Government's role in economic activities is being criticized in South Africa. Corruption level has increased significantly and it has taken a toll on the growth rate of the economy. The average growth rate of the economy is 3.5 % which is far below the required ones. South African Economy needs an average 6-7% growth rate to get rid of unemployment and poverty. The role of government is the most critical one in the developments of the economy. The government provides infrastructural facilities and other political stability in the country. The government should not interfere in areas where the private sector can do well or efficiently. The role of government must be recognised but side
by side government should not compete with the private sector. Thus, the role of government should be active where the private sector does not come and in other areas, the government must play as facilitators.