South Africa Adopts Ambitious Three Percent Inflation Target In Drive To Strengthen Economic Stability

Source: Supplied. GCIS. Finance Minister Enoch Godongwana.

This policy shift was delivered by the Minister of Finance, Enoch Godongwana, on Wednesday, 12 November 2025 in Parliament.

“At a macroeconomic level, the aim is to support gross capital formation and enhance currency stability which are important for investor confidence and economic growth," Minister in The Presidency Khumbudzo Ntshavheni said on Thursday, 13 November 2025 in Cape Town.

“The National Treasury/Reserve Bank technical team that made the recommendation for this change in Monetary Policy position, considered the drawbacks of this shift but on balance Cabinet was advised that this is the best approach for the country at the current period.

“The MTBPS also reaffirmed government’s commitment to improve provision of critical services such as health, education, and protection of the poor through social grants while also driving investments in public infrastructure such as energy, water and transport,” Ntshavheni said.

SA produces first vaccine

In a groundbreaking milestone for the country’s pharmaceutical sector, South Africa’s Biovac has produced a cholera vaccine - the first vaccine to be produced in the country.

“Cabinet congratulated Biovac and the Departments of Health and Science, Technology and Innovation for the launch of the first vaccine to be produced in South Africa, in the history of the country.

“Biovac’s ability to produce the Cholera vaccine in South Africa is a demonstration of South Africa’s advancement in pharmaceutical, science and technology and marking a graduation from vaccine packaging like in the instance of the BNG vaccine to full vaccine manufacturing capability,” the Minister said.

She hailed the partnership of Biovac with the Human Sciences Research Council and the Council for Scientific and Industrial Research (CSIR) as it demonstrates the mobilisation of government’s capabilities to address the country’s challenges.

“Cabinet is confident of Biovac, with its partners, future contribution to the eradication of diseases in South Africa and Africa through the manufacturing of vaccines focused on our continent’s disease profile,” the Minister said.

Jobs, growth, momentum

With Statistics South Africa (Stats SA) reporting that 248,000 more jobs were created in the third quarter of 2025, Cabinet welcomed this development.

These stats showed that the increasing number of employed persons now stands at 17.1 million and the official unemployment rate declined by 1.3 percentage points, to 31.9%, in the quarter.

“With more jobs recorded in the construction, community and social services, and trade sectors, Cabinet is pleased with the job-creation momentum in key areas of the economy.

“More jobs in the construction sector is concomitant with government’s prioritisation of infrastructure development which is matched by a R1tn infrastructure budget as announced during the 2025 Budget and reaffirmed in the 2025 MTBPS,” the Minister said.

Tourism, recovery, expansion

South Africa’s tourism continues a positive trajectory as the country welcomed 7,634,261 million international tourists between January and September 2025, marking an impressive increase of 1,108,222 visitors compared with the same period in 2024.

This confirms South Africa as a premier global tourism destination.

Key strong growth markets that contributed to the growth are the Middle East with 58%; Europe grew by 29%; key markets in Africa grew by 28%; North America by 22%, and Asia with 11%.

Nuclear, development, security

Cabinet also welcomed Eskom’s announcement that the National Nuclear Regulator has approved a 20-year licence extension for Koeberg Unit 2, enabling its operation until 9 November 2045.

“This is a significant milestone that strengthens South Africa’s long-term energy security and reflects Eskom's commitment to world-class nuclear safety standards.

“Cabinet further welcomed the National Energy Regulator of South Africa’s (Nersa) announcement of the registration of 181 new generation facilities during the second quarter of the 2025/26 financial year.

"These facilities represent a combined capacity of 1 401 MW and an estimated investment value of R30.78bn,” she said.