Saving South Africa: wipe your tears, our beloved country

Saving South Africa could be on the cards, but it is going to take some work. With low economic growth recorded since 2011, our unemployment rate is being hit hard – and after a survey by The Organisation for Economic Co-operation and Development, assessing South Africa’s economic strength, it would seem the youth is being hit the hardest of all. Not only this, the survey found that our poverty rate is higher than other emerging economies, making up about a third of our population.

The survey makes suggestions to implement bold structural reforms to address some of the challenges we currently face in our economy. Among other suggestions, included were the ideas of improved inter-regional trade with the Southern African Development Countries, as well as support for entrepreneurship. Entrepreneurs are an integral part of our modern economy, however we show less support for these individuals than most other emerging economies.  The survey set out specific solutions for different situations, guiding possible ways to save South Africa.

Macro-economic policies

Regarding this sector, a host of suggestions were made, including:

• Limited annual wage increases in the public sector
• Civil servants should be redeployed to priority areas
• Public spending should be spent more effectively to allow the use of resources for infrastructure and education
• Government needs to enforce sanctions for breaches if the Public Financial Management Act
• State-owned enterprises must also respect the procurement and expenditure rules laid out

To address the skills shortages and improve access to higher education:

• A scheme for universal student loans was suggested to be set up by banks and government include guarantees
• The implementation of the national minimum wage to help reduce inequalities
• Further, apprenticeship and internship programmes should be created to improve youth employment all round

Fostering regional integration to broaden economic opportunities

To address the limited inter-regional trade

• Non-tariff barriers should be reduced on intra-regional trade in the SADC region
• Simplified rules to be adopted for customs procedures
• Further, information technology at custom posts must be upgraded
• Interconnectivity of systems in the region should be improved
• It was also proposed that competition rules be set in harmony across the region to promote a fair yet competitive market
• Special economic zones must be provided using better infrastructure to link up with local economies

Lowering barriers to entrepreneurship and improving the business environment

• Reforms were also advised to reduce the red tape burdening entrepreneurs and small businesses
• Sectors such as telecommunications, energy, transport and services should be opened to improve competition and accountability
• Second-chance programs for early school leavers should be developed allowing for an educated and capable adult population
• Entrepreneurial education should also be increased
• Financial and non-financial support for start-ups and small businesses must be reviewed

All of these suggestions, if taken seriously, can help our economy get back on its feet – to the strong nation we once presented. With so much debt plaguing our country, as well as a ton of other detrimental factors, we need to all act with the future in mind, be you government or another face in the crowd.

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