Pretoria - The Institute of Risk Management South Africa (Irmsa) has warned of “possible dire economic consequences” from the planned national shutdown set to take place across South Africa on Wednesday.
Irmsa chief executive, Pat Semenya, said the envisaged national shutdown featuring the country’s biggest trade union federations would have a detrimental effect on the already weak economy.
“While we respect workers’ dissatisfaction with the government, the planned national shutdown will only further destabilise the country’s already fragile economy,” said Semenya.
“We are all aware of the failures of the South African government. What will this strike achieve beyond stalling our economic recovery?”
Crippling protest action has been announced by two of South Africa’s most prominent trade union federations – the South African Federation of Trade Unions (Saftu) and Cosatu as they rally against the rising fuel and food prices tomorrow.
Semenya said Irmsa’s 2022 Risk Report had previously pointed to the damage that strike action can cause to South Africa’s reputation as the “Gateway into Africa”, listing possible consequences as “further economic irrelevance, loss of foreign investment and revenue earning capability.”
While Semenya said Irmsa supports the right to strike, she said her organisation was concerned about the “damaging effects” as a consequence to the national economy.
Semenya added that South Africa could not afford to deter foreign investment at this stage, which has the potential of degenerating the nation into “complete economic collapse and decline into a failed state”.
“Complete economic collapse is a very real threat to our country, and we’re teetering on the edge of becoming a failed state. If this happens, the reasons given for this (protest) action –load shedding, high cost of living and increased fuel prices, among others – will only be made worse,” he said.
Thousands of workers affiliated to Cosatu and Saftu will on Wednesday down their tools and join the national strike against what they believe is impending economic collapse.
IOL