The Congress of South African Trade Unions (COSATU) remains deeply unimpressed with the latest Gross Domestic Product (GDP) growth figures.
Whilst appreciating that the economy has posted its fifth straight gain with a 0.4% growth rate for the last quarter of 2025, it is still far from enough to see the economy growing at 2% let alone the 3% plus needed to generate a continuous and meaningful fall in our stubbornly high unemployment rate of 41.1%.
We had hoped that the festive season in 2025 would have seen a much larger boost for an economy stuck at 1% growth for more than a decade.
COSATU acknowledges recent positive trends in the economy and state under the African National Congress led government from overcoming loadshedding to stabilising Transnet, reopening Metro Rail lines, South African Airways returning to the skies, exiting grey listing, turning around the South African Revenue Service and that these must still see their full impact filter down.
Given the devastating war unleashed in the Persian Gulf, the source of 20% of the world’s oil supplies, it is critical that government urgently prepare an economic and social relief package to help shield the working class and the economy from the inevitable steep hikes in the international oil and domestic fuel prices and inflation. It has taken South Africa three years to overcome the previous spillover from the war in Ukraine. We cannot afford yet another blow.
Key elements to such an economic and social relief package need to include measures to reduce the price of fuel and electricity tariffs, our two main domestic inflationary sources. Measures are needed for fragile economic sectors, including those at risk to global trade turmoil and high electricity prices, this should include fixing the long dysfunctional Unemployment Insurance Fund’s Temporary Employment Relief Scheme.
Relief should also be put in place for social and SRD grant recipients as well as the unemployed, including expanding the Presidential Employment Programmes. These should be accompanied by a stimulus package for SMMEs plus industrial and export sectors to help spur economic growth and job creation.
These bold interventions are essential if we are to break out of the tepid economic growth we have stumbled along for more than a decade and reach the 3% needed to tackle unemployment, poverty and inequality.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za
