Neelam Rahim | neelam@radioislam.co.za

2-minute read
22 September 2024 | 09:08 CAT

Image/ South African Institute of Race Relations (Facebook)

The latest economic growth forecasts from ratings agency Fitch paint a dire picture, indicating a continued decline in South Africa’s economic growth rate. This pessimistic outlook, if left unaddressed, will only worsen the situation. The time for new ideas is now, as emphasized by the Institute OF Race Relations.

Fitch said South Africa’s economy was likely to grow by 0.9% this year, 1.5% in 2025, and 1.3% in 2026. This aligns with most other forecasts, but it is barely higher than SA’s population growth rate, meaning that unemployment and poverty will worsen.

Marius Roodt, analyst and writer at the IRR, presents a hopeful perspective: “South Africa has the potential to achieve annual economic growth rates of 5% or more, which could significantly reduce poverty and unemployment. It is clear that the country cannot continue as it has been doing over the past decade. We need to think about new ways of doing things.”

“Possibly the greatest tragedy of post-apartheid South Africa is the high number of people who are without a job. We must remember that behind each of those statistics is a real person who faces the indignity and stress of unemployment,” says Roodt.

Last year, the IRR released a plan to promote South Africa’s economic growth.

“The primary goal of the Government of National Unity (GNU) has to be economic growth. As we approach the first 100 days of the GNU one could say that it has been successful on balance. But if the GNU fails to spark economic growth that is touching annual levels of five percent by the end of its term, it will be deemed a failure,” Roodt says.

“Things cannot continue as they are. The GNU needs to look at new ways of managing the economy. And the ideas are out there. It’s time to look at them,” Roodt concludes.

Listen to the full interview on The Daily Round Up with Moulana Junaid Kharsany and Marius Roodt, analyst and writer at the IRR, here.