This investment signals strong confidence in South Africa's economy and aligns with the government’s drive to mobilise significant investments.  

Speaking at a media briefing in Cape Town following a recent Cabinet meeting on Thursday, Ntshavheni highlighted the broader context of the announcement: "This new investment builds on the first phase of our investment mobilisation drive under the 6th administration, which surpassed its target by 26%, reaching $84 million in investment pledges. SA now aims to secure $110 million in new investments between 2023 and 2028."  

Cabinet also welcomed the SA Reserve Bank’s decision to reduce the repo rate by 25 basis points, bringing it down to 7.75%. Ntshavheni explained that the lower interest rates would help alleviate financial pressures on heavily indebted households and encourage businesses to invest and expand operations.  

"The rate cut will ease the burden on consumers and mitigate the high cost of living while stimulating economic activity," she stated.  

The Minister acknowledged a 0.3% decline in GDP during the third quarter of 2024, driven largely by a sharp 28.8% contraction in the agriculture, forestry, and fishing sectors. This was attributed to drought conditions that impacted crop yields.  

Despite the setback, Ntshavheni pointed to optimistic forecasts from the International Monetary Fund (IMF) and Standard & Poor’s (S&P), which upgraded Eskom’s long-term global-scale ratings from stable to positive.  

"This reflects progress made in strengthening Eskom's financial and operational foundation through government reforms," she said.  

--ChannelAfrica--