Tag: economy

2023 is poised to be a year of accelerated change in and for South Africa. As the country heads toward a general election in 2024, a sea-change is on the cards. The African National Congress (ANC) are by all accounts on the point of obtaining below 50% at the voting booth; some estimates have the party even under 45%.

The more things change, the more they stay the same. For investors, with 2020 still fresh in their minds, this year has been yet another case in point.

No new business can prosper without access to start-up capital, and the regulatory environment must not stand in the way of this process. In other words, South Africa’s economic future is not served by do-gooder statutory restrictions on financing. As such, significant amendments should be made to the National Credit Act, as well as the Banks Act, to ease pressure on small businesses that seek to finance their growth. 

According to government reports Britain’s new prime minister Liz Truss is planning to freeze household energy bills at broadly the current level this winter, using government-backed loans to energy suppliers.

South Africa’s tax laws were designed for a high-income society – a result of a long history of the country accommodating a small, wealthy economy, and a large, poor one. But for a country with tens of millions being either unemployed or receiving very little income, being one of the world’s highest-taxed states does not make sense, particularly when small business growth is so crucially important to our economic future.

It is evident that the invasion of Ukraine was prompted by the inept Biden Administration and the US's chaotic exit from Afghanistan. In addition, Russian President Vladimir Putin was emboldened by the US and NATO's inability to secure European borders and protect those who were promised to be protected.

President Ramaphosa delivered the Nation Address on Thursday evening from the Cape Town City Hall, as the country struggles with an ailing economy, civil unrest, corona virus, state capture and a promise-weary public.

Against the backdrop of easing lockdown restrictions and a reassuring National Budget, the South African Reserve Bank’s (SARB) decision to keep the repo rate unchanged provides further impetus for more sustainable economic activity.

Finance Minister Tito Mboweni’s budget has been received very positively, as demonstrated by the reaction from markets. SA Inc companies have rallied, the rand initially strengthened, and even the bond market is acting positively. However, while there are notes of hope, this budget also demonstrates a number of key risks, overly optimistic assumptions and potential weaknesses, pointing to an extremely challenging path ahead for the country.

President Ramaphosa delivered the Nation Address on Thursday evening as the country struggles with an ailing economy and the impact of the corona virus.