Cape Town - Western Cape Finance MEC Ivan Meyer has painted a grim picture of economic instability and slow growth nationally and in the Western Cape, saying it was clear that the country is facing tough times.
“While the Western Cape is doing better than the rest of the country it can do even better if it were not hamstrung by some of the policies of the national government,” Meyer said.
He listed policies relating to visas, policing and the development of harbours as examples as he delivered his provincial and municipal economic review and outlook in the Western Cape Legislature on Wednesday.
Meyer said it was clear from forecasts that the country’s economic growth was expected to lag behind other emerging economies this year largely due to a host of domestic issues, including labour unrest, infrastructure bottlenecks and a persistent current account deficit – which have weighed heavily on economic growth.
“Many of these problems are largely a result of a failure of leadership in South Africa to implement the right policies, many of which are proposed in the National Development Plan, to get our economy growing again,” Meyer added.
The MEC said economic growth of only 1.9 percent was recorded last year, falling from 2.6 percent in 2012 while most of the decline in economic activity during the first quarter of this year could be attributed to a 24.7 percent and 4.4 percent quarter-on-quarter fall in mining and manufacturing production, respectively.
Meyer’s economic outlook and review was met with mixed reactions from opposition benches.
The ANC branded it a “travesty” pointing out that the provincial government was only playing a “lame blame-game”.
“The presentation was flat-footed and weak. There is no economic direction in order to channel funding in such a way that the poor who suffer most under economic hardships get some hope,” ANC spokesman Cobus Grobler said.
Grobler said that this affirmed the ANC’s view that the DA government did not really care for the poor and only served the interest of big business.
The party also highlighted the fact that only Premier Helen Zille and three of Meyer’s own cabinet colleagues bothered to attend the important review.
The ACDP said that while the overview was good there were concerns about the red flags raised and the time period it would take to address unemployment and economic growth.
“The outlook does also not address the threat that gangsterism, drug trafficking and alcoholism poses to the economy,” Ferlon Christians said.
The EFF MPL Nazier Paulsen said the review was more aimed at rich people and did not address prospects for the poor.
Cape Argus