In his 2025 State of the Nation Address, South African President Cyril Ramaphosa delivered a bold vision for tackling the nation’s long-standing social and infrastructure challenges, while signalling significant shifts in the government’s approach to poverty alleviation.
Central to his speech was the Social Relief of Distress (SRD) grant, which he described as the stepping stone toward a more sustainable income support system for the country’s unemployed.
Even with rising fiscal pressures and an escalating water crisis, Ramaphosa didn’t shy away from addressing the urgent need for comprehensive local government reforms, promising a fresh direction for struggling municipalities and essential services.
Below are the top five points raised in his speech:
Social Relief of Distress (SRD) Grant: Initially introduced as a temporary measure during the COVID-19 pandemic, the SRD grant helps vulnerable individuals. Ramaphosa reaffirmed the government’s commitment to expanding grants which supports over 10 million recipients.
Infrastructure, Poverty and Unemployment: To address South Africa's high unemployment rate, President Ramaphosa announced a government investment of over R940 billion in infrastructure over the next three years, with R375 billion allocated to state-owned enterprises for the construction of roads, bridges, dams, waterways, and ports.
Municipal Issues and Local Government: President Ramaphosa announced plans for a new White Paper to guide local government reforms, aiming to professionalise municipal management, particularly in water and electricity services, after it was reported that many municipalities in South Africa are struggling with poor infrastructure and service delivery.
Water Infrastructure: The government plans to establish a National Water Resource Infrastructure Agency in 2026 and has secured R23 billion for major water projects. Additionally, a licensing system for water service providers will be introduced to ensure high-quality standards.
National Health Insurance (NHI): The president also reaffirmed the government's dedication to rolling out the National Health Insurance (NHI) program. He confirmed that preparations are in progress