Pickup in growth expected, but South Africa's expenditure still largely for wages, debt

Insights, data and analytics provider BMI expects South Africa's economic growth to pick up from 1% this year to 1.5% in 2025 as improved energy supply, greater private-sector investment, slower price growth and reforms to pension schemes provide tailwinds. "However, growth will remain below the 2010 to 2019, or pre-Covid-19 pandemic, average of 1.7% due to persistent structural issues. We expect electricity and water tariffs to remain high, with [State-owned] Eskom pushing for a 36% increase in electricity prices next year," said BMI sub-Saharan Africa country risk senior analyst Lara Wolfe.