Ramaphosa Pledges Infrastructure Push, Jobs Drive and Energy Reform in 2026 State of the Nation Address

CAPE TOWN — President Cyril Ramaphosa has committed to a renewed drive on infrastructure delivery, job creation and energy reform, positioning 2026 as a decisive year for rebuilding public confidence and lifting economic growth.

Addressing a joint sitting of Parliament at Cape Town City Hall, Ramaphosa said the focus now shifts firmly to implementation. Government, he said, will prioritise stabilising electricity supply, reforming logistics and strengthening municipal capacity.

The address comes as South Africa continues to face sluggish growth, persistently high unemployment and growing frustration over governance failures, particularly at the local government level.

Energy reform at the centre of recovery

Ramaphosa said the country’s energy reform programme is beginning to show progress, with new generation capacity coming online and structural changes underway to modernise the sector.

He reaffirmed plans to restructure Eskom into separate generation, transmission and distribution entities to improve efficiency and attract investment.

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Additional renewable energy projects, battery storage facilities and expanded private-sector participation are expected to strengthen grid resilience. The president also pointed to regulatory changes that allow businesses and households to generate their own electricity as part of a broader strategy to stabilise supply.

While load shedding has eased compared with previous years, he acknowledged that long-term energy security remains critical to sustained growth.

Infrastructure and logistics overhaul

Infrastructure-led growth featured prominently in the address, with Ramaphosa outlining plans to unlock private investment in ports, rail and freight corridors. Reforms at Transnet were highlighted as key to easing constraints on mining and agricultural exports.

Government has committed more than R1 trillion in public infrastructure spending over three years, the largest allocation of its kind, alongside new public-private partnership regulations aimed at reducing risk and accelerating project delivery.

He said the newly launched infrastructure bond, which was significantly oversubscribed, signals strong investor appetite for long-term projects in energy, water, transport and digital networks.

To address delays linked to procurement disputes, Ramaphosa announced plans for specialised commercial courts to fast-track cases affecting major projects. Government also intends to establish a professional State Property Company to manage its vast portfolio of land and buildings more strategically.

Through Operation Vulindlela, structural reforms are continuing across electricity, water and logistics to make these sectors more competitive and efficient.

Looking ahead, he confirmed ongoing preparations for high-speed rail corridors, including routes between Johannesburg and Musina, and eThekwini and Johannesburg, with a formal request for proposals expected soon.

Jobs and industrial policy

With unemployment still among the highest globally, Ramaphosa placed job creation at the centre of government’s agenda.

The Presidential Employment Stimulus will continue to support young people and vulnerable groups, while new measures aim to expand support for small and medium-sized enterprises.

There was renewed emphasis on localisation and industrialisation, particularly in green energy, automotive manufacturing and agro-processing. Ramaphosa said the African Continental Free Trade Area offers significant opportunities for South African firms to expand across the continent, provided domestic competitiveness improves.

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Acknowledging deep concerns about service delivery failures, Ramaphosa said government will intervene more decisively where municipalities fail to meet constitutional obligations.

Plans include strengthening oversight, improving procurement systems and accelerating the professionalisation of the public service. He stressed that consequences for corruption and maladministration are essential to restoring trust.

Crime and social stability

Ramaphosa described organised crime as one of the most immediate threats to the country’s development, citing its impact on communities, investment and social cohesion.

Government plans include consolidating intelligence capabilities, deploying specialised multidisciplinary teams and strengthening cooperation across law-enforcement agencies. He confirmed that the South African National Defence Force may be deployed to support police operations in gang-affected areas and regions impacted by illegal mining.

The president also announced the recruitment of 5,500 additional police officers and the creation of a national programme to disrupt the illicit economy, targeting sectors such as tobacco, fuel and counterfeit goods.

He said investigations arising from the Madlanga Commission will proceed without interference, including lifestyle audits and re-vetting of senior police leadership.

On social protection, Ramaphosa confirmed that government continues to examine long-term income support options, including possible reforms to social grants, while balancing fiscal constraints.

Throughout the speech, Ramaphosa returned to the theme of partnership, calling on political parties, business and civil society to work together to implement reforms.

He framed 2026 as a year where progress must be measured not by policy announcements, but by tangible improvements in electricity supply, employment opportunities and service delivery.

For many South Africans, the credibility of this agenda will ultimately rest on whether these commitments translate into visible change in everyday life.