Reserve Bank: Damage wreaked by state capture even worse than we thought
18 April 2018
The damage done by state capture is worse than previously understood, and its effects, coupled with load shedding, are bound to hit economic growth hard, according to the Reserve Bank Monetary Policy Review.
In a document outlining growth prospects for the country, the Pretoria-based institution painted a gloomy picture about the impact of these two factors bedevilling the South African economy, stating that growth remained "disappointingly weak". Subscribe to Fin24's newsletter here
"It has become clearer, however, that the legacy of state capture, of which load-shedding is one symptom, will constrain growth for a longer period," it said. "...[T]he damage done by state capture is worse than previously understood. Capital expenditure, especially by state-owned enterprises, has been less productive than anticipated."
Weakening Eskom