Unemployment to rise'

LONG ROAD: JOB CREATION OUT UNTIL GDP GROWTH IS 4%, SAYS ANALYST

- Eric Naki

South Africa is unlikely to reduce unemployment by the end of President Cyril Ramaphosa's term in office, even with the government of national unity (GNU) that he leads. Ramaphosa, in his weekly newsletter yesterday, said there was a marked increase in "confidence in the direction of our country".

However, political analyst Sandile Swana was of the view that with the South African Reserve Bank (Sarb) statistics indicating that the gross domestic product growth rate would be 1.6% in 2026, there was no hope that the Ramaphosa-led 10-party coalition would make a dent in the country's unemployment by the time the GNU's term ended in 2029.

"Ramaphosa is going to go out of the presidency not having achieved much. Until the GDP growth rate reaches 4% you are still not able to reduce unemployment," Swana said.

He said each year from December 2024 to December 2026, the unemployment rate would increase rather than go down.