Fitch affirms SA outlook as Cabinet unveils youth jobs and reforms push
Cabinet Update: Economic Growth, Youth Initiatives and International Relations Take Centre Stage
Image: Thabo Makwakwa / independent Newspapers
Minister in the Presidency Khumbudzo Ntshavheni on Thursday briefed the media on the outcomes of the Cabinet meeting held a day earlier, outlining progress on economic recovery, employment, international engagement and justice reform.
A key highlight was the Cabinet’s welcome of the latest GDP figures, which showed 0.8% growth in the second quarter of 2025 – a marked improvement from the 0.1% in the first quarter.
Ntshavheni said the uptick reflected a broad-based recovery, with eight key sectors – including manufacturing, mining and trade – recording expansion. “The rising household consumption indicates an improvement in disposable income, supported by more favourable inflation numbers,” she said.
The Cabinet also noted Fitch Ratings’ affirmation of South Africa’s long-term foreign and local currency debt ratings with a stable outlook, affirming investor confidence.
Fitch’s report cited government reforms under Operation Vulindlela Phase 2 - focusing on infrastructure such as electricity, logistics, and water - as pivotal in reducing load shedding and stabilizing freight volumes, underpinning the optimistic economic forecast.
Addressing South Africa’s ongoing youth unemployment challenges, Cabinet welcomed the latest Quarterly Progress Report on the Presidential Youth Employment Intervention (PYEI) for April to June 2025.
Ntshavheni said the report showed over 5.64 million young people registered on the National Pathway Management Network (NPMN), exceeding the initial target of 5 million. More than 1.91 million youth accessed temporary earning opportunities, with over 234,000 opportunities seized in the last quarter alone.
“The government’s sustained efforts are gaining traction in creating meaningful pathways to earning for our young people,” Ntshavheni stated, highlighting initiatives ranging from skills development programs to income-generating opportunities.
She highlighted that South Africa is gearing up for a prominent role at the 80th United Nations General Assembly (UNGA-80), set to take place from 23 to 29 September 2025 in New York.
“President Cyril Ramaphosa will lead the delegation under the theme “Better together: 80 years and more for peace, development and human rights.”
Minister Ntshavheni emphasised that South Africa will use the platform to advocate for global multilateralism, human rights, sustainable development, and peaceful conflict resolution, focusing on crises in the eastern Democratic Republic of Congo, the Sudan, and Palestine.
She added that Ministers Tau and Lamola have already engaged in pre-UNGA discussions on the South Africa-US trade deal and UN special sessions, respectively, with other ministers scheduled to report on their engagements during the assembly.
The Cabinet welcomed the commencement of hearings by the Madlanga Commission of Inquiry into criminality, political interference, and corruption within the justice system.
Simultaneously, Ntshavheni noted that the Khampepe Commission on Truth and Reconciliation (TRC) matters has begun its work., holding meetings with complainants and government representatives.
Additionally, the cabinet reaffirmed its commitment to service delivery improvements following the recent National Executive engagement with the North-West Provincial Executive Council, which focused on infrastructure development and resolving municipal challenges.
“The Cabinet approved the publication of the draft National Entrepreneurship Strategy (NES) and Implementation Plan for public comment.”
Ntshavheni stated that the strategy aims to stimulate entrepreneurship among youth and historically disadvantaged groups by improving access to finance, technology, skills, and markets, while promoting entrepreneurship education from basic schooling to higher education.
“Cabinet also approved the draft National Economic Development and Labour Council (Nedlac) Bill for public comment, which aims to modernise governance structures to reflect constitutional changes since 1994.”
The briefing included several appointments to key boards, including the Patent Examination Board and the South African National Biodiversity Institute (SANBI), as well as the Department of Basic Education’s Director-General contract extension.
Upcoming government events include the 27 September reunion for ex-political prisoners on Robben Island to honour freedom fighters, and a community outreach program on 18 September in Mthatha targeting crime prevention.
Ntshavheni said that the cabinet extended condolences to families affected by recent tragedies, including the victims of the Israeli Defence Force attack in Qatar and prominent South African sports and cultural figures.
In a celebratory mood, the Cabinet congratulated South African athletes and artists excelling on the global stage, including the Springboks’ emphatic rugby victory, Alan Hatherly’s mountain biking world championship, Tyla’s MTV Video Music Award win, and remarkable achievements by women scientists and entrepreneurs.
thabo.makwakwa@inl.co.za
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