IMF urges South Africa to speed up reforms to boost growth

South African Reserve Bank Governor Lesetja Kganyago speaks at IMFC press conference during the IMF/World Bank spring meeting in Washington, U.S., April 21, 2018. REUTERS/Yuri Gripas

JOHANNESBURG (Reuters) – South Africa’s subdued economic growth could be reignited if the implementation of structural reforms, including at troubled state power utility Eskom, is accelerated, the International Monetary Fund said on Monday.

The fund said following President Cyril Ramaphosa’s re-election last month, a focus on policy actions to remove long-standing constraints to growth and accelerate job creation was a must.

“Eskom will require bold action to redefine its business model so that it becomes self-sustained and ensures affordable and reliable electricity supply,” the fund said in a statement. “…Postponing the needed adjustment of the entity will only force greater difficulties down the road.”

Reporting by Olivia Kumwenda-Mtambo; editing by John Stonestreet

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