2026 Nation Address (Gold) It was presented by President Cyril Ramaphosa last week. The purpose of SONA is to outline the government's plans for growth and development during the current Government of National Unity (GNU) administration.
What is the purpose of SONA?
annual address The address is given by the President to a joint session of Parliament and marks the official opening of the legislature. SONA provides the President with an opportunity to speak to the nation on the general situation of South Africa, to consider a wide range of political, economic and social matters within the domestic and global contexts, and to brief the nation on the work of the Government while setting out the Government's work program for the year. It is a special and unique occasion when all three arms of the state are together at one place.
How is a speech drafted?
Although the speech is delivered solely by the President, SONA is the product of an extended, negotiated and highly politicized process involving policy advisers, researchers, coalition partners, labor, business, civil society, speechwriters, and senior government officials.
This process begins with political direction from the Presidency and the Medium Term Development Plan (MTDP) 2024–2029, which guides the work of the seventh administration. The plan gives priority to socio-economic challenges such as:
- Overall development
- employment generation
- reducing poverty and cost of living,
- aims to build a capable, ethical developmental state
- Align planning, budgeting, implementation, and oversight across all areas of government.
In this article, we highlight some of the development plans announced at SONA and which ones will impact small to medium-sized enterprises (SMEs).
Timelines mentioned in SONA 2026
These are some of the actions announced at the 2026 address.
1. Governance and Justice Reforms
- SANDF Strategic Plan: The Police Minister and the SANDF have been directed to develop a strategic deployment plan for the Western Cape and Gauteng to tackle violence and illegal mining within the next few days.
- Public Procurement Act Regulations: The new rules, aimed at eliminating the 'cancer' of procurement-related corruption, are to be finalized by mid-2026.
- Power Restructuring Task Force: A dedicated team under the National Energy Crisis Committee is to report to the President on the phased implementation of the restructuring of Eskom within 3 months.
- Lifestyle Audit: 93% compliance has already been reached for senior civil servants last year; The goal is to immediately close the gap through mandatory re-vetting.
2. Water and service delivery
- Municipal funding ring-fencing: Municipalities will be legally required to restrict revenue from the sale of electricity and water from the 2026/27 financial year (starting July 2026).
- National Water Resources Infrastructure Agency (NWRIA): Currently, the establishment of the National Water Resources Infrastructure Agency is in the final stages to effectively manage the country's water infrastructure and mobilize funds for water infrastructure.
- White Paper on Local Government: A revised version providing a solution for defunct municipalities is to be finalized in the coming months.
3. Economic and sector-specific milestones
- Foot-and-mouth disease vaccination: The plan is to vaccinate 14 million cattle (28 million doses) over the next 12 months.
- New Energy Vehicles (NEV): A 150% tax deduction for investment in new energy vehicles and battery production will be introduced from March 2026.
- South Africa Investment Conference: The sixth installment of the summit is scheduled for March 31, 2026, with the aim of mobilizing R2 trillion in new commitments.
- Renewable Energy Target: By 2030, the President aims for more than 40% of South Africa's energy supply to come from clean, renewable sources.
- Digital Transformation: Home Affairs to launch digital ID this year, to include various services (Master Office, SASSA eligibility) mayamzansi platform throughout 2026.
4. Social and health commitments
- Child Stunting: The long-term target of the mission to “end child stunting” is 2030, with specific budget allocations coming in the Medium Term Budget Policy Statement (MTBPS) later this year.
- Employment Equity: The target for persons with disabilities in public service has been set at 7% by 2030.
SME related announcements and developments
The President emphasized that SMEs are the primary engine for employment and economic growth. He said that if each SME employs just one additional person, 30 lakh jobs will be created. To support this he declared:
SME funding and guarantees
- Direct Funding: Committing more than R2.5 billion of funding to support more than 180,000 small and medium enterprises this year.
- Credit Guarantee: Extension of additional R1 billion in guarantees to help these businesses secure financing
- focus groups: A specific mandate to focus more on women and youth led businesses.
- Regulatory Relief: Amendments to National Loan Act rules to make access to credit easier and cheaper.
- Licensing Bill: A commitment to ensure that the final business licensing bill reduces bureaucratic barriers rather than increasing existing barriers.
mixed finance scheme
The President underlined the blended finance scheme as an important mechanism in the rapid expansion of the agriculture sector, especially for growing producers.
- financial impact: The scheme has already provided R7.8 billion in “innovation funds” to black producers.
- Partnership: The scheme operates through a collaborative model involving land banks and commercial banks.
- Support Structure: To ensure the success of farmers who receive this funding, the President announced the deployment of 10,000 new extension officers to support farmers and improve productivity.
- Strategic Goals: The scheme aims to move more people from the “margins” of the economy into the mainstream agricultural value chain, which is currently the world's second largest exporter of citrus fruits.
“As the economy grows, it must bring into its fold those who have been living on its margins for decades. Our fight against crime must be felt in townships and informal settlements as well as in the suburbs. Our schools and hospitals must make no distinction between the people who come to their doors. This way, we can build a stronger, more resilient and more equal society – one that will stand out among the nations of the world. We have truly turned a corner. Now We must look ahead and move forward with momentum,” President Ramaphosa concluded.