SA’s economy is not growing fast enough to create the much-needed jobs. The International Monetary Fund (IMF) predicts that economic growth will reach just 1.4% in 2026.
SA’s unemployment rate is at 31.9%, making it one of the highest in the world. Stats SA’s latest data shows that nearly 8.1-million people are unemployed, with youth unemployment being a major concern.
Of course, there have been positive strides, such as public-private sector partnerships, which have yielded important gains in stabilising energy and logistics, reaffirming a commitment to fixing our infrastructure.
However, to redouble these efforts, foreign investment is crucial to unlocking economic progress. Nevertheless, B-BBEE policies are seen as a hurdle to investment.
There should be a policy shift to exempt investors from B-BBEE requirements of mandatory 30% share allocation targets. Instead, their contribution to transformation could involve empowering employees through growth opportunities. In essence, an increase in foreign investment triggers economic output and could lead to significant job creation. – Lebohang Majara
