World Bank sees AIDS, jobless worries in SAfrica

Johannesburg, Nov 8: South Africa's AIDS epidemic, high unemployment and patchy infrastructure remain major challenges for the government despite its good macro-economic management, the World Bank's deputy head said.

''HIV/AIDS continues to be at levels that we should worry about,'' World Bank Managing Director Jose Juan Daboub told a news conference yesterday.

''We will work closely with government at all levels to discuss the high levels of infection.'' South Africa has one of the world's HIV/AIDS caseloads with an estimated 5 million of its 45 million people infected, a fact sometimes cited for shaky investor confidence in Africa's biggest economy.

The World Bank sparked a furore three years ago, when it released a report that warned that the epidemic would lead to a collapse of the country's economy -- a forecast that was rejected by a number of South African economists.

Daboub said the disease remained one of the Bank's priorities in Africa and encouraged the private sector to implement prevention programmes and ''make life better for people infected with the disease''.

Senior South African officials have recently hinted that the government was ready to take a more active role against AIDS after years of criticism from activist groups that it was underplaying the effects of the epidemic.

Overall, Daboub, who was on a two-day visit to South Africa, praised President Thabo Mbeki's government for its economic management in the 12 years since the end of apartheid.

''South Africa is a powerhouse in the region and continues to demonstrate to other countries how strong macroeconomic policies and a vibrant private sector lead to growth, jobs, and better lives,'' he said.

But he added that the Bank would also work closely with the government to examine some of the country's unresolved problems including the high unemployment rate, unofficially estimated to be as high as 40 per cent.

South Africa's economy grew by 4.9 per cent last year but has made only a small dent in unemployment. Its efforts to meet a target of halving unemployment by 2014 have been slowed by the fact that the country's population is largely unskilled.

''Bringing people who have traditionally been excluded into the job market requires an investment climate and regulatory framework that unlocks private sector initiative, particularly among small businesses that create the most jobs,'' he said.

Daboub also noted that South Africa's infrastructure, which is also the subject of a major government spending plan, was still ''not enough to take products to the markets'' and that more needed to be done on ports, roads and rail.

South Africa plans to spend 370 billion rand over the next three years improving its infrastructure in the run up to the 2010 Soccer World Cup.

REUTERS