South Africa's economy cannot grow by more than 1 percent because of the country's energy problems. Photo: Chris Ratcliffe/Bloomberg
South Africa's economy cannot grow by more than 1 percent because of the country's energy problems. Photo: Chris Ratcliffe/Bloomberg

South African market viewed the budget positively

By Dhivana Rajgopaul Time of article published Feb 27, 2020

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DURBAN – First National Bank held their post budget media briefing with members of the KwaZulu-Natal media to discuss the 2020 Budget Speech and what it meant for South Africans. 

The panel that discussed the 2020 Budget Speech included, Siphamandla Mkhwanazi: Senior FNB Economist, Ester Ochse the Product Head of FNB Money Management, Renzi Thirumalai: Head of Investments, Samantha Stewart: Commercial Property Finance (KZN) and the FNB KwaZulu-Natal Provincial Head, Asheen Magjee as well as Aneesa Razack: Investment Growth Head who moderated the panel. 

Eskom and the South Africa's energy crisis was one of the big topics that the Finance Minister touched especially during a time of rolling blackouts. Siphamandla Mkhwanazi: Senior FNB Economist said that the energy crisis has a huge part to play the lack of growth in the economy. 

"South Africa's economy cannot grow by more than 1 percent because of the country's energy problems," said Mkhwanazi. 

Renzi Thirumalai: Head of Investments for FNB spoke about the rand and the currency's reaction to the Budget. Thirumalai said that the market viewed the Budget Speech positively. He said that the rand rallied and the market perspective was positive. 

He also spoke about Moody's credit rating of South Africa. He said that the 2020 Budget Speech could have moved Moody's credit rating of South Africa to later date. 

Mkhwanazi spoke about the State Bank that was mentioned in the Budget Speech. He said that the state bank could have a positive impact because there is a large amount of South Africans that do not have bank accounts and are unbanked and the state bank could answer that problem. 

BUSINESS REPORT

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