Cape Town – Deputy President Paul Mashatile has expressed concern over the slow rate of economic growth in South Africa.
He referred to the latest statistics, which showed that the economy grew by 0.4% in the first quarter of 2023 after contracting by 1.1% in the previous quarter.
“We are concerned that the economy is not growing at the rate that results in many being absorbed by the economy,” Mashatile said on Monday while virtually delivering a keynote address at the 2023 Batseta Winter Conference.
He highlighted the importance of sustainable and inclusive economic growth, noting that before the Covid-19 pandemic, the country had experienced higher growth rates, leading to the growth of the black middle class and the implementation of social security programs.
He emphasised the need to focus on successful initiatives and promote innovation to stimulate the economy.
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“In the past, especially before Covid, we have had times when economic growth averaged about 3.8% for more than a decade when we experienced the fastest growth of the Black middle class and when we were able to rollout massive social security programmes to cushion the poor from poverty.
“There are certain things that we are doing right and this is albeit the global economic challenges.
“We must therefore focus on the things that we are doing right and be more innovative if we are to grow a sustainable and inclusive economy.”
Mashatile referred to the Economic Reconstruction and Recovery Plan announced by President Cyril Ramaphosa as a guide toward building a new, inclusive economy.
The plan aims to break away from a trajectory of low growth, exclusion, inequality, poverty, and unemployment. Infrastructure development is a key aspect of the plan, including investments in energy, mining, water and sanitation, transportation, and digital infrastructure.
“Our goal is to make a permanent and decisive break with an economic trajectory characterised by low and declining growth, the exclusion of women, young people and people with disabilities from the mainstream economy, falling per capita incomes, low investment, as well as high and deeply entrenched levels of inequality, poverty and unemployment,” Mashatile said.
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Compiled by Betha Madhomu
