Addressing South Africa’s Economic Challenges: COSATU’s Call for Action

In a recent statement, Zingiswa Losi, the president of the Congress of South African Trade Unions (COSATU), highlighted critical issues affecting South Africa’s economy, including the need to address porous borders and enhance foreign direct investment (FDI). Her remarks, shared via a tweet by SABC news, emphasize the urgency for systemic changes to bolster the nation’s economic landscape.

The Issue of Porous Borders

One of the primary concerns raised by Losi is the issue of porous borders in South Africa. This issue affects not only security but also economic stability. Porous borders can lead to increased illegal trade, smuggling, and a strain on local businesses that adhere to regulations. Losi’s assertion points to the necessity for the South African government to implement stricter border controls and policies that would effectively manage cross-border movements.

Foreign Direct Investment in South Africa

Losi also underscored the importance of foreign direct investment (FDI) as a means to stimulate economic growth. FDI is crucial for creating jobs, enhancing skills, and fostering innovation. By attracting foreign companies to invest in South Africa, the country can benefit from new technologies and expertise, which are essential for improving productivity and competitiveness in the global market.

However, to make South Africa an attractive destination for foreign investors, the government must create a favorable business environment. This includes addressing bureaucratic red tape, ensuring stable political conditions, and improving infrastructure.

Renewing the African Growth and Opportunity Act

In addition to her comments on borders and investment, Losi made a compelling case for the renewal of the African Growth and Opportunity Act (AGOA). This U.S. trade program has been a significant factor in enhancing trade between South Africa and the United States. By urging the renewal of AGOA for another five years, Losi is advocating for continued access to the U.S. market, which is vital for various sectors in South Africa, particularly textiles and apparel.

The AGOA not only provides tariff-free access to the U.S. market but also encourages investment and economic growth in beneficiary countries. By renewing this act, South Africa can maintain its competitive edge and bolster its export capabilities.

The Importance of Trade Unions in Economic Policy

COSATU, as a major trade union federation, plays a pivotal role in advocating for workers’ rights and influencing economic policy in South Africa. Losi’s leadership reflects the union’s commitment to addressing the pressing concerns of the working class, particularly in the context of a recovering economy post-COVID-19.

Trade unions are essential in fostering dialogue between workers, employers, and the government. They can advocate for policies that not only protect workers but also promote economic growth and stability. Losi’s call to action is a reminder of the vital role trade unions play in shaping a fair and equitable economic environment.

Conclusion

Zingiswa Losi’s recent statements encapsulate the urgent need for South Africa to address its porous borders, attract foreign direct investment, and renew critical trade agreements like AGOA. By focusing on these areas, the country can work towards a more stable and prosperous economic future.

The interplay between effective governance, strong trade union advocacy, and international trade agreements is crucial for South Africa’s economic recovery and growth. As the nation navigates these challenges, it is imperative for all stakeholders, including the government, businesses, and trade unions, to collaborate and foster a conducive environment for economic development.

In summary, addressing porous borders, enhancing FDI, and renewing AGOA are not just economic necessities; they are essential for building a resilient South African economy that can thrive in an increasingly competitive global market. As COSATU continues to advocate for these changes, the focus must remain on creating a sustainable and inclusive economic framework that benefits all South Africans.

[WATCH] COSATU president Zingiswa Losi says there’s a need to deal with the issue of porous borders and foreign direct investment in SA. The trade union federation leader also pleads for the African Growth and Opportunity Act to be renewed in September for another five years. She… pic.twitter.com/MXy68rpkfq

— SABC News (@SABCNews) May 21, 2025

[WATCH] COSATU president Zingiswa Losi says there’s a need to deal with the issue of porous borders and foreign direct investment in SA.

In a recent statement, Zingiswa Losi, the president of the Congress of South African Trade Unions (COSATU), highlighted pressing issues that are crucial for South Africa’s economic stability and growth. She emphasized the urgent need to tackle the problem of porous borders and the role of foreign direct investment in SA. With the economy facing significant challenges, her call to action resonates with many who are eager to see positive changes.

