Almost 24 hours have now passed since yesterday’s devastating news of double blows to our economy, and President Ramaphosa has done nothing to address the nation or provide leadership at this time.
Yesterday was indeed a dark day for South Africa, with the unemployment figures released by Stats SA for the second quarter showing that for the first time in democratic South Africa as many as 10.2 million people do not have a job or have given up looking for a job in South Africa, with the expanded unemployment rate climbing to 38.5%. This is symptomatic of an all-out economic crisis.
The second blow, later yesterday, was the announcement that Eskom had recorded a R20,7 billion loss this past year, after tax. This is a loss that will be paid directly from the pockets of South Africans, commandeering public money from where it is desperately needed to uplift the poor and vulnerable, and bailing out Eskom instead.
That is why yesterday I wrote to the Speaker of the National Assembly, Thandi Modise, to call for an urgent debate of national importance on the unemployment crisis in South Africa. I acted immediately yesterday, but the President of our Republic has remained silent, and is nowhere to be seen or heard on this crisis.
I will therefore be writing to the President to establish an economic crisis recovery plan with relevant government stakeholders and political parties to reform the economy, Eskom and stem the jobs losses. Both South Africans, and potential investors, need to hear this certainty at this time.
The country expects leadership from its President, and urgent action to reform our State Owned Enterprises. The DA position is that the President must announce the splitting up of beleaguered Eskom into two, selling off SAA and non-essential assets at the SABC and reforming our labour laws by slashing red tape to allow more businesses to create jobs and replacing the national minimum wage with a sectoral minimum wage. Investors will not invest if they do not feel safe and we therefore need to devolve the powers of our police and rail services to provincial governments to ensure that South Africans have a safe and efficient work commute.
What I want to offer to President Ramaphosa is that solutions to save our economy are available, based on interventions that have already worked in governments across South Africa where the DA governs. The President needs to enable governments that are achieving growth against all economic odds to inform a national strategy around what local economies are doing best.
The lowest expanded unemployment rate in the country of 23.8% remains in the DA-led Western Cape against the National average of 38.5%. In his first 100 days in office Premier Winde has already launched a ‘jobs war room’ to create an enabling environment for businesses to grow and investors to invest safely.
Where President Ramaphosa is acting in the interest of the people of South Africa, the DA will work with him. Partisanship needs to be set aside as we implore the President not to waste another day, meet with relevant government stakeholders and political parties and come and see what works where we govern.
South Africa is in an economic crisis and the President must work with all levels of government to grow the economy and create jobs. The DA has tried and tested economic reform proposals to help the economy bounce back from this crisis and I look forward to working with the President to building economies, lowering unemployment, creating jobs and attracting investment where we govern.