Policy uncertainty increased in Q1

Policy uncertainty is when there is uncertainty about government policy or its consequences. Unfortunately, there are many examples of this in South Africa: the President says the private sector creates jobs, a week later he tries to explain that he did not mean privatization, Eskom talks at COP27 about a transition to green energy, the Minister of Minerals and Energy likes gas, and so it goes on. Research shows that it causes investment to be delayed and it dampens economic growth. Fortunately, there is also an index that measures policy uncertainty. The Policy Uncertainty Index of the North-West University's Business School has increased in the first quarter of 2022. * The Economics Minute is supported by the NWU Business School.