South Africa

Sona 2025 must signal a fundamental shift in governance and economic management

4 Feb 2025

The 2025 State of the Nation Address is a defining moment for President Cyril Ramaphosa to restore trust in democracy, strengthen the state’s effectiveness and reinforce South Africa’s role as a regional leader.

South Africa eagerly anticipates the 2025 State of the Nation Address (Sona). The country is at a critical juncture. While there is reason for cautious optimism – including projected 2% economic growth – these gains remain fragile in a country still grappling with structural unemployment, resumed load-shedding and weak governance in many places and at too many levels.

Institutional integrity is also proving difficult to restore in the wake of State Capture.

To move South Africa on to a trajectory of sustained economic growth, the newly formed Government of National Unity (GNU)/grand coalition must address governance deficiencies, enforce political accountability and revitalise economic and security policies.

This Sona is a defining moment for President Cyril Ramaphosa to restore trust in democracy, strengthen the state’s effectiveness and reinforce South Africa’s role as a regional leader.

Economic recovery: More than a numbers game

Despite optimistic projections, South Africa’s expected 2% GDP growth does little to alleviate unemployment, which remains at 32%. Structural constraints — including high electricity costs, weak municipal governance and policy uncertainty — continue to deter investment and business expansion.

Read more: Heavy hitter CEOs target eye-watering economic growth by end of 2025 and a million jobs by 2030

Improved electricity reliability has been welcome, yet rising tariffs reduce industrial competitiveness, especially in manufacturing which has the potential to absorb significant numbers of unemployed South Africans. Unless these issues are addressed, economic recovery will be uneven and exclusionary.

Beyond economic indicators, policy must focus on labour absorption and enabling a more dynamic private sector. A fundamental rethink is required — one that prioritises skills development, industrial policy aligned with market demand and streamlined regulatory frameworks.

Governance and the need for political accountability

Governance remains South Africa’s Achilles’ heel. The country’s political institutions must be rejuvenated to enable economic dynamism. While the GNU represents a shift in political power, it has yet to prove its ability to deliver meaningful change. Coalition politics needs built-in commitment devices to avoid instability and consequent policy paralysis, from the national level right down to local municipalities.

At the local level, poor municipal governance continues to erode service delivery. A national municipal performance dashboard tracking spending, service delivery and infrastructure projects in real time could enhance accountability and transparency. Without stronger municipal performance, South Africa’s growth trajectory will remain constrained by local-level inefficiencies, which constitute investment deterrents.

More broadly, electoral reform is essential to strengthen democratic accountability. The record-low voter turnout in 2024 signalled growing disillusionment with the political system. Unless voters believe their participation is meaningful, South Africa risks a further erosion of democracy.

Electoral reform must, therefore, be at the heart of the GNU’s legislative agenda to ensure greater representation and citizen engagement.

South Africa’s role in regional stability

South Africa has long positioned itself as a regional leader, yet its foreign policy has lacked coherence. The country’s responses to recent electoral crises in Zimbabwe (2023) and Mozambique (2024) have been weak, undermining its credibility.

If South Africa is to reclaim its role as a stabilising force in the region, it must take a more decisive stance on democratic integrity across the continent.

A clear foreign policy agenda must be articulated — one that prioritises regional economic integration through the African Continental Free Trade Area (AfCFTA), while reinforcing security through a revitalised Southern African Development Community (SADC). A dedicated SADC Peace and Security Fund could provide a rapid response mechanism for regional crises, allowing South Africa to play a more active role in maintaining stability.

South Africa’s hosting of the G20 this year also presents an opportunity to shape global discussions on a multipolar world. However, without a strong governance and policy foundation at home, South Africa’s international influence will remain limited.

Law enforcement and security: Restoring public trust

Despite some progress in rebuilding law enforcement institutions post-State Capture, the lack of high-profile prosecutions following the Zondo commission has undermined confidence in the justice system. Political interference and institutional weaknesses continue to plague the National Prosecuting Authority (NPA) and the police.

The GNU must commit to fully insulating the NPA from political meddling while addressing chronic underfunding in law enforcement. The SAPS requires professionalisation, alongside enhanced visible policing and stronger partnerships with civil society to combat crime.

Operation Shanela, which targets high-crime areas, has yielded some early successes, but systemic crime prevention strategies are needed. Furthermore, gender-based violence remains a national crisis requiring urgent intervention. A clear security agenda in this Sona will be crucial in rebuilding trust in law enforcement institutions.

Strengthening local government and service delivery

Governance failures at the municipal level are among the greatest threats to economic development. In 2024, Good Governance Africa’s Governance Performance Index (GPI) found that while some municipalities have improved in service delivery, overall performance remains dismal.

Persistent audit failures and financial mismanagement have led to billions in irregular expenditure. Only 34 of 257 municipalities received clean audits, with the majority concentrated in the Western Cape. Municipal accountability mechanisms must be strengthened to curb wasteful expenditure and enhance service provision.

A professional and depoliticised civil service is vital for local government efficiency. The GNU must prioritise the professionalisation of the public sector, ensuring merit-based appointments and rigorous oversight. Legislative measures such as the Public Service and Coalition Amendment Bills can help stabilise local governance.

Climate change and the just energy transition

The passage of the Climate Change Act in 2024 marks an important step toward climate resilience. However, its implementation remains uncertain, particularly at the municipal level, where financial mismanagement is rampant. Without proper financial oversight, climate action efforts risk being undermined by inefficiency and corruption.

To operationalise the Act, South Africa must establish clear enforcement mechanisms, including improved carbon emissions tracking and internal carbon pricing. Stronger public-private partnerships are needed to drive the just energy transition and reduce reliance on coal.

The GNU must ensure that climate policy is not merely performative, but is integrated into broader economic planning. Failure to do so will not only compromise South Africa’s climate commitments, but also its long-term economic stability.

Conclusion: A moment for leadership

South Africa is at a pivotal juncture. The GNU must not only navigate coalition politics, but also implement decisive reforms to restore economic confidence and political trust.

At the heart of this transformation is accountability — electoral reform to strengthen democracy, governance improvements to enhance service delivery and economic policy adjustments to drive investment and job creation. Without meaningful political will, these efforts will remain theoretical.

The upcoming Sona must be more than a speech — it must signal a fundamental shift in governance and economic management. South Africa has an opportunity to chart a new course, but it requires bold leadership and unwavering commitment to reform.

The time for half-measures is over. South Africa must rise to the challenge. DM

Dr Ross Harvey is the Director of Research and Programmes at Good Governance Africa (GGA) and a senior research associate at the Institute for the Future of Knowledge based at the University of Johannesburg. This article was written in collaboration with the GGA Research Unit: Stuart Morrison, Dr Mmabatho Mongae, Busisipho Siyobi, Leleti Maluleke, Stephen Buchanan-Clarke and Vincent Obisie-Orlu.

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