{"id":96206,"date":"2026-02-22T10:28:47","date_gmt":"2026-02-22T10:28:47","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy"},"modified":"2026-02-22T10:35:09","modified_gmt":"2026-02-22T10:35:09","slug":"imf-plan-to-save-south-africas-economy","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy","title":{"rendered":"IMF plan to save South Africa\u2019s economy"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>South Africa\u2019s government needs to accelerate the implementation of its existing reform programme to increase private investment in key sectors of the economy.<\/p>\n

This needs to be coupled with efforts to maintain low, stable inflation and to improve the government\u2019s financial health and sustainability.<\/p>\n

Key to this progress is the National Treasury\u2019s highly effective Operation Vulindlela, which is working on removing constraints to economic growth.<\/p>\n

If this task team achieves its targets, South Africa\u2019s economic growth rate can surge beyond 3% per annum, making a significant dent in unemployment and the government\u2019s debt burden.<\/p>\n

This is feedback from the International Monetary Fund\u2019s (IMF) mission chief for South Africa, Delia Velculescu, who recently outlined what the country needs to do to capitalise on the momentum it gained towards the end of 2025.<\/p>\n

Velculescu explained that South Africa has immense economic potential, which it has failed to realise over the past decade due to various missteps.<\/p>\n

However, in 2025, the country appears to have taken some steps in the right direction, with its reform efforts beginning to bear fruit.<\/p>\n

\u201cDespite the challenging global environment, South Africa\u2019s growth improved in 2205, inflation and interest rates fell, government bond yields narrowed, and both the stock market and the rand strengthened,\u201d Velculescu said.<\/p>\n

\u201cThis strong performance reflects the country\u2019s sound institutions, flexible exchange rate, abundant natural resources, and credible monetary policy framework.\u201d<\/p>\n

Velculescu, in particular, praised the National Treasury\u2019s decision to adopt a lower inflation target of 3%, which has significantly bolstered the Reserve Bank\u2019s credibility and the financial ecosystem more broadly.<\/p>\n

This was coupled with the country\u2019s removal from the Financial Action Task Force\u2019s greylist and a credit rating upgrade from S&P Global.<\/p>\n

All of this combined to boost investor confidence and, thus, economic growth. However, fixed investment in equipment, machinery, and infrastructure remains lacklustre.<\/p>\n

This means that while South Africa\u2019s economic growth rate improved, it has not been sufficient to meaningfully improve citizens\u2019 lives, reduce unemployment, or improve the state\u2019s finances.<\/p>\n

Furthermore, fixed investment is crucial for sustained economic growth. South Africa\u2019s current growth is driven by cyclical factors, such as commodity prices and low interest rates, which will reverse at some point.<\/p>\n

What South Africa must do<\/b><\/p>\n

It is crucial that South Africa capitalises on improving investor sentiment towards the country and on positive developments in financial markets.<\/p>\n

Velculescu explained that a lower inflation target can have immense beneficial effects, but will not be enough to sustain elevated economic growth on its own.<\/p>\n

A lower inflation target is likely to result in a more stable rand and lower borrowing costs for individuals, businesses, and the government. This encourages investment and growth, while improving the state\u2019s financial stability.<\/p>\n

To capitalise on this, Velculescu said that the government needs to continue implementing its reform agenda to increase private participation in the economy and improve its financial health.<\/p>\n

\u201cSouth Africa has achieved significant progress in advancing key structural reforms through Operation Vulindlela, which targets key constraints to growth,\u201d Velculescu said.<\/p>\n

In the electricity sector, these reforms have stabilised power supply through increased private participation and generated significant investment opportunities.<\/p>\n

A similar process is occurring within the logistics sector, albeit at a slower rate, with Transnet\u2019s monopoly set to be opened up to private investment and competition.<\/p>\n

\u201cWe support the reforms implemented so far. Continued, resolute implementation of these sectoral reforms remains crucial, as reliable electricity, railways, ports, and water infrastructure are fundamental for consumers and the economy,\u201d Velculescu said.<\/p>\n

\u201cWe also recommend a comprehensive package of cross-sectoral reforms to improve the business environment, address governance challenges and corruption, while increasing labour market flexibility.\u201d<\/p>\n

Velculescu explained that doing this could significantly increase South Africa\u2019s economic growth and begin to make an impact on the country\u2019s unemployment crisis.<\/p>\n

\u201cOur analysis indicates that closing half of the gap between South Africa and emerging market best practices in these areas could result in an increase in real output of up to 9% over the medium term,\u201d Velculescu said.<\/p>\n

\u201cThis may support annual growth rates of up to 3%, facilitating more sustainable reductions in unemployment and public debt.\u201d<\/p>\n

