Days before he is due to present a strong investment case to global leaders at the World Economic Forum (WEF), Finance Minister Enoch Godongwana has painted a bleak picture of South Africa’s growth prospects, saying the economy could grow at a lower rate than forecast. 1.6% in 2022.
In October, the National Treasury predicted that GDP growth would be at 1.9%, which has been revised down from 2.1% earlier last year.
Godongwana’s comments come despite South Africa’s GDP growing by 1.6% in the third quarter of 2022.
“The forecast is also not impressive,” said Godongwana.
But “working together, we can achieve much more” – provided some of the problems facing South Africa are addressed, he added.
Also read: Cost of living survey shows we’re in for tough times
Godongwana spoke at the WEF’s pre-departure business briefing in Johannesburg on Thursday morning.
He will be part of a delegation led by President Cyril Ramaphosa who will meet world leaders in Davos from January 16 to 20 to discuss ‘Cooperation in a Divided World’.
Godongwana said the government’s top priority was rebuilding investor confidence and mobilizing investment, adding that handling South Africa’s growing power crisis was critical.
“We can have the best policy on paper, [but] if we can’t provide electricity, it’s useless,” he said.
Also read: Eskom imposes phase 6 load shedding until further notice
Eskom has been struggling to overcome the challenges of power supply in South Africa, as continuous blackouts have lasted for more than 15 years. This week, announced phase 6 of load shedding until further notice.
Human Settlements Minister Mmamoloko Kubayi said that despite the challenges, South Africa’s delegation would endeavor to communicate with WEF delegates that the country is “at work and on the road to recovery”.
Also read: Cost of living crisis is the biggest global risk – Davos study
The delegation aimed to profile the country’s recovery strategy and implementation and make it an attractive destination for business and investment as well as tourism.
This article originally appeared on Moneyweb and is republished with permission.
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