By Odwa Bafana Mkentane
GIWUSA has raised serious concerns over South Africa’s latest economic performance, following a 0.2% contraction in Gross Domestic Product (GDP) in the second quarter of 2026. The union says the decline in manufacturing, mining and trade reflects deeper structural weaknesses in the economy, which it attributes to years of deindustrialisation and policies that have weakened local industry.
This comes after the Department of Statistics South Africa stated in its second quarter of 2026 statistics that, following six straight quarters of growth, the trade industry wobbled in the second quarter, shrinking by 1,9 percent, this was due to a decline in wholesale trade, motor trade and the food and beverages industry.
The General Industries Workers Union of South Africa (GIWUSA) President, Mametlwe Sebei, says the GDP figures are not a surprise; they are the inevitable verdict on a failed economic model that has served capital while destroying the livelihoods of the working class.
“While apologists for capital will point to the Iran war and global supply chain disruptions, these external factors merely expose the structural fragility of an economy deliberately stripped of its productive defences. This stagnation is the direct product of thirty years of policy that has systematically deindustrialised the country, financialised its surplus, and subordinated local industry to the demands of foreign capital,” said Mametlwe.
Mametlwe added that the foundation of any genuine reindustrialisation is the nationalisation of the country’s mining industry.
“The mineral wealth beneath South African soil belongs to the people, not to foreign multinationals or a domestic mining oligarchy. The development of a diversified industrial base requires state-owned enterprises that can drive beneficiation, technology transfer, and the creation of decent, dignified employment,” he said.
Stats SA has stated that conversely, marginal gains were recorded in finance, real estate and the business services industry, which increased by some 0.3%, contributing 0.1 of a percentage point.
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