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The Star
2 days ago
- Business
- The Star
COSATU urges unity as racial rhetoric threatens South Africa's AGOA trade benefits
Thabo Makwakwa | Published 2 days ago The Congress of South African Trade Unions (COSATU) has issued a strong call for organisations across the country to tone down on divisive and destructive rhetoric that fuels racial tensions. The organisation stressed the importance of unity as South Africa seeks to renew the African Growth and Opportunities Act (AGOA) with the United States. In a statement released on Friday, COSATU's parliamentary coordinator, Mathews Parks, highlighted the potential consequences of inflammatory discourse, warning that "the malicious decampaigning of South Africa in the US will come at a real cost to all South Africans, particularly Afrikaans farmers and workers." COSATU's call comes amid the US' annual review of AGOA member eligibility, a critical process determining whether South Africa and other nations will retain preferential trade benefits. Parks expressed the federation's support for renewing AGOA before its expiry at the end of September, highlighting its significance for South Africa's economy. 'AGOA has been an important stimulant for key jobs and revenue-rich sectors such as mining, agriculture, motor manufacturing, and more,' Parks said. 'It has facilitated trade and investment between the US and South Africa, with over 600 American companies invested here and 500,000 South African jobs linked to US trade. It's a framework that benefits both nations and the continent.' He further noted that South African vehicle exports, including components like steering racks from Tunisia and rubber from Côte d'Ivoire, demonstrate the interconnectedness of regional trade, which AGOA has helped to facilitate. Parks stated the importance of a mutually beneficial trade agreement, highlighting opportunities for expanding product inclusion, supporting emerging sectors, and strengthening cooperation on the African Continental Free Trade Area (AfCFTA). COSATU expressed the positive reception of its proposals in Washington and lauded the solidarity shared with American labor movements, especially the AFL-CIO. The federation pledged to continue working closely with the South African government, business sectors, and US counterparts to deepen bilateral relations—while respecting sovereignty and promoting sustainable economic growth. 'Progress under President Cyril Ramaphosa's leadership to reset bilateral relations is encouraging,' Parks stated. 'However, it is vital that all parties support these efforts and refrain from inflammatory language that undermines social cohesion.' The federation strongly urged organisations such as AfriForum, NEASA, Sakeliga, and the Freedom Front Plus to prioritise national unity over partisan point-scoring. 'Whilst social media clicks may entertain friends over a braai, the malicious decampaigning of South Africa in the US will come at a real cost to all South Africans, in particular Afrikaans farmers and workers.' Parks stated that legitimate grievances should be addressed through constitutional and legal channels like Parliament, the judiciary, or law enforcement, rather than through rhetoric that incites racial divisions. 'Now is the time to shed narrow racial interests and place the nation's needs first,' he asserted. 'Partisanship has its place during elections, but the current climate demands maturity and responsibility from all stakeholders. Meanwhile, In a letter dated February 11, 2025 Republican congressmen Andrew Ogles, Tom Tiffany, Joe Wilson and Don Bacon asked President Donald Trump to revoke South Africa's access to the US market through AGOA and diplomatic relations alleging that South Africa had a vendetta against Israel, allegedly committing human rights violations and was friendly with China's Community Party. [email protected] IOL Politics
Eyewitness News
09-07-2025
- Politics
- Eyewitness News
COSATU joins calls for establishing inquiry into corruption allegations against police, judiciary
CAPE TOWN - The Congress of South African Trade Unions (COSATU) has joined calls for the establishment of a commission of inquiry into allegations of corruption levelled against the police and judiciary. The union federation said the allegations made by KwaZulu-Natal Police Commissioner Nhlanhla Mkhwanazi linking Minister Senzo Mchunu to the criminal underworld are too serious and undermine confidence in law enforcement. ALSO READ: - Mkhwanazi names man with alleged links to Mchunu as central to meddling in police cases - Mkhwanazi raises concerns about classified police files being compromised by outsiders - Mkhwanazi alleges political involvement in cases being investigated by the police COSATU's call followed a similar call by Police Portfolio Committee chairperson Ian Cameron, who also wants an independent probe. Cameron on Monday gave a list of suggestions on how to get to the bottom of the allegations made by Mkhwanazi, which includes lifestyle audits of all senior police. 'Some of the following immediate solutions could be considered and this is specifically regarding the integrity challenges within the South African Police. "The first one is an appointment of some kind of an ad hoc inquiry or commission with a clear timeline to investigate the allegations.' COSATU parliamentary coordinator Matthew Parks said given the 'grave nature of the allegations', the federation also urged President Cyril Ramaphosa to appoint an independent commission of inquiry. He said while South Africans may be wary of another inquiry, the nature of the allegations 'cannot be left unattended and would best be done by an independent inquiry'. Parks also said the federation supports Ramaphosa's appeal for calm as he returns from Brazil to attend to the matter.
