Teamwork needed against economic meltdown - Zuma

A collective effort between business, labour and the government is needed to protect South Africa from a likely global economic meltdown, says President Jacob Zuma

“Currently, the threat of another economic meltdown is very high,” Zuma said at a business question-and-answer session in Cape Town.

“I think we have to come together... government, business and labour. It is a collective effort that will help us to protect the country.”    

Zuma said the interconnectedness of the world economy meant South Africa would not be spared from the size of the possible crisis.

He said the crisis could cause job losses and it was vital that the country utilise its resources to invest in projects that would cushion the economy.

South Africa had been commended for surviving the first global financial crisis, Zuma said. The country had managed to survive because it had invested heavily in infrastructure and had a financial system that was one of the best in the world.

However, Zuma said the demand for South African products has declined sharply in its traditional markets of the United States and the Eurozone.

“We will continue strengthening our ties with developed north...  At the same time we are making advantage of opportunities in the developing world, particularly China, India, Latin America and Africa.”   

Zuma said South Africa had proposed that the Chinese include South Africa on their procurement book and encourage more focused procurement missions to South Africa.

He said progress was being made in building the South Africa “we all dream of living in”.