On August 13, 2024, Statistics South Africa released the quarterly labour force survey report, revealing the country’s unemployment rate at 33.5 per cent. Behind these numbers are the stories of individuals unable to find stable work, struggling to provide for families, and losing faith in their ability to live with dignity and independence.
This erosion of personal autonomy, driven by joblessness, reflects a crisis beyond statistics. While Stats SA compiles data, it is essential that South African policymakers delve deeper into the human cost embedded in every data point to understand the real-life implications.
To better address the unemployment crisis, the South African government must actively promote entrepreneurship by streamlining regulatory processes, specifically by reducing the number of licenses and permits required for small businesses.
Furthermore, providing tax education and support services will help new entrepreneurs navigate complex tax regulations, minimising the risk of deregistration due to unintentional non-compliance. Additionally, economic opportunities must be decentralised through targeted investment in infrastructure development, particularly in regions lacking access to reliable water and electricity.
In a country where over one-third of the population lacks jobs, the constitutional guarantees of dignity and freedom seem paradoxical. Individuals are stripped of the ability to support themselves and their families, forcing them into undue dependence on the state, relatives, friends, or charitable organisations.
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The government’s recent efforts to reduce unemployment fall short of creating sustainable jobs. The Expanded Public Works Program, focused on infrastructure projects, provides only short-term positions, leaving participants jobless once projects end.
Similarly, the Youth Employment Service struggles to address youth unemployment due to bureaucratic delays, including slow application and registration processing and limited funding. The Department of Public Works and Infrastructure and the Department of Trade, Industry and Competition (DTIC) must learn from these limitations and develop programmes that provide immediate relief and long-term economic growth.
The DTIC and the South African Revenue Services (SARS) should encourage entrepreneurship by simplifying regulations. Entrepreneurs must meet regulatory requirements such as registering a business with the Companies and Intellectual Property Commission (CIPC) and registering for taxes with SARS.
While the CIPC has made business registration easier through its online platform, achieving tax compliance continues to be a challenge for new businesses, many of which face deregistration for noncompliance. To mitigate the risk of deregistration, SARS should train new business owners on tax compliance and ensure that tax rates are reasonable and competitive, promoting improved business sustainability without stifling growth with excessive taxation.
Simplifying regulations and streamlining registration processes is crucial for fostering entrepreneurship in South Africa. By reducing bureaucratic hurdles, entrepreneurs can focus on innovation and growth, creating jobs and stimulating economic development.
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Access to tax compliance training is equally vital, as it enables new businesses to navigate complex regulations and avoid deregistration due to non-compliance. By providing such training, SARS can help ensure business sustainability, reduce the alarming rate of startup failures, and promote long-term economic stability. The above contributes to the country’s economic growth, poverty reduction, and improved global competitiveness.
Dealing with the high unemployment rate and its impact on citizens requires the government to prioritise infrastructural development in underdeveloped areas such as Kaditshwene and Makgasa villages in Limpopo province. The development will foster economic investment in such areas, creating jobs. A public-private partnership in this regard can facilitate the funding, building, and maintenance of infrastructure like roads and water systems.
Fostering innovation at the provincial level is equally significant for the DTIC. Such intervention will enable regional departments to capitalise on unique local resources, including the mining reserves in Welkom, renewable energy potential in the Northern Cape’s solar farms, and forestry and timber in Limpopo’s plantations. A decentralised approach will bring targeted support for entrepreneurship, investment, and job creation.
South Africa’s leaders must act decisively to reclaim the dignity, freedom, and autonomy that joblessness has stolen from millions. Policymakers, industry leaders, and citizens should demand the dismantling of bureaucratic barriers, champion investments in neglected regions, and advocate for reforms that foster entrepreneurship.
Realising a future where opportunity is accessible to all South Africans requires urgent action that honours the constitutional promise of dignity and empowers individuals to shape their destinies.
Katleho Mositoane is a writing fellow at African Liberty, a U.S.-based think-tank focused on advancing individual freedom, peace, and prosperity in Africa. She’s available at kmositoane@studentsforliberty.org or on X as @KatMos95. The opinions expressed here are the writer’s own and do not necessarily reflect those of The Chanzo. If you are interested in publishing in this space, please contact our editors at editor@thechanzo.com.
