Thys van Zyl's Hope For the 2026 State of the Nation Address
Thys van Zyl, CEO of Everest Advisory Services, said that a central focus for the government should be improving growth.
South Africa is expected to see GDP growth from around 1.2% to 1.7%. Although this is an improvement, it is far below the 3% to 4% needed to reduce unemployment and raise living standards materially.
“At these levels, the economy is stabilising — not transforming. Without a sharp rise in fixed investment, particularly in energy, logistics, and manufacturing, growth will remain insufficient to absorb new labour market entrants,” said Van Zyl.
“What South Africans want to hear is not optimism, but a credible plan to lift growth above 3%, supported by timelines, funding clarity, and private-sector participation.”
Moreover, while headline inflation has moderated to near the new target of around 3%, households are still experiencing extreme cost pressures.
“Food, fuel, transport, and medical costs — the largest components of middle- and lower-income budgets — continue to rise faster than average inflation.”
“Medical inflation alone often exceeds 7–9%, while household debt levels remain elevated. South Africans are not asking for abstract macroeconomic victories. They want measures that reduce day-to-day pressure.”
He added that South Africa’s foreign policy posture has become more visible and more assertive. While he believes principled diplomacy matters, economic consequences cannot be ignored.
South Africa, for instance, still faces significant tariffs from the United States amid strained relations between the countries.
‘Trade relationships, particularly with major markets, directly affect jobs in automotive manufacturing, agriculture, and mining,” said Van Zyl.
“Diversification into African and Asian markets is essential, but slow. SONA must articulate how South Africa will protect jobs while navigating an increasingly polarised global environment.’
He noted that South Africans are not asking for miracles but merely momentum to catapult the country forward.