IMF-Boosting Growth and Prosperity in South Africa

March 10, 2025-Summary
Improving the business environment, strengthening governance, and reforming the labor market are among the keys to economic success
South Africa is well-positioned to confront significant longstanding challenges that have been holding the economy back: declining real per-capital income, persistent unemployment, pervasive poverty, and one of the highest inequality rates in the world.

These outcomes reflect deepening structural rigidities and governance weaknesses, evidenced by the negative contribution of Total Factor Productivity to growth over the past 15 years.

A new Government of National Unity, in power since June 2024, has committed to tackle these challenges by providing new impetus to the ongoing structural reforms initiated in 2020.