South Africa Poised For An Upswing In Investment And The Economy
With business confidence having been depressed since 2009, and with credit rating downgrades and higher cost of borrowing, it is clear that Zuma’s leadership has been severely damaging to the country, suppressing investment and economic growth.
Now that Zuma has yielded to the NEC’s call for his resignation, we expect that businesses and consumers alike can expect positive changes in the country. There have been reports that South Africa has already received R30.2 billion rand of foreign investment since Cyril Ramaphosa succeeded Zuma as President of the ANC at the end of 2017 and the rand strengthened by R2 against the dollar. Financial markets favour Ramaphosa as it is perceived that he will deliver good governance. This, in itself, is a victory for South Africa.
When Ramapahosa occupies office and replaces Zuma as President of the country, we can expect him to follow policies that support economic growth and that lean towards the free market approach. This will almost certainly improve business confidence in the first couple of quarters of 2018, which in turn will have a direct positive impact on investment and job creation and which could see the private corporate sector triple in size over the next couple of years.
The focus from both international and domestic markets will, to a large degree, be squarely on growth within South Africa. With so much positive change ahead, there could not be a better time for business to shine a spotlight on their sustainable and inclusive policies to ensure confidence soars.
As we head in to this new dawn, and drawing on the success of our IT’S AFRICA’S TIME television series, there could not be a better time for us to produce the fourth season, with the focus exclusively on South Africa. Celebrating inclusive partnerships across the country, the new series will highlight the journeys taken by so many in our country to ensure sustainable and inclusive growth, whilst advancing equitable opportunities for all.