Don’t blame the private sector for job losses President Zuma

31 August 2015

President Jacob Zuma is wrong to imply the private sector is to blame for slow economic growth and job losses in South Africa.

Up until now President Zuma has claimed that when it comes to the economy it’s not all “doom and gloom”. However, yesterday he conceded for the first time that the “economy is sick”. This is a welcome about turn on the economy from President Zuma.

However, at the same time, President Zuma took a swipe at the private sector implying that it was only concerned about profit margins and didn’t care about job losses in South Africa.

This is bizarre given the fact that President Zuma’s government, rather than the private sector, is probably the biggest “binding constraint” on economic growth and job creation in South Africa.

There are, for example, numerous bills including - the Mineral and Petroleum Resources Development Bill, the Promotion and Protection of Investment Bill and the Licensing of Business Bill - which deter foreign investment, kill job opportunities and promote corruption in South Africa.

President Zuma should be supporting the private sector, rather than blaming the private sector for job losses. In order to do so, President Zuma should be tackling the fundamental roadblocks to economic growth to boost economic growth and create jobs in South Africa, including:

Policy uncertainty;

The energy crisis;

Inflexible labour laws; 

Failing State-Owned Enterprises; and 

Over-burdensome red tape regulation.

I will be raising these issues when I go head-to-head with the Minister of Finance, Nhlanhla Nene, on the state of the economy and job losses during Question Time on Wednesday 02 September 2015 in Parliament.

David Maynier is DA Shadow Minister of Finance