E Cape businesses appeal to government to boost economic growth [Video]

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Businesses in the Eastern Cape say the Provincial Government needs to devise an intentional strategy to deal with the negative economic growth that placed the province in recession.

According to the Eastern Cape Socio Economic Consultative Council, the province has recorded a 0.3% decline in GDP for the first quarter of 2024, with the construction industry recording a major decline of 2.9%.

Local business chambers in the province say this is due to the delayed unlocking of constructors’ building plans, as well as the red tape that limits the construction industry from thriving.

A rand value decline of R1.9 billion in GDP for the province in the first quarter of 2024. Apart from construction, manufacturing, mining, transport and government service industries all declined.

Just last month Mercedes-Benz announced its intention to retrench 700 of its employees in its East London plant. Currently, the province’s unemployment rate stands at 42%.

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