By Thapelo Molefe
South Africa has made significant economic progress since the Government of National Unity (GNU) took office over 100 days ago, according to President Cyril Ramaphosa.
In his weekly newsletter, he said the country has witnessed a marked increase in confidence in its direction, with various indicators pointing to improved economic growth prospects.
Ramaphosa said that according to recent opinion polls, including one conducted by Ipsos, the proportion of participants who believe the country is heading in the right direction, has doubled since the last surveys were conducted in April and June this year.
Ramaphosa said the Bureau of Economic Research and Rand Merchant Bank’s Business Confidence Index, released in September, pointed to cautious optimism on improving business conditions in key economic sectors.
He added that the progress in curbing load-shedding and political certainty following the May elections had likely contributed to this improved business confidence.
The president said that the rising confidence among business leaders and local and international investors was expected to boost the country’s economic growth prospects.
“This was evident in the engagements I recently had with business leaders in Beijing and New York, and that Deputy President Paul Mashatile had with business leaders in London,” he said on Monday.
This increased investment sentiment would benefit the country’s fiscus, improve its credit rating and facilitate greater access to global capital markets.
“The improved sentiment is informed by the effective transition to a new administration with wide support across society and the continuation of the reform agenda started during the sixth democratic administration,” Ramaphosa stated.
He said the GNU has made significant strides in resolving the energy crisis, achieving over 200 days without load-shedding.
He added that this has unlocked unprecedented investment in the energy sector.
The president said ongoing reforms in the logistics sector were also improving port and rail network performance, positively impacting export industries and citizens’ lives.
While acknowledging that it was still early days for the new administration, Ramaphosa emphasised that a firm foundation was being laid, with growth prospects revised upwards.
“Our task now is to work together to further encourage hope and optimism by making a real and substantial difference in the lives of all South Africans,” Ramaphosa concluded.
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