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Africa warned to manage welfare system following Greek crisis

African countries have been advised to take note of Greece’s economy to avoid making similar mistakes.

FILE: South Africa has been advised to start managing its social welfare system vigilantly. Picture: Thomas Holder/EWN.

JOHANNESBURG - South Africa has been advised to start managing its social welfare system vigilantly to avoid strains on the country's economy.

Yesterday, the Human Sciences Research Council held a seminar to discuss the possible effects of Greece's financial crisis on Africa.

Experts say South Africa has the challenge of providing welfare while faced with limited room to increase taxes.

Following Greece's economic meltdown, thousands of pensioners in that country have been faced with difficulties in accessing their pension funds.

Elizabeth Sidiropoulos of the South African Institute of International Affairs says South Africa's own social welfare system could run into difficulties if not run properly.

"How do you continue supporting 40 to 50 million people when your tax base has reached its limits?"

African countries have been advised to take note of Greece's downward economic trajectory to avoid making similar mistakes.