This paper assesses South Africa’s massive infrastructure drive to revive growth and increase employment. After years of stagnant growth, this is now facing a deep economic crisis, exacerbated by the COVID-19 pandemic. This drive also comes after years of weak infrastructure investment, widening the infrastructure deficit. The plan outlines a R1 trillion investment drive, primarily from the private sector through the Infrastructure Fund over the next 10 years (Government of South Africa, 2020). This paper argues that while infrastructure development in South Africa is much-needed, the emphasis on de-risking for private sector buy-in overshadows the key role the state must play in leading on structurally transforming the economy.
Through a comparative investigation of the function of socialist realism in the drama and law of Kenya, Nigeria, and South Africa, this research investigates the decolonization of neo-colonial hegemonies in Africa. Using the drama and legal systems of Kenya, Nigeria, and South Africa as comparative case studies, the research explores how African societies can challenge and demolish oppressive systems of domination sustained by colonial legacies and contemporary neo-colonial forces. Relying on the Socialist Realism and Critical Postcolonial theoretical frameworks which both support literary and artistic genre that encourages social and political transformation, the research deploys the case study analysis, comparative literature analysis and focused group discussion methods. Data obtained are subjected to content and thematic analysis. The study emphasizes how important the relationship between the legal and artistic worlds is to the fight against neo-colonialism. It further reveals the transformational potential of socialist realism as a catalyst for social change by looking at themes of resistance, social justice, and the amplifying of disadvantaged voices in drama and legal discourse. The research contributes to ongoing discussions about de-neo-colonization through this comparative case study, and emphasizes the role socialist realism plays in overthrowing neo-colonial hegemonies. The study sheds light on the distinct difficulties and opportunities these nations—and indeed, all of Africa—face in their pursuit of decolonial justice by examining the experiences of Kenya, Nigeria, and South Africa.
As digital technologies continue to shape the economy, countries are faced with increasing scrutiny in the use of digital transformation to aid productivity and improve performance. In South Africa, the COVID-19 pandemic accelerated Small and medium-sized businesses’ (SMEs’) uptake of digital technologies, as many businesses had to shift their operations online and adopt new digital tools and technologies to solve the challenges posed by the pandemic. This has led to an increased focus on digital transformation mechanisms among South African firms. Therefore, the study examines the effect of digital transformation on the productivity of firms using cross-sectional data from the World Bank Enterprise Survey (WBES) (2020). The survey was based on firms and is a representative sample of the private sector in the South African economy and covers a wide variety of business environment themes, such as infrastructure, competitiveness, access to finance, and performance indicators. We found that digital transformation improved productivity of South African firms. Furthermore, empirical findings are reassuring robust to the IV-2SLS and quantile regression model, size of business, sectoral and provincial analysis. Finally, we recommend that policy makers should develop and implement initiatives to improve digital infrastructure, including high-speed internet access and reliable connectivity, especially in rural and underserved areas.
The consensus is that price stability promotes sustainable economic growth while excessive inflation harms growth. This study assesses the linkage between inflation and economic growth in South Africa to determine the optimal inflation rate threshold for the sustainable growth of the economy. Quarterly data from 1995 to 2022 was analysed through the ARDL and threshold regressions. The ARDL and threshold regressions estimate established a relationship between inflation and economic growth and computed the optimal inflation rate threshold for economic growth at 6 percent. The results also established that both the repo rate (repurchase rate) and real effective exchange rate have a negative relationship with economic growth. The Toda-Yamamoto causality test result indicated a unidirectional causality runs from inflation to economic growth. These results are crucial for the South African Reserve Bank to discharge its monetary policy functions to attain and maintain price stability. Therefore, this study offers the Bank a roadmap for targeting an inflation rate that aligns with the nation’s long-term objectives for sustainable economic growth.
Earnings disparities in South Africa, and specifically the Eastern Cape region are influenced by a complex interplay of historical, socio-economic, and demographic factors. Despite significant progress since the end of apartheid, persistent disparities in earnings continue to raise questions about the effectiveness of policies aimed at reducing inequality and promoting equitable social system. Individual-level dataset from the 2021 South African general household survey were subjected to exploratory analysis, while Heckman selection model was used to investigate the determinants of earnings disparities in the study area. The results showed that majority of the population are not working for a wage, commission or salary, which also pointed to the gravity of unemployment situation in the area of study. Most of the working population (both male and female) are lowest earners (R ≤ 10,000), and this also cuts across all age-group categories. Majority of working population have no formal education, are drop out, or have less than grade-12 certificate, and very few working populations with higher education status were found in the moderate and relatively high earnings categories. While many of the working population are engaged in the informal sector, those in the formal sector are in the lowest earners group. Compared to any other race, the Black African group constituted the majority of non-wage earners, and most in this group were found in the lowest earners group. Some of the working population who were beneficiaries of social grants and medical aids scheme were found in the lowest, low, and moderate earnings categories. The findings significantly isolated the earnings-effect of age, marital status, gender, race, education, geographic indicators, employment sector, and index of health conditions and disabilities. The study recommends interventions addressing racial, gender, and geographic wage gaps, while also emphasizing the importance of equitable access to education, health infrastructure, and skills development.
This study analyses the long-run relationship between, and the direction and magnitude of impact of sectoral economic growth and fiscal capacity on government health expenditure. The study was carried out to validates the Wagner hypothesis from sectoral perspective and revenue-expenditure hypothesis for South Africa for the period 1984–2020. Fully modified least squares and dynamic least squares and canonical cointegration regression were used to achieve the objectives of the study. Empirical regression results showed that there is a negative impact of the secondary sector GDP on public health expenditure. Thus, invalidating the Wagner hypothesis and suggesting that secondary sector GDP cannot serves as an answer for public health expenditure. However, there was a positive relationship between tertiary sector GDP and public health expenditure. The study make case for unceasing provision of an enabling environment that continuously support growth of the tertiary sector.
Copyright © by EnPress Publisher. All rights reserved.