Investors call for stability ahead of Sona
5 Feb 2019 - by Staff reporter
The investor community has called for economic reassurance and stability ahead of President Cyril Ramaphosa’s State of the Nation Address (Sona) in Cape Town on Thursday.
The sentiment comes in the wake of mounting uncertainty surrounding the economic environment and the effects of financially constrained SOEs – Eskom, SAA and the SABC.
All have required various loans and government bailouts as doubts mount over whether these parastatals can be turned around after years of corruption and mismanagement.
Meanwhile the so-called protocol-flouting approach by the embassies of the US, UK, Netherlands, Germany and Switzerland to directly address their corruption concerns with the presidency is still sending ripples through the political spectrum.
However, considering that these countries account for 75% of foreign investment, their demands that government take strong action against corruption has struck a powerful chord.
In addition to growing concerns about state spending, the amount spent on government salaries has also raised alarm bells.
One third of the total R1.7 trillion budget goes to salaries. Government’s wage bill amounted to R590 billion in 2018 alone.