Transnet crisis – DA proposes 5 key interventions to stop the bleeding, save jobs and grow the economy
18 September 2023
The ongoing operational crisis at Transnet is posing an existential threat to the country’s export competitiveness and unless urgent steps are taken to stop the bleeding, South Africa’s comatose economy could suffer permanent damage.
Part of the reason why Treasury has issued a red alert on the country’s precarious public finances is because commodity exporters, who contribute substantial tax receipts to the fiscus, have been unable to get their products to ports due to Transnet inefficiencies. Some of the exporters, especially in the coal sector, are now sitting on piles of product inventory because they are unable to transport it affordably to ports.
The crisis has become untenable to the point where independent analysts have concluded that Transnet inefficiencies are likely to knock 5% off GDP in 2023. As a consequence, jobs along the value chain are now at risk with projections showing that 35 000 jobs could be lost.
In view of the significant threat that the Transnet crisis is placing on the economy, the DA is proposing the following key interventions to stabilize the situation in the medium term: