A vision of a “rainbow nation” characterised by shared prosperity for all
South Africa has travelled a remarkable road in the two decades since its transition to democracy. There are key opportunities that can reignite South Africa’s progress. South Africa can draw on its skilled labour to grow into a globally competitive manufacturing hub focussed on high-value added categories such as automotive, industrial machinery and equipment, and chemicals.
South Africa is investing heavily in infrastructure, but big gaps remain in electricity, water, and sanitation.
South Africa’s electricity shortage has constrained growth, and despite new capacity, another shortfall is projected between 2025 and 2030.
With the necessary regulatory certainty, it has been estimate that South Africa could install up to 20GW of gas-fired power plants to diversify base-load capacity by 2030.
South Africa has highly developed service industries, yet it currently captures only 2% of the rest of sub-Saharan Africa’s market for service imports, which is worth nearly half a trillion rand.
With consumption rising in markets throughout sub– Saharan Africa and Asia, South Africa could triple its agricultural exports by 2030.
This could be a key driver of rural growth, benefiting the nearly one in ten South Africans who depend on subsistence or smallholder farming.
Successfully delivering on these priorities will move South Africa closer to realising its long-held vision of a “Rainbow nation” characterised by shared prosperity for all.
source:http://www.mckinsey.com/global-themes/middle-east-and-africa/south-africas-bold-priorities-for-inclusive-growth-Richard Hobbs accessed05/03/16