Mashatile wants to see SA's economic growth 'push beyond 3%' in next 3 years
Mashatile’s ambitious target comes as the country looks to structural reforms to address challenges in energy and logistics which have hobbled the economy for years.
FILE: Deputy President of South Africa Paul Mashatile. Picture: X/PresidencyZA
JOHANNESBURG - Deputy President Paul Mashatile has said that South Africa's economy still has the potential to grow by 3% in the next three years, despite tamer expectations by financial institutions.
Mashatile's ambitious target comes as the country looks to structural reforms to address challenges in energy and logistics, which have hobbled the economy for years.
Mashatile was speaking at the inaugural Ahmed Kathrada Foundation business breakfast in Illovo on Monday.
South Africa’s economy is forecast to grow by close to 2% in 2025.
This is roughly a figure that National Treasury and the International Monetary Fund (IMF) have touted.
The South African Reserve Bank recently lowered its expectations to 1.7% while the likes of PwC believe the downside scenario could be around 0.5% while the upside scenario could be 1.3%.
But government said that phase two of Operation Vulindlela could help push the country over the magic number of 3%.
Deputy President Paul Mashatile: "With all these other plans, we want to push beyond 3%, which will be very good because then we can have enough revenue for National Treasury to be able to fund this medium-term development plan, without necessarily increasing taxes."
Despite some optimism, the economy remains sluggish, struggling to hit the levels economists say are needed to create jobs.