MEDIA RELEASE
2025-09-10
SUMMARY: The Labour Party of South Africa (Labour Party) notes that South Africa’s economy recorded 0,8% growth in the second quarter of 2025, but warns that this modest increase cannot disguise the collapse of industries, mass retrenchments, and worsening unemployment above 30%. The Party highlights that, from the strong growth of the Mbeki years to the stagnation and decline under Zuma and Ramaphosa, South Africa’s economic trajectory has been one of steady deterioration.
Yesterday (9 September 2025), Statistics South Africa (Stats SA) officially announced that South Africa’s economy grew by 0,8% in the second quarter of 2025, a sharp increase from the marginal 0,1% recorded in the first quarter. The figure was presented as encouraging, with manufacturing, mining, and household consumption identified as key contributors.
“The truth is that these numbers mean very little to the millions of South Africans who remain trapped in unemployment, poverty, and inequality,” said Joseph Mathunjwa, interim President of the Labour Party of South Africa. “We cannot celebrate 0.8% when ordinary citizens suffer daily in dirty towns and cities with rotting infrastructure and non-existent service delivery”, he added. Noting further, Mathunjwa stressed that it is not only South Africans in urban areas that are affected, but also those in rural areas who still go without necessities i.e. water, electricity, bridges, healthcare facilities and so much more. “These are the necessities that the Constitution of South Africa ‘protects and promotes’ in the Bill of Rights” he scoffed.
According to Stats SA, the manufacturing industry grew by 1,8%, contributing 0,2% to the overall Gross Domestic Product (GDP). Petroleum, chemicals, plastics, and motor vehicles were leading divisions. Yet this comes at a time when ArcelorMittal is implementing mass retrenchments and closing steel operations, while Ford Motor Company and Goodyear are also shedding jobs.
“This is the cruel irony”, Mathunjwa continued. “The very sectors that government hails as drivers of growth are bleeding workers in jobs bloodbath after jobs bloodbath. The GDP grows on paper, while the breadwinners of our families are thrown into the streets”, he said.
The mining and quarrying industry reportedly grew by 3,7% and also contributed 0,2% to the GDP. Platinum group metals, gold, and chromium led the gains. Yet operations such as Bokoni mine under African Rainbow Minerals remain suspended, Zululand Anthracite Colliery (ZAC) mine has undergone closure, and Tendele mine had haltered its operations, this all contributes to rising unemployment that Stats SA has recently recorded at above 30%. The same is seen at other mines and key manufacturing facilities like ArcelorMittal.
“Mining companies boast about global production and profits, yet they close shafts, suspend operations, and abandon communities,” said Mathunjwa. “We reject this hypocrisy. South Africa cannot afford to celebrate growth while mines are placed on care maintenance, and jobs destroyed”, he said.
The Labour Party stresses that the deeper issue is the failure of government leadership and policy direction. The reliance on privatisation and foreign capital has not delivered prosperity, but instead widened inequality and entrenched dependence on social grants.
“South Africa’s strategic assets must be nationalised or turned into SOEs [state-owned enterprises],” Mathunjwa declared. “This is the only way to absorb the unemployed, rebuild our industries, and create sustainable jobs for future generations. If foreign investors who exploit our people are offended by this call, then let them turn away. Our dignity as South Africans is worth more than their profit margins”, he said.
The Labour Party bemoaned the downward spiral and catastrophic path of growth as seen since the first democratic elections of 1994. Under President Nelson Mandela (1994–1999), real GDP growth averaged around 2,6 % per year, signalling stability and modest recovery after decades of apartheid isolation. His successor, President Thabo Mbeki (1999–2008), presided over the strongest growth period, with the economy expanding at an average of 4,2 % annually, peaking at 5,6 % in 2007, buoyed by the global commodities boom and domestic reforms.
This performance faltered under President Jacob Zuma (2009–2018), when average growth slipped to about 1,7 %, undermined by governance failures and structural constraints. Under President Cyril Ramaphosa (2018–present), growth has slowed further, averaging only 0,6 % per year — the weakest since 1994 — and punctuated by a sharp contraction of −6,3 % in 2020.
“The numbers tell a clear story”, said Mathunjwa. “From Tata Madiba to Mbeki to Zuma to Ramaphosa, the economy has moved from fragile growth, to strength, to collapse. Today we are left with crumbs … 0,8 % is paraded as a victory while workers starve”, he said. “When will South Africans realise that to save our beautiful country and steer it into prosperity, we desperately and urgently require a political reset?” Mathunjwa asks. This is why the Labour Party insists on a new path: nationalisation of strategic assets, jobs, and dignity for our people”, Mathunjwa concluded.
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