Cabinet confident in SA’s economic resilience, highlighting major investments

South Africa’s Cabinet is expressing optimism about the country’s economic resilience as it continues to foster partnerships that will drive key sectors forward and attract significant investments.

Several recent developments, including high-profile projects by global companies and the private sector, are set to bolster South Africa’s economy and create new job opportunities.

Google South Africa’s R2.5 Billion Cloud Investment

A key announcement is the launch of Google South Africa’s R2.5 billion cloud region in Johannesburg, marking a major milestone as the company’s first cloud project on the African continent. This investment integrates South Africa into Google Cloud’s global network, reinforcing the country’s role as a technology hub on the continent.

“Cabinet welcomed the launch of Google South Africa’s R2.5 billion cloud region in Johannesburg, which integrates South Africa into Google Cloud’s global network. This project is Google’s first in Africa and marks a significant investment in South Africa’s technology infrastructure,” said Khumbudzo Ntshavheni, Minister in The Presidency.

Ntshavheni also emphasized the importance of accelerating the country’s progress toward sustainable and inclusive economic growth. “Cabinet calls on all sectors to accelerate our country’s path towards sustainable inclusive economic growth and job creation through increased investment and by reinforcing the many positives about our country,” she said.

European Union’s Global Gateway Investment Package

The European Union (EU) also plays a critical role in South Africa’s economic future with its R93.5 billion Global Gateway Investment Package. The EU will support strategic projects that promote clean energy transition, enhance digital and physical connectivity infrastructure, and strengthen the local pharmaceutical industry.

“Cabinet welcomed the strengthening of the Strategic Partnership between South Africa and the EU at the 8th South Africa – EU Summit held on 13 March 2025 in South Africa. The EU reiterated its support for South Africa’s G20 Presidency and the importance of the G20 as a global forum for international economic cooperation,” said Ntshavheni.

Reforms to Rail and Port Freight Logistics

Another key development is the launch of the Request for Information (RFI) on Private Sector Participation in Rail and Port Freight Logistics Projects. This initiative aims to improve South Africa’s logistics sector, boosting economic growth through increased exports and better infrastructure.

“The Roadmap for Freight Logistics System in South Africa promotes greater competition in rail and port terminal operations, which will attract private investment, but strategic infrastructure such as rail lines and ports remain in public ownership,” Ntshavheni noted.

A Call for Accelerated Growth

As Cabinet continues to highlight the importance of strategic investments, it remains committed to driving South Africa’s economic recovery and growth. Ntshavheni’s remarks emphasize the importance of reinforcing the country’s positive attributes to attract even more investment.

The Cabinet’s continued efforts in fostering international partnerships and implementing strategic reforms are shaping the future of South Africa’s economy, making it an increasingly attractive destination for global investors.