GDP contraction requires razor-sharp focus on economic growth and job creation

23 May 2019

The DA notes with concern the announcement by the South African Reserve Bank (SARB) that it has reduced South Africa’s growth expectation for 2019, from 1.3% to 1%.

This ‘growth’ for 2019 cannot hope to effectively address the unacceptably high level of unemployment in South Africa.

While we welcome the fact that the SARB will keep interest rates unchanged, the new Cabinet must put all of their energy into stimulating economic growth and in turn, job creation.

With more South Africans, especially the youth, joining the ranks of the close to 10-million jobless South Africans, pro-active, innovative and workable solutions are urgently needed.

The DA, therefore, urges President Cyril Ramaphosa to make economic growth and job creation his top priority. This means the people he picks for his Economics Cluster must be the best of the best. South Africa is in desperate need of a clean and efficient Cabinet that will be put the economy and job creation at the forefront of their efforts.

In building a working economy for all, it is vital that the incoming Ramaphosa administration actively works to stop corruption in both the public and private sector.

The DA is committed to working with President Ramaphosa to ensure that we get South Africa’s economy growing so that there is a job in every home.  It is for this reason that we will be tabling a ‘Jobs Act’ in the National Assembly. In the spirit of cooperation and putting the people first, we trust that the ANC caucus will lend their support to the Act.

The Act advocates for the protection and support of SMMEs by ensuring greater flexibility in the labour market through minimum wage exemption for businesses that fall into certain classifications. This will guarantee that doors of thousands of small businesses remain open and protect thousands of jobs.

The Act will also do away with all unnecessary red tape that small businesses still have to comply with, this will make it easier for entrepreneurs to set up shop. In addition to this, the DA’s Jobs Act will ensure the creation of a special forum for dispute resolution specifically for SMMEs.

This is just the start and more can be done to ensure that we do away with unacceptably high levels of poverty and unemployment

Issued by Alf Lees, DA Shadow Minister of Finance, 23 May 2019