IOL News
08-07-2025
- Politics
- IOL News
Revolution or Regression: The Impact of Private Sector Control on SA's Developmental State
Members of the Congress of South African Trade Unions (COSATU) hold placards and shout slogans in support of a nationwide demonstration in Durban, South Africa, on February 13, 2019 against high unemployment and government policies that are deepening poverty. Operation Vulindlela is not only about the reversal of the gains since our democratic breakthrough, but a voluntary exercise to hand over the little we have for the benefit of the black majority to the beneficiaries of colonialism of a special type, says the writer. Image: AFP Khaya Magaxa The whole concept of revolution in the context of left politics is always about radical transformation of society politically, socially and economically for the benefit of the majority who have been marginalised by the previous regime. Ordinary masses participate in the revolution not out of excitement or popularity, but to see fundamental changes in their lives and future generations. A revolution ought to engender a state that is developmental for the realisation of these genuine aspirations. The leading democratic and revolutionary movement, which enjoyed the overwhelming majority support of our people in our South African context, the African National Congress (ANC), for many decades correctly theorised the nature of our oppression in SA and concluded that it is Colonialism of a Special Type (CST). What does CST mean in short? It is a form of colonialism where both coloniser and colonised live in the same country with a political and economic system structured to benefit the coloniser (white minority) whilst oppressing and exploiting the indigenous majority (black majority), including exploitation of our country's natural resources. British imperialists didn't have to directly run South Africa because the white minority regime within the country fully represented their imperialist interests. The ANC-led Alliance did not just analyse these material conditions but developed a resolution to resolve this unacceptable injustice against the black majority. This resolution is the National Democratic Revolution, which is a mechanism to address the legacy of colonialism of a special type. Therefore, what is revolutionary about the ANC is not just the commitment to this NDR program of radical transformation, but it is the unapologetic execution because it's the only scientific solution to address the legacy of colonialism of a special type. It can only concentrate on its historical plan and program and execute it, or else abandon its historical mission and collaborate with the enemy of the NDR. There is no middle road in the revolution. One can only apply tactics in the process without losing the strategic objective. The 1994 democratic breakthrough provided an opportunity through popular support by the masses of our people for the ANC-led government to radically deal with the legacy of apartheid and transform SA for the benefit of our people. We got access to the state power to change the lives of the black majority who have been marginalised and subjected to endemic poverty. We sought to create a developmental state to promote both economic growth and development to tackle race, class and gender inequalities that have been created by colonialism of a special type. Building and strengthening state-owned companies is always central in the process of advancing this national democratic revolution, since private capital is not reliable and inherently opposed to this particular programme. Whilst one cannot undermine the massive strides led by the democratic government towards improving the socio-economic conditions of our people but there has been a consistent reversal of those gains. The Growth, Employment and Redistribution policy that was introduced in 1996 is among those major reversals that still have a huge impact towards retarding the NDR and continues to be a major contributing factor to the general poor performance of the ANC. It seems none among the current key leaders of the movement learnt any lessons from this reality; instead, the will to continue to deepen this disaster is the order of the day. The current economic trajectory is at a point of stagnation, and the growth projections are significantly low at less than 1.4 per cent for 2025. Whereas the debt-to-GDP ratio remains at an all-time high above 76 per cent, and the related debt service costs are above 22 per cent. Levels of unemployment remain around 40 per cent, and youth unemployment is at more than 65 per cent, including graduate unemployment. The levels of inequality are astonishingly high. These factors compound the problem of deepening poverty; hence, the generalised crisis of social reproduction remains prevalent in our country. The resolution of these structural problems in a relatively sophisticated and resource-rich developing nation requires a radical economic reconstruction approach. Rather than pursue this economic re-orientation, our leaders are hopelessly trapped in market-based economic reforms. Let us take this current hyped-up programme called Operation Vulindlela, which our President is extremely passionate about. Let us ask a question as to what the class and political content of Operation Vulindlela is as an economic intervention implemented by the state? The name Vulindlela needs no explanation. The literal meaning is about opening the way….in this case, for business in state-owned enterprises (SOEs). Let us take a closer look at what the President defines as a premise for the reforms, I quote: 'At the centre of the plan was a bold agenda of economic reform, focused on addressing the long-standing constraints which have held back economic growth for more than a decade. This included reforms in the