South Africa stands at a crossroads. The nation is grappling with the triple challenge of high unemployment, persistent poverty and deep inequality.
One in three South Africans is out of work, and more than half of young people aged 15 to 34 cannot find jobs. Though poverty has declined over time, it remains widespread, affecting about six in 10 people. Inequality remains among the highest in the world.
However, South Africa also has enormous potential. Across the country, reforms and investments are under way to reignite growth, unlock opportunity and create the jobs needed to lift millions out of poverty. The government is leading the way, and the World Bank Group is proud to work alongside it, supporting South Africa’s vision and helping to turn that potential into reality.
Jobs are the most powerful engine for reducing poverty. They provide income, dignity and purpose. They help families build resilience and enable young people to envision a better future. That is why the World Bank Group’s approach to reducing poverty begins with job creation by investing in the foundations for growth, improving the business environment and mobilising private capital to drive inclusive economic transformation.
Sectors that can power growth and jobs
South Africa has a strong base to build on. There are at least five sectors with high potential for job creation: energy and infrastructure, agribusiness, health care and pharmaceuticals, tourism and value-added manufacturing.
Energy and infrastructure
South Africa is taking bold steps to tackle its power crisis, opening the electricity market to private producers, investing in renewable energy and unbundling Eskom to create a new national transmission company. The reforms will strengthen competition, attract investment and create an estimated 100,000 jobs, while delivering more reliable electricity to households and businesses.
Agribusiness
Agriculture remains a cornerstone of the economy, employing about a fifth of the workforce. With growing demand across Africa, the country can boost exports and rural employment through climate-smart farming, better logistics and storage and harmonised regional trade standards. The steps would enable smallholders and agribusinesses to reach new markets and create more jobs closer to where people live.
Healthcare and pharmaceuticals
South Africa’s world-class universities, strong private health sector and emerging biomedical capabilities position it as a regional leader in pharmaceuticals and medical technology. Strengthening the sector can drive innovation, develop skills and create high-quality jobs, while improving health outcomes at home and across the continent.
Tourism
Tourism supports about two million jobs and contributes significantly to the economy. By enhancing safety, simplifying visa processes and investing in digital and service skills, South Africa can attract more visitors and expand the vibrant industry, helping local communities benefit directly from tourism’s growth.
Value-added manufacturing
As the region’s most advanced manufacturing hub, South Africa is well-placed to expand into future-oriented industries such as electric vehicle components, solar technology and pharmaceuticals. By investing in digital supply chains, automation and workforce training, the country can strengthen competitiveness and generate jobs across the value chain.
To translate the opportunities into real jobs, South Africa needs to continue strengthening the fundamentals by improving the business environment, building infrastructure and investing in people. Key priorities include modernisng procurement, simplifying regulations for small businesses, expanding access to finance for entrepreneurs and improving public services. Infrastructure upgrades from ports and railways to water systems will further support competitiveness and attract investment.
Job creation is not the task of government alone. It requires a coalition of public and private partners working together towards the shared goal of inclusive, sustainable growth. The path from public investment to private-sector expansion is key to unlocking local opportunity, building vibrant economies and reinforcing social stability.
The World Bank Group is supporting the agenda through financing, technical advice and partnerships. Recent reforms are helping to unlock billions in investment and generate hundreds of thousands of jobs. New initiatives are under preparation to support energy and water projects, mobilise private capital and strengthen education and employment programmes.
On this International Day for the Eradication of Poverty, we are reminded jobs are more than work, they are the foundation of dignity, stability and shared prosperity. By working together, South Africa and its partners can build an economy that creates opportunity for all, turning the promise of growth into a better future for all of South Africa’s people.
Kahkonen is the World Bank’s division director for South Africa, Botswana, Eswatini, Lesotho and Namibia.
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