Cabinet Approves Olympic Bid Dialogue, Sets 3% Inflation Target in Key Meeting

PRETORIA – The South African Cabinet, meeting on Wednesday, November 12, 2025, confirmed a series of significant policy decisions and welcomed positive economic and tourism data, including the approval to begin exploratory talks for a potential Olympic bid.

The meeting focused heavily on fiscal stability, social development, and preparation for the upcoming G20 Summit, which South Africa is set to host.

Economic and Fiscal Policy

Cabinet noted the direction set by the Medium Term Budget Policy Statement (MTBPS), which was tabled on the same day. A key fiscal development highlighted was the decision to shift from an inflation target range to a specific inflation target of 3%. This move is aimed at preventing cost-of-living spirals, promoting price stability, and protecting the purchasing power of citizens.

The meeting also welcomed the results of the Quarterly Labour Force Survey for the third quarter of 2025, which reported the creation of 248,000 new jobs. This increase raised the number of employed persons to 17.1 million and saw the official unemployment rate decline by 1.3 percentage points to 31.9%. Job growth was particularly noted in the construction, community, social services, and trade sectors.

Infrastructure, Energy, and Tourism

Cabinet reaffirmed government’s prioritization of infrastructure development, which is matched by a $\text{R}1$ trillion infrastructure budget announced during the 2025 Budget and reinforced in the MTBPS.

In the energy sector, Cabinet welcomed the approval by the National Nuclear Regulator of a 20-year license extension for Koeberg Unit 2. This extension enables the unit to operate until November 9, 2045, and was lauded as a significant step in strengthening South Africa’s long-term energy security.

On tourism, the country’s strong performance was noted, with $7.6$ million international tourist arrivals recorded between January and September 2025. This marks an increase of over $1.1$ million visitors compared to the same period in 2024, confirming South Africa as a premier global tourism destination.

Legal, Social, and International Readiness

Key legal and social approvals included:

• State Legal Representation Policy: Cabinet approved an amendment to the State Legal Representation Policy. The change will allow for the provision of legal representation for current and former state employees, members of the judiciary, and members of the executive when they are called upon to assist Commissions of Inquiry following the performance of their functions.

• Child Labour Action: The Fifth Child Labour Programme of Action (CLPA) for South Africa 2025–2029 was approved. This national framework aims to strengthen legislation, raise public awareness, and enhance integrated interventions to combat child labour.

• Olympic Bid: Cabinet gave approval for South Africa to enter Continuous Dialogue with the International Olympic Committee (IOC). This exploratory step advances the country’s intention to bid for the hosting rights of the 2036 or 2040 Olympic and Paralympic Games.

Finally, Cabinet expressed confidence in South Africa’s readiness to host the upcoming G20 Leaders’ Summit (November 22-23, 2025) and the preceding G20 Social Summit, confirming the country is on track to deliver a successful first G20 Summit on the African continent.