While politicians and political analysts will focus on the results of Wednesday’s polls, a more important issue for other South Africans and for offshore investors will be the composition of the next ANC cabinet.
While an unexpected electoral result could be an early sign of future power shifts in the country, it will be the newly appointed key ministers who determine government policy over the next few years.
A line-up of incompetents will condemn South Africans to another five years of going nowhere in slow motion – at best. And a collection of cronies, clowns and well-known crooks won’t go down well with the international investment community. Contrary to the perceptions of the party’s left wing, foreigners provide a vital input to the economy – money.
There isn’t enough domestic capital to fund a strong expansion of the economy, and without foreign capital the economy can’t thrive.
There are consequences to putting political considerations ahead of economic priorities or relying on short-term measures to boost growth. Over the past two months, two of South Africa’s Brics partners – Russia and Brazil – have had their credit rating cut from BBB to BBB- by Standard & Poor’s (S&P), leaving them one notch above junk bond status. The other two partners – China and India – have not come under attack recently, though India is one step above sub-investment grade. China is safely in investment territory. READ MORE
Source: Business Report (www.iol.co.za)
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