Neelam Rahim | neelam@radioislam.co.za

3-minute read
20 April 2024 | 15:28 CAT

(Photo by Dino Lloyd/Gallo Images via Getty Images)

The International Monetary Fund’s (IMF) 2024 World Economic Outlook Report, published on 16th April, paints an alarmingly grim picture of South Africa headed into an unemployment abyss. South Africa’s unemployment rate is projected to soar to 33.5% this year and worsen to 33.9% by 2025, making it face an unprecedented economic challenge.

In an interview with Radio Islam International, Traverse Le Geoff, the DA Deputy Minister of Employment and Labour, highlighted the gravity of the situation and offered insights into potential solutions.

According to the Democratic Alliance (DA), Should the projections of the IMF prove to be a true reflection of events to come, it will equate to a human tragedy of epic proportions, which will further inflame economic class warfare and mean no South African will be spared from the effects of rising poverty and violent crime.

“The data is saying that approximately 1.5 million people who are presently employed are going to lose their jobs. It paints a very grim picture of what the present economic health of our country is and calls for serious alarm,” Le Geoff says.

In addressing the stark reality of unemployment, particularly among young South Africans, Le Geoff pointed out an immediate measure imperative to address the pervasive issue in a meaningful way that trickles down to the average South African and is meaningful.

“We need to start ensuring that government programs and funding reaches where it is supposed to,” he said.

Le Geoff pointed out that corruption in our country is causing a tremendous amount of resource diversion to where it shouldn’t go.

“The intended outcome of that would be to provide employment opportunities, ensuring the entire eco-systems of the economy are able to be stimulated,” Le Geoff added.

According to the DA, the Western Cape has the lowest unemployment rate in South Africa, which is more than ten percentage points lower than the national rate of 32.1%.

“In the last five years, four out of every five jobs in South Africa were created in the Western Cape. The DA’s Rescue Plan for South Africa which pledges to create 2 million new jobs is backed up by a strong record of delivery and performance in government, the best performing governments in South Africa to be precise, which have been consistently acknowledged for their favourable outcomes which have been verified by independent rating agencies including the auditor general,” the DA stated.

Listen to the full interview on The Daily Round Up with Moulana Junaid Kharsany.