The value of South Africa’s planned investment projects increased sharply in the first half of 2024, boosted by sustained electricity supply, easing logistical constraints and slowing inflation, according to a report by Nedbank Group Ltd.
Many of the projects were inked before the country held elections on May 29. Business sentiment since then has risen after the African National Congress formed a coalition with centrist rivals including the Democratic Alliance because voters denied it an outright majority for the first time since 1994.
Many of the public works focused on the energy sector, health care, airport infrastructure, special economic zones, road rehabilitation and water desalination plants, the lender said. to boost economic growth, which has averaged less than 1% for the past decade due to logistical challenges, crime, corruption and mismanagement.
South Africa since late March has been free from planned power cuts, known locally as loadshedding, which have been a significant deterrent to investment.