Economics
From 5% Growth to a $4.9 Billion Bailout: What Went Wrong?
The nation will likely pay for a few years of mismanagement and graft “for generations to come.”
This article is for subscribers only.
The sorry state of South Africa’s state power utility starkly illustrates just how far the country slipped during former President Jacob Zuma’s scandal-marred rule and the enormity of the task of rebuilding the nation’s stricken finances.
From the heady days of the 2000s, when growth topped 5 percent a year, the economy has struggled through two recessions, and debt ratios have tripled. There have been almost daily revelations of state corruption, the nation's final investment-grade rating is hanging by a thread and budget surpluses have turned to ever-widening shortfalls.