Strikes, violence will undo us – Gordhan

2012-09-14 13:49

If the unrest in the mining industry continues, it will undermine investment confidence and cut growth in the South African economy, Finance Minister Pravin Gordhan warned.

Responding to a question at a media briefing in Pretoria – called to announce a clampdown on the strike violence in the sector – he said the unrest could also affect mineral exports and employment.

“The violent acts we engage in ... undermine confidence in the South African economy. And if we undermine confidence, we undermine investment, both from South Africans and from foreigners, in our economy.”

Gordhan said the unrest had to stop because it was “extremely damaging to our economy, in more ways than we understand at the moment”.

He said if the instability continued, resulting in more lost production at the mines, “the cost will be in terms of the overall growth numbers in South Africa”.

Mineral resources constituted an important part of the country’s export package.

“(This) would mean that if we export less, and we continue to import what we are importing, it will widen the ... current account deficit, which now stands at over 6%.”

It would also cost the country jobs, at a time when unemployment was already at 23% or 24%.

“We cannot allow this (unemployment figure) to increase,” Gordhan said.

“Everybody in South Africa has a responsibility to ensure we boost the confidence in our economy.”

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.