President Ramaphosa Pushes Medium-Term Plan to Revive South Africa’s Economy

South African President Cyril Ramaphosa has reaffirmed the government's commitment to implementing the Medium-Term Development Plan (MTDP) to address structural economic challenges and steer the country back toward the long-term goals of the National Development Plan (NDP).

The President made the remarks while responding to oral questions in the National Assembly, addressing concerns about whether the NDP's ambitious targets—including reducing unemployment to 6%, achieving 5% economic growth and building a capable state by 2030—remain achievable.

NDP Targets Likely to Miss 2030 Deadline

Ramaphosa acknowledged that a Ten-Year Review of the National Development Plan, released by the National Planning Commission in September 2023, concluded that several major targets—particularly the elimination of poverty and the reduction of inequality and unemployment—are unlikely to be met by 2030.

Despite this, the President said the country has made progress in areas such as:

• Access to education and healthcare

• Expansion of water and electricity services

• Broader social assistance programmes

However, he emphasised that South Africa remains one of the most unequal societies in the world, with wealth disparities persisting across generations.

Economic Challenges Slowed Progress

The President outlined several internal and global factors that have slowed progress toward the NDP's goals.

These include:

• The lingering effects of the 2007–2009 global financial crisis

• The economic impact of the COVID-19 pandemic

• The period of state capture, during which billions of rand were lost through corruption

He also cited structural weaknesses in key state-owned enterprises such as Eskom and Transnet, unreliable electricity supply and declining performance in ports and rail infrastructure as major constraints on economic growth.

Additional challenges include weak state capacity at local government level, reduced investment and poor coordination across government institutions.

Medium-Term Development Plan to Drive Growth

To tackle these challenges, the government has introduced the Medium-Term Development Plan, which aims to accelerate inclusive economic growth and job creation through structural reforms and targeted investment.

The plan focuses on:

• Expanding energy, logistics and water infrastructure

• Encouraging investment in mining, agriculture, tourism and the green economy

• Supporting small businesses and informal enterprises

It also aims to reduce poverty and rising living costs by strengthening social protection programmes, improving healthcare, enhancing foundational education and expanding skills development initiatives.

Building a Capable and Ethical State

A major pillar of the MTDP is strengthening governance and restoring public sector capacity.

The plan prioritises:

• Professionalising the public service

• Strengthening law enforcement institutions

• Improving local government performance

• Intensifying efforts to combat corruption

Ramaphosa said the plan includes a results-based framework with measurable targets and performance indicators over a five-year period.

These targets are integrated into the Medium-Term Expenditure Framework, departmental budgets and annual performance plans, while ministers' performance agreements also include indicators derived from the MTDP.

The President said the plan is designed to help rebuild the economy and restore state capability.

Strengthening Role of Traditional Leaders

In response to another parliamentary question, Ramaphosa outlined steps being taken to strengthen the participation of traditional and Khoi-San leaders in governance and service delivery.

He said traditional leadership institutions play a key role under the District Development Model, acting as partners in local governance and community development.

Several laws support this participation, including:

• The Traditional and Khoi-San Leadership Act

• The Municipal Systems Act

• The Municipal Structures Act

These laws allow recognised traditional leaders to participate in municipal council discussions as advisory members, attend council meetings and contribute to policymaking and service delivery planning.

Improving Cooperation Between Municipalities and Traditional Leaders

Ramaphosa acknowledged that implementation of this framework has been uneven across municipalities.

To address this, the Medium-Term Development Plan now includes a specific indicator to track the participation of traditional and Khoi-San leaders in government planning, implementation and monitoring processes.

The Department of Cooperative Governance and Traditional Affairs (COGTA) has also begun capacity-building workshops across district and metropolitan municipalities to improve compliance with the legislation.

Additionally, the ongoing review of the White Paper on Local Government is expected to strengthen cooperation between municipalities and traditional leadership structures.

Commitment to Inclusive Governance

Concluding his remarks, President Ramaphosa reaffirmed the government's commitment to fully recognising and empowering traditional leadership institutions within South Africa's governance framework.

He said their community legitimacy, cultural authority and proximity to local communities make them vital partners in improving service delivery and building a capable state.