President Cyril Ramaphosa aims to attract over R1tr in investment into the economy over the next five years. Consumer confidence has surged since he was elected, but will strong economic growth follow?
There’s a good chance the economy’s pace of growth will surpass expectations if President Cyril Ramaphosa’s ambitious investment drive clocks up meaningful results – an outcome that’s seen as possible given the speed with which his administration has moved to clean out corruption and mismanagement at failing state-owned enterprises.
There's been consensus that his goal of persuading both foreign and domestic business to plough $100bn (about R1.2tr) into the economy over the next five years is wishful thinking, given that key structural policy reforms are being hampered by sparring factions within the ANC ahead of next year’s general election.
But the negative investment narrative appears to have turned positive, comments Kevin Cron, head of corporate, mergers & acquisitions and securities at Norton Rose Fulbright SA. Yet he does add: “A lot of people are sitting on the sidelines waiting to see how things play out. The government is making the right noises but has to put its money where its mouth is.”
However, some analysts believe that the judgment of many South Africans is clouded by the decade of corruption, mismanagement and pessimism that permeated both business and consumer confidence while former President Jacob Zuma was in charge.
Higher growth
Most think that the Treasury’s February Budget forecast for growth of 1.5% this year will be exceeded. Finance minister Nhlanhla Nene said in a recent interview on radio station 702 it was likely to be closer to 2%, and some economists predict the rate of expansion will be higher than the Reserve Bank’s latest estimate of 1.7% for both 2018 and 2019.
Bu hikaye Finweek English dergisinin 7 June 2018 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Finweek English dergisinin 7 June 2018 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
