GOOD Statement by Brett Herron,
GOOD: Secretary-General
11 November 2021
One has to sympathise with Minister of Finance Enoch Godongwana. To him we look for economic redemption, but how much can he redeem when his hands are tied by a seemingly interminable electricity crisis?
To say the economy is languishing is to understate the extent of the deep water South Africa is in. Battered by years of sluggish growth and corruption, and pushed to the edge by Covid-19, poverty and hardship are at all-time highs while the nation’s bank balance is deep in the red.
To fix the economy, and begin to generate jobs again, we must prioritise fixing the electricity crisis. But compounding the electricity crisis is a crisis of leadership. If we can’t work out what needs to be done, and how to do it, how will we ever fix anything?
As Godongwana himself said in an interview after delivering the Medium Term Budget Policy Statement today, he can’t understand how it’s possible that Eskom has been slowly degenerating over 13 years while constantly recycling the same old excuses.
At the very time that the economy desperately needs oxygen to grow, it is being starved of oxygen by incessant and increasing blackouts. The disastrous message this sends, very clearly, is that South Africa is not open for business…
Eskom’s inability to generate enough electricity mirrors the State’s inability to conclude the process of procuring additional electricity from independent producers. The direct impacts of these inabilities are rising debt service costs, and delays in implementing necessary economic reforms.
Economic growth forecasts remain anaemic at 1.7% over the next three years. This will not address the unemployment and poverty crisis – which is our real “crisis like no other” – and will deepen inequality.
Godongwana, rightfully called for an accelerated path to procure renewable energy. GOOD supports his call for a competitive energy market and urges the state to move swiftly and unequivocally to implement a diversified, low-cost, stable energy supply.
Without this, our post-pandemic economic recovery will prove listless, and hopes of achieving the permanent solution of high economic growth will be still-born..
With regards to the devastating levels of unemployment and poverty, and our social security net, the simple truth is that the economy is not generating enough jobs. The level of inequality is unsustainable. In such circumstances, it is government’s obligation to mitigate the crisis.
GOOD reiterates its call for government to implement a basic income guarantee or grant. Supporting a basic income grant does not mean that we give up on job creating economic growth. It means we provide the social security relief to those who are unable to earn an income because there are no opportunities to do so. It means we acknowledge that all human beings have basic needs, regardless of their colour, gender or social status.
The beneficial impact of, and need for, a basic income grant was identified nearly two decades ago. It has been the subject of discussion for long enough. We urge our government to conclude the discussion phase and move on to implementation.
Media enquiries:
Brett Herron, GOOD Secretary General
Cell: 082 5183264
Email: bretth@forgood.org.za
Karabo Tledima, GOOD Media Manager
Cell: 061 794 3819
Email: karabot@forgood.org.za