President Ramaphosa launches his government's vision for South Africa's 6th Democratic Administration

SOUTH AFRICA - In Brief 20 Jun 2019 by Iraj Abedian

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With the heavy weight of nation's expectations and hope on his shoulders, President Ramaphosa delivered his second State of Nation Address (SONA) this year- technically his first SONA as the elected president of the country. As expected, his focus was primarily on the economy and growth revival. On three key controversial fronts, he delivered specific policy clarity; firstly on the mandate of SA Reserve Bank (SARB) where some of his party antagonists had caused confusion and uncertainty, he re-emphasized the constitutional protection and clarity granted to SARB’s mandate. By re-affirming his commitment to the independence of SARB, Ramaphosa also asserted his authority over policy, no doubt to the irritation of some of his fellow ANC leaders. Secondly, Ramaphosa offered to deal with the immediate financial crisis facing Eskom by fast tracking a bill to provide R230 billion of financial support- in effect front loading the budgetary commitment the Minister of Finance made back in February 2019 for a R23 billion annual fiscal support for Eskom over 10 years. Whilst implicitly affirming that Eskom is too big to fail, he also reiterated the need for restructuring Eskom and confirmed the imminent appointment of a Chief Restructuring Officer to deal with Eskom’s structural, organisational and financial challenges. The third, and possibly the most emotional item, he offered some clarity on the subject of land expropriation. Much as expected he promised the release of public land for housing, student housing, and even for those interested in farming. On all these key and pivotal policy issues, Ramaphosa offered market friendly clarity. Whilst SONA is primarily a political state...