Russia

South African economy could be three times larger – former statistics chief

RT English · 2026-07-22

AI SUMMARY

• What happened: Former South African statistician-general Pali Lehohla stated that the country's economy could be three times larger, currently valued at 7 trillion rand, if better policies and management were implemented, citing corruption as a major barrier to growth. • Why it matters: Lehohla's remarks highlight the significant economic potential of South Africa, emphasizing that improved governance could alleviate issues of unemployment and poverty, while also addressing the reliance on foreign loans for economic support. • What to watch next: As South Africa prepares for a voter registration weekend, attention will be on how the Electoral Commission and government respond to calls for structural reforms and improved economic policies to foster growth and reduce inequality.

**Title: South African Economy Could Be Tripled, Former Statistician-General Claims**

**Centurion, South Africa** – Pali Lehohla, the former statistician-general of South Africa, asserted on Tuesday that the nation’s economy could potentially be three times its current size if better policies and management practices were implemented. Speaking at the Electoral Commission’s (IEC) Thought Leadership Seminar in Centurion, Lehohla highlighted corruption as a significant barrier to economic growth, exacerbating issues of unemployment and poverty within the country.

Lehohla pointed out that South Africa's economy, currently valued at approximately 7 trillion rand (around $426 billion), should ideally be worth 21 trillion rand (approximately $1.3 trillion) given the country's abundant resources and economic potential. “This R7tn economy should be a R21tn economy. Our economic policies have been stupid. That is what has brought us here. There is so much wealth in this country, yet we have constrained it,” he stated.

His remarks come in the context of recent developments, including the National Treasury's announcement of a $1.5 billion loan from the World Bank. This loan is intended to support reforms aimed at alleviating infrastructure challenges, enhancing economic growth, and creating jobs. Lehohla's comments underscore a growing concern regarding South Africa's reliance on foreign loans, a stark contrast to the self-sufficiency the nation experienced in the years following the end of apartheid.

Lehohla elaborated on the implications of corruption, suggesting that even in a more prosperous economy, there would still be ample resources available for all. “Can you imagine? Even the most greedy in an R21tn economy, they could take R3tn or R4tn, it would still be okay as there would still be R17tn for everyone. Now they steal from the R7tn itself and leave the poor,” he remarked.

The former statistician-general called for a re-evaluation of the government’s economic policies, which he believes are hindering South Africa’s developmental potential. He expressed frustration with the current administration's inability to recognize the broader economic picture, stating, “They can’t see the bigger picture. They can’t see abundance because they are looking at stealing... Now you are borrowing from the IMF as if it is going out of fashion.”

During his presentation, Lehohla urged the IEC to take an active role in fostering true democracy, particularly in terms of economic freedom for the youth of South Africa. He criticized the government’s approach to financial assistance, arguing that simply providing monetary support without a focus on development is insufficient. “Democracy must say if we are giving you R350, how are you going to get your freedom? All this money labeled ‘distress’ has nothing to do with development or democracy. A wise government would invest in agricultural initiatives. That is IEC’s mandate. Otherwise, they would come and burn this building,” he warned.

As the IEC prepares for a voter registration weekend scheduled for August 1 and 2, Judge Dhaya Pillay, who closed the seminar, reflected on the growing inequality in South Africa. She expressed concern that this inequality may lead citizens to prioritize self-preservation over civic engagement, particularly if they perceive that the benefits of participation do not outweigh the costs.

Lehohla’s comments resonate with ongoing discussions about the need for structural reforms in South Africa, as the nation grapples with high levels of unemployment and poverty. His call for a shift in economic policies aims to harness the country’s potential and improve the living conditions of its citizens.

The seminar served as a platform for discussing the intersection of democracy, economic policy, and social justice in South Africa, highlighting the urgent need for effective governance and accountability in addressing the challenges facing the nation.

Source: RT English
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