The Challenge of Porous Borders

Poorly managed borders can lead to various socio-economic issues, including illegal immigration, smuggling, and a lack of security. Zingiswa Losi pointed out that South Africa’s borders are not just lines on a map; they are gateways to economic opportunities and threats alike. Ensuring that these borders are secure is essential not only for protecting local jobs but also for fostering a safe environment for investment.

When borders are porous, it becomes difficult for authorities to monitor and control the flow of goods and people. This can lead to an increase in crime rates and undermine the efforts of local businesses trying to thrive in a competitive market. Zingiswa Losi’s statements bring to light an essential aspect of national security that directly impacts the economy.

Foreign Direct Investment in SA

Another crucial point raised by Losi is the necessity of attracting foreign direct investment in SA. Investment from foreign entities can stimulate local economies, create jobs, and facilitate technology transfer. However, for South Africa to become an attractive destination for investors, it needs to create a stable and secure environment. This is where addressing the issue of porous borders becomes vital.

Foreign investors often look for stability and security before committing their resources. If South Africa can present itself as a secure investment destination, it will likely see an influx of capital that can help drive economic growth. The implications of this investment are far-reaching, affecting everything from job creation to enhancing local industries.

The African Growth and Opportunity Act

Losi also made a passionate plea for the renewal of the African Growth and Opportunity Act (AGOA) in September for another five years. AGOA provides eligible sub-Saharan African countries with duty-free access to the U.S. market for a range of products. This act has been a game-changer for many African economies, allowing them to grow their exports and create jobs.

Renewing AGOA is vital for South Africa, as it can help to bolster trade relations and enhance economic collaboration with the United States. Losi’s advocacy for this act highlights the importance of international trade policies in shaping the future of South Africa’s economy. Without the support from such initiatives, local industries may struggle to compete on a global scale.

Job Creation and Economic Growth

The interplay between secure borders, foreign direct investment, and trade agreements like AGOA ultimately ties back to job creation and economic growth. With a stable environment, South Africa can attract businesses that will create employment opportunities for the local population. This is crucial, especially in a country where unemployment rates have been a significant concern.

Creating jobs goes beyond just filling positions; it’s about providing South Africans with a means to support themselves and their families. As Zingiswa Losi pointed out, addressing these crucial issues can pave the way for a healthier economy and a brighter future for many citizens.

Community Involvement and Public Support

As these discussions unfold, it’s essential for communities to get involved and support initiatives aimed at securing the borders and attracting foreign investment. Public support can help put pressure on policymakers to prioritize these issues. Engaging in dialogue and advocating for these changes can make a significant difference in the outcome of these discussions.

Moreover, communities can play a role in creating a welcoming environment for foreign investors. By showing a commitment to security and stability, local populations can help create the right conditions for investment. This collaborative approach can enhance the overall perception of South Africa as a viable investment destination.

The Role of Trade Unions

Trade unions, like COSATU, play a pivotal role in advocating for workers’ rights and economic policies that benefit the larger population. Zingiswa Losi’s leadership in addressing these issues demonstrates how vital trade unions are in the broader economic landscape. They not only represent the interests of their members but also contribute to discussions that affect the entire nation.

Trade unions can help bridge the gap between workers and employers, ensuring that the voices of the workforce are heard in policy decisions. By engaging with various stakeholders, trade unions can help shape a more inclusive economic strategy that benefits everyone.

A Call to Action

As South Africans reflect on Zingiswa Losi’s statements, it’s clear that there is much work to be done. The issues of porous borders and foreign direct investment are interconnected and require a multifaceted approach. Policymakers, businesses, and communities must come together to create a comprehensive strategy that addresses these challenges head-on.

It’s not just about listening to leaders like Zingiswa Losi; it’s about taking action. Whether it’s advocating for better border security, supporting foreign investment initiatives, or pushing for the renewal of AGOA, every South African has a role to play in shaping the future of their country.

In summary, the dialogue around porous borders, foreign direct investment in SA, and the African Growth and Opportunity Act is crucial for the nation’s future. As we move forward, let’s keep these conversations alive and work together towards a more prosperous South Africa.