Robust economic recovery can be achieved in South Africa.
This is according to a World Bank report titled “Driving Inclusive Growth in South Africa: Quick Wins with Competitive Markets and Efficient Institutions.”
The report suggests four policy priority areas that can be implemented to achieve the recovery, are infrastructure services, greater private sector participation, creating cities as engines of growth, and efficient public spending.
Over the past decade, South Africa has struggled to expand its economy, growing by only 0.7% per year, which is four times slower than other middle-income countries.
Axel van Trotsenburg, Senior Managing Director of the World Bank, said “the report highlights that targeted policy actions, fostering competitive markets and strengthening institutions, can spur recovery and lay the foundation for sustainable growth and shared prosperity in South Africa. It is the result of extensive engagement with experts and stakeholders to identify concrete policy options for improving the lives of millions of South Africans. It will also help inform how the World Bank can best support the country through technical assistance and lending programs.”
Satu Kahkonen, World Bank Country Director for South Africa, said the report is a roadmap for the country to unlock potential economic growth.
“By making cities engines of inclusive growth, the country can shrink economic distances and provide opportunities for all. Finally, the report highlights the need to improve the efficiency of public spending to increase the value for money of government interventions in the economy.”
Enoch Godongwana, Minister of Finance Republic of South Africa, said outcomes of reforms introduced are bearing fruits.
“We have clear evidence of the tangible outcomes of reforms that reduce economic bottlenecks. This is best exemplified by the first phase of Operation Vulindlela, which among its key interventions was reforms to regulation that deepened competition in sectors like electricity, rail and telecoms. The next phase will go even further and aim to accelerate reforms in key network industries. We are delighted to have the benefit of this new report to broaden our approach to inclusive growth.”