Wide-ranging structural reforms are key to reviving economic growth, according to the latest economic survey of South Africa by the Organisation for Economic Cooperation and Development (OECD).
The report, presented yesterday (Monday) in Pretoria, identified priority areas for future action and noted that due to the limited scope for monetary or fiscal policy action in the country, the best course of action to boost job creation and improve inclusivity would be to implement further structural reforms.
“Ensuring a better future for all South Africans will require increased access to higher education, a stronger and fairer labour market, deeper participation in regional markets, and a regulatory framework that fosters entrepreneurship and allows small businesses to thrive,” said OECD secretary-general, Angel Gurría.
Key sectors such as telecommunications, energy, transport and services were encouraged to become more open to competition. The report also urged government to streamline the labour dispute system in order to lower barriers to job creation.
Gurría pointed out that economic integration in the Southern African Development Community (SADC) had not improved much. With regional trade only 10% of the total trade in the region, he said that better implementation of existing SADC protocols and agreements would advance integration and promote trade.
The survey also pointed out that reducing non-tariff barriers – by improving customs procedures and simplifying rules of origin – would reduce trade costs.
Finance minister Malusi Gigaba added that government had agreed with the findings of the OECD survey.
