Policy uncertainty a downside risk for growth outlook
Forecast group flags lack of clarity on land reform as creating fear that expropriation will discourage investment and undermine efforts to address joblessness
Policy uncertainty ahead of President Cyril Ramaphosa’s state of the nation address (Sona) creates a downside risk for growth prospects, a report by global economic forecast and analysis group FocusEconomics says. There is uncertainty about land reform amid fears that expropriation without compensation will discourage investment and undermine SA’s efforts to address the triple challenge of unemployment‚ poverty‚ and inequality. There are concerns about crisis-hit Eskom, which is regarded as the biggest risk to the economy. Investors are also worried about the push to change the ownership of the Reserve Bank. In March, Ramaphosa said the ANC had taken a “clear resolution that the Bank should be owned by the people of SA”. The ANC and the EFF have called for full state ownership of the Bank, which, unlike most central banks in the world, has been privately owned since its inception in 1921. Reserve Bank governor Lesetja Kganyago has insisted on the Bank’s independence , arguin...