ActionSA calls on the coalition government to deliver real economic reform when the Finance Minister tables Budget 3.0 on 21 May. After more than a decade of ANC-driven policy failure, South Africa’s manufacturing industry is bleeding, and unless bold steps are taken, the Minister might as well include an annexure to his Budget Speech listing the companies likely to follow ArcelorMittal in closing their operations and shedding thousands more jobs.
The latest Absa Purchasing Managers’ Index, released by the Bureau for Economic Research, fell to 44.7 in April – marking the sixth consecutive month in contraction. Alarmingly, the sub-index tracking expected business conditions over the next six months dropped by 9.4 points to 48.6 – the first time it has fallen below the neutral 50-point threshold since November 2023. Survey respondents cite global uncertainty, instability within the coalition government, and ongoing political grandstanding as major factors driving pessimism.
Almost a year into the so-called Government of National Unity, the economy remains stagnant with growth under 1%, unemployment at record highs, and infrastructure in a state of disrepair. If Budget 3.0 asks ordinary South Africans to pay more in personal income tax to fund a bloated, corrupt and inefficient government, it will be a slap in the face to working families and struggling businesses alike.
The manufacturing industry is in crisis. Since 2010, it has grown by just 1% – barely 0.07% per year. In a middle-income country like South Africa, industrial production should be a key driver of growth and employment. Instead, manufacturers are battling persistent economic weakness, crumbling logistics and energy systems, and unfair competition from low-cost imports — all of which reflect the government’s failure to fix the institutional problems choking our economy.
ActionSA proposes a comprehensive overhaul of industrial policy. This includes prioritising key industries like steel, fixing freight and electricity infrastructure, building a truly business-friendly regulatory environment, and establishing a high-level public-private Industrial Council to support domestic manufacturing and reduce reliance on imports.
While ActionSA is not part of the coalition government, we will continue to put forward these critical reforms. As a rational and constructive opposition, we will work to ensure Budget 3.0 protects South Africans from further tax hikes, restores fiscal integrity by plugging corruption loopholes, and sets the stage for real economic recovery.
ActionSA Calls for Real Economic Reforms in Budget 3.0 as Manufacturing Continues to Bleed
ActionSA calls on the coalition government to deliver real economic reform when the Finance Minister tables Budget 3.0 on 21 May. After more than a decade of ANC-driven policy failure, South Africa’s manufacturing industry is bleeding, and unless bold steps are taken, the Minister might as well include an annexure to his Budget Speech listing the companies likely to follow ArcelorMittal in closing their operations and shedding thousands more jobs.
The latest Absa Purchasing Managers’ Index, released by the Bureau for Economic Research, fell to 44.7 in April – marking the sixth consecutive month in contraction. Alarmingly, the sub-index tracking expected business conditions over the next six months dropped by 9.4 points to 48.6 – the first time it has fallen below the neutral 50-point threshold since November 2023. Survey respondents cite global uncertainty, instability within the coalition government, and ongoing political grandstanding as major factors driving pessimism.
Almost a year into the so-called Government of National Unity, the economy remains stagnant with growth under 1%, unemployment at record highs, and infrastructure in a state of disrepair. If Budget 3.0 asks ordinary South Africans to pay more in personal income tax to fund a bloated, corrupt and inefficient government, it will be a slap in the face to working families and struggling businesses alike.
The manufacturing industry is in crisis. Since 2010, it has grown by just 1% – barely 0.07% per year. In a middle-income country like South Africa, industrial production should be a key driver of growth and employment. Instead, manufacturers are battling persistent economic weakness, crumbling logistics and energy systems, and unfair competition from low-cost imports — all of which reflect the government’s failure to fix the institutional problems choking our economy.
ActionSA proposes a comprehensive overhaul of industrial policy. This includes prioritising key industries like steel, fixing freight and electricity infrastructure, building a truly business-friendly regulatory environment, and establishing a high-level public-private Industrial Council to support domestic manufacturing and reduce reliance on imports.
While ActionSA is not part of the coalition government, we will continue to put forward these critical reforms. As a rational and constructive opposition, we will work to ensure Budget 3.0 protects South Africans from further tax hikes, restores fiscal integrity by plugging corruption loopholes, and sets the stage for real economic recovery.