CAPE TOWN - Newly elected President of South Africa, Cyril Ramaphosa will take to the stand tonight at the State of the Nation Address and analysts say he will continue to focus on eradicating corruption and state capture.
South African’s all around the world will be gearing up to hear the interim President address the nation on South Africa and the strategic goals envisioned for the new financial year.
According to Chief Economist at Investec, Annabel Bishop, Ramaphosa will continue to focs on measures that will eradicate corruption and strengthen SA’s key institutions which have been systemically and severely eroded since 2009.
“The repair of SA’s institutions (which range from certain SOEs, Ministries, government departments, municipalities and councils to public institutions that have been captured and the loss of key personal highly regarded and respected by the financial markets and business sector) is key for the recovery of the economy as the past (close to) decade has seen government fail to deliver of its side in the growth compact for the economy, with the severe escalation in the size and so cost (and burden on tax revenues) of the civil service crowding out private sector growth”, said Bishop.
However, she says that given the momentum that the country has seen in the repair of business confidence and investor sentiment is key.
She added that investors are now looking forward to a “a deep rooted cabinet that can deliver the stability, high levels of private sector investment and strong economic growth SA is looking for”.
On Ramaphosa’s approach in addressing the nation, Bishop believes that Ramaphosa will be more dignified and professional in his approach, “delivering a realistic but optimistic address”.
Whether SONA will be a smooth address this year, Bishop says that she believes the EFF will seek disruption for the sake of building their parties presence.
However, President Ramaphosa has said he intends to restore dignity to parliament so the EFF could have any disruption curtailed, says Bishop.
Although Bishop acknowledges that it is key for Ramaphosa not to over promise in his address, she says that the huge up swell in investor confidence has changed the mood entirely on SA and so listers will be expecting quite a lot of optimism from him.
Similarly, Chief Economist of Economists.co.za, Mike Schussler said that corruption will be addressed at SONA.
“We will work hard to make SOE’s viable again. We will cuts spending”, said Schussler. Schussler added that Ramaphosa will take a different approach to Zuma in addressing the nation. “He will be warmer In person. He will be more informed on the issues too I believe”, said Schussler.
The National Development Plan (NDP) may also be highlighted in Ramaphosa’s address, said Schussler and he concludes that Ramaphosa should make sure that people know how difficult it will be to rebuild the economy again and bring down debt levels.
- BUSINESS REPORT ONLINE