City Press reports that higher exports could make a huge contribution to solving SA’s unemployment crisis, as the supply of agricultural products such as citrus, vegetables and livestock for export is one of the best industries that helps create jobs.
This was indicated by consulting group PwC in its SA Economic Outlook report last month. However, to increase agricultural exports and create more jobs, the agricultural sector needed better support from state-owned network industries in the form of reliable power supply, as well as efficient port and rail operations. PwC also advised that export potential was under pressure this year due to a weaker global economy, load shedding and higher interest rates. The group expects growth of less than 2% this year, compared with the 2.5% that was expected at the beginning of the year. This slowdown means fewer jobs will be created and the already high rate of unemployment will rise. According to Stats SA, the unemployment rate in the first quarter of the year was 34.5%, compared with 35.3% in the fourth quarter of last year. PwC economists said the weaker economic growth expected in Europe this year meant bad news for us, as Europe was the largest regional buyer of SA’s exports. Yet our coal exports to Europe increased significantly in April when compared with March, as European power authorities reduced their dependence on Russian supplies.
- Read the full original of the report in the above regard by Riana De Lange and Liesl Peyper at City Press (subscriber access only)
- Read too, Unemployment growth must be labour intensive, at City Press (subscriber access only)
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