ActionSA on Tuesday called on the Government of National Unity (GNU) to break the African National Congress’s (ANC’s) so-called “addiction to failed economic ideologies” and demand real reform, while the Democratic Alliance (DA) expects the GNU to agree to growth-focused economic reforms and a full spending review in the updated Budget.

South Africa’s GDP increased by 0.6% in the fourth quarter of 2024, following a decrease of 0.1% in the third quarter of the year.

ActionSA MP Alan Beesley explained that reform required 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.

He said the latest GDP figures confirmed that the country’s economy was stagnant, while unemployment remained high, and poverty and inequality persisted.

The party has accused the GNU of being an enabler of the ANC’s economic failures.

“The so-called Government of National Unity has become an enabler of the ANC’s economic failures, allowing it to double down on the same outdated and destructive policies that continue to strangle growth,” he said.

He highlighted that without urgent intervention to revive key industries, attract investment, and stimulate job creation, South Africa will remain trapped in a cycle of economic stagnation.

“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,” he pointed out.

Beesley stated that the crisis in the South African steel industry deepened last week with ArcelorMittal South Africa’s decision to shut down its long steel operations, putting tens of thousands of jobs at risk.

He said the country’s crude steel production had plummeted from 9.7-million tonnes in 2006 to just 4.7-million tonnes in 2024.

As a result, he added that the country’s share of the global steel market had 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 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,” Beesley explained.

Meanwhile, DA spokesperson on Finance Dr Mark Burke noted that the ongoing dispute over the R58-billion in new expenditure proposals that the ANC wanted in the Budget was a “distraction” from the real issue.

“…unless we grow the economy much faster and spend public money far more efficiently, the Budget crisis will repeat itself year after year—until there is simply no money left,” he said.

Burke explained that a 0.6% growth rate was a warning sign that unless urgent action was taken, the country would continue to slide deeper into economic decline, and justified the DA’s demands that the 2025/6 Budget must be efficient, and focused on jobs and growth. 

He highlighted that South Africans were getting poorer, claiming that past ANC governments refused to implement the critical pro-growth reforms needed to turn the tide.

“The GNU must do things differently and the DA has repeatedly put forward a clear plan to fix the economy. Today’s numbers prove that the GNU Budget must prioritise jobs and growth above all else,” Burke stated.

Meanwhile, Government Communication and Information System acting director-general Terry Vandayar said the latest GDP data was encouraging and signalled a “welcome recovery”.

Vandayar said government had a broad range of programmes and policies to support the growth of small businesses, develop infrastructure for faster economic growth, and encourage investment from inside and outside of South Africa.

“Working with various stakeholders, government will continue to build on this momentum to drive even greater economic resilience,” he said.

Vandayar welcomed a growth in GDP, which was primarily driven by the agriculture, finance, and trade sectors on the production side, while household spending led growth on the expenditure side.