Crimes costs South Africa about $37bn or 10% of its gross domestic product (GDP) yearly, according to a new World Bank report, Safety First: The Economic Cost of Crime in South Africa.

Business Report cited the report as attributing the rise in crime to worsening unemployment, inequality and poverty as well as low growth projections.  This represents a high tax on the economy, it added on November 24.

“This reduces South Africa’s competitiveness, job creation, and economic activity. Similarly, crime affects the quality of life of households, especially in urban areas. The impact of economic crime on households is estimated at about 2% of GDP,” the 59-page document notes.

“Economic crimes are motivated by economic gain or resource acquisition or involve intentional damage to property. The nature of economic crime has evolved, shifting from individual perpetrators to more sophisticated organised crime; this contributes to the perception of worsening crime.”

Common high-profile crimes include kidnappings, cash heists and invasion of businesses. Official data indicates that between July and September, 6,945 people were murdered in Africa's most modern economy. 

IOL wrote on November 24 that although the government has prioritised the fight against crime, there is a need for multi-faceted actions.

“Addressing crime is complex and requires long-term efforts, but past experiences in South Africa and abroad suggest that targeted, well-designed, and implemented policies can be prioritised for effective crime reduction over the short and medium term,” it said.

“Such policies and measures include law enforcement measures, regulatory reforms, and targeted violence prevention interventions. These are consistent with the government’s current priorities.”