0.7% GDP contraction further evidence that ANC can no longer lead South Africa

6 September 2022    

ActionSA notes with concern the contraction of South Africa’s GDP by a further 0.7% bringing it to levels lower than those experienced prior to the pandemic.

While we appreciate the effects the pandemic and the Russian war in Ukraine has had on the global economy, we will not allow the Ramaphosa government to scapegoat the pandemic without taking responsibility for its own culpability in the evisceration of our economy.

While other economies are slowly but surely recovering from the pandemic, South Africans suffer under the consequence of years of economic mismanagement and an ever-present prioritisation of the ANC’s interests over the needs of South Africans. While at the same time, President Cyril Ramaphosa has been missing in action and putting the interests of ANC unity above those of the people of South Africa.

The impact of Eskom’s persistent rolling blackouts has affected our manufacturing industry’s ability to operate to its full capacity, resulting in massive economic losses. The severe and tragic impact of the KZN floods is also indicative of the ANC’s inability to build resilience in the face of increasing threats from climate change. We are equally convinced that Minister Didiza’s ham-fisted cattle ban will further exacerbate the hardship experienced by the agriculture sector highlighted by StatsSA in these latest GDP figures.

These failures cannot be blamed on the pandemic, but rather on the ANC government’s corruption and incompetence. Global economic conditions will never be ideal, but a competent government should build the foundations required for thriving in the face of global challenges.

If South Africa is to liberate itself from this anaemic economic growth, the government is going to have to pursue bold and dynamic economic policy reform and get out of its unholy Tripartite Alliance that has saddled us with a draconian labour regime and a system of patronage that has contaminated every sector of society.

Decades of mismanagement of economic infrastructure, ineffective strategies to address spatial inequalities, failing SOEs, unreliable electricity supply and poor ICT adoption and access constricts our economic performance.

As ActionSA we will:

Lead the revitalisation of South Africa’s economy by emphasising ethical, evidence-based and long-term orientated political leadership and taking a zero-tolerance approach to corruption.

Commit to making tough and necessary economic policy decisions based on the best available economic evidence and wisdom, even if such decisions may be unpopular. We will reject decisions made solely for political expediency or in pursuit of factional battles.

Decrease government’s regulatory role in the economy by reforming labour legislation, reducing trade restriction, rejecting protectionary measures and providing the regulatory environment necessary for the private sector to thrive.

Promote public-private partnerships by amending the prohibitive and overly complex legislative framework regulating such partnerships.

Immediately address the energy crisis and end load-shedding through partnerships with the private sector.

In 2024 South Africans will have the opportunity to vote out the ANC that has kept them unemployed for so long.

Issued by Herman Mashaba, President, ActionSA, 6 September 2022