Government attributes rising tourism to structural reforms

South Africa's government has credited a surge in tourism numbers to ongoing structural reforms aimed at boosting economic growth and job creation. These reforms focus on improvements in energy, rail, and ports infrastructure. Deputy Minister Nonceba Mhlauli highlighted progress during a recent report presentation in Johannesburg.

The South African government has pointed to its structural reforms as the key driver behind increasing tourism figures in the country. Officials emphasized that investments in the rail and ports systems have enhanced the movement of goods and people, contributing to this growth.

These initiatives form part of Operation Vulindlela, a program designed to foster inclusive economic development and generate employment opportunities. On Friday, Deputy Minister in the Presidency Nonceba Mhlauli delivered the quarterly progress report on phase two of the operation in Sandton, Johannesburg.

Mhlauli noted the positive impacts of these changes, stating, “The reduction in loadshedding from the reforms in the energy sector has had tangible results on our households and business likewise; reforms in the rail system has supported the performance in passenger rail systems with the majority of our corridors now up and running and providing cheaper transport for the citizens of this country. Going forward, as we advance reforms in our housing policy and the local government system, we will make progress on issues that are the most critical for poor households which include the delivery of basic services.”

The report underscores how reduced power outages and improved rail services are benefiting both residents and the economy, with tourism emerging as a notable beneficiary. Future efforts will target housing and local governance to address essential services for vulnerable communities.

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Finance Minister Enoch Godongwana presenting South Africa's medium-term budget in parliament, with economic charts and national flag.
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South Africa tables medium-term budget focusing on growth and fiscal stability

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Finance Minister Enoch Godongwana presented the Medium-Term Budget Policy Statement on 12 November 2025, emphasizing economic growth, structural reforms, and fiscal discipline amid global uncertainties. The statement forecasts 1.2% GDP growth for 2025 and an average of 1.8% through 2028, with debt stabilizing at 77.9% of GDP. Markets reacted positively, with the rand strengthening to 17.05 against the dollar.

South Africa's business landscape in 2025 started with optimism amid hopes for lower interest rates and stable governance, but quickly faced challenges from power stability gains to budget disputes and international trade pressures.

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Positive developments at Durban and Maputo ports offer hope that South Africa's port issues could fade like load shedding fears. However, the Port of Cape Town faces severe wind challenges exceeding 100km/h. These changes echo the relief from Eskom's past power crises.

Building on recent statements at the Council of the Union of Arab Chambers of Commerce, Egypt's Finance Minister Ahmed Kouchouk highlighted further progress in fiscal policy during a dialogue session at the Bibliotheca Alexandrina. He announced increased budget allocations for industrial and export activities plus human development, while committing to facilitations that expand revenues without new burdens on investors or citizens.

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Impact Hub Cape Winelands has launched an initiative to dismantle structural barriers preventing local businesses from participating in the region's economy. Led by CEO Marli Goussard, the hub connects entrepreneurs with research, markets, and funding to promote inclusive growth. The effort targets tourism integration and community ownership in one of South Africa's most unequal areas.

Minister Sherif El-Sherbiny chaired a meeting of the Tourism Development Authority's board to review progress and accelerate investments. The board approved measures to reschedule payments and extend grace periods for tourism companies. The authority achieved revenues of EGP 4.689 billion by January 20, 2026.

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