#WEF2016: ‘SA's economy isn’t necessarily destined to shrink’

Deputy Reserve Bank Governor Daniel Mminele says despite poor growth the economy remains resilient.

The World Economic Forum on Africa is taking place in Kigali, Rwanda, from 11 to 13 May. Picture: Vumani Mkhize/EWN.

KIGALI - Deputy Reserve Bank Governor Daniel Mminele says the South African economy is not necessarily destined to start shrinking.

Mminele was speaking on the side-lines of the World Economic Forum (WEF) Africa meeting, being held in Rwanda.

Deputy President Cyril Ramaphosa is leading the South African delegation at the gathering.

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Mminele says despite poor growth, the economy remains resilient.

"For it to fall into what is called a 'technical recession' would need some significant further downturn and drastic developments."

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RAMAPHOSA AIMS TO SWAY INVESTORS

Ramaphosa says there are great opportunities for investors in South Africa, if they help create the country's infrastructure.

He says the main lesson South Africa has learnt over the last 20 years, is how important it is to coordinate infrastructure projects.

Ramaphosa says developing infrastructure is a big opportunity for foreign investors.

"Economic infrastructure has been a key economic driver in our country and we would greatly recommend investors to keep flowing to South Africa because there's money to be made in South African infrastructure."

The deputy president says South Africa's lack of electricity, that led to planned power cuts, was an opening to allow the private sector to create projects that ended up joining the national grid.