Economic growth shows we're regaining lost ground

5 December 2018

Economic growth of 2.2% in the third quarter of this years was encouraging but South Africa had a long way to go before it could shake off the effects of policy confusion and under investment, says the Cape Chamber of Commerce and Industry.

“The figures show that the big problem is the mining industry which slumped by 8.8%,” said Ms Janine Myburgh, President of the Chamber.

“This is a self-inflicted wound and stems from the policies the government planned to introduce in the Zuma years which had the effect of discoursing investment in new mines and exploration. It will take a long time to catch up.” Ms Myburgh said.

Also encouraging was the 6.5% growth in agriculture despite drought problems in parts of the country. “This matters because agriculture is a big employer and it is a timely reminder of the expropriation threats to this growing industry. It is an industry which is vital and we can’t afford to see it go the same way as mining.”

Ms Myburgh said prospects for the Western Cape were also improving after the drought and the indications were that we were in for a good tourism season. The film industry was also recovering and “it is now clear that we are regaining ground lost last summer.”

Issued by Dean Le Grange, Media and Digital Co-ordinator, Cape Chamber of Commerce and Industry, 5 December 2018