African Development Bank backs government efforts to boost growth
State capture commission, restructuring of parastatals, new tax measures and the R50bn stimulus all positive pointers to investors
The African Development Bank (AfDB) has backed the government’s measures to boost confidence in the economy, including the ongoing state capture inquiry, saying these will improve macroeconomic stability and enhance growth. According to the bank’s Southern Africa Region 2019 Economic Outlook report published on Wednesday, confidence in SA’s economy has been low because of poor governance, high levels of corruption, skill mismatches, and issues surrounding land expropriation. The government has put in place measures to boost confidence. These include the state capture commission, restructuring of state-owned enterprises, new tax measures, and the R50bn stimulus package. “Those [measures] should strengthen fiscal consolidation, further improve macroeconomic stability, and enhance growth in the medium term,” the bank said. The bank said SA’s projected growth of 1.7% for 2019 and 2% for 2020, was based on greater investor confidence in the political space, and commodity prices which are...
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