https://en.sputniknews.africa/20240830/south-africas-reform-efforts-gain-momentum-as-power-crisis-eases-says-reserve-bank-governor-1068066118.html
South Africa's Reform Efforts Gain Momentum as Power Crisis Eases, Says Reserve Bank Governor
South Africa's Reform Efforts Gain Momentum as Power Crisis Eases, Says Reserve Bank Governor
Sputnik Africa
Despite a decline in annual consumer price inflation, South Africa is grappling with significant economic issues, such as high unemployment and slow growth. In... 30.08.2024, Sputnik Africa
2024-08-30T12:36+0200
2024-08-30T12:36+0200
2024-08-30T14:21+0200
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South Africa is making strides in implementing reforms that could unlock its economic potential, media reported on Thursday, citing Reserve Bank Governor Lesetja Kganyago.Kganyago reportedly highlighted that tackling the country's longstanding power crisis has set the stage for progress in other sectors. For the first time in years, South Africa has gone five consecutive months without power cuts, marking a significant turnaround.The central bank has consistently emphasized the need for structural reforms in energy and freight rail to lift growth beyond the modest 1% expected this year and next. Kganyago noted that despite challenges, the government is getting to grips with its reform agenda. He suggested that with further action on these constraints, South Africa's growth could rise to 3.5%.However, Kganyago acknowledged that challenges remain, particularly in the logistics sector. State-owned Transnet continues to struggle with providing efficient freight rail and port services due to equipment shortages and maintenance backlogs. Addressing these issues will be crucial for sustaining and accelerating economic growth.
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south africa, economy, southern africa, electricity, energy crisis, economic growth, reforms
south africa, economy, southern africa, electricity, energy crisis, economic growth, reforms
South Africa's Reform Efforts Gain Momentum as Power Crisis Eases, Says Reserve Bank Governor
12:36 30.08.2024 (Updated: 14:21 30.08.2024) Christina Glazkova
Writer / Editor
Despite a decline in annual consumer price inflation, South Africa is grappling with significant economic issues, such as high unemployment and slow growth. In the second quarter of 2024, the unemployment rate increased to almost 33.5%, with 8.4 million people out of work, a substantial increase from 5.2 million in 2014, according to StatsSA.
South Africa is making strides in implementing reforms that could unlock its economic potential, media reported on Thursday, citing Reserve Bank Governor
Lesetja Kganyago.Kganyago reportedly highlighted that tackling the country's longstanding power crisis has set the stage for progress in other sectors. For the first time in years, South Africa has gone five consecutive months without power cuts, marking a significant turnaround.
"South Africa is getting to grips with the execution of the reform programme in spite of the difficult environment," he was quoted as saying. "We didn't let the good energy crisis go to waste; eventually we got our arms around it, and we are dealing with it."
The central bank has consistently emphasized the need for structural reforms in
energy and freight rail to lift growth beyond the modest 1% expected this year and next. Kganyago noted that despite challenges, the government is getting to grips with its reform agenda. He suggested that with further action on these constraints, South Africa's growth could rise to 3.5%.
However, Kganyago acknowledged that challenges remain, particularly in the
logistics sector. State-owned Transnet continues to struggle with providing efficient freight rail and port services due to equipment shortages and maintenance backlogs. Addressing these issues will be crucial for sustaining and accelerating economic growth.
