This is the view of economist Mike Schussler, who was responding to news from Statistics SA (Stats SA) that local manufacturing firms are using less and less of their full capacity due to insufficient demand because of both a weak economy and increased imports, which reduces the need for manufacturing in South Africa.
Last year, Finance Minister Tito Mboweni said: “We are facing a slow-burn economic crisis. Our economy is characterised by weak investment, low savings and untenable high levels of unemployment. Inequality and poverty remain far too high. Our fiscal situation is unsustainable. Clearly, we need to do things differently.”
The lack of efficient government and reliable power generation was also in the firing line.
Economist Dawie Roodt said: “The three-sector model in economics divides economies into three sectors of activity: extraction of raw materials (primary), manufacturing (secondary) and services (tertiary). If we want to grow this economy the emphasis must be on the secondary sector, but this cannot happen without electricity, skills or an efficient state.”