Economic reforms take time to make an impact — best to get cracking now
11 December 2024 - 15:09
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The news that SA’s economy shrank 0.3% over the last quarter — equivalent to removing $1.2bn in economic activity — should be used as an opportunity to drive big economic reforms with fresh urgency (“GDP figures shock calls for faster pace of reforms”, December 4).
The government of national unity (GNU) should pay less heed to those openly trying to trip it up and cause its dissolution, and get on with the job of powering through the reforms needed to return the country to growth.
The strategy of the GNU’s opponents is becoming clearer. The so-called RET faction of the ANC — led by Panyaza Lesufi collaborating with destructive trade unions such as Sadtu with sideline cheerleaders Cosatu and the SACP — are going to work to frustrate the reform project in every possible way for the next two years.
They need only run down the clock. They know the local government elections at the end of 2026 will be a referendum on the GNU, and if government cannot get the economy growing by then voters are likely to voice their frustrations.
Every urgent and necessary reform will be strung out in endless “consultations” with those who have no care for consultation, only for delay and frustration. And every compromise only serves to blunt the growth impact of the reform.
Reforms take a long time to show impact. We simply don’t have the time. We must get growing. A gently-gently approach will not fix the economy, but will collapse the GNU eventually.
May the very disappointing growth numbers provide the impetus to double or triple the pace of reform now, before it’s too late.
Geordin Hill-Lewis Cape Town mayor
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: GDP data a call to action
Economic reforms take time to make an impact — best to get cracking now
The news that SA’s economy shrank 0.3% over the last quarter — equivalent to removing $1.2bn in economic activity — should be used as an opportunity to drive big economic reforms with fresh urgency (“GDP figures shock calls for faster pace of reforms”, December 4).
The government of national unity (GNU) should pay less heed to those openly trying to trip it up and cause its dissolution, and get on with the job of powering through the reforms needed to return the country to growth.
The strategy of the GNU’s opponents is becoming clearer. The so-called RET faction of the ANC — led by Panyaza Lesufi collaborating with destructive trade unions such as Sadtu with sideline cheerleaders Cosatu and the SACP — are going to work to frustrate the reform project in every possible way for the next two years.
They need only run down the clock. They know the local government elections at the end of 2026 will be a referendum on the GNU, and if government cannot get the economy growing by then voters are likely to voice their frustrations.
Every urgent and necessary reform will be strung out in endless “consultations” with those who have no care for consultation, only for delay and frustration. And every compromise only serves to blunt the growth impact of the reform.
Reforms take a long time to show impact. We simply don’t have the time. We must get growing. A gently-gently approach will not fix the economy, but will collapse the GNU eventually.
May the very disappointing growth numbers provide the impetus to double or triple the pace of reform now, before it’s too late.
Geordin Hill-Lewis
Cape Town mayor
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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