SA Approaches SoNA 2026 with Renewed Economic Momentum and Reform Gains

By Nomonde Mnukwa

As South Africans prepare to listen to the State of the Nation Address (SoNA) on 12 February 2026 at 7pm, the country does so at a moment marked by cautious optimism and measurable progress.

From a strengthening rand and consecutive quarters of economic growth to sustained electricity supply and renewed investor confidence, South Africa enters this year's address with indicators suggesting that reform efforts are beginning to yield tangible results.

Credit Rating Upgrade Signals Renewed Confidence

One of the most significant developments has been South Africa's sovereign credit rating upgrade from BB- to BB, the first improvement in nearly two decades.

This upgrade signals:

• Strengthened financial management

• Advancing structural reforms

• A more stable political and policy environment

The implications are substantial. Improved credit ratings reduce borrowing costs, enhance investor confidence and create greater fiscal space for government to direct resources toward infrastructure, social development and economic expansion.

This milestone reflects growing confidence that policy reforms and governance improvements are taking effect.

Removal from FATF Greylist Strengthens Global Standing

South Africa's removal from the Financial Action Task Force (FATF) greylist and the European Union's list of High-Risk third-country jurisdictions marks another significant achievement.

This outcome, achieved through strengthened oversight mechanisms and addressing identified deficiencies, reinforces the country's commitment to:

• Transparency

• Accountability

• Financial system integrity

• Compliance with international governance standards

The move strengthens South Africa's position in global markets and supports efforts to attract foreign investment.

AGOA Extension Boosts Trade Outlook

The extension of the African Growth and Opportunity Act (AGOA) until the end of the year provides welcome relief and certainty for exporters.

AGOA offers duty-free access for more than 1,800 South African products into the United States market. Key sectors benefiting include:

• Automotive manufacturing

• Agriculture

• Industrial manufacturing

By protecting jobs and enhancing competitiveness, AGOA supports broader efforts to drive inclusive economic growth and sustain export performance.

Economic Indicators Show Momentum

Broader financial indicators suggest that the economy is gradually gaining traction.

Recent trends include:

• A strengthening rand

• Easing inflationary pressures

• Consecutive quarters of economic growth

These improvements reflect both government interventions and the resilience of South African workers, businesses and communities who continue to invest and operate despite global economic uncertainties.

Tourism Reaches Record High

South Africa's tourism sector has delivered one of the most encouraging signals of recovery and growth.

Between January and December 2025, the country welcomed 10,498,506 international arrivals, representing a 17.6% increase (1,579,136 additional visitors) compared to 2024, which recorded 8,919,370 arrivals.

This marks the highest number of international arrivals on record and reinforces South Africa's position as a premier global tourism destination and a leading hub on the African continent.

Tourism remains a critical contributor to employment, foreign exchange earnings and local economic development.

Power Supply Stability Marks Turning Point

Electricity stability, long a pressing concern, has shown meaningful improvement.

During the current financial year:

• South Africa experienced 238 consecutive days without interrupted power supply

• Only 26 hours of loadshedding were recorded in April and May 2025

By the end of January 2026, Eskom's Energy Availability Factor (EAF) stood at 64.55%, reflecting progress driven by intensive maintenance programmes, operational improvements and targeted strategic interventions.

This stability has provided much-needed certainty for households, businesses and investors.

Addressing Gender-Based Violence as a National Priority

In addition to economic reforms, government has classified Gender-Based Violence and Femicide (GBVF) as a national disaster.

This classification enables:

• Faster mobilisation of resources

• Strengthened coordination across departments

• Expanded support services for survivors

The decision underscores a commitment to building a safer and more caring society, where social protection is treated with urgency.

Sustaining Momentum Through Collective Effort

As South Africans prepare for SoNA 2026, these developments provide renewed hope and motivation.

Progress has been achieved through collaboration between government, institutions, businesses and citizens working towards a shared vision of an inclusive and resilient economy.

While structural challenges remain, the past year's achievements suggest that South Africa is steadily regaining momentum.

The focus now shifts to sustaining these gains — ensuring that economic recovery translates into job creation, improved service delivery and long-term social development.

With renewed confidence, improved governance indicators and stabilising infrastructure, the country approaches SoNA 2026 with resolve, responsibility and cautious optimism about its collective future.