Cape Town – The World Bank has weighed in on South Africa’s economic crisis, saying the country should implement emergency measures to support poorer workers and create jobs.
According to Bloomberg, the bank suggested that South Africa must introduce temporary tax incentives, relax labour rules and bolster entrepreneurship.
“South Africa could potentially halve its jobless rate if it were to increase self-employment, which currently accounts for 10% of total employment, to the 30% average seen in upper-middle-income countries, the report quoted World Bank as saying.
The country’s unemployment rate stood at a record 32.6% in the first quarter of 2021, the third-highest of 82 countries, the report said.
South Africa’s economy has suffered tremendously because of the pandemic. At least 1.4 million jobs have been lost.
“Structural reforms aimed at restarting private-sector investment and creating jobs are necessary to unlock growth, boost competitiveness, support public finances and improve social and economic outcomes,” World Bank said, according to Business Tech.
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Source: AFP
Picture: Getty Images
