Home Economy The Hidden Economic Impact of Trauma in South Africa

The Hidden Economic Impact of Trauma in South Africa

The Hidden Economic Impact of Trauma in South Africa
Mandy Pearson, CEO and Founder of the ReStory Foundation

While unemployment, poor education, and violence are at the forefront of South Africa’s challenges, one often overlooked issue is quietly exacerbating these problems – trauma. In recognition of World Trauma Day (17 October), it is critical to address how untreated psychological trauma is costing South Africa billions annually, impacting productivity, education, and overall economic growth.

Trauma can be experienced when a person feels unsafe, alone or unable to control what is happening. A 2013 study by Atwoli et al. found that 73.8% of South Africans have been exposed to trauma, and this was before the Covid-19 pandemic, the unrest of July 2021, and several natural disasters around the country. The long-term impact of trauma is devastating, not only to the individuals but to the economy at large.

“Trauma leaves people operating from the ‘survival’ part of their brain, focusing only on staying alive. This severely impacts learning, productivity, and decision-making, which has a knock-on effect on the workforce and the broader economy,” says Mandy Pearson, CEO and Founder of the ReStory Foundation. “We see this firsthand in our work with orphans, vulnerable children, and their caregivers.”

Impact on Education and the Workforce

Trauma has a particularly detrimental effect on children and their educational outcomes. According to UNICEF South Africa, trauma-related behavioural issues, such as attention difficulties, increased aggression, and withdrawal, lead to poor academic performance. Studies also show that trauma impairs brain development, particularly in areas critical for memory, attention, and executive functioning. Children exposed to trauma are three times more likely to repeat grades and are at higher risk of dropping out of school.

The effects of psychological trauma do not dissipate with adulthood. For adults, trauma has profound implications on work productivity and overall career development, ultimately affecting the country’s economic output. A 2019 KPMG South Africa study estimates that trauma-related mental health issues cost the economy around R40 billion each year due to absenteeism and reduced productivity (presenteeism). This highlights the direct link between untreated trauma and South Africa’s economic efficiency.

Trauma and Employment

Beyond productivity losses, untreated trauma also impairs individuals’ ability to find and retain stable employment. Research in the African Journal of Psychiatry found that people with untreated psychological trauma are at a significantly higher risk of unemployment or underemployment. This often perpetuates poverty cycles and increases reliance on government welfare programs.

Substance abuse, a common coping mechanism for trauma, further compounds this problem. According to the South African Medical Research Council, individuals who experience psychological trauma are more than twice as likely to engage in substance abuse. This, in turn, feeds into the cycle of unemployment and social instability.

Cycle of Violence

Trauma and violence are inextricably linked. A 2019 study by the University of Cape Town revealed that nearly 80% of incarcerated young men had experienced trauma before the age of 18, including exposure to gang violence and domestic abuse. This fuels a cycle of trauma and violence, perpetuating criminal behaviour and significantly contributing to South Africa’s high crime rates and the resulting economic burden.

The lack of social services and mental health resources in impoverished areas leaves many trauma victims without the support needed to heal and recover. Unaddressed trauma in children often leads to emotional dysregulation, aggression, and difficulty forming healthy relationships.

Cultivating Trauma Resilience

The ReStory Foundation has been operating in Inanda, the ‘murder and rape capital of South Africa’, for over 17 years. With over 300 orphans and vulnerable children on their programme, as well as their caregivers and unemployed young adults, they deal with numerous cases of child neglect, abuse, rape, and other forms of trauma.

“The impact of trauma we see in our communities is heartbreaking,” says Pearson. “But we also witness hope and transformation. We’ve seen children come into our programme completely withdrawn, only to emerge with a newfound sense of identity and belonging. Trauma resilience is key! It’s not just about survival; it’s about thriving.”

The ReStory Foundation’s ReStory Model focuses on growing identity and belonging, trauma resilience, and a strong sense of agency.

“We recently saw a 7-year-old boy scale our fence to join our programme. His height was more like a 4-year-old, and he clearly struggled with emotional and mental challenges. However, after a few months of building his sense of identity and belonging, we received a video of him confidently leading a reading lesson at his school. The transformation in him has been phenomenal,” Pearson shares.

The foundation is also making strides with caregivers, offering programmes like Attachment, Trauma, and Learning in the Child developed by psychologist Nicole de Klerk. Caregivers are learning to heal their own trauma, which allows them to foster healthier relationships with the children in their care. One caregiver remarked, “I never laughed before, but after these classes, I can laugh with my children. My son reminds me of the ReStory meetings because he sees how I’ve changed.”

Another caregiver has started a small beading business. After sharing her beading skills with seven other caregivers, the group now meet in the mornings to share stories, support each other and bead together. “They are even getting orders for weddings now and are so hopeful about their futures,” adds Pearson.

Economic Benefits of Trauma Interventions

Trauma interventions can have far-reaching economic benefits. By addressing trauma early, particularly in children, the country could see improved educational outcomes, a more productive workforce, and fewer social issues like crime and substance abuse.

“Imagine if every child in South Africa received the support needed to grow their sense of identity and build trauma resilience. The economic impact could be revolutionary,” says Pearson. “We need to prioritise the accessibility of effective trauma support for children, young adults, and caregivers if we are to break the cycle. This is not a luxury, but essential to build the future of our country.”

The economic cost of untreated trauma in South Africa is staggering, yet little is being invested in addressing it. The time is now to prioritise trauma resilience and healing as key strategies for building a healthier, more prosperous future for South Africa.

www.restoryfoundation.co.za

Photo credit: Sinamandla Mgcisane