South African Reserve Bank Governor Lesetya Kganyago said on Thursday, as he announced the Monetary Policy Committee's decision on the repo rate, the recent instability will impact on investor confidence and the country's economic recovery.
“We estimate that uncertainty has completely canceled out the positive growth results in the first quarter, resulting in our 2021 growth forecast unchanged at 4.2%.Impact on vaccination, expectations “There are risks to growth, with extended lockdowns, energy supply constraints and policy uncertainty contributing to the downside,” he said.
“There is no doubt that the disruption disrupted the supply chain, impacting the logistics framework and the confidence of local and international investors,” Kganyago added.
“The direct and indirect costs of recent events are likely to further delay South Africa's economic recovery,” he said. While some sectors, particularly mining and manufacturing, have largely recovered to pre-pandemic levels, production remains weak in sectors that were harder hit by the pandemic and in regions currently affected by the disruption. The recent unrest and economic damage could have a lasting impact on investor confidence and job creation. ”
Scores of businesses were looted, set on fire and vandalized during the riots that erupted after former South African President Jacob Zuma was jailed.end item
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