GNU having ‘positive effect’ on business confidence − Ramaphosa

President Cyril Ramaphosa believes the formation of the government of national unity (GNU) has had a positive effect on business confidence in the country.

Ramaphosa made the remarks in his weekly newsletter “From the desk of the president” on Monday.

The ANC, DA, Inkatha Freedom Party (IFP), Patriotic Alliance (PA), Pan African Congress (PAC), Good party among others coalesced to form the GNU after the polls on 29 May.

Business confidence

With the formation of the GNU, Ramaphosa said South Africa has seen a growing confidence among investors, businesses and citizens about the prospects for the economy over the past few months.

“The latest Business Confidence Index by the South African Chamber of Commerce and Industry points to an increase in business confidence since the elections in May. This sentiment is evident in the Johannesburg Stock Exchange’s All-Share Price Index, which increased by about 8% from the end of May to the end of July 2024.

“This is welcome news, particularly in light of the most recent employment figures released by Statistics South Africa, which show that unemployment remains extremely high at 33.5%,” said Ramaphosa.

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Concerns

Ramaphosa said for several years, the country has experienced low levels of business confidence.

“Business confidence was negatively affected by the prolonged electricity crisis, state capture, concerns about corruption, the decline of state-owned enterprises and the manner in which law enforcement agencies had been compromised.

“Investors have also been concerned about obstacles to growth, such as delays in the release of broadband spectrum, inefficiencies in ports and rail operations, and regulations that have slowed down licensing processes,” Ramaphosa added.

Corruption

Ramaphosa said government has also shown its “determination to tackle corruption”.

“Bodies like the National Prosecuting Authority, Special Investigating Unit and the Hawks are reinvigorated and have brought several high-profile cases to trial. The permanent establishment of the NPA’s Investigating Directorate has given further impetus to the fight against corruption.

“Crime is being tackled. Across the country initiatives such as Operation Shanela have upped the war on crime. We are clamping down on illicit mining operations. Criminal syndicates involved in cable theft and extortion at construction sites are being dealt with,” Ramaphosa said.

Rebuilding SA

Ramaphosa said the progress made in reducing load shedding has given government confidence that the country can overcome the problems on freight rail lines and ports.

He said the change to immigration regulations also make it easier to attract skills, investment and tourists into the country.

“We cannot rebuild our country unless all South Africans work together. We will continue to work with business, labour and other social partners to drive the structural reform process that will boost inclusive economic growth and jobs,” Ramaphosa said.

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