President Cyril Ramaphosa said the country’s new 10-party unity government is forging closer ties with the business community, with positive spin-offs for the country at large.
“The deepening of the relationship between government and business is essential to the growth of our economy,” Ramaphosa said in a speech to lobby group Business Unity South Africa’s AGM in Johannesburg on Wednesday. “Our relationship is far too important to fail.”
The president’s comments underscore the far more business-friendly stance the authorities have adopted since the ANC lost its parliamentary majority in 29 May elections for the first time since it took power three decades ago and a government of national unity was formed to run the country. Its members, which include the main opposition Democratic Alliance, have identified economic growth as a top priority, with a view towards tackling a 34% unemployment rate.
The new administration is working well and has been able to achieve broad consensus on the most pressing issues facing the country, according to Ramaphosa. It’s made significant progress in tackling key challenges, including energy constraints, logistics snarl-ups, and high levels of crime and corruption, he said.
Headway has also been made in instituting the measures needed for South Africa to be removed from a global watchdog’s dirty-money monitoring list, the president said. The country was placed on the so-called grey list by the Financial Action Task Force in February 2023 because of shortcomings in how it tackles illicit financial flows and combats terror funding.
“We will continue on the path of structural and regulatory reform to improve the business operating environment,” Ramaphosa said. “We are committed to a stable policy environment that stimulates investment.” — (c) 2024 Bloomberg LP