It was a speech fit for a finance minister. Many couldn’t fault the President for his timing. South Africa’s economy is teetering on the brink of recession. And there’s the dreaded possibility of a ratings downgrade that’s hanging over the country like a dark cloud.
“It was almost as though he was reeading off key elments and important elements that were written elsewhere. He’s power is certainly on the wane but nevertheless, I think he touched on the correct issues.”Abdul Waheed Patel, Managing Director, Ethicore
“He ticked all the boxes IN terms of issues to mention including austerity, the regulatory environment, the roll of labour in South Africa. These were important issues and although there was little flesh to the bones. I think it certainly indicated that the penny has dropped within government about the seriousness about the South African economy and what a rating agencies downgrade would do to us.” Daniel Silke, Director, Political Futures Consultancy
He may have said all the right things. But it may be too late. The South African economy has been staggering along for some time. Growth for 2016 is expected at below 1%
“Not enough was being done to arrest the economic crisis in South Africa both in the long term but also in the short term in terms of measures to kickstart economic growth to achieve a higher growth rate to arrest further job losses but to create opportunities for profit generating productive investment into the economy.”Abdul Waheed Patel, Managing Director, Ethicore
“I don’t think the speech last night was nearly enough to prevent a downgrade but the speech set up South Africa to expect more from Pravin Gordhan’s budget speech in a few weeks time and in fact if we looked clearly and closely in that speech last night it became apparent that President Zuma was deferring a lot of the nuts and bolts perhaps to come to Pravin Gordhan.”Daniel Silke, Director, Political Futures Consultancy
Some are calling it damage control. And If the President spoke to the nation there should be some accountability.
“It was a different state of the nation address in that it unequivocally put the issues of the economy, the priority on economic growth and jobs at the forefront. It was a extremely focused. It did not cover everything clearly that key players in the economy would have like to have heard but it certainly created a platform around which to continue conversations between government and the private sector.” Abdul Waheed Patel
The private sector may have had a hand in this speech but not everyone was pleased with the President’s about turn. And for those who felt it was a good offering, they want to see it all materialise into substantial action. If not, South Africa could be in deeper trouble.
