Pretoria - President Jacob Zuma has congratulated government, business and labour on the good news that the South African economy grew by a seasonally adjusted 3.3 percent in the second quarter.
The 3.3% growth in Gross Domestic Product (GDP) was announced by Statistics South Africa (Stats SA) on Tuesday, which was more than the 2.7% which was expected by most economists.
The Presidency in a statement on Tuesday said the unexpected growth was driven by an 8.1% increase in manufacturing and an 11.8% in mining and quarrying. Exports are also up by 18% and imports down by 5%.
President Zuma said the latest figures indicate that the country’s economy is resilient and has the potential to grow even more, despite the challenging domestic and global headwinds that it faces.
“This is very good news and gives hope to our people. We congratulate the social partners on this achievement. The cooperation between government, business, labour and the community sector has yielded results and can only take the country further towards inclusive growth and much-needed jobs,” said President Zuma.
He said a durable solution to the country’s economic challenges lies in consolidating the social compact between government, business and civil society.
“This is a process we are focusing our respective efforts on as we move forward,” said President Zuma.
The President said government will continue to implement the National Development Plan, through the Nine-Point Plan that government developed as a short-term implementation plan to reignite growth.
The Economic Cluster on Tuesday said it had noted the strong rebound in economic growth in South Africa with the latest GDP figures.
Government, it said, is buoyed by the demonstrated resilience of the South African economy and is cautiously optimistic that the return to growth in the Manufacturing and Mining sectors can be sustained over the next few quarters.
However, the agriculture sector remains weak as a result of the effects of the severe drought that South Africa has experienced. “The South African economy would have grown even faster were it not for the negative effects of the drought,” said the cluster.
The cluster said it will continue to monitor economic growth and intervene where necessary to facilitate investment and create an enabling environment for inclusive growth so as to address the triple challenges of unemployment, poverty, and inequality.
“The Economic Cluster has also taken steps to accelerate implementation of the Nine-Point Plan as directed by the recent Cabinet Lekgotla.
“The Economic Cluster is at an advanced stage in preparing for the implementation of 40 high-impact investment projects in agriculture and agro-processing, agri-parks, energy, infrastructure, beneficiation and manufacturing subsectors.
“Of these 40 projects, ten have been assigned high-priority status and will be fast-tracked and monitored by the Investment Inter-Ministerial Committee (IMC),” said the cluster.
Strong partnerships between government, labour and the private sector are necessary to ensure the successful operationalisation of the priority projects.
Some recent highlights include the signing of an R11 billion investment with the Beijing Automobile International Corporation (BAIC), the biggest automotive investment in Africa in the last 40 years; the launch of the 50/50 Farming Pilot project which is aimed at strengthening the relative rights of farmworkers; the launch of the Bombardier Transportation’s first Propulsion and Control Manufacturing facility for use in Transnet’s locomotives and the launch the second intake of the War on Leaks project, which will see over 7 000 artisans trained in critical skills required in the economy to minimise water losses.
“Through the Export Marketing and Investment Assistance Scheme of the Department of Trade and Industry, a business delegation consisting of 27 South African companies participated in the 52nd edition of the Maputo International Trade Fair from 29 August to 4 September 2016.
“This exposed the South African companies to trade and investment opportunities available in Mozambique and other countries,” said the cluster.
The empowerment of women through the Nine-Point Plan and departmental programmes plays an important role towards advancing the country’s economy.
Brand South Africa, in partnership with Brand Finance, will be announcing the country’s top commercial brands on 15 September 2016.
“We call on commercial brands to continue being key messengers and positioning South Africa as a competitive and attractive investment destination,” said the department. - SAnews.gov.za
