The year 2023 kicked off with a continuance of load shedding that escalated to an average of stage 4 (from an average of stage 2 in 2022), SARB’s increase of the repo rate to 7.25 percent, lower GDP growth outlook and talks of declaring a national state of disaster. According to Reserve Bank estimates load shedding is costing the economy close to R1bn per day. Rolling blackouts of 6 to 12 hours per day, shreds R240 million to R900 million from the economy, daily. With numbers being punted around of about 150 days of load shedding in 2022, this suggests an economic loss of at least R150bn in 2022, or between 2 percent and 3 percent of annual GDP. At an average tax to GDP rate of 25 percent, this translates to a revenue loss of over R35bn for the state. On average, 3.5 percent of GDP is allocated to public sector infrastructure expenditure so the loss.....
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| Construction Monitor January 2023 | |
