Limited growth expected for South African economy

South Africa’s economy is expected to grow by just 0.8% in 2020, the International Monetary Fund (IMF) announced on Thursday. 

The collapse of state firms like Eksom and South African Airlines, followed by government bailouts, have contributed to an increasing budget deficit. 

“Weaknesses in public enterprises are resulting in poor delivery” and are costing the state a lot of money, the IMF said in a statement. 

The situation has been worsened by heavy rains that battered parts of the country last month. Whole neighbourhoods were submerged and coal mines and power stations flooded in a nation already experiencing regular blackouts.  

Photo credit: World Finance