SONA 2026: Infrastructure and SME funding must be matched by financial reform to unlock SA’s trade potential

When President Cyril Ramaphosa delivered the 2026 State of the Nation Address at Cape Town City Hall, two themes stood out clearly: infrastructure reform and SME support.

With renewed focus on revitalising rail corridors and modernising ports, alongside more than R2.5 billion in SME funding and additional credit guarantees, the government signalled that trade and small business growth sit at the centre of South Africa’s economic strategy.

For exporters and small to medium enterprises (SMEs) alike, this is a critical step forward. But physical and financial infrastructure must move in tandem.

“Revitalising rail and ports is fundamentally a trade intervention,” says James Booth, head of Revenue at Verto. “Efficient logistics reduce costs and improve competitiveness. But as trade volumes increase, so do the financial flows that sit behind every shipment.”

Every container that leaves Durban or Cape Town triggers a parallel process of invoicing, foreign exchange conversion and cross-border settlement. As businesses expand into African and global markets, managing currency risk, navigating fragmented banking systems and absorbing high transaction costs can quickly erode already thin margins, particularly for SMEs.

“Access to credit enables businesses to grow,” says Booth. “But if SMEs are going to scale beyond South Africa’s borders, they also need fast, transparent and cost-effective cross-border payment infrastructure.”

Delays in settlement constrain cash flow. Currency volatility can wipe out profits between invoice and payment. Intra-African trade, while growing, still presents practical financial friction that limits participation by emerging exporters.

Investment in rail and port infrastructure signals a commitment to restoring South Africa’s competitiveness as a trading nation. However, to fully unlock export-led growth, particularly inclusive growth driven by women- and youth-led SMEs, financial infrastructure must evolve alongside it.

“If rail is the backbone and ports are the arteries of trade, payments are the bloodstream,” says Booth. “South Africa’s export ambitions will ultimately be measured not just by how efficiently goods move across borders, but by how efficiently value moves with them.”

Image credit: Freepik