The General Industries Workers Union of South Africa (GIWUSA) is calling on the South African Reserve Bank’s Monetary Policy Committee to drastically reduce the repo rate to 3.5%, a level last seen in the 2000s, following a sharp drop in inflation to 2.7%, the lowest since 2020. The union argues that such a move is essential to reviving the manufacturing sector, boosting employment, and easing the financial burden on the working class.
GIWUSA president Mametlwe Sebei criticised the current 8.25% prime lending rate, describing it as an “extortionate” figure that continues to cripple jobs and wages.
“The current rate is a brutal attack on jobs, wages, and the economy, and the SARB’s excuses for keeping it high have collapsed along with inflation, manufacturing and employment in key sectors such as mining, construction and trade,” said Sebei.
He cited recent data showing net job losses of 291,000—194,000 in trade and 119,000 in construction, arguing that these figures are a direct result of high interest rates that have weakened key sectors and plunged many South Africans into debt and hardship.
The union also rejected the Reserve Bank’s cautious ‘wait-and-see’ approach, claiming it benefits only commercial banks and economists who profit from elevated rates.
“With inflation now below the SARB’s target range, there is zero justification for maintaining these crushing high interest rates,” added Sebei.
GIWUSA has pledged to intensify its campaign, urging the broader working class to mobilise and demand immediate economic relief through lower borrowing costs.
VOC News
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