The Black Business Council (BBC) is relieved that the country’s economy rebounded 3.1% in the second quarter of 2019, mainly due to the mining sector which grew 14.4% during the period and the manufacturing sector which rose 2.1%. These two industries were negatively affected by load-shedding in the previous quarter due to disruptions in production.
The BBC, however, remains concerned about the overall and projected slow economic growth over the short to medium term as the economy remains constrained with the SA Reserve Bank revising its annual Gross Domestic Product forecast to 0.6% from 1.0%.
“Due to reduced tax revenue, the weak economic performance is putting pressure on government finances and this does not bode well for economic growth. The long-term growth is not looking promising and as such, we are calling on government to introduce measures which will bring the much-needed economic growth in order to deal with the triple challenges of poverty, inequality and unemployment,” says Kganki Matabane, BBC CEO.
The BBC will be hosting a full day workshop on 09 September 2019, in Johannesburg to deliberate on the Minister of Finance’s policy document, Economic Transformation, Inclusive Growth and Competitiveness: Towards an Economic Strategy for South Africa, in order to develop a thoroughly consulted BBC response.
“In the meantime, we are calling on all South Africans to put their differences and side-shows aside and place all hands-on deck for the sake of our country’s economy. The BBC is willing and ready to work with government, civil society, labour and business to find a viable solution to the country’s economic challenges,” concludes Matabane.