Government is maintaining a “razor sharp” focus on the resolution of challenges that are hampering the growth of the South African economy.
This is according to Minister in the Presidency Khumbudzo Ntshavheni who delivered the post-Cabinet media statement on Thursday.
Earlier this month, Statistics South Africa (Stats SA) revealed that real Gross Domestic Product (GDP) had increased marginally by some 0.1% during the first quarter of 2025, following an increase of 0.4% in the previous quarter – showing sluggish performance.
“Cabinet remains concerned about the decline in the manufacturing industry more so when government has prioritised boosting local manufacturing and thus Cabinet awaits the finalisation of the revised industrial policy.
“Government understands the impact of the challenges within the freight and logistics [sector] that continues to impact the growth of the mining industry which also experienced a decline. We are maintaining razor sharp focus on the work of Operation Vulindlela Phase Two and [the] Government-Business Partnership in urgently resolving the logistics challenges that are hampering the economic growth of this country,” she said at the briefing held in Cape Town.
The Minister added that Cabinet welcomes the National Assembly’s approval of the 2025 Fiscal Framework – known as the budget – that is geared at stepping up spending on infrastructure investment to R1 trillion over the medium term.
In the same vein, Cabinet noted reports which have raised concern about Statistics South Africa’s (Stats SA) Quarterly Labour Force Survey (QLFS) related to the informal sector.
“The [QLFS] collects data on the labour market activities of individuals aged 15 years and older on a quarterly basis. Furthermore, Stats SA produces a comprehensive report every four years which includes a dedicated module for the survey of employers and self-employed.
“This survey aims to provide in-depth insights into the characteristics and operations of the informal sector businesses in South Africa. Cabinet has been discussing the option of either a quarterly or annual [survey]…however, Stats SA would require access to a business register of informal businesses which is currently absent.
“We previously announced that Cabinet approved the National Business Licensing Policy which will enable a standardisation of licensing of informal businesses…over a period of time of its implementation, the Department of Small Business Development should be able to create a reliable register of informal businesses that will improve the ability of Stats SA to draw reliable data for the QLFS,” she said. – SAnews.gov.za
