Cape Town: The government is maintaining a ‘razor sharp’ focus on resolving challenges hindering the growth of the South African economy. Minister in the Presidency Khumbudzo Ntshavheni highlighted this commitment while delivering the post-Cabinet media statement.
According to South African Government News Agency, earlier this month Statistics South Africa (Stats SA) reported a marginal increase of 0.1% in real Gross Domestic Product (GDP) during the first quarter of 2025, following a 0.4% increase in the previous quarter, indicating sluggish economic performance. Cabinet expressed concern about the decline in the manufacturing industry, especially as the government has prioritized boosting local manufacturing and is awaiting the finalization of the revised industrial policy.
The government recognizes the impact of challenges within the freight and logistics sector on the mining industry, which has also experienced a decline. A focus is being maintained on Operation Vulindlela Phase Two and the Government-Business Partnership to urgently resolve logistics challenges affecting the country’s economic growth.
Minister Ntshavheni noted that Cabinet welcomes the National Assembly’s approval of the 2025 Fiscal Framework, aimed at increasing infrastructure investment spending to R1 trillion over the medium term. Additionally, Cabinet acknowledged concerns raised about Statistics South Africa’s Quarterly Labour Force Survey related to the informal sector.
The Quarterly Labour Force Survey (QLFS) collects data on the labor market activities of individuals aged 15 years and older. Stats SA produces a comprehensive report every four years, including a dedicated module for surveying employers and the self-employed. The survey aims to provide insights into the informal sector businesses in South Africa. Cabinet has been discussing the option of a quarterly or annual survey, but Stats SA requires access to a business register of informal businesses, which is currently unavailable.
The Minister explained that Cabinet previously approved the National Business Licensing Policy, which will standardize the licensing of informal businesses. Over time, the implementation by the Department of Small Business Development is expected to create a reliable register of informal businesses, enhancing Stats SA’s ability to draw reliable data for the QLFS.