- Over the past five years, the economy has grown at just over 2 per cent a year and, following a rapid further drop, is now expected to grow at about 1 per cent a year for the next few years. This is lower than the rate of population growth, which means that however the fruits of economic activity are shared, the average South African will be getting poorer in the years to come.
- The main reason why rapid growth is so important for South Africa’s prospects is that it drives job creation. But it does more than that. Economic growth increases company revenues, making possible higher profits and salaries.
Rising profits and wages mean more tax revenues with which the state can build social and economic infrastructure, widen the social safety net, ensure improved education and training, and deepen and widen service delivery.
- South Africa needs to put growth and mass employment at the top of its list of national goals. This means that all policies need to be assessed in terms of their impact on achieving faster and more inclusive growth
- Sustained rapid and inclusive economic growth is the sole basis on which the quality of life of millions of South Africans can be permanently raised.
- The only way to achieve rapid growth and large scale employment is to allow private companies, investors and entrepreneurs to flourish.