What you need to know about President Cyril Ramaphosa’s 2026 State of the Nation Address (SONA).
The structure of the President's SONA broadly followed previous years: an opening focus on the macroeconomic environment, followed by sectoral portfolios, and concluding with foreign policy. However, the tone differed as it was more business-oriented, with greater emphasis on implementation, measurable progress, and institutional reform.
Importantly, the President did not differentiate politically when allocating credit, acknowledging both DA and ANC ministers — notably in Home Affairs and Electricity — reinforcing the coalition's shared ownership of reform outcomes.
Macroeconomic Framing: Continuity and Stabilisation
The economic section was constructive and emphasised continuity with SONA 2025. The key macro signals highlighted were:
- Stabilisation in state expenditure
- Four consecutive quarters of positive GDP growth
- Moderating inflation
- South Africa's removal from the FATF grey list
- Improved electricity supply stability
Infrastructure and Private Sector Participation
The endorsement of greater private-sector participation — particularly through PPPs in ports and rail — was explicit. This aligns with the broader reform trajectory of crowding in private capital, where fiscal space remains constrained, but also a shift in seeing the private sector as a partner.
Eskom Unbundling
Eskom's restructuring remains a critical reform lever. Private-sector concern had increased following signals of potential recalibration of the unbundling strategy.
The President reaffirmed that Eskom unbundling will continue and the transmission unit will be fully independent. "We are restructuring Eskom and establishing a fully independent state-owned transmission entity. This entity will have ownership and control of transmission assets and be responsible for operating the electricity market. Given the importance of this restructuring to the broader reform of the electricity sector, I have established a dedicated task team under the National Energy Crisis Committee to address issues related to the restructuring process, including clear timeframes for its phased implementation. It will report to me within three months. In addition, we will this year commence the first round of independent transmission projects to enable private investment in expanding our national grid."
Problem Areas: Crisis Governance and Centralisation
The President acknowledged structural weaknesses in crime, water infrastructure, and local government performance, though without explicitly framing them as policy failures.
Water: A National Water Crisis Committee, chaired by the President, will be established. This reinforces a pattern of crisis-driven centralisation. National government intervention in failing municipalities was reiterated, alongside the laying of criminal charges against municipal managers in their personal capacity. However, questions remain about the Department of Water and Sanitation's leadership capacity to drive execution.
Crime and Security: The SANDF will be deployed in Gauteng and the Western Cape to address gang violence.
Implementation of the Madlanga Commission's recommendations will proceed via a police task team working with the SSA. This includes:
- Re-vetting senior SAPS and metro police leadership
- Lifestyle audits
The emphasis appears to be administrative cleansing rather than prosecutorial follow-through. Whether this approach materially shifts corruption incentives remains uncertain.
Local Government Reform: A forthcoming White Paper may propose new local government structures. However, the structural issues of cadre deployment, weak technical capacity, and skills deficits were not directly addressed. The potential for increased use of task teams — as seen in eThekwini and possibly Johannesburg — suggests a move toward episodic administrative intervention rather than systemic reform.
The social relief of distress grant will be continued (it has been factored into the F26/27 baseline forecast) and redesigned to link it to skills development, work opportunities, and productive activity.
Notable Omissions
Several material policy issues were not addressed:
- The National Health Insurance (NHI)
- NERSA's R54bn error and cross-subsidisation concerns
- Subsidised electricity allocation to chrome mines, which reportedly account for 35% of load curtailment
These omissions are significant from a fiscal sustainability and industrial policy perspective.
The February 2026 Budget Review is tabled on 25 February at 14h00.
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