South Africans were watching closely as newly-elected President, Cyril Ramaphosa delivered his first State of the Nation Address (SONA) last night.
In a confidence lifting speech, the president focused extensively on the need to create jobs, improve governance and achieve social transformation.
He announced that Government would hold a series of economic summits, including a jobs and an investment summit within the next few months. These summits will be tasked with identifying practical measures that can be implemented to lift economic growth sustainably.
We analyse SONA in light of the five key challenges critical to the country’s economic turnaround.
Uplifting business confidence
Restoring fiscal discipline
Reforming State-Owned Enterprises
Implementing clear policies
Overall, the specific points the president chose to emphasise in the speech together with the tone and the style of delivery should help improve investor, consumer and business confidence.
The focus will now shift to the announcement of a new cabinet within the next few days and the content of the National Budget that is scheduled to be presented on Wednesday, 21 February.
STANLIB Chief Economist