News Flash
- South Africa’s Reserve Bank has released their second Financial Stability Review highlighting concerns about the ongoing energy crisis in South Africa and its negative economic impact.
- Continuing slow and inequitable domestic economic growth, factors such as insufficient and unreliable electricity supply and the effects of climate change put additional pressure on the financial sector.
Slow and inequitable domestic economic growth has been exacerbated by increased load-shedding during the review period, which had the dual impact of negatively influencing investor sentiment towards South Africa and detrimentally affecting business productivity.
Related news: Eskom appoints third action head of generation as load-shedding intensifies
Insufficient and unreliable electricity supply is likely to threaten the viability of some corporates, especially small and medium-sized enterprises (SMEs), for the foreseeable future, with losses potentially spilling over into the financial sector.
There are positives. Link to the full review HERE
Author: Bryan Groenendaal
