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The latest GDP figures confirm what South Africans already know – our economy is stagnant, unemployment remains unacceptably high, and poverty and inequality persist. The so-called Government of National Unity (GNU) has become an enabler of the ANC’s economic failures, allowing it to double down on the same outdated and destructive policies that continue to strangle growth. If GNU partners are serious about fixing South Africa, they must break the ANC’s addiction to failed economic ideologies and demand real reform.

Following anaemic growth of 0.7% in 2023, South Africa’s real GDP grew by just 0.6% in 2024, far below the 4.2% average for emerging markets and 3.8% in Sub-Saharan Africa. While the government projects 1.9% growth in 2025, it has presented no credible plan to achieve this. Meanwhile, expanded unemployment remains at 41.9%, and the share of young people (15–34 years) who are Not in Employment, Education, or Training (NEET) has surged to 43.2%, up from 38.2% a decade ago.

The crisis in South African industry deepened last week with ArcelorMittal SA’s decision to shut down its long steel operations, putting tens of thousands of jobs at risk. A recent Econometrix report highlights how punitive tax policies and regulatory failures have devastated the steel sector, leading to declining employment, falling exports, lost economic potential, and shrinking revenues. South Africa’s crude steel production has plummeted from 9.7 million tonnes in 2006 to just 4.7 million tonnes in 2024. As a result, our share of the global steel market has collapsed to 0.3%, while steel imports have surged by 50% since 2018.

The broader manufacturing sector is also in distress. The Absa Purchasing Managers’ Index (PMI) for February marked a fourth consecutive month of contraction, slipping to 44.7 points as local and international demand weakened. This persistent downturn shows that the sector has yet to recover from last year’s slump.

Without urgent intervention to revive key industries, attract investment, and stimulate job creation, South Africa will remain trapped in a cycle of economic stagnation. ActionSA calls on GNU partners to stop enabling the ANC’s failed policies and instead demand a break from its destructive economic ideology. This requires an immediate overhaul of economic policy, including tax reform, pro-growth industrial policy, and regulatory certainty to restore investor confidence and ensure long-term recovery.

Issued by ActionSA Member of Parliament Alan Beesley