GDP figures: FMF demands greater urgency in addressing economic woes 

6 September 2024

The Free Market Foundation (FMF) has called on the Government of National Unity (GNU) to act with greater urgency in addressing the countless constraints on economic growth. This comes after today’s release by Statistics South Africa (StatsSA), which revealed that real GDP increased by a paltry 0,4% in Q2 2024. 

The FMF argues that whilst improved investor confidence and heightened optimism following the May elections should have a positive impact on economic growth in future releases, such a boost will be short-lived if the GNU cannot act swiftly to address the structural hindrances to growth in South Africa. 

“Establishing a unity government after three decades of single party dominance is certainly a laudable accomplishment, but the time for sentimentality has now passed. South Africans must demand more from their government than mere positive sentiment. We must demand reform and results,” said David Ansara, Chief Executive Officer of the FMF. 

 The FMF warns that unless parties to the GNU begin to rapidly reform the policy environment, they run the risk of squandering the good will that has been shown towards the new government. This could spell doom for the coalition in 2029. 

“We are rapidly approaching the end of the first 100 days of the GNU. The honeymoon period is almost over. So far, we have witnessed precious little by way of concrete reform in any department. In fact, what we have seen is the deeply worrying reversion to failed and harmful policies such as National Health Insurance, preferential procurement, and restrictive industrial policy, amongst others,” explains Ansara. 

 According to the FMF, South Africa requires a fundamental change in policy direction away from statism and towards liberty in order to spur the levels of growth, innovation and dynamism needed to address the country’s most pressing socio-economic challenges. To this end, the FMF launched its “Liberty First” policy agenda for the present parliamentary term in June 2024. 

 “The fastest way to grow the economy is to shrink the state,” Ansara said. “This requires deregulation of commerce, liberalisation of labour markets and a reduction of the size and scope of government.” 

“Human development both at the individual and at the societal level can only occur to the extent that people, businesses and communities have the freedom to pursue their interests without being unduly constrained by the dictates of an overzealous state,” Ansara concluded. 

Issued by Lebogang Serapelwane, 6 September 2024