Transforming South Africa's basic education sector could be key to driving inclusive growth, according to a World Bank report released today. The report analyzes the country's recent economic performance and prospects for the medium term.
The fifteenth edition of the World Bank’s South Africa Economic Update, titled "Learning: Overdue Reforms and Emerging Priorities for Basic Education," highlights that South Africa's successful political transition following elections and minimal energy load shedding in 2024 have placed the economy on a positive trajectory. Economic growth is expected to rise from an estimated 0.8 percent in 2024 to 1.8 percent in 2025 and reach 2 percent in the medium term. However, this rate is insufficient for significant progress toward inclusive growth and job creation, with projections indicating it could take about 60 years for South Africa to become a high-income economy.
To improve its economic future, the report suggests that South Africa should address infrastructure constraints in energy and transport sectors, enhance public spending efficiency, and strengthen human capital development.
“Education is a powerful driver of development, and one of the strongest instruments to reduce poverty and promote equality," said Satu Kahkonen, World Bank Country Director for South Africa. "South Africa can boost inclusive growth and equality by investing in its people."
Minister of Basic Education Siviwe Gwarube stated that “this research by the World Bank Group is well aligned with the government’s priorities" emphasizing partnerships with stakeholders to broaden access to quality education as essential.
Despite improvements since apartheid ended, around 80 percent of grade 4 learners struggled with reading comprehension in 2021. The education system faces financial challenges as budget allocations decrease while needing expansion to accommodate an additional 1.2 million learners by 2030.
The Economic Update proposes reforms such as prioritizing foundational education years from early childhood through Grade 3; collaborating with private sectors; adopting Teacher Professional Standards; scaling up effective interventions; revising school funding norms; focusing on improving early-grade learning especially in poorer schools; supported by enhanced assessment systems.