Economists expect a business-friendly cabinet

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A cabinet equipped to implement business-friendly policies, that’s what big business expects from the incoming government.

South Africa – Africa most industrialised economy – has been failing to grow beyond 1% this year and to create jobs.

Experts say the biggest and urgent on the President’s to do list is to how he will turn the economy around.

Although the ANC’s fortunes have dipped significantly, a win signals stability to investors.

Organised business wants a commitment that the pedestrian economy will be prioritised.

Some economists have warned that some senior African National Congress (ANC) members will make it difficult for President Cyril Ramaphosa to boost investor and consumer confidence.

They also say the party members could be a stumbling block in government’s efforts to reduce the cost of living for South Africans.

Many voters are pinning their hopes on the new government to address the high level of inequality and create a conducive environment for employment.

Consumers are struggling to cope with an increase in Value Added Tax to 15% and the escalation of the cost of electricity, food and fuel.

Economist Azar Jammine explains what he sees as Ramaphosa’s challenges in his capacity as ANC president.

“Will he be allowed to do such things when he’s got a secretary-general like Ace Magashule who questions the validity of the statement that the ANC did relatively well in these elections, not because of Ramaphosa but because of many other facets, says Jammine.

CEO of Black Business Council Kgankie Matabane says deep economic transformation is paramount.

“The best one is to stabilise the SOEs, especially Eskom. Eskom is too big to fail. The economy is not creating jobs, unemployment is still at its highest; inequality is also still high. So He’s to attend to those macro issues. The focus should be deepening economic transformation.”

Business Unity South Africa’s Tanya  Cohen wants policy certainty in Africa’s largest industrial nation.

Some commentators have also bemoaned a bloated cabinet and its impact on the fiscus.

On Tuesday Stats SA will release the results of the Quarterly labour force survey for the first quarter of this year. These results look at how the labour market performed.

Analysts expect that because of load shedding during the period, more jobs may have been shed. And that’s a new problem on the President’s in-tray.