For Creamer Media in Johannesburg, I’m Halima Frost.

Making headlines: South African growth outlook has improved but inflation risks abound; Paul Mashatile says SA’s economic growth not at optimum levels; And, Zambia's government says it still hopes for 6.6% growth this year

South African growth outlook has improved but inflation risks abound

South Africa's economic outlook is better this year than last, but the inflation picture is more muddied as risks abound, its central bank governor said today.

South African Reserve Bank Governor Lesetja Kganyago told Reuters in an interview at the World Economic Forum's annual meeting in Switzerland, that growth in Africa's most industrialised economy could be close to 2% in 2025, versus the 1.1% growth projected for 2024.

Kganyago cited the formation of a broad coalition government last year as one of the key enablers of faster growth.

Investors are optimistic that reforms in key sectors such as electricity, freight rail and the visa system will accelerate and lift the annual growth rate beyond the meagre 1% it has averaged over the past decade.

Kganyago warned that South Africa's inflation outlook could be muddied by factors including protectionist policies with the return of US President Donald Trump to the White House.

Paul Mashatile says SA’s economic growth not at optimum levels

Deputy President Paul Mashatile noted changes in the country’s economic patterns, but acknowledged that the pace of South Africa’s economic growth and development is protracted and not at its optimum levels.

Mashatile was speaking during the National Economic Development and Labour Council 2025 annual Organised Labour School, in Pretoria, today, where he pointed out that for the first time in a year, South Africa's official unemployment rate decreased from 33.5% in the second quarter to 32.1% in the third quarter, marking a positive shift in the country’s labour market.

However, he said while the country was promoting economic growth through investments and infrastructure development programmes, efforts had not yet yielded satisfactory results.

He wants government to better address income inequality and improve the quality of life for workers, highlighting the importance of harnessing the collective power of stakeholders to ensure that South Africa’s labour market is “inclusive, fair, and globally competitive”.

Mashatile acknowledged that the Nedlac meeting was taking place during an international poly-crisis characterised by inequality, high levels of unemployment, climate change, wars, migration, urbanisation, and the growing youth dividend.

And, Zambia's government says it still hopes for 6.6% growth this year

Zambia's government said in a presentation today that it was still optimistic that the economy would grow 6.6% this year.

The southern African country, which defaulted on its sovereign debt during the Covid-19 pandemic, has now restructured 90% of its debt, the finance ministry presentation also said.

The government estimates over 770 000 tonnes of copper was produced last year.

That’s a roundup of news making headlines today

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