South Africa's GDP grew by just 0.8% in 2025, according to Statistics South Africa, marginally better than the 0.6% recorded in 2024 but well below the 3-5% growth rate needed to address the country's 32% official unemployment rate. While the severity of load shedding (rolling blackouts) has diminished significantly since its peak in 2023, the structural damage to business confidence and investment has been lasting.
Eskom Reforms
State-owned utility Eskom has been split into three entities: generation, transmission, and distribution. The transmission entity, now operating as a separate National Transmission Company, has begun approving independent power producer (IPP) connections more rapidly. Approximately 5 GW of new renewable energy capacity was connected to the grid in 2025, contributing to the reduction in load shedding frequency. However, Eskom's debt of approximately 400 billion rand ($22 billion) remains a fiscal burden, with the government providing ongoing guarantees.
Rand Under Pressure
The rand has weakened to approximately 19.2 per US dollar, driven by a combination of higher US rates, South Africa's precarious fiscal position (debt-to-GDP ratio approaching 75%), and the formation of a coalition government that has introduced policy uncertainty. The South African Reserve Bank has kept the repo rate at 8.0%, prioritising inflation control over growth.
Mining Sector
Mining, historically the backbone of the South African economy, continues to decline as a share of GDP (now approximately 7%, down from 21% in the 1970s). Gold production has fallen dramatically from a peak of 1,000 tonnes annually to approximately 100 tonnes. However, platinum group metals (PGMs), manganese, and chrome remain significant export earners. The ongoing transition to electric vehicles poses a threat to PGM demand from catalytic converters, which accounts for approximately 40% of platinum and 80% of rhodium consumption globally.
For South African economic data, visit South African Reserve Bank. For mining statistics, see Minerals Council South Africa.