COSATU Statement on the Second-quarter GDP Numbers

September 7, 2021

The Congress of South African Trade Unions has noted of the latest gross domestic product figures released by Statistics South Africa showing that South Africa’s economy expanded by 1,2% in the second quarter of 2021. The same numbers show that the economy is 1,4% smaller than it was before the outbreak of COVID-19.

Realistically, these deceptive numbers reflect the effects of the reopening and partial stabilisation of the economy after a period of extreme lockdown. This is a reminder that improving vaccination numbers and avoiding another overwhelming fourth wave of coronavirus infections is paramount if the economy is to be properly stabilised.

While these numbers reflect the positive effects of reopening the economy, they hide the frightening reality of an economy that still does not have a reliable and secure electricity supply and an economy that is seriously underperforming in terms of real growth. Economies are about the people, and in South Africa, we have the highest unemployment on record and more than fifteen million people struggle to have three meals a day.

The misguided government austerity programme, including wage freezes and the ongoing privatisation, will worsen unemployment and continue to greatly reduce the purchasing power of many South Africans. This will devastate an economy that derives 60% of its capacity from consumer spending.

We hope that the government’s preoccupation going forward will be on unlocking the domestic investment and the domestic economy. Despite the myriad of incentives given to the domestic capital, there has not been any reciprocal response from the private sector.

 The state must promote development by redistributing growth and upgrading and restructuring the economy. It was the general government services, which played a key role in pulling the economy out of the recession in 2009 and in sustaining at least some relatively positive economic results between 2010 and 2016.

It is sad that the government is strangling the economy with its ill-advised austerity strategy in the public service and is pushing for more privatisation of state assets.

The government-led infrastructure development programme should help in strengthening local industries by increasing the local content of the infrastructure development projects. Now more than ever, the government needs to intensify its investments and infrastructure drives in the economy.

Job creation income redistribution is the only way to spur and sustain economic growth and to ensure the redistribution of wealth in a meaningful way. The jobs bloodbath that is continuing in all the sectors of the economy and the rising cost of living are unsustainable.

Government should help small businesses and eradicate barriers to entry to deal with the high administered prices such as electricity, transport costs, and the non-availability of cheap finance.

The government also needs to become serious about tackling corruption as this is at the heart of the weakening and collapse of key SOEs, state organs, and the unavailability of badly needed funds for essential public services.

But the long-term solution to our economic woes is for the government to act decisively to address the neo-colonial structure of the economy. This means acting decisively to counter the private sector strategy of investing less and mechanising and financialising more.

The country needs to explore the viable alternatives of breaking free from this hostage situation and the blackmailing tactics of big business. These include a range of proposals to discipline and regulate capital.

The withdrawal strategy by the private sector as characterised by the ongoing capital flight or investment strike calls for the government to be decisive and bold. The government needs to tax businesses that are refusing to invest their profits in the productive investment, as well as introducing tighter capital controls to discourage continuing capital flight.

Issued by COSATU

Sizwe Pamla (Cosatu National Spokesperson)

Tel: 011 339 4911

 Fax: 011 339 508

 Cell: 060 975 6794 

No comments

Thank you for reaching out to us. We are happy to receive your opinion and request. If you need advert or sponsored post, We’re excited you’re considering advertising or sponsoring a post on our blog. Your support is what keeps us going. With the current trend, it’s very obvious content marketing is the way to go. Banner advertising and trying to get customers through Google Adwords may get you customers but it has been proven beyond doubt that Content Marketing has more lasting benefits.
We offer majorly two types of advertising:
1. Sponsored Posts: If you are really interested in publishing a sponsored post or a press release, video content, advertorial or any other kind of sponsored post, then you are at the right place.
Generally, a sponsored post can be any of the following:
Press release
Video content
This kind of post is usually written to promote you or your business. However, we do prefer posts that naturally flow with the site’s general content. This means we can also promote artists, songs, cosmetic products and things that you love of all products or services.
Every sponsored article will remain live on the site as long as this website exists. The duration is indefinite! Again, we will share your post on our social media channels and our email subscribers too will get to read your article. You’re exposing your article to our: Twitter followers, Facebook fans and other social networks.

We will also try as much as possible to optimize your post for search engines as well.

Submission of Materials : Sponsored post should be well written in English language and all materials must be delivered via electronic medium. All sponsored posts must be delivered via electronic version, either on disk or e-mail on Microsoft Word unless otherwise noted.
The price largely depends on if you’re writing the content or we’re to do that. But if your are writing the content, it is $60 per article.

2. Banner Advertising: We also offer banner advertising in various sizes and of course, our prices are flexible. you may choose to for the weekly rate or simply buy your desired number of impressions.

Technical Details And Pricing
Banner Size 300 X 250 pixels : Appears on the home page and below all pages on the site.
Banner Size 728 X 90 pixels: Appears on the top right Corner of the homepage and all pages on the site.
Large rectangle Banner Size (336x280) : Appears on the home page and below all pages on the site.
Small square (200x200) : Appears on the right side of the home page and all pages on the site.
Half page (300x600) : Appears on the right side of the home page and all pages on the site.
Portrait (300x1050) : Appears on the right side of the home page and all pages on the site.
Billboard (970x250) : Appears on the home page.

Submission of Materials : Banner ads can be in jpeg, jpg and gif format. All materials must be deliverd via electronic medium. All ads must be delivered via electronic version, either on disk or e-mail in the ordered pixel dimensions unless otherwise noted.
For advertising offers, send an email with your name,company, website, country and advert or sponsored post you want to appear on our website to omodjk(at)gmail(dot)com

Normally, we should respond within 48 hours.