Sarupen: GNU must act now to avoid economic decline

Speaking at the release of the ISS South Africa Futures Report, Sarupen said the current coalition government must not be viewed as a stop-gap arrangement or “holding pattern” until the next election, but rather as a unique opportunity to reset the country’s economic trajectory, restore public confidence, and rebuild state capacity.

"The GNU cannot be reduced to a holding pattern because the majority party believes the electorate made a mistake. It must be respected as the product of voter will, not a waiting room for the next election,” he said. 

Referencing the ISS report, Sarupen highlighted a dangerous cycle that threatens to entrench poverty and inequality—one in which poor productivity, low investment, and rising debt feed into one another, stagnating growth and weakening state institutions.

"If we continue as we are, our economy will grow slowly, inequality will deepen, and future generations will inherit a fragmented, constrained state, we need a new path built on deliberate, urgent, and strategic reform."

He said South Africa had already lost critical momentum over the past decade due to state capture, weak procurement systems, disjointed policies, and hollowed-out institutions.

The deputy minister acknowledged that although efforts have been made to stabilise public finances, real reform will require more than speeches, but rather bold decisions and consistent implementation.

-Global shifts demand strategic realignment-

Sarupen also pointed to South Africa’s increasingly precarious position in the global economy, especially following the United States’ decision to impose a 30% tariff on steel and aluminum exports—moves that could spill over into other sectors, including agriculture.

He said global fragmentation, rising economic nationalism, and weakened multilateralism mean that South Africa must quickly adapt by reassessing outdated legislation like the 2015 Protection of Investment Act.

"Bilateralism is the future, we don’t get to choose the world we want—we must work with the one we’re in. And that means prioritising flexible, country-to-country agreements that shield our economy from external shocks."

He says the state cannot expect investment or job creation without addressing foundational issues such as crime, broken infrastructure, and law enforcement.

"You can’t grow an economy on broken infrastructure and weak law enforcement, investors won’t come if you can’t protect assets or move goods. That’s the base we must fix."

The deputy minister identified four priorities for economic recovery: maintaining macroeconomic stability, implementing structural reforms, rebuilding state capacity, and investing in infrastructure that crowds in the private sector.

While acknowledging political tensions within the GNU, Sarupen urged parties to act with "mutual respect and shared purpose" to deliver a capable and responsive state.

"The GNU must not be remembered as an interlude. It must be a turning point, South Africans are tired of plans—they want results."

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