Crime Blocking South Africa's Economic Growth - World Bank Report

The impact of crime on South Africa's economic prospects is high and broad-based, according to a World Bank report. The fourteenth edition of the South Africa Economic Update, entitled Safety First: The Economic Cost of Crime in South Africa estimates that crime costs the economy at least 10% of Gross Domestic Product (GDP) annually.

The World Bank report says: "South Africa has important strengths that combined with well-designed and implemented policies, can effectively combat crime. National policies and laws are sound and often in line with best international practices. The civil and business sectors are strong and active and are supported by a transparent press. The country also engages effectively in international cooperation. Given limited human and financial resources, a targeted approach focused on a few indicators and coordinated across different government agencies and stakeholders in the private sector and civil society could be more effective".

"Reducing the homicide (murder) rate, which has been increasing over the past decade and stands among the highest in the world, could be a priority to improve the perception of insecurity in South Africa and improve confidence. Tackling the rise in organized crime, which has thrived on the declining capacity of the police and justice institutions and has broad-based effects on economic activity, could be another priority", the report says.

This article originally appeared on AllAfrica

Image by Pixabay