South Africa may finally be emerging from a decade of economic decline, according to Adi Enthoven, chairman of the investment group Yellowwoods.
In a recent commentary, Enthoven described the country’s economic performance as a remarkable turnaround, noting that South Africa has “done the impossible” by stabilising key sectors and restoring a sense of optimism among investors.
Enthoven’s remarks, published by News24, highlight the impact of ongoing structural reforms and improved performance in critical areas such as energy, infrastructure, and fiscal management.
After years marked by low growth, corruption scandals, and power shortages, the country is now witnessing tangible improvements that could signal the start of a new growth phase.
“It’s not that South Africa is suddenly a healthy economy,” Enthoven said. “But for the first time in many years, the direction of travel has changed — and it’s the right one.”
Energy Sector Recovery and Reform Momentum
One of the strongest indicators of progress, Enthoven noted, is the turnaround within the energy sector.
Persistent load-shedding had crippled productivity for years, but reforms at Eskom and the growing role of private power producers have begun to stabilise electricity supply. This, he argued, is one of the clearest examples of effective policy implementation after years of decline.
Initiatives such as Operation Vulindlela — a government programme aimed at unblocking constraints in energy, logistics, and water infrastructure — have been central to this progress.
The initiative’s collaborative approach between the government and private sector has led to measurable improvements in investment and project execution.
Signs of Fiscal Stability
Enthoven also cited encouraging fiscal indicators. Budget surpluses, a stabilising debt-to-GDP ratio, and improved investor confidence suggest that South Africa’s financial position is stronger than in previous years.
The Johannesburg Stock Exchange has seen renewed activity, while bond inflows point to growing confidence among both domestic and international investors.
“We are beginning to see the effects of consistent reform and accountability,” Enthoven added. “This has restored credibility in the country’s ability to manage its finances responsibly.”
Challenges Still Loom
Despite the optimism, Enthoven cautioned that South Africa’s economic recovery remains fragile. Deep-seated issues such as crime, corruption, and inefficiencies in local governance continue to threaten long-term progress.
The private sector, he said, must continue to partner with government to build capacity and ensure reforms are not reversed.
Analysts agree that the coming years will be crucial. Sustained momentum in energy and infrastructure, coupled with disciplined fiscal management, could help South Africa transition from recovery to growth.
Failure to maintain reform momentum, however, could quickly undermine the progress made.
A Cautious but Hopeful Outlook
While the phrase “done the impossible” reflects Enthoven’s belief in South Africa’s resilience, he was clear that the journey is far from over.
For many economists, the current trajectory represents a rare alignment of political will, private investment, and policy coherence — ingredients that have been missing for much of the past decade.
As the global economy faces uncertainty, South Africa’s gradual but steady revival may serve as a model of resilience and reform in the wider African context.
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