Although President Cyril Ramaphosa is expected to push through reforms to transform South Africa’s hobbling economy into a vibrant and inclusive one, it will take some time to be implemented, note industry analysts.
Following closely watched general elections, the ANC secured 230 seats in the Sixth Parliament with just over 10 million votes.
“The ANC must reflect on some of the obvious mistakes it made especially divisions within its own ranks that was playing itself out openly, as well as corruption and the failure to create a vibrant and inclusive economy”, University of South Africa policy and political analyst Somadoda Fikeni told Fin24.
He said plans to grow an economy that is inclusive is probably one of the very first things Ramaphosa, together with the ANC, should focus on.
“Issues of unemployment, poverty, inequality and poor service delivery featured quite prominently among the voters,” said Fikeni.
However, he added that the challenge with the SA economy is that we have seen growth of 5% in the past but that 5% didn’t create much jobs instead it widened the inequality gap.
“The development or growth of the economy has become more important to make sure that black youth and women and included.”
Isaah Mhlanga, executive chief economist at Alexander Forbes Investments, said investors will also look to Ramaphosa to provide clarity on the controversial topic of land expropriation without compensation.
“The issue of land expropriation with compensation will be closely watched given that it is so closely linked to property rights.”
But he said in his view he doesn’t think that it is going to be a big issue. “I’m certain it will be addressed in a responsible manner.”