In his 2025 State of the Nation Address (SONA) delivered at Cape Town City Hall, President Cyril Ramaphosa outlined a bold vision for economic growth, job creation, and structural reforms. His speech focused on supporting small businesses, unlocking infrastructure financing, advancing the Just Energy Transition, fast-tracking procurement reforms, and modernizing mining regulations. While these initiatives signal progress, their real impact will depend on efficient implementation, transparency, and stakeholder engagement.
As a foundation dedicated to entrepreneurial empowerment and economic development, 67CEOS Foundation critically examines these plans, offering alternative approaches that could maximize their impact for South African businesses and communities.
Supporting Small Businesses and Entrepreneurs: Is Enough Being Done?
President Ramaphosa acknowledged that small businesses are the backbone of the South African economy and play a vital role in tackling unemployment. “We are implementing a range of support mechanisms to assist small businesses, including streamlined regulatory processes and increased access to funding,” he stated.
This is a welcome move, but the real challenge lies in execution. Many entrepreneurs struggle with bureaucratic red tape, limited access to capital, and a lack of business development support. The government’s previous small business relief efforts, such as post-COVID funding initiatives, faced inefficiencies and failed to reach many of the intended beneficiaries.
67CEOS Foundation recommends decentralisation of SME support in order to ensure funds and resources reach township and rural entrepreneurs, not just urban businesses. Stronger partnerships with private investors to create accessible funding mechanisms for startups and high-growth enterprises. Simplified compliance processes to make it easier for small businesses to formalise and scale.
By addressing these systemic barriers, entrepreneurship can become a more powerful engine for job creation and economic transformation.
R100 Billion Infrastructure Investment: A Game-Changer or a Missed Opportunity?
The announcement of a R100 billion infrastructure investment is a crucial step toward economic recovery. The President assured South Africans that these funds would be used to develop roads, energy projects, water systems, and digital infrastructure to boost economic growth.
However, history has shown that infrastructure projects in South Africa are often plagued by mismanagement, cost overruns, and corruption. If the investment is not efficiently allocated and monitored, it risks becoming another lost opportunity.
If implemented correctly, this investment could create jobs, improve business environments, and stimulate economic activity at scale.
Just Energy Transition: Will It Benefit All South Africans?
South Africa’s commitment to a Just Energy Transition is critical for both environmental sustainability and economic transformation. President Ramaphosa emphasised, “Our commitment to a Just Energy Transition is unwavering.”
While the shift to renewable energy is necessary, past experiences—such as the closure of the Komati Power Station—have shown how poorly planned transitions can lead to job losses and social instability. Workers who lost their livelihoods were left without adequate support, sparking concerns about the fairness of the transition.
We encourage an effective community engagement in energy projects, ensuring affected workers and businesses are included in new opportunities. Upskilling and reskilling programs to transition coal industry workers into green energy jobs. SME-driven renewable energy solutions, empowering entrepreneurs to lead in solar, wind, and alternative energy sectors.
Without inclusive planning, the Just Energy Transition could deepen unemployment rather than solve it.
Fast-Tracking the Public Procurement Act: A Step in the Right Direction?
The President’s promise to fast-track regulations under the Public Procurement Act is aimed at streamlining government procurement processes and enhancing fairness. While this is essential for efficiency and economic participation, rushed reforms must not compromise transparency and accountability.
South Africa has faced multiple procurement-related corruption scandals, and without strong oversight mechanisms, this reform could lead to new challenges.
The government must implement a transparent digital procurement systems to track contracts in real time. Stronger anti-corruption measures, including independent audits of public procurement deals. Equitable access to government contracts, ensuring SMEs, women-owned businesses, and historically disadvantaged enterprises benefit.
A reliable and corruption-free procurement system is key to restoring business confidence and boosting economic growth.
Modernising Mining Rights: Will It Attract Investors?
South Africa’s mining industry remains a cornerstone of the economy, yet outdated, bureaucratic licensing processes have deterred investors and stifled growth. The President announced the implementation of a modern and transparent mining rights system to address these issues.
For years, the sector has been bogged down by delays in licensing approvals, lack of investor confidence, and outdated technology. If this system is properly implemented, it could attract new investments and stimulate job creation in mining communities.
We believe a fully digitalised mining rights application process will reduce delays and inefficiencies. Stronger collaboration between government and private sector stakeholders to ensure fair and transparent regulations. Incentives for sustainable mining practices, promoting environmentally responsible extraction methods.
A transparent and modern mining rights system could unlock massive investment, strengthen South Africa’s global mining competitiveness, and create thousands of jobs.
President Ramaphosa’s 2025 SONA presented ambitious economic reforms, many of which could significantly improve the lives of South Africans if implemented effectively. However, past challenges—bureaucratic inefficiencies, corruption, and weak execution—raise concerns about whether these promises will translate into real impact.
South Africa needs more than just promises—it needs action. As businesses, civil society, and government work together, we must ensure that policies translate into real economic opportunities for all. The success of SONA 2025 will ultimately be judged by tangible improvements in entrepreneurship, employment, and economic growth.
How do you think these initiatives will impact your business and community? Share your thoughts and let’s drive the conversation forward!
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