World Bank report confirms crime under ANC costs SA 10% of GDP annually
23 November 2023
In its Safety First: The Economic Cost of Crime in South Africa report released yesterday, the World Bank highlighted the staggering cost of crime under the ANC government. Annually, crime costs amount up to 10% of South Africa's GDP.
For 2023, this cost is conservatively estimated at R700 billion, nearly three times the amount government spends on healthcare and R600 million more than the entire Police budget itself. The breakdown of these costs includes 2.6% of GDP from theft, 4.2% from protection costs like security and insurance, 1.8% from opportunity costs such as reduced tourism and increased transportation expenses, and 1% from foregone developmental public spending due to excessive government expenditure on crime prevention.
The report’s findings align with the 2023 Global Organised Crime Index (GOCI) which ranked South Africa 7th in the world, and 3rd in Africa, for the prevalence of mafia-style criminal networks and organised crime syndicates who have robbed us of the vital resources necessary for progress.
When taken into context, the numbers by the World Bank become even more alarming. These criminal activities could have cost us up to R175 billion in additional revenue for this year alone. This loss has destroyed National Treasury’s ability to achieve a primary surplus, manage public debt more effectively, and fund critical public services that ensure the safety and well-being of all South Africans.