South Africa is making progress with economic reforms, according to the central bank governor.
Addressing the power crisis effectively could enhance growth across various sectors.
The central bank has highlighted the need for structural changes in energy and rail sectors to improve growth beyond the 1% anticipated for this year and next.
However, the government had made little progress until recently when power stability improved.
South African Reserve Bank Governor Lesetja Kganyago noted that despite challenges, the country is managing its reform efforts.
The recent achievement of five months without power cuts is seen as a significant step forward.
Kganyago suggested that if other structural issues are addressed, growth could potentially reach 3.5%.
He shared this projection with the deputy finance minister recently.
Challenges remain, particularly in the logistics sector, where Transnet faces difficulties.
Kganyago also mentioned that with inflation nearing target, a rate cut is expected in the upcoming interest-rate announcement on Sept. 19.
