Photos: YouTube Screenshots\Wikimedia Commons
South Africa’s government unveiled grim budget forecasts on Wednesday, cutting its projections for economic growth.
Finance Minister Enoch Godongwana (pictured), in the coalition government’s first half-year budget, cut the growth target for this year to 1.1% from the 1.3% target set by the previous administration. Pretoria is set to cut spending in a bid to reduce debt and narrow budget deficits.
The latest estimates highlight the scale of the challenge facing Africa’s most industrialized economy. Electricity shortfalls in recent years, coupled with problems at state-run rail and ports company Transnet, have curtailed growth and thus tax intake. South Africa’s coalition, formed after the African National Congress lost its parliamentary majority following elections in May, has until now been buoyed by hopes that South Africa could regain economic momentum amid positive investor sentiment and improved electricity provision.
