If load-shedding persists, SA will see almost no growth, Reserve Bank warns
The depth and damage wrought by state capture has proven to be worse than thought, says the Bank, with power supply being the tipping point
The Reserve Bank has warned that if load-shedding persists for the rest of the year, SA could see almost no growth for the year and more than 100,000 job losses. The Bank said in its monetary policy review, released on Wednesday, that this is a direct impact of state capture. “The legacy of state capture, of which load-shedding is one system, will constrain growth for a longer period. It is becoming clear that the damage done by state capture is worse than previously understood. Capital expenditure, especially by state-owned enterprises (SOEs), has been less productive than anticipated. “To take one highly visible example, the economy has less electricity than it had a decade ago despite massive Eskom investments in generating new capacity,” the Bank said, adding that this has blocked a stronger rebound in growth.
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