economy
March 1, 2026
South Africa's Economic Growth Forecast to Reach 2% by 2028
South Africa's National Treasury has said the country's economic growth is largely driven by post-pandemic recovery.
TL;DR
- South Africa's economic growth is projected to reach 2% by 2028.
- The current growth is largely a rebound from the Covid-19 pandemic, with the economy expanding by 2.1% in 2022.
- Finance Minister Enoch Godongwana forecasts growth rates of 1.6% in 2026 and an average of 1.8% over the medium term.
- Government reforms in electricity, freight, rail, and visa applications are credited with improving investor confidence and reducing risk premiums.
- Public sector investment in infrastructure is expected to exceed R1 trillion over the next three years.
- Emerging markets, particularly in Sub-Saharan Africa and India, are expected to see brisker growth than advanced economies.
- Persistent challenges include logistics bottlenecks, inadequate public infrastructure, and disease outbreaks.
- Accelerated implementation of reforms, especially in energy, water, and transport, is crucial for faster, inclusive growth.
- Maintaining macroeconomic stability and structural reforms are key to attracting private investment and navigating economic recovery.
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