The Congress of South African Trade Unions (COSATU) cautiously welcomes the 0.8% Gross Domestic Product (GDP) growth rate for 2025’s second quarter. This is a positive shift from first quarter’s depressing 0.1%.
We are pleased by the 1.8% increase in manufacturing, 1.7% in trade and hospitality and especially 3.7% in mining and quarry. We are worried by the decrease in construction by 0.3% against the backdrop of government’s massive allocation of R1 trillion for infrastructure investments over the next three years.
Whilst appreciating this good news, we fear it may be temporary given the United States’ 30% tariff hike on South African exports (barring minerals) and the devastating impact it may have on local industries and jobs, in particular agriculture and manufacturing. We are similarly deeply concerned by the impact increasingly unaffordable electricity is having upon mining, manufacturing, agriculture and other key economic sectors.
If the economy is to begin generating permanent, decent jobs and reduce our dangerously high 42.9% unemployment rate, then South Africa needs to reach an annual GDP growth rate of 3%. This must be government and the nation’s priority. Key interventions that COSATU will continue to push for with government and business at Nedlac and in Parliament include:
- Additional support to Eskom and municipalities to place electricity on a more affordable level.
- Ramping up interventions at Transnet to ensure mining, manufacturing and agricultural goods can reach their markets timeously.
- Accelerating the reopening of Metro Rail lines to enable workers to arrive at work on time and boost the urban economy.
- Expanding public employment programmes in the Medium-Term Budget Policy Statement to provide a path to the labour market for millions of young people.
- Drastically expanded financing for SMMEs, industrial and export sectors, from both public and private financial institutions.
- Targeted financial and tax relief as well as support from the Unemployment Insurance Fund for struggling companies, in particular those affected by electricity prices and US tariff hikes.
- A mass buy locally produced goods campaign by the state, businesses and consumers to save and sustain local jobs and companies.
Our economy remains under severe strain but has the capacity if government, business, labour and community work together to overcome these challenges and to exploit the green shoots. COSATU will be requesting government to establish a war room of key persons from government and social partners to ensure that such a bold and progressive intervention package is put in place to rebuild public and municipal services, unlock economic growth, create decent jobs and slash poverty.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za