Trade federation giant Cosatu said the latest gross domestic product (GDP) growth figures, including the 0.6% 2023 growth rate, should be a reminder to the government, business and society that much more needs to be done to grow the economy.
The latest GDP figures by Statistics South Africa show a slight growth of 0.1% in the fourth quarter of 2023.
Real GDP in the fourth quarter reached R1 158 billion, showing slight growth from the pre-Covid-19 level of R1 150bn, though still below the peak recorded in the third quarter of 2022.
Cosatu spokesperson Matthew Parks said the effect of the challenges at Transnet Freight Rail and Ports are yet to be felt, “in particular by the mining, manufacturing and agricultural sectors who need a well-run Transnet to deliver their products to their destinations on time and at an affordable rate”.
Transnet recently reported a loss of R5.7bn in 2022-23 and a drop of 23.6 million tons in rail freight, down to 149.5 million ton.
“These sectors employ millions of workers and are key sources of taxes the state needs to fund the public services the economy and society rely upon.
“Even the rosiest growth projections of the Treasury of 1.3% to 1.8% provide cold comfort for a society struggling to overcome an unemployment rate of 41% and a youth unemployment rate of 60%,” Parks said.
He said the solutions to drive economic growth are to support Eskom to end load shedding, and securing and modernising Transnet to remove logistics backlogs and rebuild municipal services and investing in public services.
“There is also an urgent need to tackle endemic crime, corruption and tax evasion.
“Whilst these are the interventions needed to grow the economy and reduce unemployment, they must be accompanied by support for the poor and the unemployed, in particular through extending and enhancing the SRD Grant and the Presidential Employment Stimulus as well as finalising the two-pot pension reforms.
“We also need to begin reprioritising the Budget and public procurement to invest in building local industries and sectors and ramp up local procurement by the state, private sector and consumers,” Parks said.
The Mercury