South Africa’s Economic Challenges
South Africa’s public debt crisis is the result of decades of graft and economic mismanagement.
March 18, 2025
Since 2008, South Africa’s ratio of public debt to GDP has tripled — from 24% to 75%.
South Africa spends around 20% of government revenues to service its debts — about as much as on health and policing combined.
South Africa’s GDP has grown by just 1.3% on average since 2008 — slower than the annual growth in population (1.4%).
The ANC has built a patronage state that has repeatedly given civil servants above-inflation pay rises, bailed out failing state-owned enterprises and stolen vast sums through corruption.
South Africa is the world’s largest producer of platinum, gold and chromium, contributing significantly to its exports and GDP.
However, poorly managed transport infrastructure — such as railways and ports — hinders exports and overall economic productivity.
South Africa has one of the highest inequality rates globally. Poverty is widespread, and it has a Gini coefficient of 0.67.
Sources: The Economist, Al Jazeera, WTO, Our World in Data
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Takeaways
South Africa’s public debt crisis is the result of decades of graft and economic mismanagement.
Since 2008, South Africa’s ratio of public debt to GDP has tripled — from 24% to 75%.
South Africa spends around 20% of government revenues servicing debts — about as much as on health and policing combined.
The ANC has built a patronage state that has repeatedly given civil servants above-inflation pay rises, bailed out failing state-owned enterprises and stolen vast sums through corruption.
