Challenges and complexities of the South African economy

This chapter discusses the key characteristics and core challenges of the South African economy in the post-apartheid era. South Africa shares some commonalities with other African and middle-income economies, yet has a unique history and some distinctive economic features. South Africa's economic complexities and challenges are discussed here with reference to six comparator countries. We examine South Africa's growth path, considering the low rates of economic growth as well as the lack of structural transformation and the unsustainable and non-inclusive nature of this growth. The 'triple challenges' of poverty, inequality, and employment are both a manifestation of the nature of this growth path and a constraint on overall growth. This is also briefly evaluated in the context of the political economy and policy context of growth and development in South Africa. The chapter reviews South African economic data, with a focus on microeconomic survey data.