The recent Stats SA Quarterly Labour Force Survey revealed a shocking statistic: North West now has an expanded unemployment rate of 51%.
In simple terms, more than half of the adults in the province who are eligible to work are unemployed, mainly due to the lack of job opportunities. Surprisingly, the provincial government seems taken aback by these figures, even though the signs have been clear for years.
North West is primarily rural, with villages comprising 60% of its landscape. Economic activity in these rural communities is minimal, and many people rely heavily on government social welfare programmes and remittances from family members who work outside the province. Despite these glaring needs, there is a severe lack of political will to foster an environment conducive to investment and economic growth.
Provincial departments and local municipalities in North West are struggling, if not on the verge of complete collapse. Instead of delivering essential services, they seem to operate mainly to pay salaries. This dysfunction was starkly demonstrated in 2021 when the largest dairy producer, Clover, was forced to leave its plant in Lichtenburg. The Ngaka Modiri Molema District Municipality and Ditsobotla Local Municipality failed to maintain basic infrastructure, including roads, water supply, and electricity, making it nearly impossible for Clover to operate. As a result, approximately 330 employees lost their jobs—an unfortunate but preventable outcome of poor service delivery.
Tremendous loss
The departure of companies like Clover is a tremendous loss for the province. Large employers boost the local economy by directly employing residents and fostering partnerships with local entrepreneurs. However, frequent community protests over inadequate water supply and blocked roads further deter potential investors and companies from remaining in North West. These protests are symptoms of longstanding neglect that drives businesses away and worsens the unemployment crisis.
North West’s agricultural sector, once a major employer, has also declined significantly. Land redistribution programs, while well-intentioned, have often resulted in decreased agricultural productivity due to mismanagement and corruption. Many of the farms acquired by the government for black communities or individuals are no longer profitable, leading to a loss of employment for farmworkers and a reduction in food production.
The province has not taken full advantage of its agricultural potential, focusing instead on mining as the primary economic driver. While mining is essential, it should not be the sole source of economic growth. Agriculture, tourism, and rural development each offer untapped potential to create jobs and reduce the outflow of talent to Gauteng and the Western Cape.
Adding to these challenges, livestock theft has become rampant, affecting both black and white farmers. Combined with insufficient government support—especially during droughts—this ongoing issue discourages investment in agriculture and deepens the losses already faced by the sector.
Endemic problem
Corruption, fraud, and maladministration run deep in the North West’s public sector. This endemic problem is one of the main barriers to progress and development. For job creation to become a reality, the provincial government must strengthen its institutions, policies, and systems. Restoring law and order is essential to attract investors back to the province and begin to reverse the current unemployment trend.
North West has the resources and potential to support thriving agriculture, tourism, and rural development sectors, creating a more balanced and resilient economy. However, these opportunities require a decisive shift from government toward accountability, effective service delivery, and strategic support for local industries. Until then, the unemployment rate will remain a dark cloud over the province, with residents bearing the brunt of this ongoing economic stagnation.
[Image: https://www.flickr.com/photos/south-african-tourism/20510892632]
The views of the writer are not necessarily the views of the Daily Friend or the IRR.
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