In tomorrow's world, the winners will inevitably be those who possess the knowledge to innovate and adapt to increasingly rapid technological advancements. In contrast, those who lack this knowledge will fall behind. There is consensus among policymakers that a well-functioning education system is essential for developing the next generation's skills from an early age. However, South Africa is currently facing a severe learning crisis, as its education outcomes are too low compared to the country's level of development and the resources invested in this sector by the state. This report seeks to address the question of how to transform the education system into a driver of inclusive growth. This report is divided into two parts. The first assesses the state of the South African economy, analyzing the latest developments and sharing the short to medium-term outlook and risks, including a set of policy actions for faster and more inclusive growth. The second part discusses how the country can improve its human capital through a comprehensive reform of its basic education system