IMF report highlights decades of dismal growth and spiralling debt under ANC rule

25 April 2024

ActionSA is highly concerned about the dire state of the South African economy, highlighted in the IMF’s latest World Economic Outlook report.

The IMF, once again, lowered South Africa’s economic growth forecast to a very weak 0.9% for 2024 due to unending load-shedding, widespread corruption, and dismal policies implemented by the ruling party. From 2014-2023, economic growth averaged a meagre 0.76% a year, much weaker than our population growth rate of 1.15% during the same period. Simply put, under this government, South Africans are becoming poorer while water, electricity and jobs are growing scarcer.

The IMF also highlighted distressing statistics about South Africa’s spiralling public debt burden, which nearly tripled from R1.8trn in 2014 to R5.2trn in 2023. Moreover, South Africa spent more than R142bn on debt interest payments in 2023 alone due to the country's worsening credit rating under the this government.

Debt can be used to grow the economy and create jobs, however, the ANC squandered these funds on corruption, higher public sector wages and failing State Owned Enterprises (SOEs). Consequently, the unemployment rate rose from 25.1% in 2014 to a staggering 32.4% in 2023, with 8 million South Africans unable to find jobs. The ANC borrowed trillions of rands from future generations but failed to create jobs and grow the economy – lining their own pockets instead.

South Africa has what it needs to succeed, but we need an ActionSA government that puts the country and its people first. ActionSA will fund new infrastructure projects, create jobs, support businesses, and revitalise rural economies. ActionSA will sustainably lower the debt burden by using the fiscus to spur growth and improve our credit rating. In government, ActionSA will create a business-friendly competitive economy, attracting international investments and creating jobs. Public-private partnerships, entrepreneurship & SMMEs, and labour market reforms under ActionSA will unlock South Africa’s potential, benefiting all.

During the first five years in government, ActionSA plans will boost economic growth to 5% and create 4.8 million jobs by 2029, ushering in an era of high inclusive growth and economic prosperity in South Africa.

Issued by Pieter Scribante, Team FixSA Member: Economic Development, 25 April 2024