The Democratic Alliance (DA) is demanding an urgent debate of public importance in the Eastern Cape Legislature on the province’s jobs bloodbath due to the deepening economic crisis.
This follows the devastating announcement that 907 jobs are under threat due to the imminent closure of the Goodyear SA plant in Kariega.
This exacerbates the crisis underscored in the latest Quarterly Labour Force Survey (QLFS) for the first quarter of 2025. The statistics shows that the official unemployment rate in the Eastern Cape has surged to 39.3%, up from 36.6% in Q4 2024. The expanded unemployment rate now stands at a staggering 49%.
Additionally, 83 000 people in the Eastern Cape lost their jobs in the first three months of 2025.
It cannot be business as usual while the province continues to bleed jobs.
I have written to Speaker Helen Sauls-August, requesting that the Legislature urgently debate, on 10 June 2025, the jobs bloodbath, the collapse of the automotive sector, the delay in holding a promised Economic Summit, and the urgent policy, budgetary, and intergovernmental interventions required to prevent further economic decline.
The imminent closure of Goodyear SA puts further strain on the automotive sector, an economic cornerstone of the Eastern Cape. This follows Mercedes-Benz South Africa’s downscaling at its East London plant, which resulted in around 700 job losses.
The ANC-led government can no longer sit back while the province bleeds jobs and livelihoods are destroyed.
I recently wrote to Premier Oscar Mabuyane urging him to provide clear timeframes and implement the long-promised Provincial Economic Summit. Despite the jobs bloodbath, no action has been taken.
The DA has consistently called for this summit to deliver more than empty rhetoric. This summit cannot be just another government talk shop. It must involve all political parties, relevant governmental departments, and a wide range of stakeholders, including the business sector and academic institutions.
It must result in a concrete recovery plan with measurable outcomes to fast-track infrastructure development, reduce red tape for small businesses, improve municipal governance, and unlock jobs in key sectors.
Yet, government silence continues while our communities suffer.
We must act now especially in the light of concerning recent tariff hikes announced by the United States, with a 30% general tariff on South African goods and a 25% tariff on vehicles and automotive components. These changes, along with the likely erosion of AGOA benefits, threaten export volumes, investor confidence, and long-term viability across all sectors of our provincial economy.
The ANC’s empty economic promises are being crushed by reality. Families in the Eastern Cape are suffering. Without urgent, targeted action, the job losses will only escalate.
The DA remains committed to building an environment where the economy can grow and jobs can be created for all South Africans.