ANALYSIS: SA’s growth dragged down by many factors
Cyril Ramaphosa should heed the findings of important new reports if he’s serious about attracting R1.2-trillion in new investment, writes Mark Allix
The government’s handling of critical drivers of the economy will determine whether GDP growth of between 4% and 4.5% from 2020 onwards can be reached. These drivers cover sectors that have been most in jeopardy in recent years: mining, construction and steel production, all of which are deeply interrelated with the metals and engineering sector and general manufacturing. Of crucial importance are the latest published views of the Department of Trade and Industry, Energy Intensive User Group of Southern Africa (EIUG) and BMI Research, a unit of the Fitch Group.If President Cyril Ramaphosa seriously wants to attract R1.2-trillion in new investment over the next five years, he will need to heed their main findings. These affect companies such as Aveng, Group Five, Murray & Roberts, ArcelorMittal SA, and nearly all big mining entities. Such firms have languished for many years amid disruptive commodities cycles, ongoing economic volatility following the global financial crisis, a lack ...