DURBAN – The State of The Nation will have a massive impact on the sentiments going forward for the rest of the year for the general public, industries across the board, as well as with investor confidence.
"Following last years’ State of the Nation speech, it was clear that President Cyril Ramaphosa had set out to increase investment into South Africa, with the introduction of the R100 billion infrastructure fund for the next decade. This fund would go towards the building and operation of key infrastructures, such as schools, railways and roads," said Stefan Botha, Rainmaker Marketing Director.
He added, "We, as a property marketing company, see investment and property development linked very closely together. Real estate was one of the top biggest contributors to the GDP in 2019 and plays a significant role in attracting investment into South Africa. In order for investment to flow into the property market fluidly, it is imperative that the State of The Nation is used to clarify strategic actions, as well as outline positive policies on key issues South Africa is experiencing".
The trouble with Eskom, the uncertainty behind land expropriation and the need to eradicate corruption are just a few challenges influencing South African investors. These challenges sway investors and guide their decision on whether their monies stay in the country or invest offshore. Similarly, these factors influence foreign investment into the country.
While the country is currently experiencing load shedding; the public, especially private business owners, will want to know what real actions are set out to combat these problems; plans that go beyond another bailout of a state-owned enterprise.