Business and government rebuilt momentum in 2025 … now the real growth test begins

I said at the beginning of this year that it would be the year to consolidate reforms – electricity reforms that were finally putting load shedding behind us, and reforms to turn around the collapse of the logistics system. That has proved the case.

This year has seen huge delivery from the business and government partnership. Particularly on logistics and electricity, the private sector has been galvanised to invest and, in some cases, already operate significant new infrastructure. I think this is the achievement most worth celebrating of 2025 – though there have been many.

BLSA exists to enable a supportive environment for businesses in South Africa. This year, we have focused on following through on our efforts to resolve load shedding, supporting the National Electricity Crisis Committee, and our efforts to address the logistics crisis that has curtailed our ability to export goods to global markets. But we have also acted to support the criminal justice system, funding forensic skills to support the National Prosecuting Authority, service delivery through support for mentors to engineers in local government and water infrastructure. We have actively supported Operation Vulindlela in several initiatives to facilitate successful reforms, not least the reform of scarce skills visas and the implementation of the trusted employer scheme. We have also worked hard to support government in delivering policy reform, including by creating the BLSA Reform Tracker to monitor over 200 reform processes.

Another clear highlight was the successful B20 we hosted alongside Busa as part of the wider G20 process. Overall, the B20 and G20 were great advertisements for South Africa, providing an opportunity to demonstrate the progress we’ve made with our recovery. The fact that the G20 was able to conclude with communiques that advance multilateral efforts on several fronts is a great testament to government’s hosting of the event. Of course, those must play out in a contested geopolitical space and the US hosting of the next G20 round, and we will see next year how that plays out. I can tell you that our engagement with US business organisations has so far been positive.

Read all our G20 coverage here.

Trade is another area we’ve worked closely on with government. The US-led disruptions to trading relationships across the world have heralded a remarkable new era. The government has worked hard to unlock new trading markets, often closely working with business to identify opportunities and engage. We can see the fruit of these efforts in the resilient performance of our exports overall as we conclude the year. We have managed to sustain the positive trade balance with exports ahead of imports, a balance that has run consistently since the Covid pandemic. Despite the shocks of US tariffs, we have managed to maintain a positive trade balance there too.

One of the reforms that was successfully implemented during the year was to regulations governing public-private partnerships, making it much easier to create small-scale PPPs that are particularly useful at local government level, and making it easier to advance unsolicited PPPs, potentially opening the way for highly innovative projects that could improve service delivery.

BLSA has also actively engaged in many draft regulations and legislation, from rules around credit provision to labour regulation. This has been on many fronts, from Nedlac to several consultation papers that we’ve weighed in on. These efforts lead to improved policy that contributes to a better business environment.

These efforts have dovetailed with several other wins this year. Exiting the FATF grey list, getting the first rating upgrade in 15 years, and delivering a second year of primary budget surplus contribute to the positive environment. There’s also been clear progress in improving the financial performance of state-owned enterprises, particularly Eskom. Through this the government of national unity has held, and now feels more solid than a year ago. These are some of several positive macro factors I highlighted in an opinion piece in yesterday’s Sunday Times that mean 2026 is going to start the year with a positive momentum behind business.

As if to mark the moment, the IMF also last week upgraded its growth expectations for South Africa, from 1.1% to 1.3% for this year and 1.2% to 1.4% for next year. This is still not the 2%-3% growth we should be achieving, but there can be little doubt that the achievements of the last few years are starting to be felt in the investment atmosphere.

Read:
From grey list to growth: How SA is shaping up for 2026
SA is off the grey list, but will this stop corruption?

The cabinet statement last week showed how government is aligned on many of the things we need to deliver a strong business environment – continued structural reforms, a capable and professional public service and faster economic growth. I like the idea of a focused implementation plan to drive economic reforms, public service reforms and industrial policy that can drive growth. The business-government partnership that really paid off in 2025 looks set to help deliver further gains in 2026.

There is much more to say about what I expect in 2026, but I will save that for the first newsletter of next year. For now, it is time to take some time off to spend with family and friends. It will inevitably also be an opportunity for reflection and to recharge our energy stores. Have a wonderful festive season and I look forward to reconnecting with members and partners next year.

Busi Mavuso is BLSA CEO.