December 20, 2018
By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Christine Lagarde, managing director (MD) of the International Monetary Fund (IMF) on Thursday said South Africa has immense economic potential, including a young and dynamic population, but at the same time at crossroads.
“The country faces challenges to raise growth and create more jobs, particularly for the youth the youths, it also needs to address the too-high levels of unemployment, poverty, and inequality,” Lagarde said in a statement at the conclusion of her visit to the country.
She noted that though, South Africa has made substantial progress over the past quarter of a century, achieving much improved living standards for its citizens; but it also needs to address the too-high levels of unemployment, poverty, and inequality.
“It is thus urgent to advance broad-based, albeit at times difficult, reforms to reignite growth and ensure that all South Africans share the benefits, irrespective of their race, age, or gender. And this needs to be done in the context of a very challenging external environment for emerging markets that calls for increased vigilance and rebuilding of policy buffers,” the IMF MD added.
According to Lagarde, policy actions are needed to reignite inclusive growth. “An important reform relates to fostering competition in the economy to attract private investment. There is also a need to strengthen public finances to stabilize debt at more comfortable levels by making expenditure more efficient, growth-friendly, and inclusive,” she affirmed.
The IMF MD added that improving the operational efficiency and financial situation of state-owned enterprises to raise competitiveness and contain fiscal risk is essential. “Finally, improving financial inclusion and continuing to identify and address corruption through increased transparency and accountability, and the rule of law, are also priorities,” she said.
Useful links on IMF and South Africa:
IMF South Africa Website: https://www.imf.org/external/country/zaf/index.htm?pn=0
IMF South Africa Office: https://www.imf.org/en/Countries/ResRep/ZAF
IMF 2018 Staff Report: https://www.imf.org/~/media/Files/Publications/CR/2018/cr18246.ashx