SA experiencing more than just ‘warm and fuzzy’ feeling over economic progress – Ramaphosa

President Cyril Ramaphosa said South Africa is experiencing more than just a “warm and fuzzy” feeling as the country makes economic progress.

Ramaphosa made the remarks in his weekly newsletter “From the desk of the President” on Monday, a day after the country celebrated 200 days of no load shedding.

It is also just over 100 days since the members of the government of national unity (GNU) were sworn into office.

Confidence

Ramaphosa said there has been a marked increase in “confidence in the direction of our country”.

The president said South Africans increasingly rallying around the programme and the work of the GNU is reflected in recent opinion polls.

“In one of these polls, conducted by Ipsos, it is said that the proportion of participants who believe that the country is heading in the right direction has doubled since the last surveys were conducted in April and June this year.

“There is also rising confidence in our country’s economic growth prospects by business and local and international investors,” Ramaphosa said.

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Load shedding

In September, the Bureau of Economic Research and Rand Merchant Bank published their first Business Confidence Index since the formation of the GNU.

Ramaphosa said this points to “cautious optimism” about improving business conditions in key economic sectors saying that improved electricity supply and political certainty following the elections have likely contributed to this improved business confidence.

This was echoed by Minister of Energy and Electricity Kgosientsho Ramokgopa during a media briefing on Monday.

Ramokgopa said Eskom’s Generation Operational Recovery Plan has not only reduced unplanned outages by 8.6% and improved the Energy Availability Factor (EAF) by 7.7%, enhancing the reliability of the generation fleet, but it has also positively impacted the economic outlook and Eskom’s profitability.

‘Improved sentiment’

Ramaphosa said this improved ‘sentiment’ is important for the economy and the country.

“Sentiment is more than a ‘warm and fuzzy’ feeling. It is made possible by real developments in the economy and the country. Business confidence goes beyond discussion in boardrooms and conference halls.

“It is about the interest that is shown in our economy by all investors, both local and offshore. Sentiment has a direct impact on people’s lives as it can manifest itself in increased investments that can result in job creation,” Ramaphosa said.

Right direction

Ramaphosa added that improved investment sentiment will benefit the country’s fiscus.

“A stronger economic outlook will improve South Africa’s credit rating, which in turn will facilitate greater access to global capital markets and lower our borrowing costs.

“It is still early days for the government of national unity. The growth of our economy is still to pick up pace. However, a firm foundation is being laid, our growth prospects are being revised upwards and we are heading in the right direction,” Ramaphosa said.

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