DA leader Mmusi Maimane says that South Africa’s economic turmoil is home-grown, and needs to immediately implement seven interventions to pull the economy out of recession.<\/p>\n
Speaking to the media on Monday (10 September), Maimane said that the current economic downturn being experienced is a direct result of more than a decade of mismanagement by the government.<\/p>\n
Stats SA data revealed last week that the country has entered into a recession – however the DA leader said this was not a surprise to South Africans who have been feeling the impact of the recession for months, thanks to rising prices and lower income.<\/p>\n
“This is the fifth consecutive year that we have been in recession on a per-capita basis. This means, simply, South Africans have been getting poorer and poorer each year,” Maimane said.<\/p>\n
“This is not a recession borne of global economic conditions. This is a home-grown recession, borne of economic mismanagement and bad policy. Africa is growing at around 3%, with growth in Ethiopia, Cote d\u2019Ivoire, Senegal and Rwanda above 7%.<\/p>\n
“Of the world\u2019s largest economies, South Africa is now the weakest, and is the only one in recession.”<\/p>\n
Government response to the recession has been one of confusion, Maimane said, adding that decisive action needs to be taken. He listed seven actions that needed to be taken to get the situation back under control:<\/p>\n
Maimane said that not only will the interventions stem growing economic uncertainty, it will also signify a change in the damaging policy currently being perpetuated by the government – specifically, using state intervention as an antidote the state intervention that has failed.<\/p>\n
Reeling in state-owned companies is a top priority, the DA said, with privatisation likely to lead to investment growth of 3%, alone.<\/p>\n
“Without growth, revenues slide, jobs disappear, investors flee, poverty grows. It is then that the soil is most fertile for the simplistic promises of populist demagogues.<\/p>\n
“That is why we cannot afford to let this recession persist. We must take these seven bold steps now to get South Africa growing again,” Maimane said.<\/p>\n