energy, logistics, water, and telecommunications sectors, as well as reforms to the visa system, which were identified for their impact on growth and job creation. Operation Vulindlela was established as a joint initiative of the Presidency and National Treasury to accelerate the implementation of these reforms, with a mandate to instil a new sense of urgency and a new way of working across government.' We are informed that the economic reforms are meant to improve efficiencies in our state-owned enterprises by introducing private sector participation. It is a fallacy that the private sector is more efficient and ethical than the public sector. Corruption in the state is initiated by the private sector (corruptor). It is shocking how the Presidency and National Treasury have outsourced the responsibility of economic transformation to the private sector. It is not in the DNA of the private sector to create jobs and transform the economy. However, it is a common cause that the problems of poverty, inequality and unemployment are a result of the concentrated wealth in the hands of exploitative and greedy multinationals. Having served as a Chairperson of the Portfolio Committee on Public Enterprises, we continuously and fearlessly emphasised from day one that corruption in these state-owned enterprises is brought by private business. How do we then absolve them as primary corruptors and only deal with secondary aspects? It is like treating symptoms whilst ignoring the root cause! What we are not being told is that these economic reforms are part of the structural reforms that are attached to the World Bank and International Monetary Fund loans that our government is addicted to. South Africa has recently been awarded a R26 billion loan from the World Bank to boost South Africa's infrastructure. The Minister of Finance hails the partnership with the World Bank as being key to speeding up the reforms vital to transforming the infrastructure landscape. It is because of these World Bank loans that South Africa had to close some of its coal-powered stations in order to make space for renewable energy, which was the main reason for the self-engineered load-shedding. Same as the self-engineered crisis that was created at Transnet ports and railway lines, to create an emergency and support the World Bank loan conditions, to make space for the private sector in Transnet. Noam Chomsky exposed that 'standard technique' by neo liberal fanatics of defunding state-owned entities, 'make sure things don't work, people get angry, you hand it over to private capital". This is the glue that unites neo-liberal bedfellows under the Government of National Unity currently. Collapse the state's developmental capacity and hand over public resources to the private sector. This is an antithesis of a developmental state that controls the commanding heights of the economy. We have recently seen the launch of a partnership between Transnet and Gibela, where the Gibela consortium will be manufacturing trains for Prasa. It is disheartening to witness the state abandon its own manufacturing and industrial capabilities in state-owned enterprises in favour of the private sector. Transnet has the manufacturing capabilities to build the trains, and has manufacturing hubs, engineering schools and highly skilled artisans who are idle, because there are no orders from Prasa. In the same vein, Denel has advanced industrial and technological capabilities, even the capabilities to manufacture a South African vehicle or an aircraft. Denel is a world-renowned company in the defence industry; however, due to the efforts to de-industrialise and weaken state-owned enterprises, we have lost some of the best engineers because the state does not promote or support these state-owned enterprises. The Portfolio Committee on Public Enterprises has been consistently calling for diversification at Denel to drive industrialisation and create jobs, but no one cared to listen. Instead, the solution by neo liberal reactionaries and enemies of the NDR was to sell the entity to private sector sharks. When I was Chairperson of the Portfolio Committee on Public Enterprises, I was shocked by the constraints and legislative impediments that hamper the efficiencies and competitiveness of state-owned enterprises. The post democratic South African government has always aimed to build a strong, capable and ethical developmental state. However, the National Treasury has been at the forefront of implementing regulations to decapacitate the state, and that has resulted in the failures and inefficiencies in state-owned enterprises. Some of the impediments include: • The National Treasury is deliberate in creating a conducive environment for the private sector to conduct business and prosper. • The regulatory burden on state-owned enterprises is too cumbersome, about the red tape that Transnet and Eskom should follow to buy simple parts for maintenance, hence rendering them inefficient and uncompetitive. • For years state state-owned enterprises were prohibited from intra–state collaborations. One Group CEO of Transnet reported that National Treasury did not approve them working with the CSIR on a research project, and they were forced to source three quotations. Furthermore, we have seen the emboldened resolve of the state to break down state-owned enterprises into smaller pieces through a neo-liberal policy of 'deconcentration'. This policy is what informs the implementation of Operation Vulindlela, which will result in state-owned enterprises having reduced balance sheets and hence, being unable to undertake major infrastructure projects, and entirely depend on the private sector. A further extension of the mandate of the Department of Trade, Industry and Competition, was meant to address the so-called uncompetitive behaviour of 'state-owned monopolies' in