The 0.6% increase in South Africa’s gross domestic product (GDP) in the fourth quarter of 2024 signals a recovery across the economy, says Minister in The Presidency, Khumbudzo Ntshavheni.
“Cabinet is confident that the increased focus and pace of delivery on economic structural reforms, improved service delivery and State capacity, and increased participation of the private sector will spur further growth of the economy in 2025 and beyond,” the Minister said during a post-Cabinet media briefing in Cape Town on Thursday.
According to Statistics South Africa (Stats SA), South Africa’s GDP increased by 0.6% in the fourth quarter of 2024, following a decrease of 0.1% in the third quarter of 2024.
“The agriculture, forestry and fishing industry increased by 17.2%, contributing 0.4 of a percentage point to the positive GDP growth. This was primarily due to increased economic activities reported for field crops and animal products.
“The finance, real estate and business services industry increased by 1.1%, contributing 0.3 of a percentage point. Increased economic activities were reported for financial intermediation, real estate activities and other business services,” Stats SA said earlier this month.
The trade, catering and accommodation industry increased by 1.4%, contributing 0.2 of a percentage point. Increased economic activities were reported for wholesale trade, retail trade and motor trade.
Investments
Meanwhile, Cabinet welcomed the announcement by Microsoft South Africa that it will invest R5.5 billion in artificial intelligence (AI) infrastructure in the country.
“This investment will strengthen South Africa’s position as a leading Artificial Intelligence hub on the African continent and builds Microsoft South Africa’s R20.4 billion investment over the past three years.
“Microsoft South Africa also announced their contribution to developing South Africa’s digital literacy by paying for technical certification for 50 000 individuals in high-demand digital skills.
“In further uplifting our investment profile, Indian car manufacturer, Mahindra, signed a memorandum of understanding (MoU) with South Africa’s Industrial Development Corporation (IDC) to explore the possibility of setting up a full-scale vehicle assembly plant in the country,” the Minister said.
Mahindra already has an assembly plant of Pik Up range of vehicles in Durban operated by AIH Logistics.
The company recently celebrated the production of their 25 000th locally assembled Pik Up vehicles [range of bakkies].
“Cabinet reminded every South African as direct shareholder in South Africa Incorporated (SA Inc.) of their vested interest in promoting our country as an investment destination in a globally competitive environment. We must continue to speak with one voice in defence of our national interest, our sovereignty and our constitutional democracy,” the Minister said. - SAnews.gov.za
