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Subject: SONA 2025: What It Means for SMEs, NGOs, and South Africa’s Economy
Dear Readers, President Cyril Ramaphosa’s 2025 State of the Nation Address (SONA) set the stage for South Africa’s economic and social trajectory in the coming year. While it was filled with ambitious plans and policy reforms, the real question remains: Will these promises translate into meaningful change for small businesses (SMEs), NGOs, and the broader economy?
One of the most significant announcements in SONA 2025 was the establishment of a R20 billion annual Transformation Fund aimed at empowering black-owned and small businesses. If implemented effectively, this could provide much-needed capital for SMEs struggling with access to funding. However, concerns remain about bureaucratic red tape, delays in fund disbursement, and transparency in allocation. The Public Procurement Act reforms are another potential game-changer, prioritizing businesses owned by women, youth, and persons with disabilities in government contracts. The success of this initiative will depend on how effectively procurement policies are enforced and whether SMEs can compete fairly against larger corporations. On the infrastructure front, the government plans to spend R940 billion over the next three years on roads, bridges, water supply, and energy projects. This should create new business opportunities, particularly for those in construction, transport, and logistics. However, the challenge remains in ensuring that SMEs get a fair share of the contracts rather than the usual big players.
One of the biggest takeaways from SONA was the continued focus on stabilizing Eskom and ending load shedding. The Electricity Regulation Amendment Act, effective from January 1, 2025, aims to create a more competitive electricity market by allowing multiple power generators. This should help reduce reliance on Eskom and increase renewable energy production, potentially lowering operational costs for businesses. Meanwhile, the restructuring of Transnet and freight logistics should help ease supply chain bottlenecks that have hurt industries like mining, agriculture, and manufacturing. Private sector involvement in rail and port management could lead to efficiency gains, but questions remain about implementation timelines and execution.
For NGOs, the expansion of social relief programs, healthcare initiatives, and early childhood education presents new opportunities for partnership and funding. The government’s plan to introduce a sustainable income support system for the unemployed, based on the existing Social Relief of Distress Grant, is a step in the right direction. However, financing this initiative in the long term remains a key concern. The gender-based violence (GBV) initiatives—including more shelters and support services—signal a stronger commitment to social justice. NGOs working in this space could benefit from increased funding, but effective coordination between government agencies and civil society will be crucial.
The government is targeting economic growth above 3%, driven by infrastructure investment, industrial policy reforms, and digital transformation. The emphasis on green manufacturing, electric vehicles, and the digital economy is encouraging, but South Africa’s persistent challenges—high unemployment, corruption, and sluggish economic recovery—could slow down these ambitions. The real test for this administration is not in making bold promises but in execution. As we move forward, businesses, NGOs, and policymakers must hold the government accountable for delivering on its commitments.
SONA 2025 presents a roadmap filled with potential, but the success of these policies depends on follow-through and effective implementation. SMEs must position themselves to take advantage of funding and procurement opportunities, while NGOs should actively engage in shaping social programs. At the same time, the government must ensure that policy reforms translate into real-world benefits rather than remain on paper. What are your thoughts on SONA 2025? Do you believe these policies will positively impact your business or organization? Let’s keep the conversation going.
Best regards,
Paddington Jerahuni
Founder & Principal Consultant
Jerahuni Accounting & Advisory Consultancy