GNU ministers’ actions boost confidence, says JSE boss Leila Fourie

The CEO of the JSE, Leila Fourie, says new ministers of home affairs and trade, industry & competition have hit the ground running, inspiring confidence in the newly formed government of national unity (GNU).

Fourie told the PSG Think Big Series on Tuesday that there had been much progress in implementing the reform agenda of the Ramaphosa administration.

“An example is the president signing into law the new Electricity Regulation Act. This ... allows for the establishment of an independent grid operator. It does appear that the GNU is sustaining efforts on this important type of reforms,” Fourie said.

“We have also seen positive moves by new ministers to resolve legacy issues, for example [home affairs minister] Leon Schreiber targeting backlogs in the visa applications. He is making considerable progress in getting on top of that.

“We have also seen [trade, industry & competition minister] Parks Tau taking proactive steps to engage in business, including the competitiveness of SA goods on global markets. These are good indicators, but they need to consolidate them into changes at policy level.”

Schreiber in July moved swiftly to grant temporary extensions to foreigners awaiting the outcome of visa, waiver and appeal applications. This is a strong signal that reforms to boost economic growth could accelerate in one of the departments with the most potential to deliver these quickly.

Some in the ANC will no doubt carp at Schreiber’s bold decision, which came well before all the many ministers in the new cabinet met to discuss policy. But not only is the new minister within his rights to issue the edict he did, he is also acting within existing government policy.

Visa reforms were on the shortlist of priority economic growth-boosting reforms President Cyril Ramaphosa tasked Operation Vulindlela with pursuing in 2020.

That included changes to visa regulations and processes to make it easier for SA to attract and retain the foreign skills it urgently needs, as well as to attract more foreign tourists who bring foreign exchange and jobs. Home affairs in April established a dedicated team to reduce the backlog, resulting in big progress, with the backlog of 306,042 applications having been reduced by 92,886, 30%.

Auditing firm Deloitte and First National Bank will provide additional resources for the visa backlog team.

Schreiber on Tuesday told the RMB Morgan Stanley Investor Conference that SA’s remote working visa regulations would be effective within the next 30 days.

“These regulations will bring the remote working visa to life after we were able to iron out the tax implications of this new system. In terms of the remote working visa, a person who is employed and paid in another country will now be able to move to sunny SA, to spend all of their dollars, yen, euros, pounds or renminbi right here,” he said.

“To add to the attraction, only if someone spends more than six months out of the year in SA, will they even be required to register with the Revenue Service. Our new remote working visa must be one of the best deals I’ve ever come across,” Schreiber said.

The stability in the National Treasury through the reappointment of Enoch Godongwana as finance minister signalled to the market that the government will stick to its fiscal consolidation plans — a boost for the markets. This is particularly important as public debt stood at R5.2-trillion (75% of GDP) at the end of the first quarter, with debt service costs crowding out investments in key areas.

Hendrik du Toit, founder and CEO of SA’s biggest asset manager, Ninety One, called for Ramaphosa to be “ruthless” and be prepared and willing to alienate associates — or even make enemies — in pursuit of national goals.

khumalok@businesslive.co.za