Cape Town – Finance Minister Enoch Godongwana has reportedly said that a lot needs to be done to get South Africa on the upward trajectory after official statistics showed on Tuesday that the country’s economy shrank by 1.5% in the third quarter of this year.
According to IOL, Godongwana said South Africa’s economy was under pressure and unemployment was a major challenge.
He also said that crime was also a matter the needed serious attention.
“I am concerned that growth has implications for revenue that we collect… the level of crime in our economy… is a matter that needs serious attention. As we speak, the coal industry has not been able to move because of cable theft. It lost about R15 billion of revenue because they couldn’t shift coal to Richards Bay. That has got implications on our revenue forecast,” the report quoted the minister as saying.
The country’s economy underperformed “under the twin pressures of tighter Covid-19 lockdown restrictions and a spate of civil disorder in July, as well as several other headwinds”, the Stats SA agency said.
ALSO READ | SA economy shrinks by 1.5% in third quarter of 2021
A spree of arson and looting rocked parts of South Africa in July following the jailing of ex-president Jacob Zuma for contempt.
The country worst-hit by Covid in Africa also tightened coronavirus restrictions that month to tackle a third wave of infections.
Trade, catering and accommodation industries fell by 5.5%.
Manufacturing shrank by 4.2%, while agricultural activity plunged by 13.6%, its biggest drop in five years.
Africa’s most industrialised country was in recession when the pandemic hit.
A hard lockdown imposed in March last year brought many industries to a standstill, and rolling restrictions have continued to stifle business.
The economy contracted by a record 6.4% in 2020, but rebounded faster than expected during the first half of this year.
It was predicted to grow by 5.1% in 2021 last month.
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Source: AFP
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Additional reporting by AFP
