South Africa’s economy is getting bogged down
Loading player...
GUEST – Nicky Weimar - Nedbank's chief economist
The underlying operating environment for businesses across the country is unlikely to improve amid an escalation in the frequency and duration of power outages, with the economy stuck at stages 5 and stage 6 load shedding, says Nedbank. In its latest Economic Monitor report, the group’s data showed that the country’s economy has been in the trenches, with a handful of market indicators from the last quarter painting a concerning picture. Rolling blackouts continue to damage business practices across the country in major sectors. According to the South African Reserve Bank (SARB), when looking at the percentage of business hours lost over 2022 due to load shedding, the industrial sector reported a 14% decrease, while the commercial and agricultural varied between losses of 11% and 12% of hours.
The underlying operating environment for businesses across the country is unlikely to improve amid an escalation in the frequency and duration of power outages, with the economy stuck at stages 5 and stage 6 load shedding, says Nedbank. In its latest Economic Monitor report, the group’s data showed that the country’s economy has been in the trenches, with a handful of market indicators from the last quarter painting a concerning picture. Rolling blackouts continue to damage business practices across the country in major sectors. According to the South African Reserve Bank (SARB), when looking at the percentage of business hours lost over 2022 due to load shedding, the industrial sector reported a 14% decrease, while the commercial and agricultural varied between losses of 11% and 12% of hours.
