South Africa’s Exodus

The South African government’s strategy for economic stability, pushing annual growth to 6 percent and controlling inflation, is threatened by spending outpacing productivity. A substantial shortage of skilled workers could lead to a rise in prices. The public sector bears most of the burden, with infrastructure crumbling, power outages becoming a common occurrence, and the need to import basics like cement and fuel. A high rate of HIV-AIDS, rigid immigration restrictions and a decline in education standards contribute to the worker shortage. Rising wages in the private sector draw skilled workers to manufacturing and service sectors. The government has plans to invest about US $60 billion into infrastructure over the next four years, but without more skilled workers, the increased investment could have limited results. – YaleGlobal