ANC is co-responsible for economic crisis – Solidarity

19 August 2015

Trade union Solidarity today said that the ANC is also responsible for the deterioration in the local economy. This follows after Economic Development Minister Ebrahim Patel, in response to a parliamentary question, yesterday tried to deny the ANC’s role in South Africa’s struggling economy.

Although the global economic crises cannot be laid at the door of the ANC, the ANC’s overregulation of the economy, especially in terms of transformation and Black Economic Empowerment (BEE), is aggravating and prolonging the weakened economic situation in the country.

“In recent years, all these factors have led to dramatically reduced investor confidence in South Africa. In addition, the ANC’s excessive focus on black ownership discourages entrepreneurs to establish businesses in South Africa. Job creation therefore suffers while BEE advantaged entrepreneurs and businessmen, due to their political status, are under less pressure to focus on the interests of consumers and the economy,” Hermann said.

Hermann added that the economic impact of systemic corruption, of which the Nkandla debacle has become a symbol, should not be underestimated. “Due to the systemic corruption weighing down the state, government is placing the sustainability of South Africa and the welfare of its citizens at risk. It is increasingly becoming clear that civil pressure groups are becoming crucial as watchdogs to ensure that government is held accountable at all levels,” Hermann said.

Statement issued by Dirk Hermann, Chief Executive: Solidarity, August 19 2015