South Africa is currently facing an economic growth challenge but that has also been compounded by a increase in unemployment rate.
Unemployment rate for the second quarter of 2018 shows an increase of 27.2%. The latest figures show an increase by 0.5% from 26.7% in the first quarter of 2018, Sabcnews reports.
Statistics South Africa (Stats SA) labour force quarterly figures show that the unemployment crisis in the country is worsening.
The figures revealed that the manufacturing sector in South Africa laid off some 105,000 people for the period in review.
The International Monetary Fund has already warned that South Africa still faces major risks despite a stabled economic growth forecast for 2018.
On Monday the IMF maintained South Africa’s growth forecast at 1.5 percent but says the economy faces several challenges.
The Fund said those challenges mainly arise from rapid rise in public debt and potential bailouts to state firms.
South Africa recently announced series of investment portfolios it was receiving from foreign countries including China.
China has said it is to invest $14.7 billion in South Africa as the Asian super power deepens its trade relations in Africa.
Meanwhile the New Development Bank, set up by the BRICS group of emerging economies, has approved loans of $300 million for energy projects in South Africa.
These facilities are to propel the growth of the South African economy.
South Africa’s President Cyril Ramaphosa has revealed intentions to raise $100 billion to inject into the economy.
This is to help create jobs especially for the youth.
Source: Africafeeds.com
