By Koketso Mamabolo
SA Brings Good News To The Alps During Davos
A record number of the world’s politicians made the trip to Davos this year under the shadow of geopolitical shifts which could change the world as we know it. Amidst all this uncertainty, the value of safe and reliable partners has never been greater. Team South Africa took good news with them to the Alps, on a mission to position the country as a regional leader in sub-Saharan Africa and go from “aid recipient” to “partner of choice” for multilateral institutions and private investors.
Alongside private sector partners, the South African delegation went to present the country as a “stable, rules-based economy ready for responsible investment,” placing an emphasis on the importance of multilateralism and explaining how the government and private sector are working to address energy and logistics challenges.
“When we came here in 2025, we presented our ambitious plan for driving economic reforms, building investor confidence and mobilising private investment,” said Finance Minister Enoch Godongwana, who led a delegation of ministers from Dirco, dtic, small business development, and tourism. “We returned in 2026 with concrete evidence of our progress. We returned not with promises but with real successes.”
Good News
Things are looking up for SA Inc. The list of achievements Team South Africa was able to share with investors points to a ship that is finally going in the right direction. For starters, S&P gave the country its first sovereign credit rating upgrade in nearly two decades, the Financial Action Task Force removed South Africa from the greylist and the EU did the same on a list of high-risk third country jurisdictions.
The centre-piece of the good news is the impact of Operation Vulindlela, now in its second phase. The first phase involved 35 reforms in five areas: electricity, logistics, telecommunications, water, and the visa system. Over 90% of the reforms were either completed or on the way to completion by the time phase two began last year, with half a trillion rands worth of investment estimated to have been unlocked through the reforms.
The result has been significant milestones such as recording over 300 consecutive days with no loadshedding and 4 400 MW of additional generating capacity at the start of the year. Data costs are down 51%, the visa application backlog of 306 000 has been cleared through digital reforms, 220 GW worth of private sector renewable energy projects are in development, and eleven train operating companies have been selected to add 20 million tonnes of freight capacity to the rail network.
Phase II of Operation Vulindlela continues on the trajectory of the first phase with a greater focus on service delivery at the local government level, spatial inequality, and digital public infrastructure. The objective is growth and while the impact of the reforms has yet to be reflected in GDP growth figures, government officials and private sector leaders continue to stress the need for patience and further reforms to attract further investment.
Bridging the Digital Divide at Davos
Operation Vulindlela describes the growth path the country will experience over the next five years as “green and digital”.
Some of the key engagements which took place in Davos were on accelerating intra-African trade, how to use mineral resources in a sustainable way amidst the tech revolution, how South Africa and the EU can collaborate to use digital technologies and AI to drive growth, and a discussion on using sovereign wealth funds and direct foreign investment for infrastructure and energy transitions.
While the investment agenda included ‘bankable’ projects – such as the Gauteng-Durban high speed rail project, the expansion of the ports of Durban and Cape Town, and utility-scale solar farms – the engagements had by both the private and public sectors reflect a greater focus on expanding trade networks and questions of how to ensure that Africa does not get left behind specifically when it comes to digital transformation in age of AI.
Speaking on the sidelines at Davos the Group CEO of Telkom, Serame Taukobong, emphasised the importance of execution at scale for digital transformation to be a success. This requires aligning policy and infrastructure so as to increase connectivity which will drive the digital economy.
“At the core of digital transformation is digital inclusion. And that means everyone having access to the digital economy,” said Serame, stressing that the government cannot do it alone and that public-private partnerships are the route to inclusive growth at scale.
Operation Vulindlela is an example of those partnerships in action, bringing together technical expertise and experience from the private sector to solve public sector challenges. In the end, everyone benefits. By focusing on sectors which are key to digital transformation, namely energy, transportation and telecommunications, the country’s strategy will increase connectivity which will in turn improve growth.
“A strong Transnet, a strong Eskom, a strong Telkom, that is the foundation of really driving economic growth,” said Serame. All three seem to be on an upward trajectory. The signs are there, good things are starting to happen on the tip of Africa.
Sources: Brand South Africa | Daily Maverick | National Treasury | News24 | CNBC
