Harvard economist blames SA’s ‘woeful’ economy on electricity crisis

Harvard economist Ricardo Hausmann highlights South Africa's dire economic state, attributing it primarily to chronic electricity shortages stemming from government mismanagement and ideological rigidity. With industrialisation halted and citizens facing increasing poverty, the country's sluggish decision-making and lack of accountability have gone unpunished in a political landscape dominated by one party. Despite mounting evidence and decades of warnings, South Africa remains resistant to pragmatic solutions, impeding growth further with barriers like corruption and a reluctance to embrace foreign talent. Without significant reforms, the nation risks losing its brightest minds and continues to pay a hefty price for its insular policies.

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By Antony Sguazzin

South Africa's woeful economic performance boils down to one key factor — a lack of electricity, according to Harvard University's Professor Ricardo Hausmann.

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