South Africa must reduce red tape and reform labour market, IMF urges
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Empty streets and a stay home sign in Cape Town during the Coronavirus lockdown
Shani Alexander
Shani Alexander, Senior reporter

The International Monetary Fund (IMF) has warned South Africa’s government that it must reduce red tape for businesses and reform the labour market to improve the nation’s economic outlook.

The IMF said travel restrictions taken by other countries following discovery of the omicron variant, deteriorating private investment, and a high unemployment rate will hit the South Africa’s economic growth in the medium term.

South Africa has already suffered one of the largest economic contractions among emerging market economies in 2020 due to the covid-19 pandemic.