Opposition party Democratic Alliance (DA) leader Mmusi Maimane has written to National Speaker Thandi Modise calling for an urgent debate on unemployment in South Africa and has urged President Cyril Ramaphosa to establish an economic recovery plan.

This followed Tuesday’s news that the official unemployment rate for the second quarter had rocketed to 29% with 10.2-million people jobless amid revelations that power utility Eskom has recorded a R20.7-billion loss this past year, after tax. Additionally, with the utility’s debt servicing costs set to grow to a massive R84-billion in 2019/20, the prognosis was not good.

Maimane said the news was symptomatic of an all-out economic crisis and pointed out that President Cyril Ramaphosa had not addressed the nation or provided leadership.

Maimane said Eskom’s loss would be paid for directly by South Africans, bailing out Eskom, instead of that public money being used to uplift the poor and vulnerable.

“I will therefore be writing to the President to establish an economic crisis recovery plan with relevant government stakeholders and political parties to reform the economy, Eskom and stem the jobs losses. Both South Africans, and potential investors, need to hear this certainty at this time,” said Maimane.

The DA urged Ramaphosa to split Eskom, sell South African Airways, as well as non-essential assets at the South African Broadcasting Corporation. The party also called on Ramaphosa to reform labour laws by removing red tape to allow more businesses to create jobs, and to replace the national minimum wage with a sectoral minimum wage.

“What I want to offer to President Ramaphosa is that solutions to save our economy are available, based on interventions that have already worked in governments across South Africa where the DA governs. The President needs to enable governments that are achieving growth against all economic odds to inform a national strategy around what local economies are doing best,” Maimane stated.

UNEMPLOYMENT

The DA leader pointed out that the lowest expanded unemployment rate in the country was in the DA-led Western Cape, with 23.8%, against the national average of 38.5%.

Maimane said Western Cape Premier Alan Winde had already launched a ‘jobs war room’ to grow businesses and attract investors.

“Where President Ramaphosa is acting in the interest of the people of South Africa, the DA will work with him. Partisanship needs to be set aside as we implore the President not to waste another day, meet with relevant government stakeholders and political parties and come and see what works where we govern,” he suggested.