In this time of crisis, we are often reminded of a famous quote attributed to Winston Churchill during World War II: If youre going through hell, keep going. While South Africa is not in the middle of a physical war, it is battling the COVID-19 crisis in full force. Like most other countries, South Africa could not escape the pandemic. It suffered the loss of lives and livelihoods. At the time of writing, in early July 2021, more than 64,000 South Africans have lost their lives. The third wave is hitting the country very hard and infections keep rising every day. But there is also light at the end of a very long tunnel.
The government responded swiftly and strongly to the crisis while also spearheading an international alliance for the distribution of vaccines in Africa. If the South African government would carry out with the same determination long-standing economic reform as it was fighting the pandemic, COVID-19 could serve as a turning point in reenergizing South Africas economy and labor market. While South Africa is set to emerge from the crisis weaker than it was going into it, the World Banks South Africa Economic Update argues that the reasons for low growth and high unemployment do not lie in the governments crisis response. Instead, the pandemic has exposed long-standing structural weaknesses that have progressively worsened since the global financial crisis of 200809.
For 2021, the World Bank projects a gross domestic product (GDP) growth of 4 percent, followed by 2.1 percent in 2022 and 1.5 percent in 2023. South Africas weak recovery is putting pressure on public finance. For the first time ever, public debt is now at almost 80 percent of GDP and under the current trajectory debt levels will not stabilize before 2026. However, the current global recovery is helping South Africa, especially the strong rebound in China and the United Statestwo of its key trading partners. As other emerging markets are recovering faster, South Africas economy could have benefited more in 2021 if integration with the rest of the world was stronger (Figure1).
The crisis has exposed South Africas biggest challenge: its job market. Even in the best of times, the labor market has been marked by high levels of unemployment and inactivity. Out of a working-age population of almost 40 million people, only 15 million South Africans are employed, which includes 3 million jobs in the public sector. The COVID-19 crisis has made a difficult situation worse because low-wage workers suffered almost four times more job losses than high-wage workers. In 2021, we saw a modest job recovery, but it is at risk due to the third wave.
Against the odds, there are also positive developments in the labor market, and young entrepreneurs are one of South Africas best hopes to solve the jobs crisis. There are an increasing number of startups, especially in the digital sector, which are growing fast and could in the future become an engine of jobs growth. Cape Town alone, the tech capital of Africa, has over 450 tech firms and employs more than 40,000 people. In 2020, a total of $88 million (1.2 billion rand) disclosed investments went into its tech startups.
A focus on young entrepreneurs would also help South Africa to close its large gap in self-employment (own-account workers with own businesses, freelancers), which represents only 10 percent of all jobscompared to around 30 percent in most upper-middle-income economies such as Turkey, Mexico, or Brazil (Figure 2). If South Africa were to match the self-employment rate of its peers, it could potentially halve its unemployment rates.
South Africas economy would benefit from measures to preserve macroeconomic stability, to revitalize the jobs market by improving the investment climate to build a better and more inclusive economy after the pandemic. There is a risk that the recovery leaves behind most of the potential economically active population, particularly young job seekers, which would mean that the pandemic permanently impaired the countrys long-term development prospects. Conversely, if South Africa were to engineer a broad-based recovery, this decade could bring new prosperity.
Addressing structural constraints to growth behind and at the border could support exports and higher growth, and so preserve the sustainability of public finances. The experience of major emerging economies shows that the two most potent factors for reducing public debt-to-GDP ratios are economic growth and primary surpluses. The implied priorities are self-evident: a better climate for investment and trade, and prudent fiscal policy.
To generate employment, South Africa would have to address three chronic problems in its labor market: extremely high rates of inactivity, high rates of unemployment, and low levels of self-employment. Along with enacting carefully chosen regulations to improve the business climate and investing in the workforce through better education, the government can implement reforms to encourage self-employment and support the growth of micro- and small enterprises.
