The drop of 0,7% in the Gross Domestic Product (GDP) for the second quarter of this year is a clear indication that government's plans for economic recovery are failing.
It also indicates that President Cyril Ramaphosa is out of touch with the realities of the problems affecting the country's economy.
Economic revival and growth can only be achieved through extensive structural reform in the country.
With unreliable electricity supply, basic service delivery falling short, and government's policy and legislation restricting businesses, the economy will keep bleeding out.
The contraction of the economy will have a negative effect on government's tax revenue, which will cause its already dire fiscal position to deteriorate even further.
The state coffers are already bankrupt, but the need for social services, like healthcare, education and social grants, is increasing by the day.
The private sector must be enabled to invest, create jobs and, thus, facilitate economic growth.
This can only be achieved if government establishes investment certainty through: effectively resolving the electricity crisis, privatisation, eradicating corruption, putting an end to cadre deployment, appointing competent public officials, and abolishing restrictive legislation, like Affirmative Action (AA) and Black Economic Empowerment (BEE).
It is indeed possible to make these changes to put the economy on the road to recovery, but it will not happen while the ANC is in power.
Voters must keep that in mind with the elections in 2024. South Africa deserves better than the ANC.
