With unemployment at 42.4% on the expanded definition, economic growth stuck at around 1%, and poverty, inequality and crime deepening, COSATU argues that the country cannot afford vague commitments or incremental action. Spokesperson Zanele Sabela spoke to Channel Africa on Thursday.
Sabela said government deserved credit for some areas of progress, particularly Eskom’s recent improvement in electricity supply. The near elimination of load shedding has brought relief to businesses and households, but she warned that Eskom still requires significant support to maintain its recovery. She raised concerns about rising electricity costs after the energy regulator approved an 8% tariff increase, higher than expected.
Sabela added that private users should be moved to prepaid systems to ensure payment discipline. She noted that municipalities owe Eskom about $6.27 billion, a debt burden she said is undermining the utility’s ability to operate sustainably.
Turning to logistics, Sabela welcomed ongoing reforms at Transnet but said the entity requires stronger support to return to full operational capacity. She highlighted the importance of Metrorail, describing it as a crucial service for low-income workers who depend on affordable transport to reach workplaces. Without functioning logistics, she said, manufacturing, agriculture and mining suffer.
Sabela criticised the government’s continued use of austerity measures, saying the freezing of posts and budget cuts are eroding service delivery and accelerating the collapse of many municipalities. She said COSATU wants to see movement on proposals for a new municipal funding model.
On crime and corruption, Sabela said conditions are worsening. She cited British American Tobacco’s announcement that illicit cigarettes now account for an estimated 75% of the market, contributing to the loss of 3 500 jobs. She said crime has become a national emergency and urged the state to respond with the same urgency and coordination seen during the COVID‑19 pandemic. Corruption, she added, diverts funds needed for essential services.
Sabela was also asked about job losses in the automotive sector in 2025. She said the union expects strong industrial policy commitments and support for local manufacturing. The recent China Africa non tariff agreement raises new questions for domestic producers, and she said government must ensure the arrangement does not disadvantage local industries.
She pointed to the struggles of ArcelorMittal SA, which announced closures and thousands of job losses, as well as ferrochrome smelters that face crippling electricity costs. She welcomed temporary electricity support measures for smelters but said long term industrial stability requires deeper reforms.
In the automotive sector, Sabela said government must engage China to ensure cars do not enter the country fully built in ways that undercut local assembly. She said SA had built a strong auto manufacturing base over decades through companies such as Ford, BMW and Toyota, and government should negotiate agreements that compel foreign manufacturers to produce locally rather than import at scale.
Sabela said COSATU expects Ramaphosa to present direct, actionable plans tonight. She emphasised that workers can no longer withstand austerity, collapsing infrastructure, crime, and mass unemployment.
–ChannelAfrica–
