Macro-fiscal analysis
Working paper

Education, inclusive growth, and fiscal consolidation

Peter Courtney
February 2025

This report explores strategies for improving education outcomes in South Africa, with a view to strengthening economic growth and employment over the long run. It argues that the key to more rapid educational progress—both in the quality of schooling broadly considered and in expanding higher education outcomes—is foundational literacy and numeracy. A special focus is proposed on ‘marginal learners’—those who qualify for admission to higher education but whose likelihood of successfully completing degrees must be improved before university entry. Opportunities should be expanded in high-functioning schools, and stronger links are needed between post-school education and training and workplace requirements. The report examines the importance of education for growth and employment, the current state of education in South Africa, and education policy reforms that take into account South Africa’s current fiscal constraints.