Without jobs‚ freedom was limited‚ and the new inequality facing South Africans was now “between those who work and those who do not”.
“The real cost of the economic crisis is the freedom of the 8.4 million South Africans who are unemployed‚” Democratic Alliance leader‚ Mmusi Maimane said during the debate on the economy titled “The growing economic crisis facing South Africa” in Parliament on Tuesday.
“The rights and freedoms contained in our Constitution are being denied to millions of our fellow South Africans. True freedom requires more than just political and social freedom‚ but economic emancipation.”
Economic growth for 2014 had fallen to 1.4% and was forecast to grow at only 2% for 2015‚ while the most recent manufacturing data showed a decrease in production of 1.2% quarter-on-quarter for the 2nd quarter of 2015‚ following a contraction of 0.5% in the first quarter.
Maimane said that “plainly stated‚ one in every three South Africans is unable to find work. One in every three South Africans lacks the means to provide for themselves and their families.
“Of even greater concern is that‚ of those who are unemployed‚ two in every three are young people - 70% of these unemployed young people are black South Africans.
“Young‚ black South Africans who are not enjoying the benefits of freedom.”
According to the latest World Economic Outlook by the International Monetary Fund‚ over the next two years emerging markets and developing economies were projected to grow by 4.45%‚ while sub-Saharan Africa was expected to grow by 4.75%.
“In contrast‚ South Africa is expected to grow by a meagre 2%‚ far below the level required to put a dent in the unemployment rate.
“The fact of the matter is that the economic crisis we are facing is a direct result of the failure of the ANC (African National Congress) government.”
Maimane said the South African economy had the potential to reach 5% to 8% growth over the long term and halve unemployment.
“In order to realise this potential‚ we need to begin by fixing the education system to better equip new entrants to the labour market with the necessary skills‚ a point supported by evidence from the World Bank in their South Africa economic update.
“The World Bank further emphasises the need to invest in the infrastructure required for economic growth. First we need to solve the energy crisis that is crippling the South African economy by breaking the Eskom monopoly and opening up the grid to independent power producers.
“We must reject the R1-trillion nuclear deal negotiated by the president … and invest in co-generation initiatives and renewable energy sources that could be contributing to the grid in a few short years.
“Further to this‚ we must take actions to rid the economy of legislative and regulatory constraints in key industries‚ such as suspending the job-killing visa regulations and amending the Mineral and Petroleum Resources Development Act‚ to give greater long term certainty to investors.”
He said that apart from stabilising the economic environment for existing industries‚ South Africa also needed to empower small businesses and micro enterprises to grow.
“We must take away the hurdles faced by these enterprises and cut the red tape that constrains them. We must make them exempt from certain tax and labour regulations so that entrepreneurs become the heroes of employment‚ not the enemy of the state.
“The DA recognises the importance of protecting the rights of workers to make sure they are treated fairly. But equally so‚ we acknowledge that inflexible labour regulations in South Africa protect those who work at the expense of those who do not.
“The DA would repeal certain sections of the Labour Relations Act‚ such as those relating to collective bargaining‚ closed-shop agreements and minimum thresholds for representation. Workers must have the right to choose.
“Finally‚ we need to look at expanding the benefits enjoyed by companies in Special Economic Zones to the whole country in order to increase exports and attract foreign investment‚” Maimane said.
True freedom also requires economic emancipation: Maimane
Without jobs‚ freedom was limited‚ and the new inequality facing South Africans was now “between those who work and those who do not”.
“The real cost of the economic crisis is the freedom of the 8.4 million South Africans who are unemployed‚” Democratic Alliance leader‚ Mmusi Maimane said during the debate on the economy titled “The growing economic crisis facing South Africa” in Parliament on Tuesday.
“The rights and freedoms contained in our Constitution are being denied to millions of our fellow South Africans. True freedom requires more than just political and social freedom‚ but economic emancipation.”
Economic growth for 2014 had fallen to 1.4% and was forecast to grow at only 2% for 2015‚ while the most recent manufacturing data showed a decrease in production of 1.2% quarter-on-quarter for the 2nd quarter of 2015‚ following a contraction of 0.5% in the first quarter.
Maimane said that “plainly stated‚ one in every three South Africans is unable to find work. One in every three South Africans lacks the means to provide for themselves and their families.
“Of even greater concern is that‚ of those who are unemployed‚ two in every three are young people - 70% of these unemployed young people are black South Africans.
“Young‚ black South Africans who are not enjoying the benefits of freedom.”
According to the latest World Economic Outlook by the International Monetary Fund‚ over the next two years emerging markets and developing economies were projected to grow by 4.45%‚ while sub-Saharan Africa was expected to grow by 4.75%.
“In contrast‚ South Africa is expected to grow by a meagre 2%‚ far below the level required to put a dent in the unemployment rate.
“The fact of the matter is that the economic crisis we are facing is a direct result of the failure of the ANC (African National Congress) government.”
Maimane said the South African economy had the potential to reach 5% to 8% growth over the long term and halve unemployment.
“In order to realise this potential‚ we need to begin by fixing the education system to better equip new entrants to the labour market with the necessary skills‚ a point supported by evidence from the World Bank in their South Africa economic update.
“The World Bank further emphasises the need to invest in the infrastructure required for economic growth. First we need to solve the energy crisis that is crippling the South African economy by breaking the Eskom monopoly and opening up the grid to independent power producers.
“We must reject the R1-trillion nuclear deal negotiated by the president … and invest in co-generation initiatives and renewable energy sources that could be contributing to the grid in a few short years.
“Further to this‚ we must take actions to rid the economy of legislative and regulatory constraints in key industries‚ such as suspending the job-killing visa regulations and amending the Mineral and Petroleum Resources Development Act‚ to give greater long term certainty to investors.”
He said that apart from stabilising the economic environment for existing industries‚ South Africa also needed to empower small businesses and micro enterprises to grow.
“We must take away the hurdles faced by these enterprises and cut the red tape that constrains them. We must make them exempt from certain tax and labour regulations so that entrepreneurs become the heroes of employment‚ not the enemy of the state.
“The DA recognises the importance of protecting the rights of workers to make sure they are treated fairly. But equally so‚ we acknowledge that inflexible labour regulations in South Africa protect those who work at the expense of those who do not.
“The DA would repeal certain sections of the Labour Relations Act‚ such as those relating to collective bargaining‚ closed-shop agreements and minimum thresholds for representation. Workers must have the right to choose.
“Finally‚ we need to look at expanding the benefits enjoyed by companies in Special Economic Zones to the whole country in order to increase exports and attract foreign investment‚” Maimane said.
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