Can South Africa Quickly Reform to Tackle Unemployment?

Recently, we learned that the unemployment rate in South Africa has escalated to 32.9%, meaning that one in three adults struggles to find work.

This concerning statistic underscores the challenges our economy is facing, weighed down by structural inefficiencies that reforms could address.

The critical question is not if we need change, but whether we can implement it quickly enough.

This stark reality formed the core of discussions during last week’s launch of the BLSA Reform Tracker in Johannesburg and Cape Town.

The new tool monitors 240 reform deliverables across the government, offering an independent scorecard for business and government leaders to accelerate progress.

More than just a tracking mechanism, the Tracker symbolizes our commitment to transforming good intentions into tangible outcomes.

The reform scorecard highlights both encouraging advancements and troubling delays.

On the positive side, load shedding has nearly come to an end— a change that seemed impossible just 18 months ago when eight-hour blackouts disrupted daily life.

Visible improvements are evident in our ports and rail systems, visa processing for skilled workers has accelerated, and we are on track to exit the FATF grey list by the end of the year.

However, in key sectors, our progress remains sluggish.

Our ports are still under the control of a single operator, which poses systemic risks.

While performance is gradually improving, a fundamental overhaul through private concessions that fosters competition and investment is imperative.

The delayed Durban container port concession, held up by litigation, exemplifies how poor process management impedes even feasible reforms.

As Saul Musker from Operation Vulindlela pointed out in Cape Town, South Africa is almost unique in having one entity overseeing all ports, rail, and regulatory functions globally.

This creates a significant single point of failure, endangering our entire trade infrastructure.

Western Cape Premier Alan Winde reminded the audience of how Germany and the Netherlands responded to the energy disruptions caused by the Ukraine war.

Germany constructed its first liquefied natural gas terminal in under 200 days, effectively overcoming regulatory hurdles to replace 55% of its gas previously sourced from Russia.

The Netherlands was even quicker in developing its LPG infrastructure.

These examples illustrate the achievements that focused urgency can yield.

When faced with existential threats, governments can compress timelines from years to months by eliminating bureaucratic hurdles and empowering decision-makers.

Our unemployment crisis demands similar urgency.

At current growth rates below 1%, we are dooming millions to economic exclusion while the workforce continues to grow.

The statistics are ruthless: without annual growth above 3%, job creation will not match the influx of new labor market entrants.

The social and political consequences of prolonged economic stagnation extend far beyond mere numbers.

High unemployment worsens inequality, undermines social cohesion, and erodes trust in democratic institutions.

We aren’t just discussing policy options; we are racing against time to secure South Africa’s stability and prosperity.

The BLSA Reform Tracker was developed to promote accountability in this effort.

Updated quarterly, or more frequently in light of significant developments, it provides real-time insights into which reforms are advancing and which are facing obstacles.

Users can access heat maps depicting progress across all 240 monitored initiatives.

Deputy Finance Minister Ashor Sarupen and Premier Winde confirmed they have already used the Tracker to focus their teams on underperforming sectors.

Planning Minister Maropene Ramokgopa welcomed it as a supplement to existing governmental monitoring systems.

This transparent, independent assessment should create constructive pressure for delivery while showcasing genuine progress.

Success requires a cultural shift within the government—from accepting “business as usual” to demanding prompt execution.

We need to eliminate tolerance for delays and excuses, replacing it with an unwavering focus on measurable outcomes.

The essential components are in place: dedicated public servants committed to change, expertise and resources from the business sector, and clear reform priorities.

What we now need is resolute leadership that approaches economic transformation with the urgency Germany applied to energy security.

The near end of load shedding shows that dramatic change is indeed possible.

Yet, incremental progress is not enough—we need comprehensive reforms that inspire business confidence without the fear of infrastructure collapse.

If we maintain our current momentum while accelerating lagging areas, growth rates above 3% can be realized within 24 months.

That’s when we should expect a drop in unemployment figures, a rise in investment, and South Africa reclaiming its economic potential.

The Reform Tracker will evaluate whether we are genuinely committed to this timeline—or if we will allow another generation to become mere spectators in their own economy.

The choice and urgency rest with us.

*This column was originally published in the Business Leadership South Africa (BLSA) weekly newsletter. The author Busisiwe “Busi” Mavuso is the CEO of BLSA.

*The opinions expressed by Busi Mavuso in this column are not necessarily those of The Bulrushes