JOHANNESBURG - The World Bank says South Africa has been directing capital to less productive sectors which is contributing to low economic growth.
The Trade and Industry Department is hosting a policy dialogue on the country’s economic outlook for the year.
The World Bank has already forecast that South Africa’s GDP to have decelerated to 0.4% in 2016.
The South African Reserve Bank currently estimates GDP growth at 1.6% for this year.
The World Bank’s Marek Hanusch says while there’s been a global downturn in productivity and trade, the country’s economic strength is its growing market.
He says stronger enforcement of competition policies and the breaking of cartels for basic food prices is another way to help alleviate poverty.
The World Bank has suggested reorienting South Africa’s investment tax incentives towards trade, construction, manufacturing and agriculture, as these labour intensive sectors could bolster job creation.
(Edited by Shimoney Regter)