ANC incompetence destroying jobs and investment in regional economies

01 July 2021

The DA notes with grave concern the shutdown of operations at Richards Bay Minerals (RBM) by the Rio Tinto Group due to escalating violence in the area. This follows the death of RBM manager Nico Swart, who was ambushed and shot on his way to work in May. RBM Managing Director Werner Duvenhage has vowed that RBM will remain shut down until the safety of its 5 000 workers can be assured.

This latest shutdown once again highlights the dismal failures of the ANC government in both local and national spheres. Almost 5 000 jobs will be on the line should the Rio Tinto Group decide to move its operations to more stable shores.

The unrest in Richards Bay is being fueled by unemployed youth who are desperate for jobs. Youth unemployment is an issue for which the ANC government’s poor economic policies are directly to blame.

Blame should also rest on the shoulders of the South African Police Service (SAPS) who seem unable to curb the rampant criminality that has become part and parcel of South African protest action. SAPS has also failed to safeguard the lives of the 5 000 employees at RBM and has by all accounts done little to track down the culprits behind the destruction of mining equipment and infrastructure.

RBM is not the only business upping sticks from poorly run ANC municipalities.

Recently, Clover announced that due to “ongoing poor service delivery” in Lichtenburg in the North West, it would be moving its cheese factory to Queensburgh. This will have a devastating effect on the local economy in Lichtenburg.

The DA also notes that the Ouma Rusk factory in Molteno in the Eastern Cape might also be up for relocation as the roads in the area are so bad that it is exceedingly difficult to deliver whole rusks to market because they break en route. Another town’s local economy might be devastated due to the ANC’s poor governance.

In contrast, Amazon recently announced that it would establish its South African headquarters in Cape Town, potentially creating 19 000 jobs and injecting an estimated R4 billion into the local economy.

The DA prides itself in creating an enabling environment where businesses can thrive and create employment opportunities. Unless the ANC is removed from power in the local government elections later this year, ANC-run towns and cities across the country will continue to collapse and regional economies and jobs will continue to be destroyed.

Statement issued by Dr Michael Cardo MP - DA Shadow Minister of Employment and Labour, 1 July 2021