Economists have expressed confidence that President Cyril Ramaphosa will be able to remove investor impediments and inspire economic growth.
It’s believed if the fight against corruption, clean governance and policy certainty are prioritised, the country could attract investments which could ease many socio-economic challenges.
With the sweeping changes on the political front, it is hoped the new leadership will be able to instill new confidence and bring about the right space for inclusive growth.
The country has endured low levels of investor confidence, revenue shortfalls, high public debt and ratings downgrades.
Some economists believe Ramaphosa’s background in labour, business and policy making brand him the better candidate for the job.
Chief Economist Ian Cruickshanks says, “The participants in the economy understand that he understands the business which is the foundation of growing the economy.”
Jannie Rossouw, from the Wits school of Economics, says South Africa needs a government of national healing, where restoring trust between business, government and civil society should be central.
He says the biggest hurdle for the new President will be to root out corruption and address the fiscal challenges facing the country.
It’s believed the changes may buy South Africa some “wait and see” time with the rating agencies, with Moody’s due to review South Africa in the first quarter.
Meanwhile, the rand has continued to strengthen in the wake of Zuma’s resignation, trading at R11, 65 early on Thursday afternoon.
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