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Crime costs South Africa’s economy at least 10% of its gross domestic product (GDP) annually, a new World Bank report released on Wednesday said.
The prevalence of crime in South Africa remains a pressing concern, particularly due to high rates of violent offences, the report titled Safety First: The Economic Cost of Crime in South Africa said.
With a consistent ranking among the top five countries globally for homicide rates, addressing this issue is crucial, it said.
Domestic organised crime is also increasing, including theft of key infrastructure networks.
The cost of crime is in terms of stolen property, protection costs – encompassing security and insurance – and missed economic opportunities, the report said.
The study is based on official statistics from South Africa, and as well as data recognised in international sources.
The research says it is intended to support the government design policies to combat and mitigate the costs of crime on the economy and society.
The report comes at a time when South Africa economy is struggling. Real growth in the GDP has been trending downward since the global financial crisis in 2008–09, and GDP per capita has contracted on average since 2015, the report said.
Medium-term prospects are weak, with real GDP growth estimated at 0.7% in 2023 and projected to average 1.5% annually over 2024-2026.
Unemployment and poverty are projected to remain elevated, the report added.
(Editing by Bindu Rai)
