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South Africa’s private sector shows signs of growth in April as power crisis eases



The modest recovery was driven by improved business confidence and a reduction in power outages, a survey showed on Monday.

The S&P Global South Africa Purchasing Managers’ Index (PMI) rose to 50.3, indicating a return to growth after several months of contraction.

“Some of the headwinds that have held the private sector back recently showed signs of easing in April, with reduced load shedding (power cuts) and a lesser degree of supply-chain delays signalled,” said Andrew Harker, economics director at S&P Global Market Intelligence.

In addition, improved business sentiment, fueled by optimism about the upcoming general election, encouraged companies to expand purchasing activity and staffing levels, as they expect further improvements in demand.

State-owned power utility Eskom managed to get through April without blackouts.

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