DA’s participation in the GNU generates positive outcomes for the economy

20 August 2024

The DA’s participation in the Government of National Unity (GNU) has not only brought stability and certainty at national government level, it has also started to generate positive outcomes for the country’s economy.

Having successfully saved South Africa from a doomsday coalition comprising the EFF/MK, the DA’s pro-growth economic policy platform has created confidence among investors and spawned economic green shoots that have the potential to drive growth and create jobs.

Economists are reporting that the rand ‘is on track for its longest winning streak since 2011 as optimism grows over the pro-business government coalition’. In addition, they point out that ‘the formation of the GNU has resulted in local assets rallying strongly amid investor optimism that a more market-friendly government will reignite the South African economy.’

This positive sentiment is driven by the simple fact that the DA, as the second largest party in the GNU, set out clear principles for participation in the GNU among which include:

- Promotion and protection of the Constitution
- A sustainable fiscal framework
- Full and urgent implementation of operation Vulindlela (unbundling Eskom, ports concessioning, skilled visa programme, title deed reform, mineral rights reform and spectrum availability).

DA Ministers in government have already started to proactively implement these principles further underpinning the party’s willingness to walk the talk on policy. For example, the Minister of Home Affairs, Dr Leon Schreiber, has embarked on an extensive programme to eliminate the visa backlog in order to unlock the skills that the country needs to drive economic growth.

The green shoots in the economy reflects growing investor confidence in the GNU’s pro-business stance, spearheaded by the DA’s influence within the government. The surge in the rand is a clear indicator that international markets are responding positively to the DA’s role in promoting economic stability and growth.

While we are aware that more needs to be done, the DA’s entry into the GNU has provided a good opportunity for South Africa to regain its status as a favorable investment destination. 95% of foreign investors are looking to increase their exposure to SA, with 30% of these planning to do so within the next three months.

The DA will continue to work tirelessly within the GNU to ensure that South Africa remains on this positive economic trajectory through driving economic reform, and ensuring transparent governance that benefits all South Africans.

Issued by Willie Aucamp, DA Spokesperson, 20 August 2024