See original here:
South Africa after COVID-19light at the end of a very long tunnel - Brookings Institution
- Coronavirus Scam Alert: Watch Out For These Risky COVID-19 Websites And Emails - Forbes [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- COVID19: Broome County Executive expected to sign executive orders on virus - WBNG-TV [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- Houston-based company ready to test COVID-19 'vaccine candidate,' but doesn't have the funds - KHOU.com [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- COVID19 Mesa County Public Health [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- Coronavirus Disease 2019 (COVID-19) | SCDHEC [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- Coronavirus disease 2019 - Wikipedia [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- Hackers are jumping on the COVID-19 pandemic to spread malware - TechCrunch [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- COVID-19 can last a few days on surfaces, according to new experiment findings - ABC News [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- The Guardian view on the UKs Covid-19 response: confused and hesitant - The Guardian [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- The COVID-19 Coronavirus Pandemic Highlights The Importance Of Scientific Expertise - Forbes [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- WHO Expert: Aggressive Action Against Coronavirus Cuts Down On Spread : Goats and Soda - NPR [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- 2 new cases of COVID-19 at Chicago schools - WGN TV Chicago [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- Will Gargling with Salt Water or Vinegar 'Eliminate' the COVID-19 Coronavirus? - Snopes.com [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- Worried about dying from COVID-19? You might be a millennial | TheHill - The Hill [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- Startups developing tech to combat COVID-19 urged to apply for fast-track EU funding - TechCrunch [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- Why do dozens of diseases wax and wane with the seasonsand will COVID-19? - Science Magazine [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- WHO, UN Foundation and partners launch first-of-its-kind COVID-19 Solidarity Response Fund - World Health Organization [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- Covid-19: PM to address nation tonight - New Straits Times [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- COVID-19: Where every sport lies after mass disruption - RTE.ie [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- COVID-19: Facts, myths and hypotheses | TheHill - The Hill [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- Hong Kong Has Largely Survived COVID-19. Can New York and The US Do It Too? - BuzzFeed News [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- UPDATE: Case of COVID-19 confirmed in Wilson County - WITN [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- Is This Train Car Carrying 'COVID-19'? - Snopes.com [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- Coronavirus pandemic: facts, updates and what to do about COVID-19 - The Verge [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- DHS: 34 people test positive for COVID-19 in Wisconsin - WBAY [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- COVID-19 by the numbers; plus key resources to help you stay informed - Berkeleyside [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- The Covid-19 puzzles that scientists are still trying to answer - The Guardian [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- What's the COVID-19 end game? - The San Diego Union-Tribune [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- The Covid-19 coronavirus is not the flu. Its worse. - Vox.com [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- Phones Could Track the Spread of Covid-19. Is It a Good Idea? - WIRED [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- NIH Reports First Known Employee with COVID-19 Infection - National Institutes of Health [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- Newborn tests positive for COVID-19 in London - Livescience.com [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- Covid-19: Malaysia's pandemic action plan activated for the coronavirus - The Star Online [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- How Bad Will The COVID-19 Coronavirus Epidemic Get In The U.S.? Health Experts Weigh In - Forbes [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- Can People Who Recover from COVID-19 Become Reinfected? - Snopes.com [Last Updated On: March 16th, 2020] [Originally Added On: March 16th, 2020]
- THE LATEST: 41 test positive for COVID-19 in the state - WFSB [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Twelve new cases of COVID-19 announced in Illinois; bringing total to 105 - KWQC-TV6 [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Eagle County outlines shift for COVID-19 testing, Vail Health shifts operations - Vail Daily News [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- 7th positive COVID-19 case announced in Hawaii, all cases related to travel - KHON2 [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Canada tightens borders over coronavirus will it curb COVID-19s spread? - Global News [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- As health care workers prepare for COVID-19, medical students pitch in on the homefront - Minnesota Public Radio News [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Coronavirus