Rand’s deterioration and possible recession highlights urgent need for economic policy reset

12 May 2023

ActionSA believes the dramatic decline of the value of the South African Rand in the wake of allegations that South Africa supplied munitions to Russia, highlights the urgent need for foreign policy guided by economic pragmatism and respect for human rights, and macroeconomic polices that will ignite growth and job creation.

The Rand’s deterioration – which will likely increase inflation amid a cost-of-living crisis – and signs of an economic recession show the disastrous impact President Cyril Ramaphosa’s ANC has had since his election as President in 2018. He has now presided over two recessions during his presidency.

The damming allegations that South Africa supplied weapons to Russia also jeopardises our participation in the African Growth and Opportunity Act (AGOA) initiative, which grants us preferential duty-free market access to the US. The benefit our economy derives from AGOA is approximately R400 billion, the loss of which will have a disastrous effect on particularly our agricultural sector, which already faces an uphill battle in the light of loadshedding and other systemic failures.

Time after time, President Ramaphosa has proven that he is incapable of providing the leadership needed to turn around the economic crisis facing South Africa, and recent decisions by his government may worsen the economic and unemployment situation in the country.

With each passing day, the ANC does more damage to South Africa’s global standing and economic prospects. Now, more than ever, we need a solutions-based alternative to the failed policies of the ANC. ActionSA, a party born out of a consultative process in the People’s Dialogue, is committed to providing this alternative.

Over the next couple of months, ActionSA will be embarking on a wide-scale engagement process ahead of our Policy Conference from 12 – 14 September 2023. This will include expert-led roundtables, extensive internal consultation, and broad public engagement. Just yesterday we launched an online Public Policy Engagement process to allow all South Africans to share their ideas of how we can fix South Africa together.

We are calling on South Africans to help us formulate an economic plan of action that will free South Africa from the ANC’s disastrous approach, that will create jobs, and improve the lives of millions of South Africa by sharing their thoughts at actionsa.org.za/policy.

South Africans are not only hungry for change, they are hungry for a solutions-based alternative to the failed political establishment. ActionSA is committed to providing solutions to the most pressing concerns of South Africans to provide an alternative that will fix this country.

Issued by Herman Mashaba, ActionSA President, 12 May 2023