Impumelelo Economic Growth Lab

Research

This is the second in our series of BER Research Notes examining the effect of fast and affordable internet on township communities. Our previous note showed that home fibre encouraged online job search among Kayamandi’s labour force. In this note, we test whether that behavioural shift translated into better employment outcomes. We find that, although home fibre did not address structural unemployment, it supported transitions from casual work to more stable, full-time jobs and increased the likelihood of self-employment among respondents with home fibre.

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What difference did fast, affordable fibre make in a township where most households previously relied on mobile data? Our latest BER Research Note uses the staggered rollout of fibre in Kayamandi, Stellenbosch, to test whether home fibre changed connectivity spending and online behaviour. Our analysis shows that once households received fibre, residents of Kayamandi became more likely to use the internet for learning and job search; activities with the potential to support productivity and economic mobility.

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Our latest infographic takes a long-run view of sentiment and investment – key ingredients for sustainable growth.

South Africa experienced a remarkable economic growth deterioration between 2005 and 2025. This report uses a growth accounting framework to show that productivity shrunk and investment stagnated. Post-pandemic, productivity has recovered but not investment. Cutting red tape, political certainty and faster progress on other structural reforms will reignite growth.

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South Africa is facing an escalating crisis in its water sector, characterised by deteriorating infrastructure, operational inefficiencies, and a failure to expand access to quality water for a significant portion of its population. This situation necessitates a critical evaluation of alternative models for water service provision. The Siza Water (KwaZulu-Natal) and Silulumanzi (Mpumalanga) concessions reveal that private operators can achieve high levels of operational efficiency and service quality, and that private-sector participation (PSP) is a viable option if designed correctly.

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South Africa’s persistent skills shortage remains a critical barrier to economic growth, with around half of all manufacturing firms citing it as a significant constraint. The Sector Education and Training Authority (SETA) system was created to solve this problem but has proven to be inefficient and ineffective. The report proposes restructuring the system and moving towards a more effective approach that prioritises skills for growth.

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Depending on how public debt is measured, SA’s debt for 2024/25 ranged from 69.2% to 129% of GDP. This may seem at odds with the gross and net loan debt ratios of 76.9% and 73.8% presented by the National Treasury in the national budget this week. However, there are different measurement approaches, particularly in relation to debt coverage (i.e., what is included in the debt calculation). While we fixate on the official debt numbers, it is important not to lose sight of the broader, less examined risks that lurk on the public balance sheet.

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Our latest infographic examines South Africa’s economic trajectory through the lens of the Balance of Payments. By unpacking key trends in trade, capital flows, and foreign reserves, it offers insights into the forces shaping macroeconomic stability in an open economy like South Africa.

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The International Monetary Fund (IMF) has recommended that South Africa adopt fiscal rules, and the National Treasury has committed to a process of consultations on fiscal rules, and to release a discussion by the end of March 2025. This research note explores what fiscal rules are and whether they could improve South Africa’s fiscal sustainability and fiscal credibility. It highlights guiding principles and considerations for fiscal rule design and outlines a possible fiscal rule to initially stabilise debt followed by a debt reduction phase.

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The International Monetary Fund (IMF) has recommended that South Africa adopt fiscal rules, and the National Treasury has committed to a process of consultations on fiscal rules, and to release a discussion by the end of March 2025. This research note explores what fiscal rules are and whether they could improve South Africa’s fiscal sustainability and fiscal credibility. It highlights guiding principles and considerations for fiscal rule design and outlines a possible fiscal rule to initially stabilise debt followed by a debt reduction phase.

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