Bank of America has said that if Eskom continues to function well South African economic growth could average 2% in the medium term.
According to BusinessLive Bank of America said: “Electricity supply has improved since April, culminating in over 80 days of no power cuts. If sustained for the rest of the year, the enhanced power supply would represent a structural improvement. GDP growth could increase towards 2% over the medium term.”
It also said that economic growth would also improve South Africa’s fiscal position.
Bank of America also welcomed the reappointment of Enoch Godongwana as the minister of finance saying that it was a signal to the markets that the government would stick to its spending plans.