The World Bank's latest study, "Safety First: The Economic Cost of Crime in South Africa," reveals that criminal activities are severely impacting South Africa's economy, stripping away more than 10% of the nation's annual GDP. The country is grappling with a high incidence of violent crimes and an upsurge in organized criminal activities, particularly those targeting infrastructure networks.
The report, which incorporates both domestic and international data, ranks South Africa among the top five nations globally for homicide rates. The economic toll is substantial, with property loss, increased security expenses, and lost economic opportunities being the primary consequences.
South Africa has been experiencing a real GDP contraction since 2015, further compounded by high unemployment and poverty rates. According to the World Bank's findings, these challenges are likely to persist, with only modest GDP growth prospects until at least 2026. The nation is expected to see a meager 0.7% GDP growth in 2023 and an average of around 1.5% from 2024 to 2026.
Marie-Nelly of the World Bank has underscored the necessity for critical structural reforms to combat the soaring homicide rates and the rise in organized crime, which includes rampant looting of infrastructure. She indicates that persistent poverty exacerbates the situation, suggesting that addressing crime is essential for improving socio-economic outcomes in an economy already struggling with energy crises and transport difficulties.
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