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National Treasury ‘committed’ to addressing SA’s energy challenges

Government says it will make South Africa’s energy crisis a priority as it works towards economic growth.

FILE. On Saturday global ratings agency Standard and Poor's downgraded the country’s outlook, partly due to an inability to reverse negative economic growth. Picture: Freeimages.com

JOHANNESBURG - The National Treasury says it's committed to addressing South Africa's energy challenges, which are contributing considerably to an ailing economy.

On Saturday global ratings agency Standard and Poor's downgraded the country's outlook, partly due to an inability to reverse negative economic growth.

Government says it will make South Africa's energy crisis a priority as it works towards economic growth.

But economist Thabi Leoka says there are several other factors to consider.

"The water shortage, which will obviously impact on the economy; we have an agricultural sector that we know has been impacted by the reduction in water."

Reuters reports that National Treasury has committed itself to achieving sustainable growth after Standard and Poor's changed South Africa's outlook to negative and Fitch cut its credit rating.

Government says it wants to achieve continued revenue growth as well as promote strict adherence to planned expenditure.