The African Transformation Movement believes that South Africa's long mismanaged economy, not COVID-19, is responsible for the 2.2 million job losses reported in the second quarter of 2020. They argue that continued lockdown is destroying the economy and enabling rampant corruption, while failing to support small businesses and the informal sector that could boost employment. ATM is calling for an end to the lockdown and a shift in focus to growing the economy through supporting small businesses and local manufacturing.

1. Website: www.atmovement.org Email: communications@atmovement.org
Facebook: African Transformation Movement (ATM) Twitter: @ATMovement_SA
FOR IMMEDIATE RELEASE
TO : ALL MEDIA HOUSES
DATE: 29 SEPTEMBER 2020
COVID 19 SHOULD NOT BE THE SCAPEGOAT FOR THE LONG
MISMANAGED SA ECONOMY
ATM is not surprised by the job’s bloodbath where 2.2m people have been shedded
by the economy of South Africa as per the Stats SA second quarter figures of 2020.
South Africa should not be misled and made to forget that even before the Covid 19
pandemic, the Ramaphosa Government had already brought the economy of this
country to its knees.
Unemployment before Covid 19 was already sitting at around 30%, now the crisis has
deepened where in terms of the expanded definition we are now sitting at 42%.
Given that the Coronavirus recovery rate is now sitting comfortably at 90% without
the vaccine and that infection cases are dropping hence the requirements for testing
have now been expanded, it is not clear why exactly the country is still on lockdown.
This continued lockdown does not only destroy the economy but has also served to
upgrade rampant corruption of this administration to rampant looting which has
implicated officials employed in the highest office in the land, the Presidency.
Continued lockdown has rendered the proper functioning of Parliament sterile where
members of the opposition face hurdles whilst doing their jobs to hold the executive
accountable.
Retrenched workers, some of which are collapsing in the UIF queues are stranded at
labour centres yet we were told that there were hundreds of billions of rands given to
companies to alleviate the problems.

2. Website: www.atmovement.org Email: communications@atmovement.org
Facebook: African Transformation Movement (ATM) Twitter: @ATMovement_SA
Unemployment is a symptom of a declining GDP due to mismanagement of our
economy. As we speak the projected country Debt to GDP ratio is around 82% for
2020, meaning very soon the country will be mortgaging its prized assets and
resources such as SOE’s, mineral wealth and land to service the compounding debt.
The answer lies in growing the economy as a matter of urgency and focusing on the
lower hanging fruit in the Informal Sector.
ATM is on record calling for more focus in the Informal Economy because that is
where more employment is created. Government spending should be skewed in favour
of small businesses and labour laws should be enforced across the board to avoid
exploitation of our people. Localisation of manufacturing including IT services would
boost our GDP and employment levels.
Instead, the Ramaphosa administration decided to support large companies without
even insisting on retention of workers as a quid pro quo, hence these companies are
now busy retrenching staff after pocketing the loot.
Furthermore, the small operators were saddled with all manner of red tape that made it
difficult for them to qualify for the purported support.
ATM is reiterating its call that Government must focus on supporting the informal
sector and remove all the artificial barriers that prevent these entrepreneurs from
qualifying.
Finally, ATM is calling for the total removal of lockdown, it has served its purpose
and is now counterproductive. A vibrant economy will provide all the necessary
resources to care for the sick and prevent people from dying.
END
Issued by the African Transformation Movement
National Spokesperson – Sibusiso Mncwabe 068 580 5713
Media & Communications Manager – Zama Ntshona 072 3038 702