South Africa Making Progress on Economic Reforms, Says Central Bank Governor

#Finance
South Africa Making Progress on Economic Reforms, Says Central Bank Governor

Loveworld / 53 mins

August 31, 2024

1 min read

South Africa is making progress with its economic reforms, according to the central bank governor. On Thursday, South African Reserve Bank Governor Lesetja Kganyago highlighted that effective execution of these reforms could enhance the country’s economic potential.
Kganyago emphasized that overcoming the long-standing power crisis, which has seen an unprecedented five consecutive months without power cuts, is crucial for progress in other sectors. Despite previous setbacks, the government is now making strides in addressing critical issues like energy shortages.
“South Africa is getting to grips with its reform program despite challenging conditions,” Kganyago told reporters. He noted that successfully managing the energy crisis could pave the way for addressing other structural constraints, potentially boosting growth to 3.5% if the government tackles issues in sectors such as logistics and infrastructure.
Kganyago acknowledged ongoing challenges, particularly in the logistics sector, where state-owned Transnet faces significant hurdles due to equipment shortages and maintenance backlogs.
As the South African Reserve Bank prepares for its next interest rate announcement on September 19, Kganyago indicated that while inflation is nearing target levels, uncertainty and risks remain. The bank is anticipated to cut its main lending rate for the first time in over four years.