SA's biggest economic challenge - CNBC Africa

SA's biggest economic challenge

Southern Africa

by Reuters 0

President Jacob Zuma says South Africa's power cuts "biggest challenge" for economy. Photo source: WEF

PRETORIA Aug 11 (Reuters) - South Africa's chronic electricity shortages are the "biggest challenge" facing Africa's most developed economy, cutting 1 percentage point off growth, President Jacob Zuma said on Tuesday.

He also revealed South Africa's nuclear power plant planning process is at an "advanced stage" and the multi-billion dollar procurement process should be completed by the end of this financial year.

The government of Africa's most advanced economy said in May it will start the process to procure a nuclear fleet to generate 9,600 megawatts of power this year, as it battles an energy crunch. 

Zuma told reporters in Pretoria he had also "noted with concern" the complaints about new visa regulations implemented this year and has set-up a committee to address any "unintended consequences" from the new rules.

New rules requiring parents to carry unabridged birth certificates for their children when travelling to South Africa have frustrated the country's key tourism sector. (Reporting by Joe Brock; Editing by James Macharia)