Day: December 7, 2022

Government has welcomed the growth of the country’s gross domestic product (GDP), which increased by 1.6% in the third quarter of 2022.

On Tuesday, Statistics South Africa (Stats SA) Deputy Director General for Economic Statistics, Joe de Beer, said the economic activity during this period was driven by eight industries.

The GDP increase was on the back of a 0.7% contraction in the second quarter.

“Government welcomes the growth of economic activity, which was driven by eight industries,” government said in a statement.

Government said it was particularly pleasing to note that seven of the 10 manufacturing divisions reported positive growth rates in the third quarter.

“The transport, storage and communication industry increased by 3.7%. Motor vehicles, parts and accessories and other transport equipment division made the largest contribution to the increase in the third quarter.

“The food and beverages division and the basic iron and steel, non-ferrous metal products, metal products and machinery division also made significant contributions to growth.”

Stats SA noted that the agriculture, forestry and fishing industry increased and contributed 0.5 of a percentage point to GDP growth.

“Increased economic activities were reported for field crops and horticulture products. It is also noted that finance, real estate and business services increased at a rate of 1.9%,” said government.

Furthermore, government welcomed the net exports positive contribution to growth. Exports of goods and services increased by 4.2%, largely influenced by increased trade in mineral products; base metals and articles of base metals; vegetable products, and paper products. Imports of goods and services increased by 0.6%, driven largely by increases in mineral products and animal and vegetable fats and oils.

Minister in the Presidency, Mondli Gungubele, said: “The statistics show us that our economy is not stagnant but rather moving towards an upward trajectory. Despite inflationary pressures and the high cost of living, we are emerging resilient, and our fiscal position is improving. The growth exceeded market expectations, which was envisioned at 0.4% – 0.7%.

“Notably, Stats SA’s data show that South Africa’s economy in the third quarter was larger than it was before the COVID-19 pandemic, which is positive and welcomed news for economic recovery following two years of lockdown. Implementation of the country’s Economic Reconstruction and Recovery Programme continues earnestly. Let us all play our part and grow our economy – leaving no one behind.”

Source: South African Government News Agency

Trade, Industry and Competition Minister, Ebrahim Patel, says partnerships with international countries are key to boosting African economies’ upward trajectory.

The Minister was addressing the German-Africa Business Summit, held at the Sandton Convention Centre, in Johannesburg, on Wednesday.

The bi-annual summit brings together business and government leaders from Germany and Africa to promote economic relations between the country and the continent.

Patel emphasised, however, that the continent requires “long-term partners” that will support the continent as it moves towards sustainable and green industrialisation.

“It requires increased inward investment in productive sectors, particularly manufacturing and infrastructure; support for the transition [towards] green industrialisation; improved market access of goods and services, and [building] partnerships for skills, science, innovation and technology.

“Development can be fast tracked through new and smart partnerships. The growth, development and prosperity of nations [is] increasingly dependent on building… partnerships with other nations,” Patel said.

Patel said the summit is critical to building strong strategic partnerships that will drive African economies forward.

“The hosting of the fourth German-Africa Business Summit is an indication of the seriousness with which Germany sees Africa’s economic potential and the confidence it has in our economic prospects. It is an opportunity to discuss issues of mutual interest. That is the main objective of this summit — to build and sustain mutually beneficial partnerships between African nations and Germany.

“We see an opportunity to increase trade between… Germany and Africa. There has been some progress with deepening manufacturing exports to Germany, and we can build on the successes and be more ambitious,” he said.

Patel said these partnerships will also bring great benefit to Germany.

“This will provide opportunities for German businesses to invest in the expanding African manufacturing sector. It will help in diversifying and de-risking Germany’s own global supply chains and sourcing markets.

“This is particularly important, given the experience of supply chain disruptions and vulnerabilities during the pandemic. An African industrialisation will also have the value and advantage of the transformation of minerals and other raw materials closer to source,” he said.

The Minister said Africa’s young and increasingly digitised population has a high ceiling for potential.

“Africa accounts for 17% of the world’s population… yet Africa generates about 3% of the world’s GDP, and our continent accounts for less than 2% of global manufacturing and only 1% of global steel.

“To change that reality and address that gap… we recognise our role in promoting stability, rule of law and a conducive business environment underpinned by modern infrastructure and skills development.

“In the case for a number of countries including South Africa, it requires the expansion of reliable energy supply and improved transport logistics. It needs a capable public sectors and a relentless fight against crime,” he said.

Source: South African Government News Agency