Can South Africa Rapidly Reform to Combat Unemployment?

Recently, we discovered that South Africa’s unemployment rate has surged to 32.9%, indicating that one in three adults is unable to secure employment.

This alarming figure highlights the struggles our economy faces, burdened by structural inefficiencies that could be addressed through reforms.

The pressing question is not whether we require change, but whether we can implement it swiftly enough.

This harsh reality was at the heart of discussions during last week’s unveiling of the BLSA Reform Tracker in Johannesburg and Cape Town.

The new resource tracks 240 reform deliverables across the government, providing an independent scorecard for business and government leaders to expedite progress.

More than just a monitoring tool, the Tracker embodies our dedication to converting good intentions into concrete results.

The reform scorecard reveals both promising advancements and concerning delays.

On a positive note, load shedding has nearly ceased—a transformation that appeared unattainable just 18 months ago when eight-hour blackouts disrupted everyday life.

Improvements are visible in our ports and rail systems, visa processing for skilled workers has sped up, and we are on pace to exit the FATF grey list by year-end.

However, in crucial sectors, our progress is lethargic.

Our ports are still under single-operator control, creating a systemic risk.

While performance is gradually enhancing, a fundamental restructuring through private concessions that foster competition and investment is necessary.

The delayed Durban container port concession, stalled due to litigation, illustrates how poor process management hinders even viable reforms.

As Operation Vulindlela’s Saul Musker pointed out in Cape Town, South Africa is almost unique globally for having a single entity overseeing all ports, rail, and regulatory functions.

This creates a significant single point of failure, jeopardizing our entire trade infrastructure.

Western Cape Premier Alan Winde reminded our audience how Germany and the Netherlands reacted to the energy disruption caused by the Ukraine war.

Germany launched its first liquefied natural gas terminal in under 200 days, effectively cutting regulatory hurdles to replace 55% of its gas previously sourced from Russia.

The Netherlands was even swifter in developing its LPG infrastructure.

These instances demonstrate the achievements that focused urgency can bring.

When confronted with existential threats, governments can shorten timelines from years to months by removing bureaucratic barriers and empowering decision-makers.

Our unemployment crisis necessitates similar urgency.

At current growth rates below 1%, we are consigning millions to economic exclusion while the working-age population continues to grow.

The numbers are unforgiving: without annual growth exceeding 3%, job creation will not keep pace with new entrants into the labor market.

The social and political ramifications of prolonged economic stagnation extend well beyond mere statistics.

High unemployment exacerbates inequality, undermines social cohesion, and diminishes trust in democratic institutions.

We aren’t merely debating policy preferences; we are racing against time to ensure South Africa’s stability and prosperity.

The BLSA Reform Tracker is designed to instill accountability in this endeavor.

Updated quarterly, or more frequently in response to significant developments, it offers real-time insight into which reforms are progressing and which face hurdles.

Users can explore heat maps that display progress across all 240 tracked initiatives.

Deputy Finance Minister Ashor Sarupen and Premier Winde confirmed that they have already utilized the Tracker to concentrate their teams on underperforming sectors.

Planning Minister Maropene Ramokgopa welcomed it as a complement to existing governmental monitoring systems.

This transparent, independent evaluation should foster constructive pressure for delivery while highlighting genuine progress.

Success requires a cultural shift within the government—from accepting “business as usual” to insisting on prompt execution.

We need to eradicate tolerance for delays and excuses, replacing it with an unwavering focus on measurable results.

The necessary building blocks are in place: dedicated public servants committed to change, expertise and resources from the business sector, and clear reform priorities.

What we now need is steadfast leadership that treats economic transformation with the same urgency Germany applied to energy security.

The near cessation of load shedding demonstrates that dramatic change is achievable.

However, incremental progress is insufficient—we require the thorough implementation of reforms that inspire business confidence without the fear of infrastructure collapse.

If we sustain our current momentum while accelerating lagging areas, growth rates above 3% become attainable within 24 months.

That’s when we should see a decline in unemployment figures, an increase in investment, and South Africa reclaiming its economic potential.

The Reform Tracker will assess whether we are serious about this timeline—or if we will allow another generation to become mere spectators in their own economy.

The choice and urgency lie with us.

*This column was initially published in the Business Leadership South Africa (BLSA) weekly newsletter. The author Busisiwe “Busi” Mavuso is the CEO of BLSA.

*The opinions expressed by Busi Mavuso in this column are not necessarily those of The Bulrushes