The member firms comprising KPMG in Southern Africa are not a global partnership, single firm, multinational corporation, joint venture, or in a principal or agent relationship or partnership with each other. However, if reforms are implemented successfully and investor confidence strengthens, South Africa has the potential to exceed these forecasts and move closer to its 3% growth goal. For instance, proposals targeting private healthcare and initiatives like BEE are sparking debates about their potential impact on business confidence. This does not compare well with the International Monetary Fund’s 4% projection for emerging and developing economies, and even falls below the outlook for advanced economies agc investment south africa of 1.7%.
Informal sector
2023 was a challenging year for the South African economy – an expected anemic GDP growth of below https://www.sanlam.co.za/ 1 per cent, influenced by persisting freight, logistics, governance and energy supply constraints, high interest rates and rising fuel and food prices. In addition, adverse weather conditions continue to affect lives and livelihoods and damage infrastructure. Going into 2024, the South African Reserve Bank (SARB) anticipates a 1.2 per cent growth in the GDP for the year and expects the headline inflation rate to ease further into the bank’s inflation target range of 3 – 6 per cent – as, in fact, the headline inflation for 2023 has already hit the upper end of the target.
- Allison Pieterse is a senior consultant in the Audit and Analytics Solutions team working on projects at the intersection of economics and healthcare as well as strategic advisory.
- Business Tech reports that the United Nations’ (UN) World Economic Situation and Prospects report for 2024 believes South Africa’s debt crisis is likely to worsen.
- Eskom will continue to focus on implementing generation recovery, strengthening governance, and tackling crime and corruption while future-proofing the organisation to enable energy security, growth, and long-term sustainability to the benefit of South Africa and sub-Saharan Africa.
- South African companies which provide services related to the Space industry, also increasing, and with the correct government legislation and support, this sector is expected to grow in South Africa.
- “These 300 days without loadshedding have been characterised by a significant reduction in unplanned outages, which have long been one of the biggest challenges, a notable improvement in the energy availability factor of approximately 7%, and savings in diesel expenditure of R16.42 billion,” concluded Nxumalo.
IMF Cuts South Africa’s 2024 Growth Forecast Amid Persistent Economic Challenges
Transport, storage and communication industry decreased, while decreased economic activities were also reported for land transport and transport support services. The trade, catering and accommodation industry decreased by 0.4%, with decreased economic activities reported for wholesale trade, motor trade and food and beverages. The IMF’s latest forecast underscores the pressing need for South Africa to accelerate reforms and address its long-standing economic challenges. While the road ahead is fraught with difficulties, opportunities agc investment south africa for recovery remain—provided there is strong governance, sound policy execution, and collaborative efforts between the public and private sectors.
Labour protests causing operational disturbances bring more loadshedding risk
Despite improvements in managing power outages, the lasting effects of 2023’s load shedding crisis remain evident. The first quarter of 2024 still experienced energy disruptions, hampering industrial output and slowing economic momentum. On the supply side of the economy, various plans that have been set in motion to address supply-side constraints will need to be executed. Launched in 2020, Operation Vulindlela focuses on accelerating reform implementation within the electricity, rail, water, and telecommunication industries.13 Although some argue that these reforms are not ambitious enough14 and that momentum has been slow, https://www.easyequities.co.za/ there has been some progress.
Weekly economic wrap: rand back under R19/$ again
Eskom will continue to focus on implementing generation recovery, strengthening governance, and tackling crime and corruption while future-proofing the organisation to enable energy security, growth, and long-term sustainability to the benefit of South Africa and sub-Saharan Africa. “This concrete and ongoing delivery of the action plan has boosted business confidence with credit rating agencies and banks stating Eskom’s performance recovery is a key contributor towards positive sentiments as far as https://www.absa.co.za/ South Africa’s GDP growth prospects of up to 2% are concerned,” said Dan Marokane, Group Chief Executive of Eskom. Mining has been the main driving force behind the history and development of Africa’s most advanced economy. Large-scale and profitable mining started with the discovery of a diamond on the banks of the Orange River in 1867 by Erasmus Jacobs and the subsequent discovery and exploitation of the Kimberley pipes a few years later. Gold rushes to Pilgrim’s Rest and Barberton were precursors to the biggest discovery of all, the Main Reef/Main Reef Leader on Gerhardus Oosthuizen’s farm Langlaagte, Portion C, in 1886, the Witwatersrand Gold Rush and the subsequent rapid development of the goldfield there, the biggest of them all.