ECONOMY
Priorities for growth
Business Unity South Africa( BUSA) highlights five priority areas for 2026 to enable economic and business growth, but cautions that failure to act carries significant risks.
By Khulekani Mathe, BUSA CEO
The South African economy is showing signs of recovery, with improvements in energy security, rail and port infrastructure, and a GDP expected to consistently increase over the next three years from 1.6 % to 2 %.
Recent developments include a credit rating upgrade, removal from the Financial Action Task Force( FATF) grey list, better control of inflation, and a reduction in the cost of debt. In summary, enhancements in infrastructure, stability in monetary and fiscal policies, and improved tax administration are fostering positive sentiment and boosting confidence among investors, businesses, and consumers.
Business leaders are encouraged by the programme announced by President Cyril Ramaphosa during the State of the Nation Address, which is further supported by the budget presented by Minister of Finance, Enoch Godongwana. The commitment to the structural reforms under Operation Vulindlela reassures stakeholders that the government will remain steadfast in its efforts.
… enhancements in infrastructure, stability in monetary and fiscal policies, and improved tax administration are fostering positive sentiment …
While these structural reforms are beginning to yield positive results, they must be sustained to drive future economic growth. Any regression could undermine the credibility of South Africa’ s reform narrative. Our top five priorities for 2026 are:
Addressing infrastructure challenges: This includes improving electricity distribution and costs, upgrading rail and ports, and enhancing water and other municipal infrastructure. Key initiatives involve Transnet’ s rail and port reforms to alleviate export bottlenecks and the operationalisation of the National Water Resources Infrastructure Agency to tackle the emerging national water crisis.
Combating crime: This involves addressing organised crime, corruption, illicit economic activities, disruptions to construction projects, infrastructure vandalism, gender-based violence, and various forms of murder.
Creating competitive markets in network industries: Focused particularly on energy, rail, ports, and water, this priority includes accelerating the restructuring of Eskom and expanding private sector participation in the energy market, which is crucial for ensuring a stable and competitive power supply.
Supporting small and medium enterprises to drive growth and create jobs: This entails addressing regulatory constraints, reducing red tape, and improving turnaround times for issuing licenses that enable businesses to operate effectively.
Rebuilding state capacity: This is essential for driving reforms and improving service delivery.
These priorities have both short- and long-term dimensions. Initially, it is vital to halt the decline in infrastructure performance, followed by reforms to expand and sustain those improvements.
38 sabusinessintegrator. co. za