the network industries, hence the agenda to make space for the private sector. The state is obsessed with public-private partnerships and is vehemently opposed to public-public partnerships. It can only mean that there are no profits and kickbacks to be made when two state-owned enterprises collaborate. The 6th parliament portfolio committee on public enterprises was repeating this cry like a broken record, with no one listening among those who hold power. It is also against the constitutional imperatives of co-operative governance to prohibit collaboration between state-owned enterprises, particularly for the public good of society. In the final analysis, Operation Vulindlela is not only about the reversal of the gains since our democratic breakthrough, but a voluntary exercise to hand over the little we have for the benefit of the black majority to the beneficiaries of colonialism of a special type. It's a bold and aggressive plan to abandon the National Democratic Revolution and continue with racial inequalities. We are weakening and liquidating the only developmental and catalytic instruments at the disposal of the state to transform the economy. If the state does not have the ability to effectively implement its policies and achieve its goals, it can never pursue the NDR through the private sector. * Khaya Magaxa is the former Chairperson of the Parliamentary Committee on Public Enterprises. He writes in his personal capacity. ** The views expressed do not necessarily reflect the views of IOL, Independent Media or The African.
IOL News
25-06-2025
- Business
- IOL News
Fresh concerns over South African job market as employment drops
According to the Quarterly Employment Statistics (QES, Q1:2025) survey released by Statistics South Africa (Stats SA), total employment in the formal non-agricultural sector decreased by 74 000 (-0.7%) in the first quarter of 2025, with employment falling from 10.65 million in December 2024 to 10.58 million by March 2025. Image: Supplied The latest Quarterly Employment Statistics (QES) released by Statistics South Africa (Stats SA) for the quarter ended in March has raised significant concerns as the report reveals a downturn in employment figures, exacerbating fears about the health of South Africa's economy. According to the findings, a total of 74 000 jobs were lost in the first quarter of 2025, signalling a decrease of 0.7% from December 2024, where total employment stood at 10 653 000, dipping to 10 579 000 by March. The decline is largely attributed to substantial job losses in key sectors, including trade, which saw a steep reduction of 52 000 positions, and community services, which lost 17 000 jobs. The mining sector also contributed to this downturn, shedding 4 000 jobs, while business services, construction, and electricity reported minor losses. Notably, the transport industry remained static throughout this period, while manufacturing experienced a slight increase, gaining 2 000 jobs. Matthew Parks, spokesperson for the Congress of South African Trade Unions, they were concerned about the figures. 'Whilst there is normally an increase in jobs in the last quarter of each year as the festive season occurs and the retail and hospitality sectors experience a boom; this decrease in employment is nonetheless extremely worrying. The government must accelerate its efforts, working with business and labour, to rebuild the State,' Parks said. Video Player is loading. 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Next Stay Close ✕ Stats SA also highlighted a year-on-year decrease, with total employment falling by 95 000 or 0.9% between March 2024 and March 2025. The report indicated that full-time employment specifically dropped by 55 000 or 0.6% quarter-on-quarter, painting a grim picture of the job landscape. Economists have responded similarly, with Lara Hodes from Investec noting the stark figures from the formal sector, where employment (excluding agriculture) fell by 0.7% on a quarter-on-quarter basis. "Quarter-on-quarter declines were logged in 6 of the 8 industries included in the survey, with the outcome indicative of a lacklustre economy. Economic growth rose marginally in the first quarter of the year as the economy continues to face a number of challenges, with weak business confidence, weighing on investment potential," Hodes said. Dr Elna Moolman, Standard Bank Group head of South Africa Macroeconomic Research, said that part of the weakness in the labour market was due to weakness in the economy this year. 'This stems from policy and political uncertainty both locally and globally. Unfortunately, this hardly improved in the second quarter and so the near-term numbers will remain weak," Moolman said. "We do however expect some economic growth in the second half of the year and that should lead to an improvement in the labour market.' Casey Sprake, economist at Anchor Capital, echoed the sentiments, saying the softness in the labour market mirrored broader economic stagnation amid persistently weak business confidence, policy uncertainty, and low fixed investment. 'Structural reforms, particularly those under the newly launched Operation Vulindlela II, must urgently gain traction if South Africa is to shift from stagnation to inclusive, job-rich growth,' she said. North-West University economics professor, Waldo Krugell, also said this mirrored what the economic growth numbers for the first quarter and the Quarterly Labour Force Survey. 'The economy hardly grew in the first quarter and the unemployment rate has increased. The QES confirms the job losses in the formal sector and the numbers are worrying," Krugell said. "I won't attribute too much of this to international uncertainty and the trade wars. This has more to do with slow growth due to a loss of business confidence and too slow domestic reform.'
