South Africa is not investing enough in infrastructure, which is severely limiting growth in the country. <\/p>\n\n\n\n
The Nedbank Group Economic Unit, International Monetary Fund and Deloitte have all pencilled in a measly 1% growth in GDP in 2024. <\/p>\n\n\n\n
Speaking at a Pre-National Budget roundtable, Deloitte Africa Chief Economist Hannah Marais said that investment in infrastructure is the best way to stimulate growth in South Africa. <\/p>\n\n\n\n
Currently, investment in infrastructure has been driven by the private sector, with the unexpected GDP growth seen in the first two quarters of 2023 linked to the purchase of alternative power sources due to Eskom’s failure to provide a consistent power supply. <\/p>\n\n\n\n
However, private businesses in South Africa are still battling major headwinds. Deloitte’s Jo Mitchel-Marias said that many businesses are in the “zombie zone<\/a>,” where they can pay operating costs and service their debt but lack the funds for capital expenditure. <\/p>\n\n\n\n These businesses are also at risk of going into business rescue or liquidation after suffering one major shock, which was recently seen with electronics distributor and manufacturer Ellies. <\/p>\n\n\n\n