ANC national spokesperson Mahlengi Bhengu-Motsiri said the party celebrates the 0.6% growth in GDP, pointing to agricultural and financial sector gains as signs of economic progress.
Image: Timothy Bernard/Independent Newspapers
South Africa’s economy grew by 0.6% in the fourth quarter, a development welcomed by the African National Congress (ANC) but has met with skepticism from opposition parties.
While the ANC views this growth as a sign of economic resilience and progress, critics argue that it falls short of addressing the country’s deep-seated economic challenges.
The ANC expressed optimism about the latest GDP figures, highlighting the expansion as proof that the country’s economic transformation agenda is making progress.
ANC spokesperson Mahlengi Bhengu-Motsiri stated, “The 0.6% positive growth is indicative of economic expansion. This development is aligned to our priorities by pursuing a developmental macroeconomic framework, tackling the high cost of living in line with our economic transformation agenda.”
According to Statistics South Africa, the agriculture sector had the most significant positive impact on GDP growth due to increased production of field crops and animal products. Additionally, the finance, real estate, and business services industries performed well, growing for an eighth consecutive quarter.
“This growth was boosted by the sterling performance by the finance, real estate, and business services industry,” Bhengu-Motsiri said.
Despite acknowledging ongoing economic difficulties, the ANC remains committed to collaborating with businesses, investors, and stakeholders to drive small, medium, and micro-enterprise (SMME) growth, job creation, and poverty eradication.
“The ANC remains committed to fostering sustainable growth that benefits all South Africans and strengthens our vision of a better life for all,” Bhengu-Motsiri said.
However, opposition parties argue that the modest growth rate fails to address the country’s underlying economic problems.
ActionSA's Member of Parliament, Alan Beesley criticised the Government of National Unity (GNU) for perpetuating the ANC’s economic policies.
“The so-called Government of National Unity (GNU) has become an enabler of the ANC’s economic failures,” Beesley said.
He pointed to the struggles in the manufacturing sector, particularly the declining steel industry, as evidence of poor economic management.
“ArcelorMittal SA’s decision to shut down its long steel operations is just the tip of the iceberg,” he warned, highlighting the severe drop in South Africa’s crude steel production. Beesley also cited the Absa Purchasing Managers’ Index (PMI), which has shown four consecutive months of contraction, as a sign of economic distress.
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Similarly, the Democratic Alliance (DA) voiced concerns over the country’s sluggish economic performance.
DA's Mark Burke emphasised that the 0.6% growth rate signals deeper economic trouble ahead.
“A 0.6% growth rate is a warning sign that unless urgent action is taken, the country will continue to slide deeper into economic decline,” he said.
Burke stressed the need for fiscal discipline and growth-oriented policies.
“The DA expects that the GNU must agree to growth-focused economic reforms and a full spending review. Without these, South Africa has no economic future,” he warned.
Despite the criticisms, government officials maintain a positive outlook.
Terry Vandayar, the acting Director-General of the Government Communication and Information System (GCIS), described the GDP figures as a sign of recovery.
“The latest GDP data is encouraging and signals a welcome recovery,” Vandayar said.
He highlighted ongoing government efforts to support small businesses, develop infrastructure, and attract investment.
“Government has put in place a broad range of programmes and policies to support the growth of small businesses, develop infrastructure for faster economic growth, and encourage investment from inside and outside of South Africa,” he said.
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