Economic growth in South Africa is expected to accelerate next year as the country recovers from output-sapping power cuts and the nation’s new coalition government focuses on investing in infrastructure, South African Deputy President Paul Mashatile said.
“We think that by next year we could be growing about 1.5%,” Mashatile said in an interview on Monday with Bloomberg Television in London on Monday. That compares with an average of less than 1% a year over the past decade.
“We are shifting more resources to economic activity,” said Mashatile, who’s leading an investor roadshow in the UK this week. “We want to grow the economy, particularly through infrastructure investments, build new roads, dams, new railway lines.”
A so-called government of national unity comprising 10 parties took power in June, a month after the African National Congress lost its outright parliamentary majority for the first time since apartheid ended in 1994. President Cyril Ramaphosa’s new administration has identified growing the economy and creating jobs as its top priorities, and has already made some headway in tackling energy shortages and visa backlogs.
The progress has fueled a rally in the rand, driving it to a 19-high against the dollar, while the FTSE/JSE All-Share Index has reached a record. There have also been a wave of new investments, with Anglo American Plc announcing plans to spend $625 million on iron-ore projects and Qatar Airways acquiring a stake in South African airline SA Airlink Pty Ltd.
Source:norvanreports.com