Independent Economist Elize Kruger says South Africa’s growth rate is an outcome of not addressing issues that should have been resolved years ago, such as electricity supply.
This comes as South Africa’s economy has contracted by 0.2 percent in the third quarter of 2023.
Factors that contributed to the decrease in the Gross Domestic Product figure came from the agriculture, manufacturing, mining, construction and trade industries.
Kruger elaborates, “Now we have a problem that we do not have enough electricity for our economy and now there are projects currently under way to try and sort this out, but we should have thought about this you know a couple of years ago already to not be in this scenario. We are busy policies and the mitigating sort of actions that we need to get us out of this hole but it will all take time because have invited the private sector in South Africa to become part of the solution to embark on projects to increase our electricity supply and you can have that same argument for the logistical sector.”
VIDEO | Reactions to the local economy’s 0.2% shrinking in the third quarter:
