The tide is turning for South Africa
The Government of National Unity (GNU) is showing promising signs, with huge potential boosts for the economy
This is according to Business Leadership South Africa CEO Busisiwe Mavuso, who said that the positive sentiment sparked by the GNU is consolidating.
She said that there was good news on how corruption should be targeted.
New Minister of Public Works and Infrastructure Dean Macpherson announced that the department has been hit by over R300 million in cyber theft over the last decade.
Macpherson revealed that his predecessor and now Deputy Minister Sihle Zikalala launched an investigation, with the problem being tackled swiftly, with employees suspended and laptops seized.
There has also been progress in the VBS Bank looting scandal, with its former chairman, Tshifhiwa Matodzi, receiving a 15-year jail sentence and his agreement to support the state’s prosecution of others who are implicated.
Mavuso said that this should help the NPA in its efforts to bring criminals who allegedly stole R2.2 billion from depositors, including senior political figures, to book.
Looking beyond corruption, Mavuso also praised new home affairs minister Leon Schreiber for extending visas for those waiting for decisions on their visa applications.
Although these people entered the country legally, they have faced a massive backlog in the department processing visa applications.
That backlog is a major problem for businesses that need foreign expertise to get things done.
“I have heard too many stories about investments delayed or cancelled simply because companies have not been able to bring the needed people into the country to make them happen,” said Mavuso.
“I hope that Minister Schreiber will turn his attention to the backlog and tackle it with new energy so that there does not need to be any further extensions.”
In addition, the first cabinet meeting of the seventh administration took place, setting out the new government’s agenda.
The meeting also informed the President’s speech for the opening of Parliament on Thursday, heralding a new era for Parliament.
“Of course, there is inevitably going to be bad news amid the good. We can only hope that the dial shifts more in favour of the good, particularly when it comes to improving the functioning and capacity of the state,” said Mavuso.
“A positive trajectory will have its setbacks but can still maintain an upward path overall. Already bond yields have dramatically fallen, and the government can now borrow at rates 10% lower than before the election, a reflection that shows investors are expecting an improvement in government finances.”
“It will take some time to see data reflecting the trend in business sentiment, but having shifted lower in advance of the election, I expect we will see an upward move in response to the consolidation of the GNU and the formation of a coherent agenda for reform.”
“The outcome of the first cabinet meeting and the opening of Parliament will be critical to maintaining the upward momentum.”
South African assets have been significantly boosted by the formation of the GNU, with equities increasing by 4% in June alone – above global equities by 2.3%.
Stonehage Fleming director JP du Plessis said that stability and delivery by GNU, the encouraging inflation backdrop and probably near-term interest rate cuts could result in the long-awaited boom in the economy and JSE.
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