The government of national unity (GNU) could face a significant electoral challenge in 2029 if SA growth continues to stagnate, agriculture minister John Steenhuisen has warned.
His remarks, on the sidelines of the Black Business Council summit last week, come on the heels of disappointing economic data last week showing GDP expanded by only 0.1% in the first quarter of 2025.
On an annual basis, real GDP was 0.8% higher than in the first quarter of 2024 but the slowdown was driven by continued weakness in key industrial sectors, particularly mining and manufacturing, which offset gains in agriculture and consumer spending.
“If we don’t get growth going we are going to continue to have the same budget squabbles we saw happening in February this year where we are fighting about a diminishing pie instead of focusing on growing the pie,” Steenhuisen said.
“This has to be the focus of the GNU going forward,” Steenhuisen added, signalling that public frustration over slow growth could shape the political landscape in the next general election.
“We cannot be satisfied with growth at that level. It is not something we should be celebrating; we need to be massively expanding that growth and I think we now need to be serious about an economic reform package for SA that's going to focus on getting the fundamentals right for SA.”
Steenhuisen, who is also the DA’s federal leader, said the GNU should also focus on reducing red tape, improving port efficiency and fostering public-private partnerships to boost trade and investment. He noted successes in the tourism, agriculture and transport sectors, stressing the need for a partnership approach to achieve economic growth and avoid a tough election in 2029.
“The government needs to treat business as a partner. What we have seen on the electricity side we need to replicate in other spheres... [we should] also get rid of red tape doing a comprehensive spending review that has now been agreed to, government needs to tighten but that needs to be allied with key reforms in the government itself,” Steenhuisen said.
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