President points to GDP growth and investor confidence as proof of recovery
South Africa's economy has reached a decisive turning point, President Cyril Ramaphosa declared on the occasion of Ninety One's new office launch in Cape Town, describing the investment as a powerful endorsement of the country's economic trajectory.
The President said the move by the asset management firm reflected a deep, long-term belief in what South Africa has to offer the global financial community.
"This investment signals a long-term commitment to South Africa and its future. It is a tangible demonstration of confidence in our economy, and a step forward in our national ambition to be a global financial services hub."
Ramaphosa drew attention to a string of positive economic indicators underpinning the recovery narrative. The country has now recorded four successive quarters of GDP expansion, national debt has begun to stabilise, and the fiscus has delivered three consecutive years of primary budget surpluses. He argued that these gains, combined with deep structural reforms, were making the country an increasingly compelling prospect for international capital.
The financial services industry, the President noted, continues to serve as a critical pillar of the national economy. The sector accounts for more than a fifth of GDP, delivers roughly 25% of all corporate income tax receipts, and sustains close to three million jobs. Government's ambition, he said, is to further bolster this industry and establish South Africa as a preferred base for firms targeting African and broader emerging market opportunities.
Reforms and infrastructure spending drive optimism
Ramaphosa outlined significant strides in addressing the country's most stubborn economic constraints. The energy crisis that had crippled businesses and households has been resolved, while improvements to rail and port infrastructure are under way. Private sector participation in the energy market has been unlocked through sweeping reforms, and plans to restructure Eskom and create a fully independent Transmission System Operator are advancing to foster genuine competition.
"Across the world, investors are looking at South Africa with renewed interest, as an emerging market with strong institutions, sound policy and a solid track record of reform. The tangible improvements in our economic performance that we are experiencing now are the result of a sustained, multi-year effort to reform our economy and to fix what was broken."
Looking ahead, the government intends to channel more than R1 trillion into infrastructure development over the coming three years. This expenditure is designed to catalyse additional private investment through public-private partnerships and innovative financing mechanisms, the President explained.
Ramaphosa also credited the close working relationship between government and the private sector for much of the country's recent progress. Joint efforts to stabilise state-owned enterprises and restore sound governance after years of state capture have yielded measurable results. Among the most significant milestones, he cited South Africa's removal from the Financial Action Task Force grey list and the nation's first sovereign credit rating upgrade in nearly twenty years.
"With its long and established presence at home combined with a global footprint, Ninety One can play a leading role in elevating the prominence, stature and scale of our financial sector."
The President held up Ninety One's expansion as a testament to the depth of talent and capability within South Africa's financial services industry, and as further evidence that the country's reform agenda is delivering tangible dividends for investors and citizens alike.
Ninety One's decision to expand its Cape Town operations carries significant weight for South Africa's financial services sector, which employs nearly three million people and contributes over a fifth of GDP. Strengthened investor confidence could attract further foreign capital, boosting job creation and economic stability in a country still recovering from years of infrastructure decay and governance failures. Whether sustained reforms and the promised R1 trillion infrastructure spend translate into broad-based prosperity for ordinary South Africans remains the critical question.
