South Africa needs to crowd in private sector expertise, capital, and risk appetite. According to Stats SA gross domestic product (GDP), the broadest measure of economic activity, declined by 1.3% from the third to the fourth quarter, adjusted for inflation and seasonality. This was much worse than expected and is a big number in absolute terms.

It does not take a trained economist to realise that load shedding carries much of the blame, with big declines in the energy-sensitive manufacturing, mining and agricultural sectors. Electricity production itself is a meaningful contributor to overall economic activity in its own right, responsible for R100 billion a year in real value added.

No surprise that it contracted 1.9% in the quarter. Click here to read full article