Investors regaining confidence in SA economy: Ramaphosa

President Cyril Ramaphosa
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President Cyril Ramaphosa says Team SA’s message was well received at the World Economic Forum despite the current global economic uncertainty.

Ramaphosa says the message shared by his team of ministers and business executives was all about rebuilding trust after nine years of paralysis.

Ramaphosa gave an update on the South African economy to potential investors. He painted an optimistic picture about the future of South Africa and his message was supported by prospects of better economic growth, with the local economy projected to grow at 1.7% in 2019 from 0.7% last year.

He spoke about the conclusion of the Mining charter with hopes that it will bring more policy certainty in the sector. He also mentioned the importance of the commission of inquiry on state capture.

The reform of the country’s visa regime also dominated Team SA’s message to lure potential investors at the gathering.

“We have been saying to everyone here in Davos, we are now in a new dawn that has been largely embraced by many South Africans,” said Ramaphosa.

In 2018 Ramaphosa launched an ambitious drive to raise 100 billion dollar in the next five years. But South Africa is still facing a difficult road ahead something that Ramaphosa is well aware of.

Potential investors are keen to see if Ramaphosa will succeed to unite the ruling party African National Congress (ANC) ahead of the national elections.

Finance Minister Tito Mboweni said his interactions at the gathering indicate that investor’s confidence is slowly returning in the South African economy.

Mboweni said, “They are intellectuals, professors, they are business leaders, they are political leader the impression. I have of them is that they are convinced that SA on a good wicked now.”

As the World Economic Forum in Davos comes to end Health Minister Aaron Motsoaledi used the gathering to meet with various pharmaceutical companies to discuss the high cost of cancer treatment.

Motsoaledi said, “They will tell you that this drug is not on essential drug list – you have to go and find it yourself. In other words it’s individualistic care which we don’t want. Now treatment for colorectal cancer can go up to R800 000, how many people will ever be able to afford it, it’s almost a death sentence all human beings need to have access.”

Reserve Bank Governor Lesetja Kganyago told potential investors that the independence of the South African Reserve Bank will not change. He says unlike in many countries Ramaphosa has come out in defence of the independence of the Reserve Bank.

Kganyago said, “We have seen that central banks’ independence is under threat in so many jurisdiction, it is no longer just an emerging markets phenomena it is also a developed markets phenomena. We are grateful in SA, and I am sure there are my counterparts in other countries who look [at us] and might be saying I wish my own President can say I believe in the independence of the central bank and SARB independence in terms of the constitution.”