Without fast, equal growth, South Africa risks more unrest, central bank warns

SOUTH Africa’s central bank said on Wednesday that the risk of severe civil unrest could intensify without faster and more equitable growth, while widespread looting and protests in July had probably already dented the economy and investment prospects.

South Africa endured some of its worst violence in years in July as protests following the arrest of former President Jacob Zuma spread into looting, arson and an outpouring of general anger over the hardship and inequality that persist 27 years after the end of apartheid.

In its biannual health check of the financial system, the South African Reserve Bank (SARB) said that while this had dissipated before becoming a threat to financial stability, it could dent South Africa’s economic recovery and weigh on its appeal to investors.

“In the absence of faster and more and more equitable growth over the medium-term, the risk of further unrest could intensify,” it warned.

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