Ramaphosa’s sleepless nights come decades too late - IRR

President Cyril Ramaphosa says unemployment keeps him awake at night. That concern, expressed in early 2026, comes far too late – and risks sounding insincere – after decades of mounting joblessness under ANC governments in which Mr Ramaphosa has played a central role.

South Africa’s unemployment crisis did not emerge overnight. It has deepened steadily over the last 15 years.

Official unemployment has remained stuck at over 30% for over five years and is now at 31.9%. Youth unemployment is even worse, registering at 58.5% in the third quarter of 2025. Millions of South Africans have given up looking for work altogether. This deterioration has taken place while government spending has expanded relentlessly.

The uncomfortable truth is that unemployment has worsened not because too little public money has been spent, but because the ANC government has pursued the wrong policies.

Jobs are created by a growing private sector, not by government exhortation or ever-larger budgets. Yet government policy over many years has effectively suppressed economic growth, fixed investment, infrastructure development, and educational outcomes.

Weak property rights, hostile investment rules, failing network industries, collapsing local government, and rigid labour regulation have combined to choke off job creation.

Against this backdrop, calls to “mobilise more money” ring hollow. South Africa does not suffer from a lack of state spending. It suffers from a lack of growth – and growth cannot be commanded by the state.

The President is correct that the private sector accounts for the overwhelming majority of economic activity. But the role of government is not to “harness” or “mobilise” business through political pressure. It is to create a stable, predictable, pro-growth policy environment in which firms can invest, expand, and employ.

Until this changes, unemployment will remain the defining crisis of South African society, no matter how many late-night meetings are held or how many billions are reallocated.

The Institute of Race Relations has, over many years, set out detailed, evidence-based proposals to lift growth rapidly, raise investment, and expand employment at scale. These include reforms to property rights, labour markets, energy, transport, education, and race-based regulation, as set out in our Blueprint for Growth and related policy papers.

John Endres, CEO of the Institute of Race Relations, said:

“If unemployment truly keeps the President awake at night, the solution is not more spending or more state control. It is faster growth driven by private investment. The IRR has published clear, practical proposals to achieve this. I urge President Ramaphosa to engage seriously with them, and I would welcome the opportunity to meet and discuss how South Africa can move from managing decline to creating jobs at scale.”

Media contact: John Endres, IRR CEO Tel: +27 76 480 1290 Email: john.endres@irr.org.za

Media enquiries: Hermann Pretorius, IRR Head of Strategic Communications Tel: 079 875 4290 Email: hermann@irr.org.za