DA's Plan for Growth and Jobs - Democratic Alliance

This high unemployment underpins widespread poverty in our country, which at 48% of thepopulation (over 50% using the headcount poverty rate), is very high for a middle incomecountry like South Africa. While there has been some improvement for the very poorestSouth Africans after the transition to democracy in 1994, this is largely attributable to agreatly expanded system of social grants, rather than a more inclusive economy.Economic inequality continues be a major challenge. South Africa’s Gini coefficient – ameasure of income inequality – registers at 0.67, which is among the highest in the world. Inpractical terms, it means that the poorest 20% of the population earns just 2.3% of thenational income, while the wealthiest 20% enjoys 70% of the income. Inequality is furtherexacerbated by settlement patterns that keep poor South Africans far from centres ofeconomic activity.The ‘triple challenge’ facing South Africa today – of unemployment, poverty and inequality –is the consequence of significant barriers to opportunity. These barriers have a long history,and are rooted in our country’s apartheid past.19 | P a g e