South Africa’s economy experienced a setback, contracting by 0.2 percent in the third quarter after a period of sluggish growth, presenting a challenge for the government ahead of the forthcoming elections next year.
According to data from StatsSA, the nation’s primary contributors to the decline in gross domestic product from July to September were agriculture, manufacturing, and construction.
The looming 2024 elections reveal a South Africa grappling with high unemployment and widespread dissatisfaction with the ruling African National Congress (ANC).
While earlier quarters showed slight increases of 0.4 percent and 0.5 percent, signifying a glimmer of hope amid multiple challenges, the recent economic downturn has compounded the country’s ongoing struggles.
Persistent energy crises have led to daily power outages lasting up to 12 hours, further compounded by issues at state-owned rail and ports company Transnet, plagued by corruption scandals, theft, and maintenance problems, hindering economic activity.
StatsSA highlighted a substantial 9.6 percent decline in the agriculture sector’s output in the third quarter, attributing it to challenges such as a severe bird flu outbreak and floods in the Western Cape province.
The manufacturing industry suffered a 1.3 percent decline due to decreased demand, while mining production also dropped by 1.1 percent, according to StatsSA.
With the ANC in power since 1994, recent polls suggest a potential decline in the party’s vote share, possibly falling below 50 percent in the upcoming elections.
The Democratic Alliance, the leading opposition party, attributed the economic downturn to what it termed the “direct result of failed ANC policy” and expressed concerns about another term under the ANC’s governance for the country.