The Government of South Africa welcomes the assessment of World Bank that shows economic growth in South Africa, strengthened to 1.3% in 2025. It is supported by a more reliable electricity supply, a strong agricultural harvest and improved business confidence towards the end of the year.
Reportedly, the outlook of World Bank further projects growth that will increase to 1.4% in 2026 and 1.5% in 2027. This reflects the positive impact of continued reform momentum, particularly in the energy and logistics sectors alongside the rising public investment.
According to the World Bank Report, the private consumption and private-sector investment are expected to remain the main drivers of growth that are supported by ongoing efforts to improve the public expenditure efficiency and ease the supply-side constraints.
Performance of South Africa in that report reflects a broader regional trend, with growth of Sub-Saharan Africa rising to 4% in 2025 and forecast to reach 4.3% in 2026 and 4.7% in 2027. Growth outlook of South Africa contributes to the Southern African regional economic stability, given to its central role in trade, investment flows and value chains across neighbouring economies.
This outlook by World Bank affirms that sustained reforms are beginning to yield positive results. However, the Government remains committed to accelerate the inclusive growth that translates into jobs, economic opportunity and improved living conditions for all South Africans.
Furthermore, the government will continue to work with social partners, the private sector and international development institutions will strengthen reforms and will unlock the investment and build a resilient, inclusive and sustainable economy.
Notably, the World Bank provides significant support to South Africa that focuses on boosting economic growth and improving service delivery through major loans in 2025 for infrastructure modernisation such as energy, transport and urban services.
It uses innovative ‘Program-for-Results’ models to incentivise the performance in key cities like Johannesburg and Cape Town with an aim to tackle high unemployment and low growth. This funding further helps to reform state-owned enterprises and attract private investment for critical reforms in power, water, sanitation and waste management.