Cas Coovadia, the managing director of the Banking Association of South Africa. Photo: Bonile Bam

CAPE TOWN - The Banking Association of South Africa (BASA) says it is ready to play its part in repairing the damage done to the country's economy in the past ten past 10 years.

BASA's statement comes as the fifth democratically elected president Cyril Ramaphosa is expected to deliver the State of the Nation Address (SONA) on Friday evening in the National Assembly in Cape Town. 

President Cyril Ramaphosa during dry run at the Parliament precinct ahead of the State of the Nation Address in Cape Town.  Photo: Kopano Tlape, GCIS

The managing director of BASA, Cos Coovadia said in a statement, "Since Ramaphosa assumed office as president of the ANC, there have been encouraging signs that the government is willing and able to tackle corruption and bad governance, in the state and private sector".

Coovadia said that the better leadership has been a goal for progressive elements of civil society for several years, and it is being achieved through a concerted effort across party lines as well as the state, business and community sectors.

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This association has vowed to give the new president full support to improve the lives of all South Africans. 

"We will continue to be vigilant and to work with other business organisations and broader civil society to protect the rule of law and advance good governance in the country. Any vestiges of corruption from the past regime must be uprooted and those involved investigated and prosecuted," Coovadia elaborated.

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He expects the new administration to eliminate maladministration in key departments like mining, energy, public enterprises and social welfare must end, as it hinders development and threatens social and economic stability.

NATIONAL BUDGET

Coovadia said the 2018 budget will be an important marker for the new administration.

Several bodies and experts in the financial sector pre-budget insights had warned on tax increases, in particular, the Value Added Tax (VAT) as the National Treasury is faced with over R50 billion revenue shortfall. 

"The budget will have to consider how government can increase tax receipts and broaden the tax base. The minister of finance needs to look at possible increases in Value Added Tax (VAT) and corporate tax, and the potential impact on the vulnerable as well as economic growth," he added.

BASA has wished president Ramaphosa and his finance minister the best in the coming months. 

"We will work with them in good faith to make the best of this opportunity to revive the economy and renew our country, with the goal of establishing a virtuous circle of good governance, growth, investment and employment," Coovadia concluded.

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- BUSINESS REPORT ONLINE