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By Newz.Africa Africa Desk | Pretoria, South Africa | Published: 29 January 2026 | Ramaphosa poverty declining South Africa
President Cyril Ramaphosa says poverty and unemployment are easing in South Africa. He points to recent data that suggests gradual improvement in key economic indicators.
Speaking this week, Ramaphosa said indicators tracked by Statistics South Africa show that poverty has declined in recent months. Inequality has also decreased. Unemployment has gone down as well. There have been four consecutive quarters of economic growth. Inflation is also lower. He cautioned that the gains stay fragile and depend on sustained investment and reform.
The president linked these trends to increased public and private investment, particularly in large scale infrastructure programmes.
Infrastructure investment tops R1 trillion
Ramaphosa confirmed that the government has committed more than R1 trillion to infrastructure investment over the next three years. This investment targets roads, ports, rail, energy, and water systems.
“For the first time, we have budgeted more than R1 trillion. This amount is for infrastructure investment over the next three years,” Ramaphosa said. He described infrastructure as a key driver of growth and job creation.
According to the Presidency, the funding is anchored in the 2025/2026 Budget Vote. It is also rooted in the Medium-Term Development Plan. There is a strong focus on public-private partnerships to accelerate delivery and attract extra capital.
Linking infrastructure to poverty reduction
Ramaphosa said the infrastructure drive is intended to unlock economic activity. It aims to reduce the cost of doing business. The goal is to create employment, particularly in construction and related sectors.
He highlighted electricity, logistics, and water as priority areas. He noted that constraints in these sectors continue to undermine growth. These challenges also affect household incomes.
Government has amended public private partnership regulations. This change makes it easier for private investors to join in projects. These projects range from renewable energy to housing and transport infrastructure.
Scepticism and pressure to deliver
The government maintains that conditions are improving. But, the claims have drawn skepticism from opposition parties. Analysts argue that poverty and unemployment stay stubbornly high. This is particularly true among young people.
In South Africa, the youth unemployment rate remains above 50 percent. This is despite a modest decline in the overall unemployment rate in late 2025.
Economists have warned that infrastructure pledges will only translate into poverty reduction if projects are delivered on time. Corruption must be curtailed. Reforms in energy and logistics need to be sustained.
Ramaphosa acknowledged these concerns. He stated that the state’s credibility and delivery capacity would decide whether recent gains are felt by ordinary South Africans.
Original reporting
Confirmed claims using public statements by President Cyril Ramaphosa and reporting citing Statistics South Africa data. Reviewed government budget and infrastructure policy documents.
Sources
Briefly News. “Ramaphosa Reports Positive Trends: Unemployment and Poverty Are Decreasing in South Africa.” January 2026.
IOL News. “Ramaphosa’s trillion rand infrastructure plan amid youth unemployment crisis.” January 2026.
SA Government News Agency. “Government commits over R1 trillion to infrastructure investment.” July 2025.
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