ActionSA expresses concern about the latest Global Trade Update Report released by the UN Trade and Development Agency, which paints an incredibly bleak picture for South Africa's merchandise trade due to the country's deteriorating economic infrastructure particularly roads, rail and ports.
The report indicates a significant decline in both imports and exports of goods for the quarter ending March 2024, with imports decreasing by 8% and exports by 7%. Not only are these sharp decreases devastating for the industries involved in imports and exports, but they also harm the economy as a whole. This is particularly true for the rural economy, as the shelf life of perishable agricultural export products is severely compromised by ineffective and inefficient infrastructure.
While global trade has seen an increase during this period, South Africa's downturn in imports and exports stands out as one of only two countries having been reported to have experienced decreases in both categories.
The primary reason behind these troubling declines can be attributed to South Africa's deteriorating infrastructure, particularly our road and rail networks and parlous performance of our ports. This is a reminder that a recent World Bank report ranked Cape Town's port as the worst globally at 405, with Durban's at 398.
The state of South Africa's economic infrastructure is undoubtedly hindering its full economic potential and without urgent intervention, this is a crisis that threatens to continue stifling economic growth, job creation, poverty and inequality.
ActionSA believes that addressing these challenges requires prioritising long-term investments in key infrastructure projects, particularly focusing on the country's rail networks and ports.
Given the urgency of this crisis, ActionSA will write to the Minister of Public Infrastructure and the Minister in the Presidency to highlight the poor import and export figures, along with the concerning port rankings, and appeal for immediate action.
Issued by ActionSA Member of Parliament Alan Beesley