President Cyril Ramaphosa delivered the 2026 State of the Nation Address at Cape Town City Hall. (Image source: Parliament)
From using artificial intelligence (AI) to fight illicit trade, to investment projections to the tune of R50 billion in the local data centre space, these are some of the takeaways from the 2026 State of the Nation Address (SONA).
President Cyril Ramaphosa delivered the SONA at Cape Town City Hall last night, formally opening the parliamentary programme for the year.
The annual gathering is an opportunity for Ramaphosa to account to the nation on progress made and present government’s priority programme for the year ahead, which will serve as a benchmark through which Parliament measures executive performance.
The Organisation Undoing Tax Abuse (OUTA) says the president’s speech contained more than 50 commitments. According to the organisation, without implementation deadlines and consequences, these simply serve as intentions.
Many of the digital infrastructure commitments the president outlined were familiar, particularly in relation to digitising end-to-end citizen services.
Ramaphosa told the nation that the Government of National Unity is addressing the threat posed by the infiltration of illegal and counterfeit goods to South African jobs and industry.
He said the state is establishing a national illicit economy disruption programme that brings together key state agencies and other stakeholders, including the private sector.
“Through effective use of data analytics and AI, we will be targeting high-risk sectors like tobacco, fuel, alcohol and other counterfeit products.”
Similarly, the president announced additional measures to strengthen SA’s borders to curb illegal immigration, noting that drones and other technologies are already being used to great effect along border lines.
“Funding to strengthen border security will be prioritised, covering infrastructure, technology and people. Key border posts will be redeveloped through public-private partnerships, and we will extend the electronic travel authorisation to all international airports and the busiest land ports of entry.”
In December, the Border Management Authority (BMA) said it was prioritising a well-resourced border management system that hinges on technology-driven tools.
This, as SA continues to face challenges with illegal immigration, sophisticated cross-border crime and smuggling of illicit goods at its borders.
BMA commissioner Dr Michael Masiapato pointed to the use of drones and body cams to improve detection capabilities and address possible corruption from team members.
The president highlighted how the country is attracting major investment in digital infrastructure, with 55 data centres already built and more than R50 billion of investment expected over the next three years.
Last year, he also backed SA’s burgeoning data centre industry, describing the country as a “reservoir” for data centres.
South Africa is the largest data centre market on the continent, as hyperscalers and data centre operators continue to establish cloud regions, according to Grand View Research.
The country’s geographical position makes it a strategic hub for regional and international connectivity.
Digital Realty-owned Teraco, Vantage Data Centres, Open Access Data Centres and Equinix have all expanded their data centre footprint in SA, while hyperscalers Amazon Web Services, Google and Microsoft Azure have also built local data centre facilities.
With many local data centre offerings, SA’s cloud market is projected to more than double – from an estimated R49.6 billion in 2025, to a projected R101.5 billion in 2029.
Ramaphosa also reiterated government’s commitment to establishing a digital ID system for citizens.
Last night, he said the Department of Home Affairs will launch the digital ID to enable safe and secure use of digital services for all South Africans.
“We will digitise driver’s licences, matric certificates and services at the Master’s Office. Citizens will be able to fill out police statements online and eligibility for SASSA grants can be tested remotely. All these services will be made available on the MyMzansi platform.
“Soon, every South African will be able to access many of the services they need without visiting a government office or filling out manual forms.
“We will also work with civil society to ensure citizens’ protections and rights are safeguarded through this digital revolution.”
Reacting to the president’s speech, OUTA notes the president once again committed to digitising IDs, driver’s licences and public services, adding that South Africans have heard many of the promises and plans before.
The organisation says it supports digitisation as a tool to reduce corruption and improve service delivery. “These commitments have been made before. Implementation must now be visible, time-bound and measurable.”
“South Africa does nothave a shortage of plans,” adds OUTA CEO Wayne Duvenage. “We have a shortage ofimplementation, transparency and accountability.”
South Africa’s “biggest” opportunity lies in green growth, according to the president.
As a result, the country is pivoting the economy to be a leading supplier of the products which the world will rely on in decades to come, he stated.
“We are expanding support for the manufacturing of green products for global markets, from fertiliser to jet fuel, chemicals to steel.
“From March this year, we will introduce a 150% tax deduction for investment in new energy vehicles, while supporting the local production of batteries.”
Business Leadership SA (BLSA) notes the president highlighted some important victories, including the absence of load-shedding, SARS once again being considered a world authority and digitisation advancing well at home affairs.
For BLSA, these are notable achievements that should be celebrated. “We are sitting in a significantly improved environment in various aspects than a year ago,” says CEO Busisiwe Mavuso.
“We also applaud the digitisation drive in government. We know, as demonstrated by SARS, that the competitiveness of state entities, just like in the private sector, lies in their ability to have cutting-edge IT infrastructure.”
While celebrating these achievements, BLSA believes the overall reform programme could do with a government-wide injection of renewed energy and focus on accelerating its implementation.
“Without implementation of the range of municipal reforms that Operation Vulindlela is working on, residents of municipalities across the country will continue to suffer the indignity of inadequate water and electricity supply.”
Ferdi Moolman, MTN South Africa CEO, notes that emphasis on infrastructure investment, regulatory reform and digital transformation sends an important message to investors and to industries like ours, that are building long-term assets in South Africa.
“For MTN, the focus on the digital economy and modernising service delivery is particularly encouraging. As government digitises services and expands digital identity systems, as the president indicated in [his] announcement, reliable connectivity becomes foundational to delivery.
“We particularly welcome the commitment to large-scale infrastructure investment and faster implementation mechanisms, which are critical to unlocking growth and job creation.
“Continued progress on energy reform and tackling crime will directly improve network stability, which is essential if we are serious about advancing digital inclusion.”
