As Finance Minister Enoch Godongwana prepares to deliver the Government of National Unity’s (GNU) first annual Budget on Wednesday, the Democratic Alliance (DA) is calling for bold economic reforms to drive job creation and stabilize South Africa’s economy.

The party argues that without urgent interventions, the country will struggle to break free from its economic stagnation and high unemployment crisis.

The latest Quarterly Labour Force Survey (QLFS) for the fourth quarter of 2024, released by Statistics South Africa (StatsSA), reveals that South Africa’s official unemployment rate has slightly declined to 31.9%, reflecting a modest 0.2 percentage point drop from the previous quarter.

While the number of employed people increased by 132,000, and unemployment declined by 20,000, the DA warns that the deeper structural challenges in the economy remain unresolved.

Michael Bagraim, the DA’s spokesperson on Employment and Labour, emphasised the need for urgent intervention.

“The latest QLFS underscores the urgency of accelerating economic reforms to drive job creation in South Africa," Bagraim stated.

He pointed out that despite some positive movement in employment figures, the expanded unemployment rate remains critically high at 41.9%, and discouraged work seekers, who have given up looking for jobs, grew by 111,000.

Bagraim views the upcoming budget speech as a critical juncture

"This is a decisive opportunity to implement bold reforms that will position our country for sustained economic growth," he said, outlining the DA’s key priorities: driving economic growth and stabilizing national finances.

The DA is advocating for urgent reforms in ports, rail, energy, and tariffs to stimulate economic growth.

Bagraim stressed the need for improved port efficiency, calling for further concessions with clear timelines to reduce costs and increase competitiveness.

The party also wants specific freight rail lines opened to private operators to lower transport costs and support industrial growth.

"Devolving passenger rail services to capable provinces with a binding implementation timeline is also critical," he added.

In the energy sector, the DA is pushing for full private-sector access to the national electricity grid and market-driven electricity pricing to stabilize supply and lower costs.

"Set definitive timelines for a competitive energy market," Bagraim urged, while also calling for a review of tariffs and regulations to ensure South Africa’s labour, industrial, and manufacturing sectors remain globally competitive.

On stabilising national finances, the DA is calling for a comprehensive spending review to eliminate waste while protecting essential public services such as education, healthcare, and security.

They are also advocating for strict expenditure reforms in the upcoming Medium-Term Budget Policy Statement to enforce fiscal discipline.

One of the DA’s strongest positions is on state-owned enterprises (SOEs), which they argue should no longer receive government bailouts.

"Cease bailouts to struggling State-Owned Enterprises that have driven excessive borrowing and debt," Bagraim said.

The DA insists that SOEs must become self-sustaining, be privatised if essential, or be shut down if not.

By redirecting funds from failing state-owned enterprises (SOEs), they contend that essential resources can be allocated to critical sectors that have a direct impact on the lives of South Africans.

Despite the economic challenges, the DA reaffirmed its commitment to the GNU and to advocating for policies that will foster sustainable economic growth.

"We will continue to champion policies that ensure a prosperous and sustainable future for our country," Bagraim concluded.

IOL politics