Growth without redistribution would almost certainly falter as social tensions rose. Two prime requirements of redistributive growth are rapid employment creation and narrowing the gap in the provision of public services across racial groups. For higher growth, South Africa must revive the private sector while it maximizes employment growth and narrows income differentials between blacks and whites. It must also redress massive inequalities in access to public services and facilities, and in land ownership. The analysis used for the study suggests that such a growth path can be achieved if the right policies are in place and other conditions are met.
Sustained growth requires an ongoing improvement in the supply-side of the economy.
This can be encouraged by improving export incentives and the skills of the labor force. A revival of demand within the economy can lead to only a limited amount of growth. Private investment must increase from its currently depressed level if sustainable growth is to be attained. Higher private investment would stimulate demand, but its more important role is to increase supply. To raise private investment, policies need to be transparent, credible and stable.