In 2003, the government started taking climate change seriously with the release of the White Paper on Renewable Energy. The government started intentionally trying to increase the use of renewable energy while decreasing the use of dirty energy, such as coal. Despite recording the worst year of loadshedding1 on record (so far) in 2023 (more than 6,700 hours of loadshedding were recorded in 2023,2 compared to about 3,700 in 2022),3 South Africa managed to avoid a technical recession. Real GDP growth stood at 0.6% last year.4 In the first half of 2023, businesses and households alike invested in self-generation and rooftop solar power, boosting investment spending, and aiding to bridge energy shortfalls. But household final consumption expenditure growth has been flat, given the high cost of living and the country’s energy crisis. This, together with heightened operational challenges in rail and port infrastructure, has been a drag on investment and much-needed growth both on the demand and supply side.

Focus is on project preparation and creating a pipeline of bankable projects (a long-standing challenge in South Africa), strengthening public-private partnerships through reforming their frameworks, as well as using risk-sharing initiatives and financial instruments to unlock greater private funding. Legislative reforms to public-private partnerships and the creation of new infrastructure-financing mechanisms are other areas of focus. Yet, these will need to be accompanied by a focus on increasing the quality of governance, building a more capable state while addressing the leadership vacuum at various levels of government. The second quarter’s economic growth is a clear indication that South Africa’s economy is on a solid path to recovery. The positive trajectory also speaks to the effectiveness of the measures that have been implemented to support recovery and growth.

Eurozone economic outlook, September 2024

• The positive trajectory also speaks to the effectiveness of the measures that have been implemented to support recovery and growth.
• The government should urgently set up policies and actions to overcome the barriers to using renewable energy.
• Focus is on project preparation and creating a pipeline of bankable projects (a long-standing challenge in South Africa), strengthening public-private partnerships (PPPs) through reforming their frameworks, as well as using risk-sharing initiatives and financial instruments to unlock greater private funding.
• Since the State of the Nation Address (SoNA) in February last year, our nation has witnessed profound political changes through the establishment of a multi-party government after the seventh democratic elections in May 2024.
• Renowned for its diverse array of news, sports, and business content, the platform continues to captivate a domestic audience while also fostering a dedicated readership on an international scale.

We could see economic growth well below 1.5%, and that will have serious consequences,” he tells FORBES AFRICA. While the government’s infrastructure plans are extensive, structural challenges may pose obstacles to reaching this ambitious growth rate. These two events combined caused a general slowdown in non-renewable and renewable energy use, and in economic growth.

South Africa’s 2025 State of the Nation Address: Economic Vision, Global Relations, and National Challenges

Given some of the constraints under discussion, but also stemming from various uncertainties such as heightened geopolitical tensions in the Middle East, climate change risks, still-tight financing conditions, and South Africa’s upcoming elections on May 29, there are notable downside risks to growth. 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. Over the past five years, Pieterse has worked with governments, funders, and private companies across Africa providing research, data analysis, and insights to solve client challenges and produce additional strategic value. A modernized mining rights system, expected this year, aims to unlock investment in exploration and critical minerals, strengthening South Africa’s position in the global commodities market. Addressing unemployment, particularly among youth, Ramaphosa reaffirmed the expansion sasol fuel of the Presidential Employment Stimulus, which has created 2.2 million work opportunities.

Business

According to data released by Statistics South Africa (Stats SA), the GDP increased by 0.4% in the second quarter of 2024, following a 0.0% growth in the first quarter. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. The US economy remains strong with robust consumer spending and high business investment, https://www.coronation.com/ but its future trajectory largely hinges on the policies of the incoming administration. Furthermore, consumer confidence will likely remain low, largely due to high unemployment, but exacerbated by loadshedding and election uncertainty.

State of the US consumer: January 2025

Unexpectedly, real GDP growth fell by 0.3% in the third quarter of 2024, which also lowers the expected growth outcomes for 2024 to less than 1%. For near- to medium-term growth, South Africa’s prospects remain constrained due to subdued export prices, low demand, a weaker rand, and the mentioned supply-side constraints to growth, together with high sovereign credit risks that increase borrowing costs and limit investment and growth. South Africa’s 2024 GDP outlook has been revised downward due to weaker-than-expected performance in Q3, particularly in the agriculture and manufacturing sectors. While short-term recovery seems unlikely, economists remain cautiously optimistic about 2025, expecting a recovery spurred by structural reforms, consumer demand, and an improved global economic environment. Of the 10 industries reported on by Statistics South Africa (StatsSA), four saw contractions in 2023, while three recorded marginal positive increases (less than 1%).

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, there has been some progress. This has helped boost confidence (which dropped sharply ahead of the elections) on the supply side of the economy, as shown by various business surveys. It is heavily dependent on non-renewable energy (coal), which also worsens global warming and speeds up climate change. But it desperately needs to grow the economy at a faster rate, given very high unemployment, poverty and inequality. South Africa’s Presidency of the G20 will advance the interests of the African continent and the Global South. At the heart of our efforts is promoting sustainable development, inclusive economic growth, https://www.easyequities.co.za/ justice, peace, stability, multilateralism and human rights across the globe.

South Africa economic outlook, November 2024

The AfDB’s forecast aligns with World Bank projections of robust growth of around 4.2% in sub-Saharan sasol mining Africa. In its report, the bank also noted that 12 of the 20 fastest-growing economies in 2025 will be in Africa. With GDP growth struggling to surpass 1.5% in recent years, achieving the 3% target will require more than infrastructure spending. Structural challenges — from inefficiencies in SOEs to regulatory red tape — continue to hamper investor confidence. To stimulate growth, his government has committed to a R940 billion ($51 billion) infrastructure investment over three years, including R375 billion ($20.3 billion) in spending by state-owned enterprises (SOEs).

Recent data from the third quarter has shown real GDP growth dipping to 0.3% despite cautious optimism. Learn about Deloitte’s offerings, people, and culture as a global provider of audit, assurance, consulting, financial advisory, risk advisory, tax, and related services. Equally important to 2025 SoNA is the National Dialogue to discuss solutions to the difficult issues of economic exclusion, social inequality and societal marginalisation. The National Dialogue offers https://www.investec.com/ a comprehensive platform for all citizens to be part of the political process and rekindles public participation as the expression of people’s power. In addition to these achievements, transformative laws and policies adopted by Parliament, such as the BELA Act, National Health Insurance Act, the Expropriation Bill and other key pieces of legislation were signed into law. These many achievements over the year together with the firm commitment from the Government of National Unity to foster an inclusive nation places us in a strong position for growth and the renewal of our nation.