Cape Town – Renowned economist Dawie Roodt has cautioned South Africans against making hasty financial decisions, such as selling assets or emigrating, amid recent political and economic turmoil.
His warning follows a week of instability, including tensions within the Government of National Unity (GNU) after the ANC secured budgetary support from smaller parties, straining its alliance with the DA.
Business leaders, including Adrian Gore and Duncan Wanblad, urged political leaders to resolve their differences to prevent economic fallout.
Compounding the uncertainty, US President Donald Trump imposed 30% tariffs on South African imports, and US lawmakers proposed sanctions on ANC officials.
These developments weakened the rand by 5.5% and caused a significant drop in the JSE All Share Index.
According to Daily Investor, Roodt advised South Africans to avoid panic-driven decisions, emphasising that local assets still offer good returns.
He recommended assessing risks carefully and avoiding rash moves, saying that financial markets remain volatile and patience is key.
“One thing which will make your life even more difficult is if you decide to suddenly sell all your assets.
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“It is much better to stay where you are. There are still many assets in South Africa which produce great returns,” the report quoted him as saying.
Meanwhile, the ANC’s national working committee (NWC) has decided to reopen negotiations with its GNU partners, including those who helped pass the national budget.
This decision comes in response to rising tensions within the coalition, particularly after the DA refused to support Finance Minister Enoch Godongwana’s fiscal framework.
A Cabinet reshuffle may be imminent as the ANC seeks to honour agreements with ActionSA while maintaining relations with the DA, EWN reported, citing sources in the closed meeting, which took place on Monday.
The ANC has reportedly revived its coalition team, excluding President Cyril Ramaphosa and Deputy President Paul Mashatile, to redefine engagement rules with all GNU partners.
The team has already reached out to the DA for further discussions, though the DA’s federal executive remains cautious, with some calling for an exit from the coalition.
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Compiled by Betha Madhomu
