By Nco Dube | 17 September 2025

South Africa’s economy grew by 0.8 percent in the second quarter of 2025. On paper that might read as modest progress, but behind those figures lie everyday realities and big questions about where we are heading. When Stats SA reports a 0.6 percent year-on-year rise and a 0.7 percent gain over six months, it is tempting to celebrate. Yet for many households and small businesses, the numbers never fully translate into improved livelihoods.

A Modest Rebound

 After a meagre 0.1 percent expansion in Q1, the jump to 0.8 percent suggests some resilience. Manufacturing and mining led the charge, shielding us from deeper stagnation. Household consumption rose by 0.8 percent, a sign that families kept spending despite price pressures. At the same time, a 0.3 percent dip in construction and a 0.8 percent fall in transport remind us that inertia still clogs critical sectors. And foreign trade shaved 0.3 percent off growth, as weak exports and falling imports, down 2.1 percent, left us more inward-looking than ever.

The Engines of Growth

 Manufacturing climbed 1.8 percent, driven by local factories that found new orders abroad. Mining and quarrying exploded by 3.7 percent on the back of higher platinum-group metals, gold and chromium prices. Agriculture also surprised with a 2.5 percent rise, thanks to strong summer-crop yields. In contrast, building projects stalled, particularly those funded by government and public institutions. And with fewer trucks on the road, transport and communications felt the pinch. This uneven performance shows how dependent we remain on commodity cycles and a fragile supply of electricity.

Households at the Edge

 For millions of South Africans, these macro statistics offer little comfort. Food and fuel costs have climbed more than 20 percent in a year, forcing families to tighten belts and delay essential purchases. In rural areas unemployment remains stubbornly high, leaving young people with few options. Small businesses tell a familiar story of bank loans that never arrive in time and operating costs that outpace revenue. Government relief programmes exist, but budgets do not always reach the most vulnerable. As a result, many consumers lean hard into savings plans and hunts for the best bargains, but thrift alone cannot solve deep structural challenges.

A Call for Strategic Investment

 If our economy is to move beyond incremental gains, we must invest in the foundations of growth. Industrial and transport infrastructure should be a priority, not an afterthought. Upgrading rail lines, ports and roads would unlock new markets for our manufacturers and farmers. At the same time, skills training and digital-access programmes must extend into townships and rural districts. 

Technology without inclusion only widens the gap between Cape Town, Johannesburg and the rest of the country.

Revitalising Small Business 

Small enterprises create most of our jobs, yet they struggle for capital and support. A robust suite of mentorship, grant funding and credit guarantees would make a difference. Local procurement targets for municipalities and state-owned companies can give emerging suppliers a foothold. When small factories hum again and township shops thrive, the ripple effect lifts entire communities.

Strengthening Agriculture and Food Security

 Agriculture’s 2.5 percent uptick reminds us of the sector’s potential. Investing in commercial farms, water-retention schemes and agro-processing facilities would turn more of our harvest into value-added goods. That in turn buffers us against global food-price shocks. If a drought cuts yields one year, higher-value crops and storage infrastructure can cushion the blow.

Building Consumer Confidence

 High living costs and joblessness corrode confidence. Consumers need more than loyalty points; they need real purchasing power. Transparent pricing regulations and support for community-run co-operatives can make staples more affordable. At the same time, consumer protection bodies must step up enforcement so that complaints about reckless lending and price-gouging find swift resolution.

Collaboration Across Sectors

 No single actor can carry this burden alone. Government, business and civil society must forge new partnerships. Joint task teams on energy, manufacturing and transport can align policy with market realities. National and provincial forums should bring mayors, ministers and community representatives together to share data, debate priorities and track progress.

Measuring What Matters

 GDP is a blunt instrument. It misses unpaid care work, environmental damage and social well-being. Yet it remains our most closely watched metric. To complement it, we need reliable indicators on household income, youth unemployment, small-business creation and regional development. When these measures rise in tandem with GDP, we can be sure that growth is reaching beyond boardrooms to kitchen tables.

Conclusion: A Shared Project

The second quarter statistics offer a snapshot of where we stand. They remind us that growth is neither automatic nor evenly distributed. To turn modest rebounds into sustained progress, we must act with purpose investing in infrastructure, empowering small businesses, modernising agriculture, protecting consumers and strengthening partnerships.

Our economic future is a shared project. It demands leadership that understands the stories behind the numbers and a citizenry that holds power to account. If we succeed, the next round of GDP figures will tell a different story, one of inclusive prosperity and renewed hope for all South Africans.

(Dube is a noted Political Economist, Businessperson, and Social Commentator whose insights are regularly featured on UkhoziFM and in various newspapers. For further reading and perspectives, visit: http://www.ncodube.blog)