Foreigners with South African investments will be reflecting carefully on yesterday’s debut budget by new finance minister Enoch Godongwana. I’ve a feeling they’re going to like what he said.
Not because he provided fireworks. Rather, it’s because he didn’t. For investors, boring beats excitement every time. Especially if “boring” comes from a rational space, one which embraces reality.
For too long the ANC was married to idealistic policies that were easily sold to voters but never gained credence in boardrooms. Underlying the message was a zeal for the socialist fantasy that modern economies can succeed without an engaged private sector.
From what I saw, heard and read yesterday, that ruinous approach is now in history’s dumpster. Godongwana told us stable electricity supply can only be guaranteed by players other than Eskom. And freight transport by companies other than Transnet. That’s seismic. Hope springs.
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