President Cyril Ramaphosa Stated That Jobless Rate Could Rise To 38.1% By 2030

Business leaders in South Africa are urging President Cyril Ramaphosa to take immediate action to address the country’s energy, logistics, and crime crises, warning that the jobless rate could rise to a staggering 38.1 percent by 2030 if nothing is done. Currently, the unemployment rate stands at 32.9 percent. These concerns were highlighted during a meeting between business groups and the president, with projections based on an average economic growth rate of 0.75 percent if no progress is made in overcoming these obstacles.

President Cyril Ramaphosa

The business community, represented by various groups collectively known as B4SA, is collaborating with the government to tackle the issues surrounding energy provision, rail and port services, crime, and corruption. B4SA predicts that if these constraints are successfully addressed, the economy could experience an average growth rate of 5 percent and the unemployment rate could decline to 28 percent by 2030. To jumpstart the stagnant economy, over 115 businesses operating in South Africa have outlined a range of measures that President Ramaphosa will need to tackle. These initiatives have been introduced through joint efforts by the presidency, B4SA, and Business Unity South Africa, with the aim of revitalizing the economy and restoring investor confidence.

The proposed measures include providing technical support to optimize the diesel supply chain at the Ankerlig power station, supporting the return of additional units at the Kusile power plant and four key stations, and assisting their managers in implementing turnaround plans for these facilities. Additionally, business technical teams are working through the National Energy Crisis Committee to efficiently plan for grid access and expansion, with the goal of recovering approximately 5.4 GW of energy capacity in the next year. Furthermore, the establishment of corridor recovery teams focusing on supply chain constraints in key commodities such as coal, iron ore, manganese, chrome, and magnetite is being considered. This approach aims to identify and address bottlenecks within the commodity-export supply chains.

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The fight against crime and corruption is also high on the priority list. A joint initiative is underway to bring together senior representatives from law enforcement agencies and businesses to combat these issues jointly. Additionally, a special purpose vehicle is being established to enhance the digital and data forensic capabilities of the nation’s prosecuting authority, operating independently. Measures are also being initiated to support the police in improving crime detection and response. By implementing the proposed measures, there is hope that the economy can experience significant growth, resulting in a decline in unemployment rates.

Mark
Gurleen Kaur

I'm a science graduate from the Ahmadu Bello University, Nigeria. My passion for writing has brought me to into the field of content.