President Ramaphosa addresses South Africa over technical recession

President Ramaphosa addresses South Africa over technical recession

- President Cyril Ramaphosa has addressed the recent announcement of a technical recession

- From Eskom's instability to a slump in the agricultural sector numerous factors have led SA to this moment

- Ramaphosa aims to cut back drastically on the public sector in a bid to free up capital

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President Cyril Ramaphosa addressed the nation on Tuesday evening after it was announced that South Africa had entered into a technical recession.

During his address, poor business and consumer confidence, the lack of production due to load-shedding and a slump in agriculture had all been listed as reasons for the dire financial situation:

“Load shedding has severely impacted production, both at the manufacturing level as well as trade. Agriculture slumped the greatest, which could be ascribed to the drought that many parts of our country have been experiencing. But I think more importantly, business and consumer confidence has been negatively affected.”

IOL reports that the economy had seen a 1.4% contraction in the fourth quarter, continuing the dismal performance seen in the third.

Briefly.co.za reported that load-shedding is a cause for concern, it looks likely that the economy will continue to suffer because of power outages. South Africans keep hoping that load-shedding would end and become a distant, bad memory. However, that isn't likely to happen soon as the power utility announced load-shedding will continue for at least 18 more months.

READ ALSO: South Africa enters recession after the economy hits a slump

Nevertheless, Ramaphosa says the state is hard at work attempting to put Eskom's house in order with the president lauding the appointment of CEO Andre de Ruyter as an attempt to stabilise the SEO.

During Finance Minister Tito Mboweni's Budget Speech it was announced drastic reductions in the public sector wage bill.

This was reiterated by Ramaphosa, who added that in addition to the R160 billion reduction other cost-cutting measures, including travelling economy class, would be implemented.

Ramaphosa revealed that this was something he had already attempted to implement in his own travels.

The president is currently on a drive to raise R1.5 trillion over the course of five years to attract investment in the South African economy.

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Source: Briefly.co.za

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