27/07/2025
Cover Page
Title: Sustainable Development Approaches to South Africa’s Economic Challenges
Student: Grade 11 Geography Student
Date: 2025
Introduction and Hypothesis
South Africa has faced sluggish economic growth (~0.6% in 2024) and rising public debt (~75% of GDP by late 2024). These economic constraints have coincided with very high poverty (~63% of population, 2023), unemployment (~31.9%, Q4 2024; youth ~59.6%) and crime (among the world’s highest). For example, many people still live in crowded informal settlements (e.g. Alexandra township in Gauteng), reflecting the legacy of apartheid spatial planning. In the 2025 Budget Speech, Minister Godongwana emphasized fiscal discipline while boosting social spending and infrastructure. This research hypothesizes that implementing sustainable development approaches (such as expanding renewable energy and enhancing education/skills programs) will stimulate growth and thereby reduce poverty, unemployment, and crime. In other words, if South Africa invests in green growth and human capital development, then economic prospects and social well-being will improve, confirming the hypothesis.
Background Information
South Africa’s weak growth stems from structural constraints (energy shortages, low productivity, and inefficient government spending). Power outages (2019–22) in particular stifled industry, though the World Bank notes recent improvements in electricity supply through private investment. Nevertheless, growth remains modest (0.6% in 2024) and far below potential. The fiscal situation is strained: government debt is very high (around 75% of GDP by late 2024), and debt service costs (~R1.2 billion per day in 2025/26) now exceed spending on key services. The 2025 budget thus commits to stabilizing debt and achieving a primary surplus, while increasing infrastructure and social spending.
These macroeconomic problems have aggravated social ills. Unemployment remains extremely high – 31.9% overall and near
