The reduction in load shedding has had a particularly positive impact on manufacturing and mining, which contribute significantly to GDP. The manufacturing sector, in particular, is poised for recovery as energy constraints ease and supply chains stabilise. The President will detail how we will ensure lasting and sustainable energy security through the implementation of the Energy Action Plan and the Electricity Regulation Amendment Act. Importantly, he will sasol fuel also outline the work of government to address the looming crisis of water security that poses a threat to the quality of life and economic prospects of all South Africans. According to Lisette IJssel de Schepper, the Chief Economist at the Bureau for Economic Research (BER), the Q3 GDP slump was mainly driven by a sharp drop in the agriculture sector. This resulted in a quarterly contraction, setting back the entire year’s economic expectations.

The newly elected coalition and the economy till now

• The manufacturing sector, in particular, is poised for recovery as energy constraints ease and supply chains stabilise.
• The Biden administration’s recent decision to suspend some HIV and TB program funding for Africa — which accounts for 17% of South Africa’s HIV spending — was met with concern.
• The speech took on a notable diplomatic tone, reflecting South Africa’s role in an increasingly fragmented global order.

The Fund indicated that meeting South Africa’s climate goals requires further efforts to increase effective carbon taxation and accelerate the rollout of renewable energy. In the 2024 national elections, the African National Congress, in power since 1994, received only 40.2% of votes.1 Unable to secure a parliamentary majority, it formed a coalition government with the centrist and pro-market Democratic Alliance—its main opposition—as well as other small parties. On trade, the African Continental Free Trade Area (AfCFTA) remains a pillar of South Africa’s economic strategy. With the country positioning itself as a regional hub for green manufacturing, electric vehicles, and https://www.coronation.com/ digital services, Ramaphosa reiterated South Africa’s ambition to lead Africa’s industrialisation wave.

Business

Access more insights for the consumer spending, housing, business investment, globalization & international trade, fiscal & monetary policy, sustainability, equity, & climate, labor markets and prices & inflation sectors. 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. Protectionist trade policies, geopolitical tensions, and supply chain disruptions remain potential risks. However, experts sasol gas believe that South Africa is better equipped to navigate these challenges due to its focus on structural reforms and proactive fiscal measures. On expenditure, real GDP rose by 0.5% in the second quarter, an improvement from the 0.1% decrease in the first quarter of 2024.

Creating opportunity at the intersection of climate disruption and regulatory change

For instance, proposals targeting private healthcare and initiatives like BEE are sparking debates https://www.absa.co.za/ about their potential impact on business confidence. 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. The SARB attributes the low growth of South Africa in 2023 to supply-side issues, including electricity load, port, and rail issues. However, the South African economy is expected to have a 1.2% GDP growth in 2024.SARB said its prediction is a modest yearly growth as the supply-side constraints relax.

Reform implementation will unlock opportunities

Sanisha Packirisamy, Chief Economist at Momentum Investments, maintains a 1% growth forecast for https://www.capitecbank.co.za/ 2024, with a potential rebound to 1.8% in 2025. It attributed the gains in the economy to household consumption gradually increasing, supported by rising purchasing power, employment recovery and wealth gains. In its 2024 Medium Term Budget Policy Statement (MTBPS), the National Treasury estimated economic growth to increase from 1.1 percent in 2024 to 1.7 percent in 2025.