Protracted Transnet strike could have dire consequences for FDI, warns economist
Efficient Group economist Dawie Roodt says a prolonged strike at Transnet could have a devastating impact on foreign investment.
Workers affiliated to unions UNTU and SATAWU have downed tools at the state-owned ports and rail operator due to a wage dispute.
The industrial action has seen Transnet declare a 'force majeure' for the third time since last year.
Roodt has warned it could have a severe long-term impact on our already-struggling economy if it's not resolved soon.
READ: Transnet, unions agree on picketing rules amid wage talks
"We are missing out on a huge opportunity, and if this strike continues, I'm afraid the rest of the economy is hardly moving and that will have a negative impact. The only part of the economy that is really performing is the mining industry and of course the agricultural industries.
"So, the impact of this on the economy will be that the economy be growing much slower and that will lead to higher level of unemployment and poverty.
"Also keep in mind that those exporters that are making a lot of money at the moment if they can export - they are also paying a lot of taxes and that means the minister of finance's revenue will less than previously expected."
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