Nene attributes constrained electricity supply to slow economic growth

According to Statistics South Africa the economy shrank by 1,3 percent in the second quarter of this year.

Finance Minister Nhlanhla Nene. Picture: GCIS.

CAPE TOWN - Finance Minister Nhlanhla Nene says the constrained electricity supply is continuing to hamper economic growth.

Nene was answering questions in the National Assembly this afternoon.

According to Statistics South Africa the economy shrank by 1,3 percent in the second quarter of this year.

Nene has told Members of Parliament the figure is disappointing.

"This highlights insufficient electricity supply, low private investment as well as high unemployment continues to hamper growth. Falling commodity, prices slowing growth in some of our trading partners and volatility in capital flows and the exchange rate add further challenges."