The impact that the GNU has had since its electoral appointment
Category Commercial and Industrial News
Recent months have seen the term "GNU" become part of the everyday business and political discourse in South Africa. It refers no longer to a wildebeest but to the "Government of National Unity", which has come into existence due to election results in which no party achieved a clear majority.
As a result, South Africa's political parties are being forced to cooperate in unprecedented ways. 3Cube Property Solutions has been keeping a close eye on developments and provides a lowdown on the impact that the GNU has had in its first months of operation.
A positive impact on business confidence
According to President Cyril Ramaphosa, there has been an upswing in investor confidence in the country in the aftermath of the elections. Eyewitness News reports that Ramaphosa believes that factors like opening up the electricity sector to a competitive market have led to increased nods from investors. Data from Trading Economics backs up Ramaphosa's assertion, with the RMB/BER business confidence index in South Africa rising to 38 in Q3 2024, from 35 in Q2. 38 is the highest rating obtained since Q4 2022. Over and above this, Independent Media reports that the South African Chamber of Commerce and Industry's business confidence index showed significant recovery in July, having experienced dips in April and May.
There is a clear distinction between the current positive sentiment and the "Ramaphoria" that South Africa experienced when Ramaphosa was first elected president in 2018. With a coalition government under pressure to succeed, coupled with an ANC coping with sobering election results, successes that bolster the public's support of government have perhaps never been so important. Such considerations are encouraging Ramaphosa to act with caution, keeping the opinions of all parties close to heart. For example, while the contentious Bela law has been signed, he has stalled the implementation of two of its most controversial clauses. Similarly, he has moved the contention on the National Health Insurance (NHI) into negotiations for a Health Compact.
A positive impact on the nation as a whole
In a thoughtfully penned piece for the Mail and Guardian by Noluthando Dlamini and Enzokuhle Sabela, some of the challenges and successes of the GNU to date are highlighted. One of the notable successes referenced is that of Public Works and Infrastructure Minister, Dean Macpherson. In various cities, including Tshwane, Cape Town and eThekwini, he is working with multiple teams to address the issue of hijacked state-owned buildings.
A second example highlighted is the work being undertaken by new Home Affairs Minister, Leon Schreiber. In his first 100 days as minister, he has successfully reduced the backlog in processing visas. He has also announced plans to reactivate the immigration advisory board.
Does the GNU have a bright future?
Judging by the first 100 days, the GNU is off to a good start. In a Q&A session published by Daily Maverick, Ferial Haffajee and Sahra Heuwel made the point that both the ANC and the DA fared poorly in the 2024 general elections, which puts neither party in a strong position to stand alone. The duo also reminds readers that the markets - both local and global - have responded well to the rainbow nation's new power-sharing arrangement. It is therefore in the interest of both parties - as well as the interest of the South African populace - that they continue to work together as well as possible.
While keeping a close eye on macroeconomic and sociopolitical developments is of critical importance for any business, it is equally important to focus on matters directly within your control as a business owner. Perhaps the most pertinent of these matters is ensuring that you have the right premises for your business. If you're based in Gauteng or the Western Cape, 3Cube Property Solutions can help. Get in touch today and let's talk about your business's future.
Author: 3Cube Property Solutions
