The CEO at Business Leadership South Africa, Busisiwe Mavuso says the country needs decisive leadership that can implement the necessary reforms to turn the country’s economy around. Mavuso’s comments come on the back of the latest GDP figure which indicate that South Africa has fallen into a technical recession.
Economic growth shrank by 1.4% in the last quarter of 2019, following a contraction in the third quarter of 2019. Mavuso says investors need to know that government is creating an enabling business environment by implementing supportive policies.
“There are gonna be reforms that we actually have to implement so let me give you an easy one and a simply one for instance, Eskom. Unless and until we have a clear plan in terms of how we going to turn around Eskom it means that there isn’t sufficient energy availability and security. So how do get investors to come into a country and invest in an environment where there isn’t energy security. You know how the economy works is that you first need to have the right leadership because once you have the right leadership they will ensure that the right policies are implemented.”
In the video below, South Africans react to the recession:
South Africa’s Gross Domestic Product contracted 1.4% in the fourth quarter of 2019, following a revised 0.8% contraction in the third quarter, data from Statistics South Africa showed on Tuesday.
Economists polled by Reuters had predicted a contraction of 0.1% in quarter-on-quarter and seasonally adjusted terms in the final three months of last year.
GDP shrank 0.5% year-on-year in the fourth quarter after a 0.1% expansion in the previous quarter.
The economy expanded by 0.2% in the 2019 calendar year compared to 0.8% in 2018.
Video: SA economy in recession, where to from here?
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