The World Bank predicts that South Africa’s economy will grow by just 0.9% by 2020.
The bank previously predicted a 1.5% growth for 2020.
In terms of economic growth for the past year, the bank predicts growth of just 0.4%, even less than the 0.5% predicted by the Reserve Bank in November.
The main reason for the downward adjustment is the World Bank’s concern over the availability of electricity in the country.
The World Bank published its quarterly report on global economic prospects on Wednesday.
The outlook for what is described as the most industrialized economy in Africa is “significantly weaker” as power supply and infrastructure problems impede economic growth.
The international economy, which is also expected to grow at a slower pace, is putting further pressure on South Africa.
The bank’s review comes a week after Eskom began to implement load shedding again.
Eskom’s decision to impose load shedding since January 5 follows regardless of Pres. Cyril Ramaphosa’s promise in December that no load shedding would be imposed between December 17 and January 13.