First positive case of COVID-19 confirmed in Geauga County Kaylyn Hlavaty 7:58 AM - News 5 Cleveland [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- 2nd presumptive case of COVID 19 reported in Bell County - KWTX [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- New confirmed cases of COVID-19 in Wisconsin - WKOW [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Hawaii National Guard ready to step in against spread of COVID-19 - KHON2 [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Alberta orders all classes cancelled, daycares closed as COVID-19 cases rise to 56 in the province - Global News [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Has Italy Stopped Treating the Elderly in the COVID-19 Pandemic? - Snopes.com [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Coronavirus testing: Information on COVID-19 tests according to state health departments - NBCNews.com [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Working from home because of COVID-19? Here are 10 ways to spend your time - Science Magazine [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Two positive COVID-19 cases announced in Fairbanks, bringing Alaska's confirmed total to 3 - Anchorage Daily News [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- 8 more positive cases of COVID-19 brings Michigan total to 33 - FOX 2 Detroit [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- COVID-19: Who Is Infectious? - Forbes [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- The Guardian view on the latest Covid-19 steps: a recipe for isolation - The Guardian [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Government publishes updated COVID-19 industry guidance - GOV.UK [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- NIH clinical trial of investigational vaccine for COVID-19 begins - National Institutes of Health [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Expanding Colorado's COVID-19 Testing Capacity Proves Frustrating to Polis, Doctors And The Public - Colorado Public Radio [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Microsoft Bing launches interactive COVID-19 map to provide pandemic news - The Verge [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Coronavirus tips: How to slow the spread of COVID-19 with hand-washing, social distance - USA TODAY [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- See Which Countries are Flattening their COVID-19 Curve - Visual Capitalist [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- With launch of COVID-19 data hub, the White House issues a call to action for AI researchers - TechCrunch [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- COVID-19 - Cabinet for Health and Family Services [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Coronavirus Disease 2019 (COVID-19) | AustinTexas.gov [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- First COVID-19 case in Waterbury is confirmed - Waterbury Republican American [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Covid-19 reveals the alarming truth that many children cant wash their hands at school - The Guardian [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Statement on COVID-19 Panel Discussion Notes That Were Attributed to UCSF - UCSF News Services [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Covid-19 coronavirus testing in the US has been absurdly sluggish. That puts us at risk. - Vox.com [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Regal is closing all theaters until further notice over COVID-19 fears - TechCrunch [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Amazon limiting shipments to certain types of products due to COVID-19 pandemic - TechCrunch [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Coralville company to produce millions of kits to test for COVID-19 - KCRG [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Number of COVID-19 cases in Erie County rises to 11, new case confirmed in Wyoming County - WIVB.com - News 4 [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Coronavirus tips and symptoms: What everyone should know about getting the new coronavirus - Vox.com [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Tech giants are getting creative to manage the COVID-19 crisis - The Verge [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- COVID-19: Mental health in the age of coronavirus - UN News [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- White House provides an update on COVID-19 testing in the U.S., says theres been a dramatic ramp - TechCrunch [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Covid-19: How long does the coronavirus last on surfaces? - BBC News [Last Updated On: March 17th, 2020] [Originally Added On: March 17th, 2020]
- Hospital in Boston will be converted into Covid-19 treatment center - STAT [Last Updated On: March 18th, 2020] [Originally Added On: March 18th, 2020]
- 78 cases of COVID-19 confirmed in Tennessee - NewsChannel5.com [Last Updated On: March 18th, 2020] [Originally Added On: March 18th, 2020]
- COVID 19: Tennessee confirmed cases reaches 52, Dept of Health releases age ranges of those infected - Clarksville Now [Last Updated On: March 18th, 2020] [Originally Added On: March 18th, 2020]
- Housing associations under pressure to offer Covid-19 rent holidays - The Guardian [Last Updated On: March 18th, 2020] [Originally Added On: March 18th, 2020]
- Sacramento woman dead from COVID-19 attended church with others who have virus - KCRA Sacramento [Last Updated On: March 18th, 2020] [Originally Added On: March 18th, 2020]