South Africa's GDP contracted 1.3% in the fourth quarter of 2022 – more than the 0.4% contraction previously predicted by analysts – according to new data by state-run Statistics South Africa.
The contraction comes against the background of electricity shortages which persist in the country after 15 years, with power cuts reaching unprecedented levels in recent months.
The data also shows that seven of ten South African industries' output fell in the period from October to December 2022.
South Africa's President Cyril Ramaphosa reshuffled his cabinet and established two new ministries on Monday, including the Ministry of Electricity which will have the task of resolving the country's electricity crisis.
"The primary task of the new minister will be to significantly reduce the severity and frequency of load shedding (rolling power cuts) as a matter of urgency," President Ramaphosa said. "To effectively oversee the electricity crisis response, the appointed minister will have political responsibility, authority and control over all critical aspects of the Energy Action Plan."
Likewise, South Africa is seeking to modernize its energy system by continuing its efforts to transition to green energy under the 2015 Paris climate agreement. Last month, a major private coal supplier to South Africa's state-owned power utility Eskom announced the future construction a 155-megawatt wind farm.