South African Capital Spending Plunges 37% on State Pullback
- Decline followed two years of investment in major projects
- Power shortages seen weighing on future capital spending
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Planned spending on capital projects in South Africa plunged 37% last year as the state scaled back expenditure, and the downswing is likely to continue in 2023, economists at Nedbank Group Ltd. said.
The value of new projects announced fell to 248.5 billion rand ($14 billion) from 392.7 billion rand in 2021, Johannes Khosa, Crystal Huntley and Nomusa Soza said in a research note on Tuesday.