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GOOD welcomes the South African Reserve Bank’s decision not to increase the Repo rate, leaving it unchanged at 8.25%, amid growing financial pressure on South Africans. 

This announcement comes after Stats SA announced yesterday that inflation accelerated to 5.9% in October, up from 5.4% in September, driven strongly by rising food prices.

Consumers continue to face increasingly difficult decisions around spending with the rising cost of living leaving most South Africans struggling for their basic survival. 

High interest rates, and the financial crunch, will no doubt also have an effect on spending during the coming festive season when, retailers, in particular small businesses, and our economy rely on a boost in sales. This will deepen our economic stagnation.

Multiple factors are actively working against the creation of a suitable environment for economic growth. Power cuts continue across South Africa and have already claimed too many businesses and livelihoods. 

Severe backlogs at our ports are currently blocking the movement of goods worth billions of rands that are stuck on ships. 

Yesterday, a report from the World Bank highlighted the huge toll SA’s rampant crime is taking on the economy - an estimated cost of at least 10% of GDP each year. 

Our people have suffered the crippling effects of an under-performing economy for far over a decade. South Africa has an economic growth crisis and we desperately need the implementation of an effective turnaround plan.

South Africans urgently need an economy that will create long-term jobs, meaningfully address the high levels of inequality and poverty, and finally see inclusive growth.

Issued by Brett Herron, GOOD Secretary-General & Member of Parliament