We expected that the impact of lockdown would have a negative impact but a decrease in GDP of 51% shows us just how hard we need to work to turn this decline around. While the DA rallied for unreasonable measures to be lifted to enable the economy to sustain jobs, the ANC continued to withhold reasons for their non-sensical decisions that have contributed to the second pandemic of poverty.
The impact of a 67% decline in the hospitality and tourism sectors which are key to the Western Cape’s economy highlights the need for greater support to these industries. Our “We Are Open” campaign to boost domestic tourism is one such measure that is aimed at providing hope to the thousands who depend on these sectors.
It is encouraging to see that the agricultural sector had a positive impact of 0.3% on GDP growth, and grew 15% overall. The Western Cape’s direct support to farmers and the recent launch of an exporters programme by Wesgro is expected to boost this growth and provide much-needed income, particularly to wine producers who suffered under the unjust ban on wine sales.
In comparison to an economy of similar standing, Colombia for example experienced its economic growth decline by approximately 15%. It stands to reason that such a tremendous onslaught on our economy could have been avoided through consistent national regulations guided by pertinent data.
We need the Minister of Mineral Resources and Energy to approve S34 determinations for municipalities in good standing, open up the new bid window for renewable energy and fast track the importation of Liquefied Natural Gas. This will bring us closer to an energy secure future and minimise the impact of Eskom’s loadshedding on small businesses and the country’s economy.
