Rampant crime in South Africa is costing the country at least 10% of its gross domestic product (approximately R640 billion) annually and exacerbating already stark income inequality, a World Bank study\u00a0found. \u00a0<\/p>\n\n\n\n
One in five households is affected by crime each year, while companies are contending with high-security costs, the lender\u2019s researchers wrote in the Safety First: The Economic Cost of Crime in South Africa report. <\/p>\n\n\n\n
Informal businesses, which are seen as key to reviving the moribund economy and creating jobs, are particularly exposed to the crime scourge, and most can\u2019t afford to take preventative action, they said.<\/p>\n\n\n\n
On average, 76 people are murdered in South Africa each day, data released by the police last week show, and attacks on tourists have made international headlines. Transport Minister Sindisiwe Chikunga was hijacked and robbed earlier this month while travelling along one of the country\u2019s main highways with her bodyguards.<\/p>\n\n\n\n
The World Bank\u2019s calculation of the toll crime takes on the economy \u201ccombines transfer, protection and opportunity costs, all of which reduce the country\u2019s growth potential through the misallocation and inefficient use of resources,\u201d the report said. <\/p>\n\n\n\n
It found South Africa\u2019s growth potential could increase by about 1 percentage point if businesses could invest part of what they spend on security in productive ventures. <\/p>\n\n\n\n
\u201cUltimately, crime undermines the country\u2019s development objectives of high and inclusive growth,\u201d said the researchers, who recommended that the government pass legislation to enhance the authorities\u2019 ability to prosecute high-level crimes and recruit investigative specialists. <\/p>\n\n\n\n
\u201cWeak public service delivery and poor socioeconomic outcomes break down trust in public institutions and contribute to social polarization.\u201d<\/p>\n\n\n\n