Annual GDP growth remained at 0.6% in 2024, while unemployment stood at 31.9%, with the expanded unemployment rate—including discouraged workers—at 41.9%. Gender disparities persisted, with unemployment rates at 33.9% for women and 30.0% for men, rising to 45.2% and 38.8%, respectively, under the expanded definition. The South African Reserve Bank gradually reduced interest rates to 7.8% as annual inflation declined to 4.4%, providing some relief to borrowers and consumers. However, fiscal space for sustainable development remained constrained, with slow growth requiring a driver of acceleration. Investment in energy infrastructure remained insufficient to accelerate economic expansion.

The 2024 national elections marked a turning point as the African National Congress (ANC) secured only 40.2% of the vote, losing its parliamentary ma jority for the first time since 1994. In response, the ANC formed a Government of National Unity (GNU) in June 2024, marking a historic shift towards multi-party governance. Along this change, the GNU’s priorities remain focused on inclusive growth, job creation, poverty reduction, social protection and building a capable, ethical, and developmental state. Since its formation, the GNU has maintained policies aimed at tackling unemployment, providing social safety nets, and pursuing poverty alleviation, including ongoing discussions on the establishment of a Universal Basic Income (BIG). Some policy changes include reforms to streamline the process for Zimbabwean Exemption Permit holders and to simplify work permit applications with the aim of attracting skilled labour. 

In December 2024, South Africa assumed the G20 Presidency, marking the first time an African nation had led the group. President Ramaphosa emphasized using this platform to elevate the development priorities of Africa and the Global South, reinforcing the country’s commitment to fostering a more inclusive and sustainable global economy. 

As a key proponent of the African Continental Free Trade Area (AfCFTA), the country continues to advocate for trade policy harmonization, tariff reductions, and enhanced facilitation. By leveraging its manufacturing, financial, and retail sectors, South Africa seeks to strengthen intra-African trade. However, greater policy coordination with other African nations remains critical to fully unlock the benefits of the AfCFTA. South Africa faces increasing challenges in maintaining its non-aligned foreign policy amid rising global polarization. Its decision to take Israel to the International Court of Justice over genocide allegations aligns with Global South priorities but risks straining relations with Western allies, particularly the USA and the EU.

UN Development System Support to National Development Priorities Through the Cooperation Framework

Cooperation Framework Priorities and Results

The United Nations Cooperation Framework serves as a strategic blueprint for advancing South Africa’s national development priorities while aligning with the SDGs. Through a collaborative, multi-stakeholder approach, the UNCT has worked with the government, civil society, and development partners to drive change across four key areas: inclusive economic growth, human capital and social transformation, governance and institutional capacity, and climate resilience. Tangible results include job creation, social protection reforms, and key interventions in health, education, and gender-based violence prevention. UNCT support has been instrumental in tackling some of South Africa’s most urgent development challenges. Additionally, the report outlines progress in governance, electoral participation, and environmental sustainability, reaffirming the UN’s commitment to a just, resilient, and sustainable future.

Strategic Priorities