South Africa has launched the third phase of a government-business partnership aimed at lifting economic growth above 3% a year and contributing to the creation of one million additional jobs by 2030, as the country seeks to tackle persistently high unemployment and weak economic growth.

President Cyril Ramaphosa launched the new phase on August 20, expanding a partnership established in 2023 between the government and the private sector. The first two phases focused largely on addressing structural constraints, including electricity shortages, freight transport and logistics, crime and corruption, and youth employment.

The third phase shifts the focus toward accelerating investment, production and job creation. The government and business community are targeting sustained GDP growth of more than 3% annually and say their efforts could contribute to one million additional jobs by 2030.

The challenge is significant. South Africa's economy grew by just 1.1% in 2025, while unemployment stood at 33.6%, according to the Presidency. Around 300,000 new job seekers enter the labour market each year, making faster economic expansion critical to reducing unemployment.

The new phase is structured around three pillars: improving the conditions that enable economic growth, focusing on sectors with strong potential to generate investment and employment, and strengthening confidence in the economy.

Energy and transport and logistics remain key priorities, while the partnership is also placing greater emphasis on sectors capable of driving broader economic activity.

Ramaphosa said the first two phases were primarily focused on stabilisation and structural reforms, while the latest phase is designed to translate those reforms into faster growth and more employment.

The government says South Africa has already recorded signs of improvement, including several consecutive quarters of economic growth, stronger sovereign credit assessments, lower inflation and a more stable currency. However, authorities acknowledge that these gains have yet to translate into sufficient job creation.

The success of the initiative will depend on whether government and business can convert reforms into higher investment and productivity. Detailed plans and performance indicators for the different sectors are expected to be announced later in 2026.

For South Africa, the objective is clear: move beyond economic stabilisation and build a faster-growing economy capable of creating jobs at a scale large enough to reduce one of the country's most persistent economic challenges.