The World Bank has given South Africa a modest vote of confidence, saying the economy is growing again but warning that the recovery remains weak. The World Bankhas givenSouth Africaa modest vote of confidence, the economy is growing again but warning that the recovery remains According to the latestWorld Bank Global Economic Prospects report, South Africa’s economy expanded by an estimated 1.3% in 2025, supported by a more reliable electricity supply, a strong agricultural harvest and improving business confidence. “In South Africa, growth strengthened in 2025 to 1.3%, supported by more reliable electricity supply, a bumper agricultural harvest, and a pickup in business confidence toward year-end.
Fiscalconsolidation efforts and a lower inflation target further bolstered investor sentiment,” the report noted. “In South Africa, growth strengthened in 2025 to 1.3%, supported by more reliable electricity supply, a bumper agricultural harvest, and a pickup in business confidence toward year-end consolidation efforts and a lower inflation target further bolstered investor sentiment,” the report noted. The World Bank predicts that growth willedge uponly slightly over the next two years, reachingabout1.5% by 2027.
“Growth in South Africa is projected to increase to 1.4% in 2026 and 1.5% in 2027. Continued reform momentum — particularly in energy and logistics — alongside rising public investment is expected to crowd in private investment and support medium-term growth prospects,” the report stated. “Private consumption and investment will remain the main growth drivers, aided by efforts to improve public-expenditure efficiency and ease supply-side constraints.”
