JOHANNESBURG: The South African economy is not in crisis, although serious political intervention will be needed if the country is to hit a growth rate that will allow for inclusive job creation and poverty reduction.
This is according to the Institute for Security Studies, which on Wednesday unveiled its report South African Futures 2035 and comes despite challenges such as high crime, unemployment and inequality, though weak growth and poor governance. The report – an update on a 2014 version – paints three possible growth scenarios for SA.
The first is called the ‘Bafana Bafana’ scenario, which is SA’s current development pathway. Under this scenario, the economy is set to grow at an average growth rate of 3.8% over the next 20 years. Currently, the country anticipates hitting 2% this year after having dropped from 2.2% in 2013 to an ailing 1.5% in 2014.
The second view is called Mandla Magic and anticipates a nation that has pulled together and is on the path towards average growth of 5.1% – a number that is closer to meeting government’s National Development Plan targets than the current situation.
