CAPE TOWN - Finance Minister Enoch Godongwana remains optimistic that South Africa’s economy can grow by more than 3 percent over the next three years, despite a downward revision to the country’s growth forecast.
The minister has lowered the economic growth projection for this year to 1.2 percent, from the 1.6 percent forecast in February.
Speaking at a post-mini budget breakfast in Cape Town, Godongwana said stronger economic growth could help absorb more unemployed South Africans, particularly young people.
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However, he stressed the need to invest in skills development now to ensure the country is prepared for future opportunities.
He said the government needed to train young people to avoid a skills crisis when growth accelerates.
“We need to train our young people now so that when we reach such growth levels, we don't have a skills crisis,” Godongwana said.
He also believes the country is turning the corner on a fiscal crisis driven by state capture, sluggish economic growth and rising debt.
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He attributed the progress to cautious government spending, limits on bailouts and a stronger focus on investment.
Meanwhile, motorists are set to receive some relief from rising fuel prices following the government’s announcement of a R10-billion fuel levy reduction in the mid-term budget.
The temporary relief amounts to a reduction of R1.50 per litre for petrol and R3 per litre for diesel, offering some respite to consumers and businesses facing higher transport and operating costs.