These difficult operating conditions require strong boards with a diverse range of skills and experiences. Under the Companies Act the ultimate power in a company is with the board of directors, and not with the shareholders. Photo: PEXELS
South Africa’s economy contracts 0.2% in Q3
South Africa finds itself at a critical juncture as the latest economic data reveals a 0.2% contraction in the third quarter.
These difficult operating conditions require strong boards with a diverse range of skills and experiences. Under the Companies Act the ultimate power in a company is with the board of directors, and not with the shareholders. Photo: PEXELS
South Africa’s economy contracted 0.2 percent in the third quarter following six months of slow growth, spelling trouble for the government ahead of elections next year.
Economy
Agriculture, manufacturing and construction were “the biggest drags” on gross domestic product in Africa’s most industrialised country from July to September, said the national statistics agency StatsSA.
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South Africa is heading towards general elections in 2024 amid high unemployment and widespread disillusionment with the ruling African National Congress (ANC).
The economy has been slumbering for several years and the latest contraction follows GDP increases of 0.4 percent and 0.5 percent in the first two quarters that had raised hopes the nation could weather through its many troubles.
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South Africa has been battered by a prolonged energy crisis resulting in daily power blackouts of up to 12 hours a day.
Troubles at state-owned rail and ports firm Transnet, hobbled by graft scandals, theft and maintenance issues, have further hampered economic activity.
StatsSA
StatsSA said the agriculture industry saw the sharpest fall in the third quarter, with output dropping 9.6 percent.
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The sector faced “several headwinds” including a major bird flu outbreak and floods in the southern province of Western Cape, the agency said.
Weaker demand saw manufacturing production decline by 1.3 percent, while mining production was down 1.1 percent, it added.
In power since 1994, polls have suggested that the ANC’s vote share could fall below 50 percent for the first time next year.
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“South Africa cannot endure another ANC term,” the Democratic Alliance, the leading opposition party, commented on the latest GDP figures which it said were the “direct result of failed ANC policy”.
© Agence France-Presse
