To understand South Africa’s poor economic performance since the end of apartheid, and especially in the last decade, we must focus on key features that set the South African economy apart from many other, more successful countries. The very low levels of labour participation in South Africa are a good place to start. Relatively few people are looking for work, and those who are, find it very difficult to make it into a job. This has to be overcome if the country wants to have any hope of creating opportunities for the poor. To create the jobs that South Africa needs, significant expansion of export sectors must urgently take place. Unfortunately, South Africa’s export performance is dismal. Mineral exports are declining and manufacturing remains stagnant. Until these structural problems are overcome South Africa will not grow and unemployment will remain unacceptably
high.

A presentation by Ricardo Hausmann, published by the Centre for Development and Enterprise