AfriBusiness disappointed by Zuma's Sona
The organisation says President Jacob Zuma's address last night let the country down.
JOHANNESBURG - AfriBusiness says President Jacob Zuma's address last night let the country down and Finance Minister Pravin Gordhan's Budget speech could be the last hope in salvaging an already dire situation.
The organisation says the president's State of the Nation Address (Sona) was the perfect opportunity to allay foreign investor's fears.
AfriBusiness has, however, acknowledged Zuma's calls for the rationalisation of state-owned enterprises.
Spokesperson Armand Greyling says, "From our side and the rest of South Africa we feel that he has let the country down and he should have done more to put more emphasis on foreign investments and what they are going to do about the drought."
ZUMA BLAMES INTERNATIONAL FACTORS ON POOR ECONOMIC GROWTH
During his Sona Zuma moved to address fears about slow growth locally.
He said a number of international factors were affecting growth.
"Global growth still remains muted. Financial markets have become volatile. The currencies of emerging markets have become weak and they fluctuate wildly."
The president argued that South Africa is not alone, with other emerging markets also affected by poor growth.
"The International Monetary Fund and the World Bank predict that the South African economy will grow by less than one percent this year. The lower economic growth outcomes and outlooks suggest that revenue collection will be lower than previously expected."
Zuma said the answer lay with promoting small business and black economic empowerment.
"One of our new interventions is the black industrialists scheme, which has been launched to promote the participation of black entrepreneurs in manufacturing."
At the end of last year, the local currency touched record lows against the US dollar, British pound and the euro after the announcement of the removal of former Finance Minister Nhlanhla Nene.