The banking sector’s role in pushing SA’s economic growth and 2025 outlook is the focus of this edition of Business Day Spotlight.
Host Mudiwa Gavaza is joined by Ndumiso Kubheka, chief economist at KH Equity Partners.
Kubheka says SA’s banking sector has a big role in the country’s structural reform agenda.
Listen to the conversation:
Following this year’s election and institution of the GNU, positivity has returned to local markets, with some expecting that the country will grow at a rate of 2% — 4% in the medium.
In that banks are seen as big beneficiaries, with Kubheka highlighting that the industry’s risk appetite in helping to fund part of that grow will be key.
He says structural factors such as the recently begun interest rate cuts, disciplined monetary policy, political certainty and keeping the local currency steady will help take the economy forward.
“Growth continues to be a key concern, still below 2%. In my view 2% is an achievable target in terms of economic growth in SA, in light of these prevailing conditions. The question becomes, how do we step change a 2% [rate] to 5%?”
Through the discussion, Kubheka outlines the banking sector’s role in SA’s structural reform agenda; performance of local banks through 2024; risk appetite among lenders; and an outlook for 2025.
Business Day Spotlight is a MultiMedia LIVE Production.
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