Black Business Council president Sandile Zungu reflects on the country slipping deeper into recession.
South Africa has slipped deeper into a recession, with Stats SA on Tuesday announcing that the economy shrank by 16.4% from the first quarter to the second quarter of 2020.
The country’s economy was already under pressure before the commencement of the nationwide lockdown at the end of March however, President Cyril Ramaphosa says there is a plan that involves a social compact with social partners between government, business and labour.
Speaking to Bongani Bingwa Black Business Council president Sandile Zungu says the economy shrinking was expected.
When the economy came to a screeching halt in the second quarter, when the hard lockdown hit, the conversations we were having with black economists was to expect slightly worse that what we witness now on an annual basis 51%.Sandile Zungu, President – Black Business Council
He adds that quarters are not the same and the third quarter will improve and show growth from a lower base compared to the second quarter.
As social partners, business labour, government and organs of community in Nedlac are talking and we are appreciated the space we are afforded to talk. We have come up with a plan that is not new and we will be presenting that to the president. The plan in part talks about being aggressive to the infrastructure built.Sandile Zungu, President – Black Business Council
The plans have been there and the biggest thing that needs to happen is implementation.Sandile Zungu, President – Black Business Council