For More News And Analysis About South-Africa<\/span> Follow Africa-Press<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. South Africa\u2019s government needs to accelerate the implementation of its existing reform programme to increase private investment in key sectors of the economy. This needs to be coupled with efforts to maintain low, stable inflation and to improve the government\u2019s financial health and sustainability. Key to this progress is the National Treasury\u2019s […]<\/p>\n","protected":false},"author":84,"featured_media":96205,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[275],"class_list":["post-96206","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-south-africa-2"],"yoast_head":"\nIMF plan to save South Africa\u2019s economy - South Africa<\/title>\n<meta name=\"description\" content=\"South Africa\u2019s government needs to accelerate the implementation of its existing reform programme to increase private in ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IMF plan to save South Africa\u2019s economy\" \/>\n<meta property=\"og:description\" content=\"South Africa\u2019s government needs to accelerate the implementation of its existing reform programme to increase private in ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2026-02-22T10:28:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-22T10:35:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2026\/02\/sm_1771743850.065116.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"IMF plan to save South Africa\u2019s economy\",\"datePublished\":\"2026-02-22T10:28:47+00:00\",\"dateModified\":\"2026-02-22T10:35:09+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy\"},\"wordCount\":712,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2026\/02\/sm_1771743850.065116.jpg\",\"keywords\":[\"South-Africa\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy\",\"name\":\"IMF plan to save South Africa\u2019s economy - South Africa\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2026\/02\/sm_1771743850.065116.jpg\",\"datePublished\":\"2026-02-22T10:28:47+00:00\",\"dateModified\":\"2026-02-22T10:35:09+00:00\",\"author\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"description\":\"South Africa\u2019s government needs to accelerate the implementation of its existing reform programme to increase private in ...\",\"breadcrumb\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy#primaryimage\",\"url\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2026\/02\/sm_1771743850.065116.jpg\",\"contentUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2026\/02\/sm_1771743850.065116.jpg\",\"width\":1200,\"height\":675,\"caption\":\"IMF plan to save South Africa\u2019s economy\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.africa-press.net\/south-africa\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"IMF plan to save South Africa\u2019s economy\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#website\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/\",\"name\":\"South Africa\",\"description\":\"Just another Africa News Agency Sites site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.africa-press.net\/south-africa\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\",\"name\":\"cfeditoren\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g\",\"caption\":\"cfeditoren\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"IMF plan to save South Africa\u2019s economy - South Africa","description":"South Africa\u2019s government needs to accelerate the implementation of its existing reform programme to increase private in ...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy","og_locale":"en_US","og_type":"article","og_title":"IMF plan to save South Africa\u2019s economy","og_description":"South Africa\u2019s government needs to accelerate the implementation of its existing reform programme to increase private in ...","og_url":"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy","og_site_name":"South Africa","article_publisher":"https:\/\/www.facebook.com\/AfricaPressTunisiaa","article_published_time":"2026-02-22T10:28:47+00:00","article_modified_time":"2026-02-22T10:35:09+00:00","og_image":[{"width":1200,"height":675,"url":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2026\/02\/sm_1771743850.065116.jpg","type":"image\/jpeg"}],"author":"cfeditoren","twitter_card":"summary_large_image","twitter_misc":{"Written by":"cfeditoren","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy#article","isPartOf":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy"},"author":{"name":"cfeditoren","@id":"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"headline":"IMF plan to save South Africa\u2019s economy","datePublished":"2026-02-22T10:28:47+00:00","dateModified":"2026-02-22T10:35:09+00:00","mainEntityOfPage":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy"},"wordCount":712,"commentCount":0,"image":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2026\/02\/sm_1771743850.065116.jpg","keywords":["South-Africa"],"articleSection":["all news","economy"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy","url":"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy","name":"IMF plan to save South Africa\u2019s economy - South Africa","isPartOf":{"@id":"https:\/\/www.africa-press.net\/south-africa\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy#primaryimage"},"image":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2026\/02\/sm_1771743850.065116.jpg","datePublished":"2026-02-22T10:28:47+00:00","dateModified":"2026-02-22T10:35:09+00:00","author":{"@id":"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"description":"South Africa\u2019s government needs to accelerate the implementation of its existing reform programme to increase private in ...","breadcrumb":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy#primaryimage","url":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2026\/02\/sm_1771743850.065116.jpg","contentUrl":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2026\/02\/sm_1771743850.065116.jpg","width":1200,"height":675,"caption":"IMF plan to save South Africa\u2019s economy"},{"@type":"BreadcrumbList","@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/imf-plan-to-save-south-africas-economy#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.africa-press.net\/south-africa\/"},{"@type":"ListItem","position":2,"name":"IMF plan to save South Africa\u2019s economy"}]},{"@type":"WebSite","@id":"https:\/\/www.africa-press.net\/south-africa\/#website","url":"https:\/\/www.africa-press.net\/south-africa\/","name":"South Africa","description":"Just another Africa News Agency Sites site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.africa-press.net\/south-africa\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb","name":"cfeditoren","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g","caption":"cfeditoren"}}]}},"_links":{"self":[{"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/posts\/96206","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/users\/84"}],"replies":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/comments?post=96206"}],"version-history":[{"count":0,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/posts\/96206\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/media\/96205"}],"wp:attachment":[{"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/media?parent=96206"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/categories?post=96206"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/tags?post=96206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}