South Africa’s growing working-age population could help it accelerate growth to 5.4 percent a year and double per capita incomes by 2030, according to the South Africa Economic Update released by the World Bank on Tuesday.
According to APA, the report explores how the projected growth can be attained by creating a virtuous circle of job intensive growth, improved productivity, higher savings and better education attainment particularly for the youth who will drive the growth in the working age population in the coming decades.
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‘We hope that analysis and evidence offered in this report will promote informed dialogue and policy debate about the country’s development priorities pertaining to job creation and economic inclusion in a context of major demographic changes’, says Guang Zhe Chen, World Bank Country Director for South Africa.
The report finds that South Africa is undergoing a profound demographic shift in which the share of its working-age population between 15 and 64 years has expanded substantially and will continue to grow for another five decades.
It argues that this expansion presents the country with a ‘demographic window of opportunity’ for increased economic growth and better living standards.
‘We see that education is the greatest priority for South Africa if it is to harness its demographic opportunity to propel growth. Getting basic schooling right is the first step to ensuring that school leavers and graduates have the foundational skills necessary to function in the modern workplace’, says World Bank Program Leader, Catriona Purfield.
