President Cyril Ramaphosa delivered the State of the Nation Address (Sona) on Thursday, 6 February 2025 at 7pm. Photographer: Armand Hough / Independent Newspapers.
South African president Cyrl Ramaphosa delivered his State of the Nation (Sona) on Thursday evening in which an ambitious vision for economic growth, job creation, and poverty alleviation was one of the key focuses.
CEO of Debt Rescue, Neil Roets, however told Business Report that while the commitments made offer a sense of hope, the harsh reality is that millions of South Africans are struggling under the burden of excessive debt, high inflation, and an unsustainable cost of living.
“Consumers needed to hear tangible solutions to their daily financial struggles, yet the address fell short in directly addressing their immediate concerns.While economic growth initiatives are essential, they still need implementation, therefore they do not provide the immediate relief needed by consumers drowning in debt. The cost of living is escalating, and struggling South Africans need urgent solutions, not just long-term plans," Roets said.
One of the key themes of the speech was economic growth, with a focus on infrastructure investment, industrial development, and job creation.
These initiatives can stimulate the economy in the long run, however, they do little to help over-indebted consumers in the short term.
"We need urgent real solutions. Without this, many consumers will continue to rely on expensive credit just to make ends meet," Roets added.
“The President’s emphasis on poverty reduction and tackling the high cost of living was encouraging, but specifics were lacking. Consumers continue to face skyrocketing food prices, fuel costs, and electricity prices, all of which erode disposable income and drive further reliance on credit. While the expansion of social grants and the introduction of a sustainable income support plan for unemployed citizens are necessary to provide relief to the most vulnerable, they cannot be the long-term answer. "Grants are essential for short-term survival, but job creation is the only sustainable solution to breaking the cycle of poverty," Roets stressed.
"South Africa must focus on economic growth that results in real employment opportunities."
The President highlighted improvements in energy security and the reduction of load shedding, consumers continue to bear the financial consequences of unstable electricity supply.
"High electricity tariffs and the cost of alternative energy solutions are crippling households. Government must ensure that basic services remain affordable and accessible to all South Africans. At Debt Rescue, we see firsthand how financial distress is impacting ordinary South Africans. The government must take urgent action to provide relief to struggling consumers," Roets urged. "Without aggressive interventions, South Africans will continue to fall deeper into the debt trap, jeopardizing the nation’s financial well-being," Roets further said.
“While long-term economic reforms are necessary, a balanced solution is needed for those who are currently drowning in debt. The time for action is now. We need practical, immediate solutions to protect our consumers and secure a stable financial future for all," Roets said.
BUSINESS REPORT