Sparkling growth requires utilisation of all those skills that are in short supply, entrepreneurship, adequate and relevant training, and a dedicated workforce using those acquired skills productively and ploughing back whatever has been learnt. Six years of economic expansion have been drawing idle resources into the growth process in South Africa, thereby allowing “learning by doing” to take place and building up considerable momentum.
But numerous concerns related to human capital formation remain. With the sustained upswing in the economy and more favourable financial conditions there is of course the risk that South African consumers will get carried away as real household disposable income rises briskly and real estate and share investments yield high returns.