Tag: economic growth

South Africa is undermining its own growth if it doesn’t consider the meaningful impact of private institutions in solving capacity constraints in higher education. The oversubscribed demand for public universities reflects a far more profound systemic issue.

With inflationary pressures moderating and economic challenges persisting, monetary authorities will prioritise gradual rate cuts in 2025. This deliberate pace reflects a balance between stimulating economic growth and avoiding financial instability. For example, the Federal Reserve and the European Central Bank may follow similar trajectories.

Artificial intelligence (AI) is reshaping global power dynamics, economic frameworks, and security considerations. While it offers immense opportunities, it also raises significant concerns. These include governance, ethical standards, and its potential use in both civilian and military contexts.

A new study found that tax administration in many African countries is inefficient, hindering revenue collection. This points to potential gaps that could be addressed through institutional reforms. Widespread inefficiencies in tax systems in Africa undermine the mobilisation of government resources, limiting their capacity to deliver public services and make essential investments.

The current pace and flux of geopolitics continue to disrupt markets, keeping investors worldwide on tenterhooks. The US/China relationship, in particular, is the most consequential bilateral relationship in the world. In a way, it is the axis around which other global events are turning.

The agricultural sector now enjoys universal recognition. Its status as a growth propeller is embraced in ways that transcend sectoral interests. Specifically, the country’s political leadership deeply appreciates agriculture’s importance in driving the rural economy. They also recognise its role in addressing poverty and creating job opportunities.

After the false start of 19 February, Finance Minister Enoch Godongwana tabled the 2025 Budget on 12 March. The main tax policy proposals include raising the Value Added Tax (VAT) rate by 0.5% in each of the next two years. This will bring VAT to 16% in 2026/2027. It will be accompanied by no inflationary adjustments to personal income tax brackets, rebates, or medical tax credits.

What are the actual job prospects for young South Africans once they have matriculated? To what extent are recent matriculants finding jobs or transitioning into post-school education and training (PSET) opportunities? These are the critical questions explored in a new report titled “School completion, the matric and post-school transitions in South Africa”.

The shocks, surprises and shortfalls in the initial budget on 19 February 2025 made way for a reworked National Budget. This new budget is marked by cuts, compromises and curveballs. Although Finance Minister Enoch Godongwana’s first budget attempt was unexpectedly stopped three weeks ago, a higher VAT rate is still on the table.

The updated South African National Budget for 2025, tabled on 12 March, tries to balance the need to address the country's fiscal challenges. At the same time, it aims to stimulate economic growth and improve public services. Over and above these priorities, it also balances political pressure from the Government of National Unity (GNU).