In his SONA 2025 address, President Cyril Ramaphosa highlighted how the Expropriation Bill, now law, underpins the government’s urban housing strategy.
Source: @CyrilRamaphosa/X
The Expropriation Bill facilitates affordable housing, the reclamation of hijacked buildings, and the transformation of city centres into economic hubs, a key focus of Ramaphosa’s address on 6 February 2025.
“Going forward, we are going to build more housing in our city centres and closer to work and business opportunities. We are redesigning our housing subsidies and directing more funding towards programmes that enable people to buy or rent a home in an area of their choice,” Ramaphosa said.
Ramaphosa noted more underutilised state properties would be released for affordable housing development, and that government would work with provinces and metros to reclaim buildings that have been hijacked in the city centres so as to repurpose them for public use.
“We will provide 300,000 serviced stands to qualifying beneficiaries to enable housing development in well-planned, connected communities along key development corridors. We will clear the backlog of title deeds for subsidised housing, turning homes into household assets. “We will review land use, building and other regulations to enable low-cost property development, including backyard housing.
“This represents a fundamental rethink of how the State delivers housing at scale, while turning our cities into engines of growth and opportunity.”
Revitalising urban economies
Expropriating underutilised land and reclaiming hijacked buildings creates opportunities for infrastructure development and construction, sectors that significantly contribute to GDP growth and drives economic activity.
“In making our cities work for their residents, we will restore the remaining passenger rail corridors and stations to full service. “More than 80% of passenger rail corridors have been returned to service,” Ramaphosa said.
Prasa has introduced over 200 modern, locally-produced trains in its network to provide a low-cost option for public transport.
Empowering inclusive growth
The housing initiatives and urban regeneration discussed in SONA 2025 directly support the government’s larger development goals. These efforts complement other SONA plans focused on sectors like renewable energy, tourism, and technology, creating a synergistic effect where housing development and job creation form the foundation for broader economic expansion.
“Black South Africans were historically deprived of land, capital, skills, and opportunities, which hindered the country’s economic growth,” Ramaphosa said.
To address this, the government is focusing on transforming the economy to be more inclusive, empowering black people, women, and persons with disabilities. Initiatives include a R20bn transformation fund, fast-tracking procurement regulations, supporting women entrepreneurs, and providing training for persons with disabilities. These efforts aim to right historical wrongs, unleash economic potential, and foster sustained growth.
2025 will see the launch of a Graduate Recruitment Scheme for young people which will build on the momentum of 2024’s track record. The National Pathway Management Network, supported by the SAYouth.mobi platform, for example, helped 235,000 young people secure work opportunities.
Actionable youth employment
“Youth employment remains one of South Africa’s most pressing challenges, and while tonight’s SONA laid out government’s commitments, we need defined timelines and measurable outcomes,” said Nkosinathi Mahlangu, Youth Employment Portfolio Head at Momentum Group.
“The launch of a Graduate Recruitment Scheme in the public sector is a welcome move, but a concrete plan outlining the “how” is crucial. Similarly, government’s commitment to investing in digital public infrastructure presents an opportunity to leverage the expertise of local technology graduates and professionals, ensuring an inclusive approach that nurtures homegrown talent.
“Only where skills gaps exist should expertise be imported, and even then, it should be structured around skills transfer initiatives,” he said.
Mahlangu added that while support for youth, black-owned, women-led and disabled-owned businesses was highlighted as a priority in SONA 2025, he cautioned “we’ve heard this before – it’s now time to move from words to concrete action”.
“Are there specific sectors that can serve as low-hanging fruit for transformation?”
Also, “the creation of 235,000 work opportunities through SAYouth.mobi is promising on paper, but key questions remain: Do these jobs pay a living wage? Are they in high-growth sectors? Are they sustainable?
“The rural and agricultural sectors must also be part of the employment strategy, with clear youth-focused plans for land access and agri-business support.”
Focus on sustainability
A State of the Nation Address is about setting a path forward, but as financial professionals, we also need to look in the rearview mirror, stresses Jurgen Eckmann, Wealth Manager at Consult by Momentum.
“While the President outlined bold commitments tonight, I’m still looking for the hard numbers that indicate we’re moving the needle. Youth unemployment remains stubbornly high, despite job creation initiatives, and seems to have stagnated.
“In the first quarter of 2024, the unemployment rate among individuals aged 15 to 24 stood at 60.8%, with a slight decrease to 60.2% in the third quarter.
“Also, with capital-intensive projects announced, we must ask: can we afford this without overburdening taxpayers or going into more debt? To get the necessary funding to deliver on all of the Funds the President has spoken about, we’ll need to rely heavily on foreign investment, which means South Africa must position itself as an attractive and stable market for investors.”
Action for growth
As the government commits to inclusive growth as outlined in SONA 2025, the focus on a revitalised urban housing strategy, job creation, and youth empowerment offers a path to sustainable economic development.
However, concrete actions, clear timelines, and strategic support for sectors like agriculture are crucial for turning these plans into lasting change, ensuring that economic growth benefits all South Africans, especially young people, women, and marginalised communities.
