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EC out of recession, but….

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Dear Editor

The Democratic Alliance (DA) in the Eastern Cape notes the news that the Eastern Cape economy technically emerged from recession in the second quarter of 2024, but we caution that this recovery is minimal and remains fragile.

According to an official report from the Eastern Cape Socio-Economic Consultative Council (ECSECC), which came into our possession yesterday, the EC economy expanded by 0.1% in the second quarter of 2024, meaning the province is now technically out of recession, but by the thinnest margin. This upturn follows a contraction of 0.3% in the first quarter of 2024. The Eastern Cape GDP also increased to R368.5 billion in the second quarter.

The economy still remains precariously close to another recession. Many sectors continue to face significant challenges, with manufacturing, agriculture, and tourism still struggling.

With the expanded unemployment rate approaching 50% and youth unemployment surpassing 60%, the province is grappling with severe poverty and has the highest unemployment rate in the country.

In some districts, up to 70% of people live below the poverty line, and the province is enduring the worst cost-of-living crisis in recorded history.

The DA calls on the provincial government to demonstrate real leadership and present a clear strategy for long-term economic growth.

However, Premier Oscar Mabuyane’s failure to follow through on his commitment to host an economic turnaround summit, as proposed by the DA, creates the impression that the Premier is only paying lip service to the economy.

If the Premier had only heeded our call to host the summit, many of our suggestions could have been implemented by now. This would have included starting the process to lower regulatory hurdles to investment in cheap, reliable access to the internet. Cheap and reliable access to the internet will assist businesses to trade, entrepreneurs to get their businesses off the ground and jobseekers to enter the labour market. The potential benefits of #Internet4All to enhance and attract investment, job creation, and competition are massive.

I will also reach out to the Department of Communications and Digital Technologies requesting guidance on how the provincial government can bring reliable access to the internet to the Eastern Cape.

Despite the government’s economic failures, the DA reaffirms our willingness to work with the provincial government to introduce a robust Business Starter Toolkit and additional support for entrepreneurs.

We also reiterate our call for the government to explore the Sustainable Development Goals (SDGs) as a strategic framework for inclusive development.

The DA will continue to hold the government accountable and call for policies that genuinely benefit the people of this province.

Regards

Dr Vicky Knoetze MPL
DA Leader of the Official Opposition in the Eastern Cape Legislature

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