another focus area, with Ramaphosa pointing to growing global demand for critical minerals linked to the transition towards cleaner energy.
South Africa needs a more efficient mining-rights system, reliable electricity, improved rail and port infrastructure and greater exploration, he said.
The sector must also address illegal mining and organised crime while increasing beneficiation and opportunities for junior miners and black-owned mining companies.
Confidence remains a priority
The partnership will also continue work on crime and corruption while addressing challenges in local government, including the City of Johannesburg.
Building an evidence-based national growth narrative is another focus, with the partnership identifying investor confidence and the operating environment as important to attracting private-sector investment.
Youth employment will remain a dedicated workstream as well as a cross-cutting objective across the partnership's focus areas.
Growth must translate into jobs
Ramaphosa said stronger economic indicators and improved investor confidence would only matter if they resulted in greater investment and employment.
“Confidence must lead to investment. Investment must lead to production. Production must lead to jobs. And jobs must lead to better lives.”
Government has set an ambition to mobilise R3tn in investment, while structural reforms continue through Operation Vulindlela.
Ramaphosa said Phase Three must be defined by implementation, with each workstream requiring clear objectives, measurable targets, timelines and accountable leaders.
“We have shown that we can stabilise. We have shown that we can reform. We must now show that we can grow.”
