What the report does not directly say, however, is that intrinsically linked to rising poverty in South Africa is the rise of both inequality and unemployment, especially amongst black Africans. Also important to note is that poverty, inequality and unemployment are directly linked to the looting and corruption that is currently taking in the country.
Billions of rands that could have been used for meaningful projects to create jobs and ultimately grow the economy are being spent on unnecessary expenditure at a government level and wasted on corrupt activities at the country’s state-owned enterprises (SOEs). Looting and corruption is denying the majority of South Africans access to basic social services and are perpetuating poverty, inequality and unemployment.
South Africa must show the political will to address the things that are required to lift people out of poverty such as employment creation, skills development and encouraging entrepreneurship, which has a huge potential to eradicate poverty.
In that regard, there is a framework in place, the National Development Plan (NDP), which is described as the detailed blueprint for how the country can eliminate poverty by 2030. The NDP makes a compelling claim in this regard about the importance of the agricultural sector. Notwithstanding the importance of other sectors of the economy, there is evidence that suggests agriculture dominates non-agricultural activities by its potential to reduce poverty. According to an Organisation for Cooperation and Development (OECD) study carried out in a few developing countries that made the fastest progress in reducing poverty (including Indonesia and Vietnam), more than half of the reduction in poverty achieved was attributed to growth in agricultural incomes.
Given the many challenges facing South Africa at the moment, including slow economic growth, there is a high probability that poverty will not be eliminated, instead it could worsened by 2030. The implementation of the NDP, coupled with good political and economic will and leadership, might salvage South Africa from the brink of a poverty crisis.
Perhaps the upcoming ANC elective congress in December will provide some light on how South Africa will address the poverty, inequality and unemployment issues, depending on the leaders that will be elected, which will potentially lead the country come the 2019 general elections.
