By Zukile Majova
Political Editor
- The official unemployment rate has dropped to 31.9%, with 250,000 more jobs created between July and September this year.
- South Africa has achieved its third budget surplus in a row, while credit ratings agency S&P has upgraded the country for the first time in 20 years.
As the unity government gets to work, South Africa’s economy is showing strong signs of recovery.
President Cyril Ramaphosa said the country is finally turning the corner after years of state capture, load shedding and economic hardship.
Unemployment is down. According to Statistics South Africa, the jobless rate dropped from 33.2% to 31.9% in the third quarter of 2025. That means nearly 250,000 more people are working — with half of those new jobs created in the construction industry.
There’s good news on the government’s finances too. Finance Minister Enoch Godongwana’s recent budget update shows that the country is collecting more money than it spends — without even counting debt payments. It’s the third time this has happened in a row.
Ramaphosa said this is proof of “prudent financial management”.
Even the credit ratings agency S&P is impressed. It upgraded South Africa’s credit outlook last week — the first time in nearly 20 years. A better rating means the government can borrow money more cheaply, freeing up funds for services and job creation.
The upgrade is thanks to better tax collection, progress at Eskom, and major reforms through Operation Vulindlela — a programme launched in 2020 to fix key sectors like energy, transport and immigration.
Ports are running better, rail reforms are under way, and Eskom is finally recovering. New investments in renewable energy are also starting to pay off.
Now in its second phase, Operation Vulindlela is also targeting local government, visas, digital infrastructure and more.
Ramaphosa said the reforms are already working. A University of Stellenbosch study found they could lift long-term growth by up to 3.5%.
“Despite the pandemic, an energy crisis and global pressures, we’ve stayed the course,” Ramaphosa wrote in his weekly letter.
He said the recovery is the result of teamwork between government, business, labour and communities — and that the plan is to keep pushing forward.
Pictured above: President Cyril Ramaphosa.
Image source: GCIS