IOL News
30-05-2025
- IOL News
Swift police action in Olorato Mongale murder highlights gender-based violence in South Africa
Olorato Mongale was recently found dead after going on a date. Image: X Police have been praised for the swift action that led to the apprehension of suspects in the tragic murder of journalism graduate Olorato Mongale. This comes after KwaZulu-Natal police traced one of three suspects wanted in connection with the murder to the coastal town of eManzimtoti south of Durban. Mongale went on a date with her alleged killer, who picked her up from her residential complex last Sunday before he killed her. 'The main suspect in the killing of Olorato Mongale, who was killed and dumped on the side of the road at Lombardy West, in Johannesburg, Gauteng province, was shot and fatally wounded in a shootout with police in the Amanzimtoti area in KwaZulu-Natal,' said police. KZN Premier Thami Ntuli commended the police for their prompt and decisive response to the tragic murder 'The swift action by SAPS in tracking down those responsible sends a powerful message: there will be no refuge for criminals in this province. The outcome of the shootout demonstrates our commitment to ensuring that justice is neither delayed nor denied,' he said. The premier expressed his appreciation to community members who showed remarkable bravery in helping the police. 'We salute the courageous individual who provided critical information that enabled the authorities to act. This collaboration between citizens and law enforcement is vital in dismantling criminal networks and reclaiming our communities from fear and violence,' he stated. Ntuli issued a direct warning to the remaining suspect who remains at large. 'To the individual still evading justice: your time is running out. Law enforcement agencies are working with relentless focus to bring you to account. I urge you to surrender yourself without delay.' The EFF said Mongale's life was cut short in a senseless and horrific act of gender-based violence that continues to haunt the women of South Africa daily. 'Olorato's murder is not an isolated case; it is part of a terrifying epidemic that we have been highlighting for a long time. Gender-based violence statistics in South Africa reveal a grim reality: women live in constant fear, and too often, that fear is realised through assault, rape, and murder.' The EFF welcomed the swift response of law enforcement. 'We commend KZN Police Commissioner Lieutenant-General Nhlanhla Mkhwanazi for his relentless efforts in this case. Under his leadership, crucial breakthroughs have occurred: the white VW Polo used to abduct Olorato was recovered in Phoenix, KwaZulu-Natal, and suspects Philangenkosi Makhanya and Bongani Mthimkhulu — both out on bail for previous kidnapping and robbery charges — have been named as persons of interest.' However, the EFF said the fact that they were granted bail, despite their criminal histories, is a 'damning indictment' of our justice system's failure to prioritise the safety of women. The Congress of South African Trade Unions (Cosatu), in reaction to Mongale's murder, said: 'Crime cannot continue to be normalised. It is time that war be declared against this cancer that is claiming too many lives, especially in our townships and rural areas.' KZN Violence monitor Mary de Haas said she is appalled by the killing of women and children. De Haas said South Africa has to deal with levels of violence in the country. 'We have never dealt with the trauma of the past. We have a huge problem with the upbringing of children, in the sense that children are having children they can't look after, children are malnourished, and those children that are mentally stunted make prime choices for criminality.' De Haas also questioned why so many suspects are being shot dead by police, although she conceded that some situations cannot be avoided. 'Dead men tell no tales, because that suspect may have been one of many… Is there nobody that can shoot to disable, because you want to keep that person alive, to trace networks,' she said. [email protected]
