Economy could go into recession - Zuma's ANC has no plan
28 May 2014
South Africa's economy is at high risk of slipping into recession. Stats SA yesterday found that our economy shrunk by 0.6% in the first quarter of this year. In fact, it is possible that we are already slipping into recession.
Government needs to work feverishly to put an end to the strike in the platinum belt. But we also need drastic structural and regulatory reforms to turn things around.
Since 2011, President Zuma's ANC has shown little impetus to stand up to its political bed-fellows, COSATU, and implement structural reforms proposed by the National Development Plan (NDP).
With the country's economy facing negative growth, unemployment at over 35 percent and unrest in the mining sector, investor confidence is at precariously low levels.
Worse still, Zuma's ANC appears silent on how to stem the coming recession. We cannot pretend that all is going well when South Africans are suffering from unemployment and increasing poverty.
The DA has long fought for reforms which will turn the economy around.
These include:
- Providing political leadership and restoring investor certainty by speaking with one voice on the economy and implementing one plan;
- Boosting trade with the rest of Africa through trade-focused diplomacy and cutting the costs of trading across borders;
- Making it easier for South Africans to start and grow their own businesses by cutting red tape and providing more support for entrepreneurs;
- Investing 10% of GDP in infrastructure to reduce the cost of doing business;
- Breaking up inefficient state monopolies and distributing shares to ordinary South Africans to increase competition;
- Making sure that labour laws support job creation by achieving a balance between the protection of workers' rights and the need for labour market flexibility in support of job creation; and
- Managing public money better by combating government corruption and making sure that government spending decisions are taken in the best interest of all South Africans.
The millions of South Africans who will inevitably lose their jobs and consequently their livelihood can place the blame squarely at President Zuma's door.
The DA challenges President Zuma's ANC to urgently announce a turnaround plan and implement pro-growth economic policies.
Statement issued by David Ross, DA Shadow Deputy Minister of Finance, May 28 2014
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