Cape Town – President Cyril Ramaphosa has highlighted the positive impact of South Africa’s new government of national unity (GNU) on business confidence.
Since the GNU’s formation in May 2024, investor and business sentiment has improved, as evidenced by an 8% rise in the Johannesburg Stock Exchange’s All-Share Price Index, Ramaphosa said in his weekly newsletter on Monday.
He noted that the latest Business Confidence Index shows increased optimism, despite ongoing high unemployment at 33.5%.
“The latest Business Confidence Index published by the South African Chamber of Commerce and Industry (SACCI) points to an increase in business confidence since the elections in May. This sentiment is evident in the Johannesburg Stock Exchange’s All-Share Price Index, which increased by about 8% from the end of May to the end of July 2024.
“This is welcome news, particularly in light of the most recent employment figures released by Statistics South Africa, which show that unemployment remains extremely high at 33.5%.
We cannot rebuild our country unless all South Africans work together. We will continue to work with business, labour and other social partners to drive the structural reform process that will boost inclusive economic growth and jobs.
https://t.co/qPPEquWeAk pic.twitter.com/m7FlLMfrBk— Cyril Ramaphosa 🇿🇦 (@CyrilRamaphosa) August 19, 2024
“Business confidence is so important to our efforts to create jobs because it signals an improved business environment and encourages new investment. Greater investment in the economy enables faster growth and more job opportunities,” the president said.
Ramaphosa acknowledged past issues, including the electricity crisis, state capture, and corruption, which had negatively affected business confidence.
“Through a concerted effort from all stakeholders, we have confronted the electricity crisis. We have now had more than 140 consecutive days without load shedding. There has been a huge increase in new power generation capacity.
“Investors have seen the growth opportunities in the far-reaching energy reforms we are undertaking. Just last week, I signed into law the Electricity Regulation Amendment Act, which will enable the establishment of a competitive electricity market.
“The progress we have made in electricity gives us confidence that we can overcome the problems on our freight rail lines and in our ports. Transnet’s recovery plan is showing progress. The private sector is providing significant technical support and resources to Transnet Freight Rail and Port Terminals,” he said.
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By Betha Madhomu
