Page 4 - Nexia SAB&T Business in South Africa Guide 2024

OVERVIEW

South Africa’s economy is expected to grow at some 1.6% over the next three
years, with real Gross Domestic Product (GDP) reaching 0.6% in 2023.
Operational problems in freight rail and ports continue to disrupt economic
activity and limit the country’s export potential. Comprehensive reforms are
under way in these sectors, although it will take time to see a recovery in growth.
Household consumption is under pressure from high living costs, and
investment remains low due to weak confidence and challenging business
conditions linked to structural constraints.
Commodity prices remain important for South Africa, a major net exporter of
minerals and net importer of oil, however, strengthening investment, including
foreign direct investment, will be critical to propelling growth and creating jobs.
President Cyril Ramaphosa’s economic recovery plan envisages that
infrastructure will play a leading role in developing the South African economy
over the next 30 years. The National Infrastructure Plan 2050, published in the
last quarter of 2021, sets out ambitious plans for various infrastructure sub-
sectors, which, if given effect, has the aim of increasing investment flows into
the economy, and a rapid acceleration of infrastructure development.

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