JOHANNESBURG - While sentiment since the inception of President Ramaphosa’s administration has improved significantly, the rand did not reflect the previously experienced “Ramaphoria”, leading up to and during most the much-anticipated State of the Nation Address according to Bianca Botes, Corporate Treasury Manager at Peregrine Treasury Solutions
The rand retreated by 0.9 percent during Thursday to trade as weak as R13.65/$. However, as President Ramaphosa dug deeper into core issues, such as the dire state of Eskom and what the plan of action was, the rand managed to claw back some of the lost ground.
While South Africa continues to face structural issues such as inequality and high unemployment, there are a few positive elements that deserve to be highlighted.
1. A 9-stage turnaround plan for Eskom that includes bringing in equity partners, selling assets and splitting the utility in to three entities. President Ramaphosa also emphasised the importance of not adding undue pressure to the fiscus or the consumer;
2. A focus on primary education, enhancing literacy amongst youth;
3. Technical schooling to continue being a key element of the education plan for SA, that will assist in enhancing manufacturing and industrialisation, as well as boosting employment;
4. Land redistribution without compensation will start with unutilised state owned land and a reassurance that redistribution will not be detrimental to the South African economy;
5. Digital revolution and South Africa’s ability to participate;
Strengthening the state;
6. Compulsory courses for all government servants.