SONA 2026: Water, crime and R1tn infrastructure – what it means for you

Last night’s SONA drew a hard line: water is a national economic risk, crime an explicit threat to growth, and infrastructure spending is being unlocked at scale. For businesses and households, the takeaway is clear - the foundations are being rebuilt. 

This matters to us because our Economic Growth and Impact practice works where business and development intersect. We see companies as engines of progress, and this agenda - fixing binding constraints, mobilising investment, rebuilding state capacity - is exactly the terrain we operate in. 

Here are the five key outtakes that will shape the year ahead

1) Water is the primary growth constraint

Government says it is no longer treating water as a routine municipal failure. It is now framed as a national economic risk. Revenue has been diverted and maintenance neglected. The response is R156bn over three years, including a R54bn metro incentive to ring-fence reinvestment into pipes and pumping stations. 

2) Crime is a threat to both the economy and the state

The speech is explicit: organised crime is the most immediate threat to democracy and development. The response is more centralised and intelligence-led, with multidisciplinary teams, SANDF support in hotspot areas, and a sharper focus on the illicit economy. The targeting of tobacco, fuel, alcohol and counterfeits signals a confrontation with parallel markets that distort formal business and weaken the tax base.

3) Biggest spending priorities

Infrastructure (R1 trillion over three years): Roads, bridges, dams, energy, ports and rail. The aim is to remove bottlenecks, crowd in investment, and improve delivery through PPPs, the Infrastructure Fund, and specialised commercial courts to reduce tender delays.

Eskom and energy reform: The focus has shifted to restructuring. Eskom unbundling, an independent transmission entity, and new transmission projects to expand the grid.

SMEs (R2.5bn to 180,000 SMEs and R1bn guarantees): SMEs are positioned as the jobs engine. The real constraints are finance and regulatory friction. Funding and guarantees are intended to crowd in lending and support firms that can hire. The Business Licensing Bill is being reframed as an enabler.

4) Tech and digital economy growth

The digital economy is being framed as both a growth sector and a state-capacity fix. Government is leaning into digital infrastructure investment, including data centres, while pushing a more digitised state through Digital ID and online public services. The approach centres on reducing friction and corruption, and improving service delivery.

5) Geopolitical stance: sovereignty and Global South positioning

South Africa is positioning itself as a Global South anchor, backing multilateralism, regional integration and the AfCFTA, while taking a harder line on sovereignty. The subtext is preserving policy space in a more coercive global trade environment, and using diplomacy to support domestic industrial and export priorities.

SONA 2026 was a pragmatic ‘fix the foundations’ agenda: treat water and crime as binding constraints, use infrastructure and energy reform to unlock growth, and lean on digital and investment mobilisation to rebuild state capacity and confidence. For more on the broader implications of SONA, you can contact Melissa: Melissag@genesis-analytics.com