SONA 2026: Experts weigh in

Following the 2026 State of the Nation Address (SONA), here are insights and reactions of several experts across various sectors including personal finance, youth employment/entrepreneurship and energy.

Jurgen Eckmann, Wealth Manager at Consult by Momentum

President Cyril Ramaphosa’s address points to a macro environment that is more stable than it has been in several years; you could feel the positivity in the room, which was very encouraging after the more gloomy addresses from years past.

Four consecutive quarters of gross domestic product growth, easing inflation and declining interest rates provide welcome relief for households under pressure. For consumers, that creates some breathing room – but it also requires sound financial decisions rather than complacency.

A stronger rand and improved performance on the Johannesburg Stock Exchange mean investors should reassess how much of their portfolios sit offshore versus locally. Many South Africans increased offshore exposure during periods of uncertainty. With local fundamentals stabilising, it may be time to revisit asset allocation and rebalance where appropriate.

Energy reform is another key shift. With loadshedding largely behind us and restructuring under way, sectors that were previously constrained by unreliable electricity may recover more sustainably. That has implications for local equities, business expansion and even residential and commercial property values.

At the same time, the water crisis introduces a new and very real financial consideration. Infrastructure quality and municipal governance will increasingly influence property risk and long-term investment decisions, which is something to pay attention to.

On the fiscal front, while primary budget surpluses and improved revenue collection are positive, broad tax relief is unlikely in the near term. Consumers should expect continued compliance scrutiny and plan cash flow carefully. The cost of living crisis is not disappearing yet.

The renewed focus on crime and enforcement also matters economically, hopefully positively affecting insurance premiums, business confidence and ultimately household stability.

Overall, there are encouraging green shoots emerging. But stronger macro indicators do not remove the need for proactive financial planning.

Nkosinathi Mahlangu, Youth Employment & Entrepreneurship Specialist at the Momentum Group Foundation

This year’s SONA puts welcome emphasis on growth, infrastructure and skills reform. The scale of planned infrastructure investment, the expansion of youth employment programmes, and the proposed overhaul of the skills development system are all important steps in the right direction.

But growth figures alone do not guarantee that young people will find work. We need to be more deliberate about how opportunity is structured.

Large infrastructure and rail projects need to create entry-level jobs in the very communities where they are implemented. The shift toward a training model that combines classroom learning with practical workplace experience is a positive development.

Strengthening technical and vocational education and training colleges as primary sites for artisan and occupational training is equally encouraging, particularly if these institutions are properly resourced and closely linked to industry demand. The real test will be whether this translates into structured work experience and clear pathways into sustainable employment once young people complete their studies.

The inclusion of agriculture as a priority growth sector is particularly significant. Agriculture holds real potential for youth employment, but we need clear processes that enable small-scale and emerging farmers to participate meaningfully and scale their operations. This is critical not only for job creation but also for reducing our reliance on external trade arrangements such as AGOA.

The foot-and-mouth disease outbreak has hit commercial farmers hard, but its impact on small-scale and young farmers is often more devastating. Urgent and equitable access to vaccines will be essential to protect livelihoods and sustain youth participation in the sector.

The focus now must be on measurable outcomes that ensure young South Africans are not left behind.

David McDonald, CEO at SolarAfrica

While the president pointed out in this year’s SONA that loadshedding may be behind us, the real test now is whether structural reform is implemented at the pace the country needs to deliver real long-term energy security.

The restructuring of Eskom and the establishment of a fully independent state-owned transmission entity – which will own and control transmission assets and operate the electricity market – is a critical step. If executed properly, the first round of independent transmission projects could unlock significant private investment in expanding the national grid. What matters now is delivery and clear timelines.

The president was right to say that electricity used to be cheap – but, due to past state capture, mismanagement and years of underinvestment, it is no longer. In fact, to add salt to the wound, NERSA has just confirmed that tariff adjustments will be higher than initially anticipated, with a 5.36% increase effectively rising to 8.76% following calculation corrections. For commercial & industrial users, cost certainty is critical. Businesses need predictability if they are to invest and grow.

The target of more than 40% renewable supply by 2030 is encouraging. If transmission reform and grid expansion keep pace with generation, South Africa can restore competitiveness and build a more resilient, affordable energy system.

Image credit: Freepik/wirestock