New administration must apply steady hand in dealing with SA economic issues - economists

JOHANNESBURG - Some economists called for the new administration to apply a steady hand in dealing with the country’s economic challenges post the elections.

The recent election outcomes are expected to affect the country’s policy direction and could change the economic and fiscal trajectory.

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The African National Congress (ANC) is currently shopping for coalition partners after the party suffered a humiliating loss at the 29 May elections.

Some horse trading is expected as parties shape the new government through coalition negotiations.

Efficient Group economist, Dawie Roodt, said the new government must have these three things on its agenda.

"The one is the local authorities, which are a mess. The second one is state-owned enterprises – Eskom, Transnet, and the national account. We need to stabilise the debt and reduce the fiscal deficit."

University of the Witwatersrand (Wits) Business School professor, Jannie Roussouw, has another three priorities in mind.

"The electricity, the network industries, and the municipalities."

Both economists believe a power-sharing deal between the ANC and the Democratic Alliance (DA) is likely to be the most market-friendly option.