FROM THE OFFICE OF THE CHIEF EXECUTIVE OFFICER
MEDIA STATEMENT


TO: PRINT AND ELECTRONIC MEDIA HOUSES
FROM: KGANKI MATABANE
DATE: 04 June 2019

SUBJECT: The shock 3.2% contraction in GDP in first quarter reflects the mammoth task facing the new administration

The shock 3.2% contraction, largest quarterly fall in economic activity in 10 years, in GDP in first quarter reflects the mammoth task facing the new administration. This follows growth of 1.4% in the fourth quarter of 2018. The manufacturing sector contributed most to the quarterly contraction, falling 8.8%, mainly caused by load sheding.

Responding to the latest economic growth statistics that were released earlier today, The Black Business Council (BBC)’s President, Sandile Zungu, urges President Ramaphosa and his ministers, the Minister of Small Business Development in particular, to focus themselves on accelerating the growth of SMMEs and emerging entrepreneurs in order to address the triple threat of poverty, unemployment and inequality and grow the country’s economy.

“As the BBC, we urge the new cabinet to work on economic growth and reliable power supply in order to steer this country forward. The terrible numbers reinforce our expectations that the Reserve Bank should seriously consider cutting interest rates at its next Monetary Policy meeting in July” continued Zungu.

“The BBC remains committed to engaging with government on various issues that could accelerate SMME development including engaging on issues such as monopolists to open the market to all players,” concluded the BBC President.

ENDS

About the Black Business Council

The Black Business Council (BBC) is the over-arching confederation that represents black professional, business associations and chambers. The primary purpose of the BBC is to lobby government on policy related matters and to play an advocacy role where policies are in place in order to accelerate the participation of black business in the mainstream economy.