South Africa’s finance minister tabled a Budget on 21 May with the support of the Government of National Unity partners. VAT will remain at 15 per cent and Cabinet is agreed that reviews of expenditure should be intensified. The revised budget protects frontline services though several provisional spending proposals have been withdrawn. But the problems of sluggish growth and high debt levels remain. Substantial spending cuts will be needed if the Treasury’s fiscal consolidation goals are to be achieved. More rapid growth will require far-reaching structural and fiscal reforms.
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Pippa Green
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Nyemwererai Matshaka, Mphatso Elias Ackim
Hannah MacGinty, Emma Whitelaw
Latest Articles
Lauren Graham
The challenge of youth unemployment is shaped by factors in both the labour market and the education system, alongside intricate community, household and individual-level issues. This complex mixture may make it a seemingly intractable problem. While long-term solutions need to be discussed and implemented, certain options warrant attention in the short to medium term. If these were efficiently addressed, we could begin to break down the barriers that prevent entry into the labour market for at least some young people.
Informal economy, Marginalisation, Poverty and livelihoods, Small business and supply chains, Informal business failure
Andrew Hartnack
The reasons for the closure of fairly well-established informal enterprises are varied. Between 2010 and 2015, in the Cape Flats township of Delft South, a key factor was the failure to respond adequately to the more entrepreneurial business model of foreign traders and the strict enforcement of unfavourable liquor trading policies. Still, household misfortunes and broader socio-cultural dynamics also played crucial roles. A richer understanding of why enterprises shut down should inform policy to foster the sustainability of informal enterprises.
Christine Jeske
Unemployment research typically inquires how to generate more jobs and how to keep workers working. Researchers often probe the reservation wage level (which appears to balance the interests of employees and employers). Qualitative research findings suggest that wages may be less significant factors in work-related decisions than the nature of interpersonal relationships in the workplace. Both employees and employers emphasise the importance of the quality of relationships, though employers and employees highlight different factors.
Tshepo Morokong
The new African Free Continental Trade Area phases out 90% of tariffs on all goods traded between African Union member states over a 5 to 10 year period. This seeks to boost intra-African trade and investment in regional value chains. The current 41% share of SA agricultural exports that goes to Africa is concentrated in SADC. The opening of other markets presents an opportunity for further expansion in goods such as oranges, apples and wine.
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Editor's Corner
François Steenkamp, Haroon Bhorat
Climatic stabilisation, as mandated by the Paris Agreement, necessitates a transition away from fossil-fuel based economic production and processes. In particular, the call to shift away from coal is crucial, given South Africa's substantial reliance on this energy source. The nation stands out as a larger CO2 emitter than the global average, with 86% of its primary energy supply and 85% of its CO2 emissions attributed to coal.[1]South Africa finds itself at the early stages of transitioning away from coal, but this is not devoid of socio-economic costs, as coal has a direct and indirect economic footprint.[2] Coal is a relatively cheap energy source, accounting for USD 3.8 billion and 3.97% of total merchandise exports, and is a source of employment and livelihood for many South Africans. Despite these socio-economic costs, delaying the transition could also prove costly, especially in light of evolving trade protocols that increasingly demand environmentally friendly alternatives such as electric vehicles or green steel.
In this article, extracted from a longer paper,[3] we provide a robust quantitative estimate of jobs – both direct and indirect – associated with the coal sector in South Africa. We also explore the labour market profile and characteristics of the individuals and households linked to the coal sector. In particular, we are interested in the size and shape of the coal labour market. Understanding the labour market implications associated with a transition is pivotal in shaping policy decisions linked to the just transition.