DA calls for Economic Impact Assessment of the Ukraine War on EC

DA calls for Economic Impact Assessment of the Ukraine War on EC

The Democratic Alliance has called on the provincial government to do an economic impact assessment of how the war in Ukraine can and will affect the Eastern Cape economy, and the adverse impact it is going to have on the people of this province.

The unfolding humanitarian crisis, and the resultant dire economic impact, is going to have a knock-on effect on the economy and escalating poverty levels in the province.

It is for these reasons that I introduced a motion in the provincial legislature today, calling on the provincial government to do an economic impact assessment of how the war will affect this province, particularly when it comes to rising food prices.

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As a result of this war, one can expect an increase in fuel prices, electricity prices and food prices, particularly as South Africa imports a lot of its wheat and maize from both Ukraine and Russia.

The agricultural industry is also likely to face escalating pressures, as the cost of fertilizers rockets, and the export of citrus comes under pressure.

The purpose of this motion is to ensure that government is armed with relevant data that will allow it to take the necessary steps to alleviate the consequences of this war.

We need to be proactive in identifying risks and take whatever measures we can to mitigate them, such as ensuring there is sufficient budget for local relief initiatives.

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