Zuma blames international factors on poor economic growth

He says South Africa is not alone, as other emerging markets are also affected by poor growth.

FILE: President Jacob Zuma. Picture: Reinart Toerien/EWN.

JOHANNESBURG - During his 2016 State of the Nation Address, President Jacob Zuma moved to address fears about slow growth locally.

Zuma says a number of international factors are affecting growth.

"Global growth still remains muted. Financial markets have become volatile. The currencies of emerging markets have become weak and they fluctuate wildly."

He says South Africa is not alone, with other emerging markets also affected by poor growth.

"The International Monetary Fund and the World Bank predict that the South African economy will grow by less than one percent this year. The lower economic growth outcomes and outlooks suggest that revenue collection will be lower than previously expected."

Zuma says the answer lies with promoting small business and Black Economic Empowerment.

"One of our new interventions is the Black Industrialists Scheme, which has been launched to promote the participation of black entrepreneurs, in manufacturing."

At the end of last year, the local currency touched record lows against the US dollar, British pound and the euro at the announcement of the removal of former Finance Minister Nhlanhla Nene.

Investors seem to still be concerned about the fallout from Nene's dismissal as they think it hasn't been properly explained.

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