SONA 2019 REACTION: Fixing Eskom a ‘big ticket item’

Prof. Raymond Parsons

The crucial test of the State of the Nation (SONA) message this evening will be the successful implementation of planned policies and projects.  This is according to NWU Business School Economist Professor Raymond Parsons.

Parsons says that the wide-ranging SONA delivered by President Cyril Ramaphosa recognised the importance of promoting higher and inclusive economic growth, together with structural reforms, if SA is to create a bigger, stronger and better economy.

“The key references in the SONA to making it easier to do business in SA, reducing policy uncertainty and removing constraints on investors are therefore welcome. These are essential requirements if SA is to be a preferred investment destination.”

He adds that the challenge in rebuilding confidence nonetheless remains one of the effective implementation of policies and projects and of creating the necessary state capacity to do so, in collaboration with the private sector where necessary.

“SA will have to dramatically raise its economic game if the growth and employment targets outlined in the SONA are to be achieved and challenges of unemployment, poverty and inequality are to be more adequately addressed. ‘We must get the economy working again’ is just the initial point of departure towards a better economic dispensation.”

Fixing Eskom was understandably a ‘big ticket item’ in the SONA address, “which correctly referred to the Eskom situation as a ‘crisis’ requiring urgent attention to promote investor confidence.”

Parsons states that the intended measures announced in the SONA to refinance and restructure Eskom are steps in the right direction, but further details are needed to see to how successful they will eventually be in stabilising Eskom.

“The latest SONA confirms that SA’s political economy remains complex. Against a backdrop of muted economic growth and the dynamics of the upcoming elections on May 8, there is inevitably still much ‘unfinished business’ on the SA’s national agenda. This ranges from the forthcoming Budget to the outcome of the land reform process, which could be sources of continued policy uncertainty this year.

“It therefore seems likely that the SA economy, although in recovery mode, will remain basically in a ‘holding pattern’ for most of 2019, until certain political and economic issues are resolved or trends become clearer,” Parsons concludes.



Latest


18 Jan 2021
SA failed to get its act together on vaccines: here’s how

By Shabir A. Madhi, University of the Witwatersrand South Africa has an estimated population approaching 60 million. To achieve herd immunity against COVID-19,…

SA failed to get its act together on vaccines: here’s how

By Shabir A. Madhi, University of the Witwatersrand South Africa has an estimated population approaching 60 million. To achieve herd immunity against COVID-19, the government recently set the ambitious goal of vaccinating 67% of the population – roughly 40 million people. According to the outline of this plan, this would be achieved within 2021. But…

18 Jan 2021
Foreign holdings of nominal SAGBs increase to 35.7% in December

By RMB Research According to the National Treasury (NT), combined holdings (fixed-rate and inflation-linked) of government bonds increased to 29.9%…

Foreign holdings of nominal SAGBs increase to 35.7% in December

By RMB Research According to the National Treasury (NT), combined holdings (fixed-rate and inflation-linked) of government bonds increased to 29.9% in December from 29.7% in November. Nominal (fixed-rate) SAGBs: Investor holdings as at the end of December 2020 are as follows:Non-resident investors hold 35.7% (R791.78bn).Monetary authorities hold 22.6% (R501.79bn).Official pension funds…

18 Jan 2021
Getting to grips with private market investments

Investors put their money in expert hands to grow it through investments in shares, bonds, cash and property. These are traditional investment…

Getting to grips with private market investments

Investors put their money in expert hands to grow it through investments in shares, bonds, cash and property. These are traditional investment types available on the stock exchanges of most public markets. However investors can also choose to invest in alternative investments – available in private markets. This gives them access to investment types that are not available…

12 Jan 2021
Steven Nathan steps down as CEO of 10X Investments

After 15 years at the helm, 10X Investments’ founder and CEO Steven Nathan has resigned, effective 31 December 2020, in…

Steven Nathan steps down as CEO of 10X Investments

After 15 years at the helm, 10X Investments’ founder and CEO Steven Nathan has resigned, effective 31 December 2020, in order to pursue other interests.  This is according to a statement issued today. The statement says: In line with 10X’s succession plans, the company’s Executive Chairman, Henk Beets, will assume responsibility…


Top stories


10 Sep 2020
How too much choice is draining your brain

By: Paul Nixon, head of technical marketing and behavioural finance at Momentum Investments From the words of Francis Scott Key…

How too much choice is draining your brain

By: Paul Nixon, head of technical marketing and behavioural finance at Momentum Investments From the words of Francis Scott Key that dubbed America “The land of the free”, which stuck, to the unforgettable Mel Gibson monologue where an army of painted Scots were willing to trade their lives for the…

13 Apr 2020
Investors should keep a reasonable investment allocation outside of SA

MoneyMarketing asked Roland Gräbe, the head of Tailored Fund Portfolios at Old Mutual Wealth, about offshore investments in the COVID-19…

Investors should keep a reasonable investment allocation outside of SA

MoneyMarketing asked Roland Gräbe, the head of Tailored Fund Portfolios at Old Mutual Wealth, about offshore investments in the COVID-19 environment and what form a global market recovery will take.

13 Apr 2020
SA’s Proposed Covid-19 Disaster Management Tax Relief

The National Treasury recently issued the draft Disaster Management Tax Relief Bill (Bill) for public comment by 15 April. The…

SA’s Proposed Covid-19 Disaster Management Tax Relief

The National Treasury recently issued the draft Disaster Management Tax Relief Bill (Bill) for public comment by 15 April. The draft Bill, together with its explanatory memorandum, provides clarity with regards the tax relief measures President Cyril Ramaphosa announced on 23 March.

10 Apr 2020
When the going gets tough, farmers are on familiar territory

South African farmers are old hands at adapting to uncertain and daunting circumstances, and our local agricultural industry has proved…

When the going gets tough, farmers are on familiar territory

South African farmers are old hands at adapting to uncertain and daunting circumstances, and our local agricultural industry has proved to be most enterprising in acclimatising to challenges as they arise.


Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za