IMF: Applauds South Africa’s Reform-Driven Investment Surge 2025

Prime Highlight

IMF Managing Director Kristalina Georgieva praised South Africa’s reforms for stabilizing the economy and boosting investor confidence.
She highlighted improvements in power supply and the government’s focus on transport and logistics to support industrial growth.

Key Facts

South Africa received a credit rating upgrade from Standard & Poor’s, reflecting better fiscal outlook and growth expectations.
Operation Vulindlela, a government-private sector initiative, has helped resolve power cuts and improve municipal and transport systems.

Background

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has praised South Africa’s progress on economic reforms, saying the steps taken have helped stabilise the nation and boost confidence among foreign investors. She made the remarks during an interview with CNBC Africa at the first G20 Summit hosted on the continent.

Georgieva noted that the country has made major strides in easing power shortages, which had previously held back industrial growth. She added that the government’s efforts are now shifting towards tackling logistics issues, especially in transport, to unlock the benefits of rising global demand for metals such as gold and platinum.

“South Africa domestically is taking some very positive steps in terms of structural reforms,” Georgieva said. “We can see stability is going up, so internationally, a good time, and domestically, economically, a good time.”

Her comments follow Standard & Poor’s recent credit rating upgrade for the country, supported by an improved fiscal outlook and better growth expectations. Central Bank Governor Lesetja Kganyago described the move as equivalent to a double-notch improvement.

Much of the reform progress has come through Operation Vulindlela, a government initiative working with the private sector. The programme has helped end severe power cuts and is now focused on improving municipal functioning and transport networks.

Georgieva also welcomed President Cyril Ramaphosa’s leadership at the G20 Summit, praising both logistics and the outcomes of the meetings. She said the summit showed a strong commitment to global cooperation despite geopolitical tensions.

Looking at the wider continent, Georgieva said Africa’s growth remains uneven, with rising debt posing risks to many countries. However, she highlighted the African Continental Free Trade Agreement as a major opportunity, saying it could raise incomes by up to 10% if fully implemented.

“Africa must drive regional integration and invest in infrastructure to support trade,” she said.