By Lehlohonolo Lehana.
The African National Congress (ANC) National Executive Committee is finalising an economic action plan aimed at improving South Africa’s economy.
The party’s economic transformation sub-committee chairperson, Zuko Godlimpi, says the plan is crucial for economic growth.
Godlimpi was briefing the media during the ANC NEC special meeting in Boksburg, East of Johannesburg.
He adds that a blueprint already exists, citing the state’s progress in turning around Eskom as an example of how strategic intervention can yield tangible results.
Godlimpi said, the ANC president Cyril Ramaphosa will unveil the party’s economic action plan on Monday after a two-day special meeting.
The strategy will guide the ANC’s policy priorities over the next 18 months as it seeks to tackle SA’s sluggish economic growth ahead of the 2026 local government elections.
South Africa’s sluggish economic growth since 2010 has left its citizens markedly poorer than the global average, according to Investec Wealth & Investment International.
The economy has been weighed down by persistent power outages, corruption, high crime rates, crumbling infrastructure, and foreign policy blunders.
These challenges have left South Africa’s economy about 37% smaller than it could have been if it had kept pace with its emerging market peers.
To catch up with the global average over the next decade, South Africa’s GDP per capita would need to grow at an annual rate of about 8%, according to Osagyefo Mazwai of Investec.
That figure is significantly higher than the 5.9% average growth rate seen in middle-income countries since 1991 and nearly double the global average of 4.4%, Investec noted.
The International Monetary Fund has revised its growth outlook for South Africa, projecting the economy will expand by just 1% in 2025, down from an earlier forecast of 1.5%. Investec expects a slightly lower 0.9% growth next year, with a gradual pickup to 3% by 2030.
To achieve faster growth, analysts say the country must accelerate policy implementation to restore business confidence.
According to data from the Bureau for Economic Research, business confidence has consistently remained below the 50-point threshold that signals economic expansion since the global financial crisis.
ANC NEC member and Electricity Minister Kgosientsho Ramokgopa, highlighted progress at Eskom and gave credit to the hard work of the team and indicating a commitment to return to its former glory.
Ramokgopa stated that Eskom profitable performance signifies the end of Eskom receiving further state bailouts.
The state-owned power utility posted an after-tax profit of R16-billion for the 2025 financial year, a remarkable surge into the black from last year’s staggering loss of R55-billion — the first year the SOE made cash instead of burning it since 2017.
Eskom attributed its return to profit in large part to its unpopular 12.74% standard tariff increase, debt relief support and a 14% reduction in primary energy costs.
Ramokgopa told the reporters that he is finalizing an electricity package with significant concessions for South Africa’s ferrochrome smelter industry to revive shuttered operations and save thousands of jobs.
The deal aims to provide a sustainable pricing solution, moving beyond the standard negotiated pricing agreement to address the critical impact of high tariffs, with further details expected to be announced soon.