If there was any doubt about the fact that South Africa’s economy will be trapped in a low-growth path for many years to come, Eskom’s warning on Monday that the utility will continue to run short of power over the next five years removed it. This comes on top of the other biggest risk in the short-term, being the management of the Covid-19 pandemic, that will dog economic activity for at least another two to three years.
In addition, there is the fight-back against economic reform, which is required to raise the level of economic growth. Economic reform is by its nature messy. And where reforms are implemented fully, they take a long time to deliver results. Often, results, if they do come, may not be what the reformers had hoped for.