On the eve of a crucial election, the government on Wednesday released a report patting itself on the back for “significantly” improving the lives of South Africans in the past 30 years.
This is despite growing frustration over huge unemployment, energy, logistics, low economic growth, crime and corruption, and a rapid rise in the cost of living in SA.
By its own admission in a 30-year review of SA’s democracy, key indicators such as ownership of productive land, income inequality, corporate ownership and control of large firms and performance on sector transformation targets indicate that the country still has a long way to go in transforming the ailing economy.
At the release of the report, compiled by the department of performance monitoring & evaluation in the presidency among other government departments, President Cyril Ramaphosa said SA was in a much better place than three decades ago.
“Successive democratic administrations have implemented progressive policies and programmes to uplift the material condition of all South Africans, particularly society’s most vulnerable,” Ramaphosa said.
“These policies have included the provision of basic services, housing, education, healthcare and social support. We have an independent judiciary, a robust civil society, a free media and a clear separation of powers between the executive, legislative and judicial branches of government.”
But he added the country was still contending with “slow economic growth, high unemployment, poverty, inequality and underdevelopment”.
“We know that for millions of South Africans, the promise of 1994 has not yet translated into the meaningful change that they seek and deserve. That is why we must, and we will, continue to work in earnest to resolve the challenges that are holding back our progress,” he said.
The report comes after numerous polls, including by the ANC itself, showed the ruling party losing its electoral majority in the May 29 elections.
Should this come true, the ANC will be forced into coalitions with other parties to remain in power.
Wiped off
The ANC government has been in power since 1994 but its credibility has been weakened by high inflation, power blackouts and logistical problems — brought about by deteriorating road, rail and port infrastructure.
It is noted in the review that the long-standing issue of load-shedding wiped R300bn, or 5%, off GDP in 2022 and had a negative effect of 2.1% on quarterly GDP in the third quarter of 2022.
Over the past 10 years Eskom’s energy availability factor, which measures the proportion of operating capacity vs the total capacity at any moment, has declined from 80% to 55% and has worsened power blackouts.
The report reads that the structural socioeconomic inequalities in SA are an obstruction to the post-1994 reconciliation among different classes, races and genders.
“South Africans consider poverty and inequality, racism and corruption to be the biggest barriers to reconciliation and social cohesion,” the report reads.
The government’s target of reaching 5% GDP growth by 2030 is unlikely to be achieved as SA has been stuck in a low growth environment.
“The long-term GDP growth (1994 to 2022) averaged 2.4%. The economy is in a low-growth trap, with average growth below population growth. As a result, real GDP per capita regressed from R80,191 in 2013 to R74,907 in 2021,” the report reads.
“Despite this, SA remains one of the largest economies in Africa and is the most industrialised and technologically advanced in the continent. The country remains an upper-middle-income economy with considerable influence in global economic affairs.”
The 30 Year Review Executive Summary:
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