By Lehlohonolo Lehana.
Minister in the Presidency, Mondli Gungubele, says government is concerned by the latest growth domestic product figures for the second quarter of this year.
Gungubele made the comments after figures released by Stats SA showed that the decrease in the second quarter followed two consecutive quarters of growth.
“As a country, we have experienced slow growth and rising unemployment. Nonetheless, in the midst of these difficulties, our general public and economy has shown to be strong,” Gungubele said.
The Statistician-General attributed the contraction of the GDP to a number of factors that include load shedding, the floods in KwaZulu-Natal and Eastern Cape, as well as the higher cost of living and inflation.
“As indicated by Stats SA, manufacturing is the largest industry in KwaZulu-Natal and the damage caused to factories and plants, and disruptions to logistics and supply chains, decreased national manufacturing output by 5.9%.
“It was also a heightened period during which the globe experienced slow economic growth. South Africa, like many countries around the world, experienced increases in the prices of food, housing and fuel, which were events beyond the control of government,” He said.
Although the GDP contracted, Gungubele noted that there are signs that the economy is on the road to recovery.
“The latest employment figures, specifically, bear testament that our plans are beginning to bear fruit,” the Minister said.
According to the latest results published by Stats SA, 648 000 jobs were gained between the first quarter of 2022 and the second quarter of 2022.
“The figures indicate that the priority areas of the Economic Reconstruction and Recovery Plan, such as mass public employment, economic reform and infrastructure development, are having an impact on job creation.”
Since the national energy plan was announced, government has been working with various stakeholders on implementation and policy reform.
The proposed amendment to remove the licensing threshold for electricity generation facilities has been published for public comment.
“Government is hard at work to increase our energy capacity through private sector generation, which will ensure that the country has constant supply at affordable prices.
“In addition, government’s drive to create black industrialists is gaining momentum through sectoral masterplans, which drive localisation that benefits black-owned businesses.