IMF Confirms South Africa’s standstill under the ANC
31 January 2024
The Democratic Alliance (DA) notes the International Monetary Fund’s (IMF), downward revision of South Africa's economic growth forecast, as outlined in its January 2024 Global Outlook Report. In the report the IMF adjusted its 2024 growth expectation for South Africa from 1.8% to 1%. At 3.1%, global growth is projected at more than 3 times estimated South African growth.
The revised projection falls below South Africa’s estimated population growth rate at 1.5%, and underscores the troubling consensus that under the current ANC led government, economic stagnation is set to persist, and the living standards of South Africans will continue to worsen.
The report highlights logistical constraints, especially within the transport sector, as a critical impediment to economic growth. Inefficiencies in the sector alone cost the country more than R1 billion daily. This is notwithstanding the hundreds of billions of Rands that is lost due to persistent load shedding, rampant crime, race-based procurement, and pervasive corruption. Once more the profound impact of the ANC government's failure to address long-standing problems has been presented on an international platform.
The crisis of economic growth becomes more pronounced when placed within the regional geoeconomic landscape. Despite being heralded as the most industrialized nation in Africa, South Africa's projected growth of 1% falls well short of the regional average of 3.8%. In fact, South Africa is identified as the primary weight on regional growth.