A Damning Indictment on the Performance of the GNU

The latest economic growth figures released by Stats SA are a damning indictment of the GNU and its failure to turn South Africa’s economy around. 

The economy contracted by 0.2% in the second quarter of 2026, a pathetic performance for a country desperately in need of jobs, investment and growth. This comes just weeks after confirmation that unemployment continues to worsen, with expanded unemployment reaching a record 43.8%.

The GNU will no doubt reach for its usual excuses, blaming global conditions, fuel prices and other external factors. But the facts tell a different story. While comparable emerging economies are achieving annual growth of 3% to 4%, South Africa remains trapped in economic stagnation.

The reason is simple: the GNU has delivered no meaningful new economic reform. Instead, the failed economic policies of the ANC continue largely unchanged.

Over two years into the GNU, the only things that appear to have grown are the Cabinet, ministerial perks and the frequency and luxury of ministerial travel. For ordinary South Africans, nothing has changed.

Of particular concern is the continued deindustrialisation of our economy, with manufacturing shrinking by a further 1.8%. Over the past two decades, manufacturing’s contribution to GDP has collapsed from around 20% to just over 10%. 

This is not an economic statistic to be shrugged off. It represents lost investment, lost productive capacity and, most importantly, lost jobs. For a country blessed with abundant natural resources, allowing its manufacturing base to be systematically hollowed out is an economic disgrace.

At the same time, the illicit economy continues to expand, further strangling legitimate businesses and undermining economic growth. Estimates indicate that the illicit economy has grown from approximately 5% of GDP two decades ago to between 12% and 15% today.

The GNU talks endlessly about tackling the illicit economy, but talk is cheap. While government talks, organised criminal enterprises grow, legitimate businesses lose ground and South Africans lose jobs. 

ActionSA will continue to put forward pragmatic reforms to rebuild South Africa’s manufacturing sector, confront the illicit economy and restore economic growth.

But reform requires political accountability. ActionSA will therefore continue to call on President Ramaphosa to fire ministers whose departments continue to preside over economic decline, deindustrialisation and rising unemployment.

South Africa does not need more excuses from the GNU. It needs growth, jobs and a government capable of delivering them.

ActionSA Infrastructure: Proposes private-sector partnerships to fix Eskom and Transnet.