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BLSA CEO’s Weekly Newsletter – GDP contraction is a reality check

13 September 2026

BLSA CEO’s Weekly Newsletter – GDP contraction is a reality check

South Africa’s economy contracted 0.2% in Q2, with trade, manufacturing and mining all shrinking. The figures are a reminder that…

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Business Leadership South Africa (BLSA) is an independent association whose members include the leaders of some of South Africa’s biggest and most well-known businesses.

Through BLSA, South Africa’s business leaders engage key players in South African society, including government, civil society and labour, to exchange ideas in our national interest and to create effective dialogue.

By so doing, we contribute to building strong communities underpinned by job creation through sustained economic growth.

INITIATIVES

TAMDEV

The Technical Assistance Mentorship Development (TAMDEV) programme, anchored by NBI, is a collaboration between Government and Business.

THOUGHT LEADERSHIP

13/09/2026 | By Busiswe Mavuso

BLSA CEO’s Weekly Newsletter – GDP contraction is a reality check

South Africa’s economy contracted 0.2% in Q2, with trade, manufacturing and mining all shrinking. The figures are a reminder that reform creates conditions for growth but it does not guarantee it. Investment remains the missing ingredient, with gross fixed capital formation at just 13.6% of GDP. Public sector investment targets spelt out in the budget are not being met. Transnet’s results are an encouraging sign: a R4.6bn profit against a R1.9bn loss the previous year, a clean audit for the second consecutive year, and modest rail volume gains. The foundations are in place. What turns them into growth is investment, and investment requires confidence. Building that confidence is the work of Phase 3 of the business-government partnership. The second-quarter GDP figures should humble all of us, particularly after the unemployment figures released two weeks ago. The 0.2% contraction of the economy shows just how fragile it is and how much work still lies ahead. Trade, manufacturing and mining activity all shrunk during the quarter, with agriculture growing only slightly and electricity and transport providing more upside support. I have said consistently that the work we have been doing over the last few years to repair the foundations of our economy […]

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Membership to Business Leadership South Africa is granted on application, or by invitation from the Board, based on certain criteria approved by the Council as a whole. Find out more