Cabinet Calls for Sustained Economic Momentum After GDP Growth Boost

"Cabinet noted the slight increase in the growth of the South African economy, which sets a positive tone for our overall economic performance for the year," said Ramokgopa.

Cabinet has urged all sectors of South African society to capitalize on the recent slight increase in Gross Domestic Product (GDP) growth, calling for collective efforts to build on this positive trajectory. Acting Minister in the Presidency, Maropene Ramokgopa, made the announcement during a media briefing following a recent Cabinet meeting.

Earlier this week, Statistics South Africa reported a 0.4% economic growth in the second quarter of 2024. While modest, this increase signals resilience in the country's economy, and Cabinet sees it as a foundation to drive further progress.

"Cabinet noted the slight increase in the growth of the South African economy, which sets a positive tone for our overall economic performance for the year," said Ramokgopa. "When all sectors build on this momentum as a nation, we will realize more jobs and improved living standards for all South Africans."

The Seventh Administration, according to Ramokgopa, is focused on inclusive economic growth and job creation. Existing interventions aimed at achieving these goals will be intensified in the months ahead.

Investment and Infrastructure Development

Ramokgopa reaffirmed that the government remains dedicated to fostering economic growth, reducing unemployment, and creating a robust investment environment. In line with this, she highlighted the recent R1.1 billion investment by Toyota Tsusho Africa (Pty) Ltd and Ogihara Thailand Corporation Ltd in a new automotive components manufacturing facility at the Dube Trade Port Special Economic Zone in KwaZulu-Natal.

"This massive investment is a vote of confidence in South Africa's status as a prime destination for foreign direct investment," she noted. "Since 2018, President Cyril Ramaphosa's investment drive has secured over R1.51 trillion in investor commitments, further boosting the country's appeal."

In addition, Cabinet welcomed the approval of R17.8 billion in funding from the BRICS New Development Bank (NDB) to support infrastructure projects, particularly in water and sanitation. Transnet has also secured a R5 billion loan from the NDB to modernize and enhance its freight rail capabilities.

These funds will accelerate much-needed infrastructure development and help address backlogs, especially in providing basic services to poor households. Ramokgopa emphasized that these initiatives will not only improve service delivery but also contribute to long-term economic stability and growth.

"Cabinet expressed appreciation for the funding, which will greatly accelerate infrastructure development in our nation and contribute to improving the lives of people," she added.

 

4o