Infrastructure bottlenecks undermine South Africa’s growth

Once the largest economy in the continent, South Africa reels under infrastructure degradation that risks ditching the country’s economic growth, according to S&P Global Market Intelligence.

Infrastructure dysfunctions, notably irregular electricity, supply hit production at Africa’s most industrialized nation, stoked unrest and worsened the country’s macroeconomic balances.

Thea Fourie, Director for Sub-Saharan Africa Economics and Risk at S&P Global, told Bloomberg that without urgent action, the country risks falling further behind.

Addressing infrastructure bottlenecks in energy, ports, rail, and water is crucial for overcoming institutional weakness and driving growth,” she said.

S&P Global Ratings projects South Africa’s economy to grow by 1.1% in 2024 and an average of 1.3% over 2025-2027, from 0.6% in 2023. On a per capita basis, real growth will be about zero this year.