In a significant move to address climate vulnerabilities, South African President Cyril Ramaphosa announced the establishment of a Climate Change Response Fund during the State of the Nation Address on February 4, 2024. This initiative aims to strategically allocate finances for climate adaptation and mitigation efforts, enhancing the country's resilience against climate impacts.
The Climate Change Response Fund complements existing frameworks such as the Just Transition Funding Mechanism and the Just Energy Transition Investment Plan. It is designed to support the implementation of the Climate Change Act (Act 22 of 2024), which mandates the Minister of Forestry, Fisheries and the Environment to develop mechanisms for financing climate response at various local government levels.
In economic news, South Africa's private sector activity showed continued improvement in November, marking the fourth consecutive month of growth. The S&P Global South Africa Purchasing Managers' Index (PMI) rose to 50.9 from 50.6, indicating a positive economic outlook. This growth is attributed to increased employment, higher output, and new orders, reflecting improved market confidence and demand.
According to David Owen, a senior economist at S&P Global Market Intelligence, the current growth period is largely due to enhanced confidence compared to earlier in the year, supported by falling inflation and a more accommodating monetary policy. Projections suggest a robust expansion for the economy in the final quarter of 2024.