Eastern Cape Premier Oscar Mabuyane must call for an economic turnaround summit with all relevant stakeholders to address the challenges that the province is facing and find workable solutions to enable economic growth and create much-needed jobs.
A recent report by the Eastern Cape Socio-Economic Consultative Council (ECSECC) has shown that the provincial economy is in recession, having declined for three consecutive quarters.
Our province, rich in resources and potential, has three ports and many agricultural, agro-processing, manufacturing, and tourism opportunities, but it faces unprecedented challenges. The contraction in the construction sector (2.9% in the last quarter) indicates negative business sentiment, with fewer projects being undertaken and increased job losses. Our manufacturing sector also contracted by 1.5% in the last quarter, with businesses unable to get goods to market without the necessary infrastructure and support. This is reflected in contractions in the Transport sector of 0.7%.
At the same time, small businesses, which are the lifeblood of our local communities, are closing their doors at an alarming rate. This is not just an economic issue but a social one, as the ripple effects of this downturn are felt in every household, every school, and every community.
The Premier has long championed an infrastructure-led growth agenda, emphasising its critical role in driving our province’s economic development and job creation. This vision, reiterated by President Cyril Ramaphosa in the recent Opening of Parliament Address (OPA), underscores the need for substantial investment in infrastructure projects,
I will write to Premier Mabuyane to call for a summit to discuss immediate interventions to bring us out of the recession, as the current status quo adversely affects investor confidence. The summit, which should be held within the next 90 days, should also strive to develop a short-, medium-, and long-term strategy to grow the economy and stimulate job creation.
We cannot delay. If the rate of decline continues, the Eastern Cape will soon have more unemployed people than employed people – as the latest quarterly labour force survey places the expanded unemployment rate at 49.1%.
We must get all key role players together, including the relevant provincial departments, industry leaders, business associations, government parastatals including Eskom, SANRAL, National Ports Authority and Transnet, representatives from the main provincial sectors, the small and medium enterprises (SME) sector, financial and educational institutions, as well as national government representatives, including the national department of trade and industry, and national treasury.
The proposed summit will serve as a platform for open dialogue and collaborative problem-solving. We must bring together the brightest minds and the most passionate advocates to chart a path forward. This is not a time for partisan politics or finger-pointing but for unity and collective action.
The Western Cape has achieved significant progress by moving away from a silo-mentality of economic development through its Growth for Jobs Strategy. This is a whole-of-government, all-of-society strategy whose success requires the energy, commitment and allocation of resources from across government, the private sector and civil society.
The Eastern Cape Government’s response to this crisis by separating the finance department from the economic development, environmental affairs and tourism department, while an important first step, underpins this government’s repeated inability to focus on what matters – getting the infrastructure basics right.
I urge all stakeholders to support this initiative and participate actively. Let us come together, harness our collective strength, and rebuild the Eastern Cape economy for the benefit of all our people.
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AFRIKAANS