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As South Africa approaches the one-year anniversary of the formation of the Government of National Unity (GNU), ActionSA has launched a series of engagements to mark this milestone by listening to the lived experiences of South Africans from all walks of life. This is ahead of an evaluation of the GNU’s achievements that ActionSA will present next week.
Yesterday, to kick off this initiative, ActionSA President Herman Mashaba met with small business owners in Dobsonville, Soweto, to hear first-hand accounts of their realities under the GNU. These entrepreneurs were promised a government focused on economic growth and support for small enterprises.
Yet, a year later, their testimonies paint a different picture. Instead of progress, many describe continued stagnation, a harsh operating environment and the absence of tangible support from the government. What was heralded as a new era of economic renewal has, by their own accounts, proven to be a damp squib.
Restaurant owners in Soweto, whom we engaged with, spoke about the rising cost of goods over the past several months, an issue that has negatively impacted their businesses in the absence of any meaningful government support. Their experience reflects the hollow claims of the GNU to support small businesses, despite these enterprises being the heartbeat of South Africa’s economy.
A business owner in the hospitality industry reported declining numbers of tourists visiting Vilakazi Street in Soweto, resulting in fewer customers for his business.
A photographer and videographer wanting to start a business to train young people in these fields spoke of how government had been unwilling to support his venture with a facility to use, despite him being able to provide the equipment and the experience.
The owner of a clothing shop spoke about how the rising costs of materials and labour, along with the lower numbers of tourists and increasing pressures on disposable household income, had meant tougher times for his business and struggles to make a profit.
These accounts represent the experiences of many small business owners around the country who have not been able to speak of any change under the GNU because no reforms have taken place that would make it easier for small businesses to operate.
Regrettably, in the absence of the promised economic reforms, the GNU has presided over an economy with little prospect for growth. In the last quarter alone, South Africa recorded job losses amounting to 5 000 citizens losing their livelihoods each day, while GDP growth has stagnated at a dismal 0.1%. These figures are a stark indictment of the GNU’s failure to deliver on its core promise of economic renewal.
It is in recognition of this sobering reality that ActionSA leaders across South Africa will continue engaging with communities on the impact of the GNU, twelve months since its formation. These engagements will culminate in a presentation on Tuesday, 17 June 2025, where we will deliver an objective assessment of the GNU’s performance, measured against key indicators drawn from the government’s own reporting and the commitments it made to the people of South Africa at its inception.
Issued by ActionSA President Herman Mashaba
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