South Africa would need radical reforms in order to achieve inclusive growth. This is the view of three senior economists who have weighed in on the impediments to South Africa achieving inclusive growth.
By definition, inclusive growth refers to economic growth that is distributed fairly across society and creates opportunities for all. However, experts say South Africa is nowhere near achieving this type of growth.
Executive Chief Economist at Alexander Forbes Investments Issah Mhlanga says the majority of the economic problems that exist in the country were inherited from the apartheid era.
He points to inferior education that was given to the majority of the population as the biggest problem.
Chief Economist at SA Institute of Race Relations Ian Cruickshanks says the country does not have the ability to utilise its own strengths.
Chief Economist at Econometrix Dr Azar Jammine says government has not done enough to include the majority of the people in the economy since democracy.
South Africa’s economy is expected to have averaged a 0.7% growth in 2018, below the population growth of 2%.
This means that job creation opportunities will be slimmer. Experts say the economy needs to grow by at least 3 to 5% in order for it to create employment.
Even though the country has been trying through many means to improve the health of the economy, these economists all agree that more wrong things have been done than right.
International experts and the leadership of the Southern Africa – Towards Inclusive Economic Development are expected hold a panel discussion in Pretoria on Thursday.
The panel will include organised labour and business on how South Africa can support job creation and reduce inequalities.
