Comment on new GNU cabinet
2 Jul, 2024

 

Adam Furlan, Portfolio Manager, Emerging Market Fixed Income, Ninety One

 

Overall, this appears to be a better cabinet than the previous one. The market is likely to be encouraged but will remain cautious until it sees how the various ministers function.

 

For Ninety One, the major focus has been on removing the constraints on the economy in terms of energy and transport. This has already been a focus of the previous government with some success to date, but there is more to be done on the transmission network and still a long way to go in the ports and rail sector.

 

Resolving constraints in the areas of water and local government will help to mitigate risks to economic growth and increase confidence.

 

Debt consolidation is another area we believe should be a key focus and can be a significant driver of economic growth through a reduction in the cost of capital to the economy.

 

Policing and the rule of law have been of concern through their negative impact on investment. There should be a strong focus on dealing with the so-called construction mafia or business forums, which raise the cost and risks to construction projects, and in particular, infrastructure investment.

 

ENDS

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@Adam Furlan, Ninety One
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