The Congress of South African Trade Unions (COSATU) urges government to ramp up its investment campaign as the economy braces for severe global economic turmoil due to the war in the Middle East and the subsequent massive hikes in oil and petrol prices.
The Federation welcomes the R900 billion in investment commitments secured by government at the Investment Conference, a marked rise over previous pledges. These are a bold vote of confidence by domestic and international investors in South Africa’s future and its strategic economic role in the African continent and the world.
COSATU appreciates efforts by government, in particular the Presidency and the Department of Trade, Industry and Competition (DTIC) to tackle the investment strike that has been an albatross around South Africa’s neck for years.
We remain deeply concerned that these positive strides are not enough to generate the growth nor the jobs desperately needed. South Africa’s already tepid 2026 1.4% growth projection will face severe strain with the devastating fuel price increases, notwithstanding government’s R3 a litre cushion. Key to stimulating inclusive economic growth and reaching the 5% target necessary to see our dangerously high unemployment rate of 41.1% fall, is to tackle the deterrents to investment.
It is urgent that government working with business and labour accelerate collective efforts to mobilise investments to cushion and stimulate the economy; in particular to boosting manufacturing, mining and agriculture; and to save and create decent jobs. DTIC’s efforts to expand and diversify trade opportunities, in particular with key global economic hubs and Africa, be intensified and provided the necessary support. Pension and investment funds must be engaged to increase their investments in domestic industrial sectors and critical economic infrastructure.
Whilst critical progress has been made under President Cyril Ramaphosa’s African National Congress led administrations to dismantle the state capture and corruption networks, much more needs to be done to overcome our unacceptably high levels of crime and corruption. Key to winning this existential war is to ensure that the South African Police Service, National Prosecuting Authority, the Judiciary and other law enforcement organs have the necessary leadership, personnel, skills and resources.
It is equally fundamental to expedite efforts to rebuild and return to full capacity Eskom, Transnet, Metro Rail and other important state-owned enterprises. Eskom in particular requires support to lower the increasingly unaffordable price of electricity. Similar attention needs to be paid towards capacitating frontline public and municipal services as the economy cannot grow, nor attract investment, without these.
COSATU will continue to work closely with government and business to accelerate these efforts at Nedlac, in the sectoral master plans and in bargaining councils.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za
