Escalating crime levels stifle economic growth

High levels of crime are
stifling Gauteng’s economic
growth – and the province is
struggling to find long-term
solutions.
According to Seamus
Duggan, South Africa analyst
for Control Risks, security
risks – particularly those
related to crime – are a key
concern for businesses that
either operate in or send their
staff to Gauteng.
“This situation is unlikely
to improve in the coming
years and will be driven
in large part by high levels
of unemployment, a lack
of capacity in the South
African Police Service,
and the deployment of
political officials to senior
management in this service,”
he told FTW.
Earlier this year Gauteng
premier David Makhura was
reported as saying that crime
was out of control and every
section of society was being
affected by it.
“Crime is also a major
challenge for businesses
looking to invest or expand
their operations in South
Africa,” said Duggan.
“Although investment
decisions by local and foreign
companies are not ultimately
decided by crime rates,
the increased cost of doing
business and negative impact
on the quality of life for staff
based in Gauteng are likely
to make other markets in the
region increasingly attractive,
potentially at a cost to South
Africa’s economy.”
He said while the majority
of the security risks tended to
be in low-income areas on the
outskirts of urban centres,
such as Johannesburg or
Tshwane, crime was affecting
the entire province negatively.
“Levels of violent crime
have remained persistently
high, both in terms of
residential robberies and
hijackings,” he said.