South Africa’s gradual structural reforms are breathing life into the economy, but aren’t sufficient to lift the growth rate to the government’s 3.5% target, according to Moody’s Ratings.
Africa’s largest economy has grown less than 1% annually for more than a decade, hamstrung by dilapidated infrastructure, electricity shortages, logistics bottlenecks, crime and corruption. A coalition government, formed after the African National Congress lost its majority in last year’s national elections, has prioritised reforms as it seeks to spur growth to as much as 3.5% by 2030.