finance
Standard Bank Forecasts 1.5% Growth for South Africa Amid Reforms and Rule of Law Probes
Sim Tshabalala stated that South Africa could achieve 3-4% medium-term growth if structural reforms continue at an accelerated pace. He identified restoring the rule of law as the biggest obstacle, citing ongoing investigations into police corruption. Standard Bank maintains a 1.5% growth projection for this year despite global tensions.
Apr 15, 9:27 AM·2m read1 source
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# South Africa Eyes 3-4% Growth with Accelerated Reforms Sim Tshabalala spoke at Semafor World Economy in Washington, DC. He told Semafor that South Africa could lift its medium-term growth rate to between 3-4% if the state sustains the faster execution of structural reforms now underway. " The biggest remaining obstacle to growth is restoring the rule of law, according to Tshabalala.
He identified the rule of law as the most urgent and politically sensitive reform frontier. " Reforms driving early gains in energy, logistics, and water infrastructure were designed under the reform acceleration unit set up by the African National Congress government in 2020. The current coalition government has accelerated the execution of the reforms.
The coalition government is anchored by the ANC, the Democratic Alliance, IFP, and Freedom Front Plus.
The Madlanga Commission was set up to investigate systemic procurement failures and corruption in the police department.
The Madlanga Commission has highlighted widespread corruption that has undermined the rule of law. Public hearings of the Madlanga Commission have led to the suspension of Police Minister Senzo Mchunu. Public hearings of the Madlanga Commission have resulted in criminal charges against National Police Commissioner Fannie Masemola.
National Police Commissioner Fannie Masemola is accused of obstructing investigations and enabling corrupt procurement schemes. Semafor reported on these developments in the context of broader rule of law challenges.
The Constitutional Court is expected to deliver its ruling on whether lawmakers acted lawfully when they rejected an independent panel finding that South African President Cyril Ramaphosa may have a case to answer over the 2020 theft of foreign currency from his Phala Phala game farm.
