The South African Government and Business Partnership have launched the third phase of their program, which aims to boost economic growth above the 3% mark and facilitate the creation of an additional million jobs by 2030, given that the country's unemployment rate exceeds 33%.
The partnership was established in 2023 and has already completed two phases focused on stabilizing the economy and implementing structural reforms. President Cyril Ramaphosa stated that the third phase must transform the achieved progress into faster growth, increased investment, and employment.
Ramaphosa noted that the first phase was dedicated to stabilization, the second to reforms, and the third should focus on growth. However, the economic problems that led to the creation of the partnership remain significant.
The official unemployment rate in South Africa rose to 33.6% in the second quarter of 2026, compared to 32.7% in the first quarter. The number of unemployed people increased by 345,000, reaching 8.5 million, while employment decreased by 16,000.
Stagnation in Growth
These latest labor market figures come against the backdrop of the partnership acknowledging that the current growth pace is insufficient for a sustainable reduction in unemployment. Ramaphosa emphasized that the immediate task of the third phase is to push economic growth above 3%, but he clarified that this is only a necessary threshold, not the ultimate goal.
He stated that '3% growth cannot be the peak of our ambitions,' adding that it is 'a necessary threshold from which we must move towards higher, sustainable, and inclusive growth.' The second phase also aimed for 3% growth with the intention of creating a million jobs, but according to the partnership, the economy grew by only 1.1% in 2025, significantly below the planned figure.
The first two phases of the partnership focused on areas such as energy, transport and logistics, crime and corruption, and youth employment. The Presidency reported that this work contributed to improvements, including over a year without power outages, improved railway and port operations, and South Africa's removal from the Financial Action Task Force's grey list.
Need to Implement Ideas
Ramaphosa acknowledged that the progress made has created a foundation for the next phase, but admitted that the implemented reforms have not yet led to a sufficient level of employment. He noted: 'For millions of South Africans who cannot find work, economic recovery remains an abstract idea. For a young person who has never worked, progress must mean the opportunity to work.'
The third phase will maintain existing areas of focus—energy, transport and logistics, combating crime and corruption, and youth employment. Mining, tourism, infrastructure, and agriculture and agro-processing will be added as growth drivers. Ramaphosa explained that these new sectors were chosen due to their potential to attract investment, generate foreign revenue, strengthen localization, and create jobs on a large scale. The government is also targeting the attraction of R3 billion in investment.
Cross-Sector Priorities
In tourism, the focus will be on aspects such as air connectivity, visa processing, tourist safety, and tourism infrastructure. Agriculture and agro-processing will address issues related to water, transport, biosecurity, financing, and market access. Regarding mining, attention will be paid to administrative matters of mining rights, power supply, logistics, exploration, and illegal mining.
The partnership also aims to increase investor confidence as part of the growth equation. Ramaphosa reiterated the thesis: 'Trust must lead to investment. Investment must lead to production. Production must lead to jobs.'
Adriana Gore, Chair of Business Leadership South Africa and co-organizer of the partnership, stated that business must contribute through leadership, expertise, implementation capacity, and support for investment. She stressed the need to go beyond ordinary business practices to drive growth above 3% and start creating quality jobs.
Gore expressed optimism about South Africa's collective ability to realize its potential, noting the presence of world-class opportunities, deep natural advantages, and sectors with enormous unrealized potential. She added that the Third Phase is carefully designed to unlock this potential through targeted interventions in areas where South Africa can compete globally and win. The partnership announced that detailed implementation plans and metrics for each area of the Third Phase will be presented in the fourth quarter of 2026.