Posts Tagged ‘inclusive economy’

South Africa has an unemployment catastrophe

July 31, 2019

The release of unemployment figures by Stats SA for the second quarter of 2019 shows that there are now officially more than 10 million unemployed people in South Africa, with an expanded unemployment rate of 38.5%.

The unemployment crisis has now turned into an unemployment catastrophe, with no clear plan from the Ramaphosa government on how to get the economy growing.

Land expropriation, nationalised health, propping up failing state owned entities and other destructive ANC economic policies have run their course and it is time for an entirely new approach that is unashamedly pro-growth
and investment.

The official unemployment rate increased by 1.4 percentage points from 27.6% in the first quarter of 2019 to 29.0% in the second quarter of 2019.

This means that 232 000 more people are unemployed from the first quarter of 2019 to the second quarter of 2019.

“This catastrophe highlights the fact that the ANC government has no plan for turning around the economy.

There seems to be no will to bring about structural reform to boost economic growth and create jobs in South Africa,” said Mmusi Maimane, the leader of the DA..

Quite simply the DA proposes seven reforms that will lead to an inclusive and modern economy:

1. Reform our SOEs by splitting up Eskom into two, opening the market to more IPPs and allowing well-running municipalities to buy directly from IPPs, selling off SAA and non-essential assets at the SABC with a proper skills and salary audit under strict bailout conditions;

2. Reform our education to introduce charter schools through public private partnerships in poor and rural communities less than 5km from homes thereby breaking the hold of SADTU and offering parents’ choice;

3. Reform our healthcare by stopping the NHI and passing the DA’s Sizani Universal Health Plan to make quality healthcare available to all South Africans without breaking our national budget;

4. Reform our labour legislation by relaxing our labour laws, cutting red tape to allow more businesses to create jobs, replacing our national minimum wage with a sectoral minimum wage and opt out clause for young work seekers while setting up a Jobs and Justice fund to invest in future economies;

5. Reform capacity by building a capable state through trimming Cabinet to 15 Ministries;

6. Reform land by extending property ownership to millions of South Africans through speeding up delivery of urban and rural title deeds, while rejecting expropriation without compensation; and

7. Reform police and rail functions by devolving the power of our police and rail services to provincial governments to keep South Africans safe and ensure that citizens have a safe and reliable commute to and from work.

“The DA builds local economies where we govern, we reduce unemployment and create jobs, and we attract investment,” said Maimane.

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