Education reform is key in South Africa to grow its economy, according to the World Bank’s 15th South Africa Economic Update released on Tuesday.
“South Africa is currently facing a severe learning crisis, as its education outcomes are too low compared to the country’s level of development and the resources invested in this sector by the state,” it said.
The organisation has recommended that transforming the basic education sector by improving the quality of learning from an early age can drive inclusive growth in South Africa and reshape the nation’s economic future.
It said enhancing the quality of learning from the earliest stages can be a catalyst for inclusive growth.
The report underscores that South Africa is currently facing a severe learning crisis, as its education outcomes are too low compared to the country’s level of development and the resources invested in this sector by the state.
The report coincides with a renewed sense of optimism following South Africa’s successful political transition in recent elections. With energy load shedding hitting an almost negligible level in 2024, the nation’s economy is poised for recovery.
Current projections indicate a rebound from a stagnated growth rate of 0.8% in 2024 to a more promising 1.8% in 2025, eventually reaching 2% in the medium term.
Yet, even with this anticipated growth, the report warned that it will take an astonishing 60 years for South Africa to ascend to a high-income economy, given the obstacles posed by entrenched poverty and inequality.
To unlock this potential, the report suggests the government must pursue three strategic priorities.
Firstly, building on recent infrastructure reforms to ameliorate severe constraints in energy and transport sectors will be essential in fostering a conducive environment for business growth and increasing disposable income among households.
Secondly, improving the efficiency of public spending will prove crucial, as current fiscal limitations mean the government must focus on maximising the impact of every rand spent. Lastly, strengthening the nation’s human capital is imperative.
World Bank country director for South Africa, Satu Kahkonen, said a well-functioning basic education system was crucial for fostering the skills of South Africa’s next generation and driving inclusive growth.
“Education is a powerful driver of development, and one of the strongest instruments to reduce poverty and promote equality,” Kahkonen said.
“It is the necessary foundation for a prosperous economy. South Africa can boost inclusive growth and equality by investing in its people.”
Despite these aspirations, South Africa currently grapples with a stark learning crisis.
Data reveals that about 80% of Grade 4 learners were unable to comprehend what they read in 2021. Constrained government budgets have exacerbated these issues, with allocations to the education sector declining in real terms.
Added to this is the challenge of accommodating an additional 1.2 million learners by 2030, all while maintaining a high standard of educational outcomes amidst a backdrop of low teaching quality and insufficient accountability.
The report noted that previous attempts to address this issue, particularly through various small-scale reading programmes, have been poorly coordinated.
Minister of Basic Education, Siviwe Gwarube, said this research by the World Bank Group was well aligned with the government’s priorities to ensure all children in South Africa have access to quality education.
“Interventions such as developing partnerships with stakeholders to broaden access to quality and affordable education, as well as investing time and resources in teacher training will certainly contribute to measurable, positive impacts for our people and the economy,” Gwarube said.
Last month addressing the public as the matric results for the class of 2024 were released, Gwarube, said that the department had seen a decrease in enrolments in subjects, such as physical sciences, mathematics, accounting and economics. These, she stated, were “all subjects that are critical for a nation’s ability to advance in science, innovation and economic development”.
Khulekani Mathe, the CEO of Business Unity South Africa, has expressed concern over the decline in those qualifying with science, technology, engineering, and mathematics (STEM) subjects on their certificates.
The Economic Update proposes a series of possible reforms including a priority on foundational education, private sector collaboration and improved funding and standards.
BUSINESS REPORT