THE IMPROVED ECONOMIC ENVIRONMENT IS AN OPPORTUNITY… USE IT OR LOSE IT

The Institute for Economic Justice (IEJ) warns that modest GDP growth and improvements in network industries (energy, freight, and ports) in 2025 must be used as a springboard for structural transformation rather than a reason for complacency. Despite a projected 1.2% GDP expansion in 2025, unemployment remains critical at 31.9% (narrow) and 42.4% (expanded), while poverty affects 66.7% of the population. The IEJ argues that growth in finance and commodities does not create sufficient jobs and calls for a developmental macroeconomic framework. This includes a dual policy rate regime from the South African Reserve Bank, increased public investment in infrastructure and social services, and the implementation of a net wealth tax to fund these initiatives.

• South Africa's economy showed modest resilience in 2025 with a projected GDP expansion of 1.2%, driven by agriculture, mining, trade, and finance, despite geopolitical tensions and US trade threats.
• Improvements in state-owned network industries—specifically energy, freight rail, and ports—have stabilized the economy and allowed it to better utilize the current commodities boom.
• Labor market conditions remain dire, with the expanded unemployment rate reaching 42.4% (12.5 million people) by September 2025, and 40% to 45% of young people classified as NEET (not in employment, education, or training).
• Poverty and food insecurity have worsened; 66.7% of the population now lives above the upper-bound poverty line, and the number of severely food-insecure people rose by 2.8 million to 8 million between 2019 and 2023.
• Women face disproportionate economic stress due to the burden of unpaid care work and a narrow unemployment rate of 35.9%, exacerbated by cuts to public services.
• The IEJ proposes a developmental macroeconomic framework where the South African Reserve Bank adopts a dual policy rate regime to provide lower-priced credit for developmental investments and recapitalizes public banks like the DBSA and IDC.
• To fund structural transformation and social safety nets, the document recommends progressive taxation, including a net wealth tax, and a shift toward a universal, unconditional social grant system.

APA

Institute for Economic Justice (2026). THE IMPROVED ECONOMIC ENVIRONMENT IS AN OPPORTUNITY… USE IT OR LOSE IT. https://iej.org.za/wp-content/uploads/2026/02/IEJ-Briefing-Note-SONA-2026-13-February-2026.pdf

Chicago

Institute for Economic Justice. THE IMPROVED ECONOMIC ENVIRONMENT IS AN OPPORTUNITY… USE IT OR LOSE IT. 2026. https://iej.org.za/wp-content/uploads/2026/02/IEJ-Briefing-Note-SONA-2026-13-February-2026.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=THE IMPROVED ECONOMIC ENVIRONMENT IS AN OPPORTUNITY… USE IT OR LOSE IT |date=13 February 2026 |url=https://iej.org.za/wp-content/uploads/2026/02/IEJ-Briefing-Note-SONA-2026-13-February-2026.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2026improved, author = {{Institute for Economic Justice}}, title = {{THE IMPROVED ECONOMIC ENVIRONMENT IS AN OPPORTUNITY… USE IT OR LOSE IT}}, institution = {Institute for Economic Justice}, year = {2026}, month = feb, url = {https://iej.org.za/wp-content/uploads/2026/02/IEJ-Briefing-Note-SONA-2026-13-February-2026.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }