Question

What are some economic problems in South Africa Today and how can they be improved?

Answer 1

South Africa is mostly industrialised and ranks second in terms of economy after Nigeria in the whole continent. But it has been facing many economic problems due to various reasons which are as follows-

1) Unemployment :- The country has a higher percentage of unemployment rate aroun 25% which greatly affects the economic system badly as higher percentage of unemployment reduces the chances of earning revenue by the government which in turn impact in the public welfare activities. Besides poverty level also rises with the unemployment rate.

2) lack of educated people:- In South Africa, the quality of education system is poor as government fails to provide adequate resources to the academic system. People who are wealthy send their children to private schools for quality education. Rest either drop out from school without completing their schooling or become unskilled which make them unable to get jobs and affect the economy.

3) Immigration:- As The country is relatively progressive in economy than its counter parts, it recieves large numbers of immigrant people from other economically backward countries of the continent. Companies in the country find cheap labours among the immigrants which also raises percentage of unemployment in the country. Besides communal clashes, crimes etc also go up in the country due to the illegal immigrants taking asylum in the country using public property which make the government spend more money on public resources and welfare activities leading the economy to suffer.

So these are the main economic problems that the country is facing. Government first and formost must regulate strict law against the illegal immigration in order to provide better opportunities for its citizens. The quality of education system should be improved so that it could provide skilled and trained labours to the market. More educated people means more employment opportunitues for job seekers in and outside of the country. Besides companies loacted in the country should be strictly instructed to hire local people failing which might lead to the cancelletion of their business licence. Government could tie up more with foreign companies to set up their business in the country which might generate jobs for its local people.