How COVID-19 crisis can be a driver for policy & systematic change in SA

South African President Cyril Ramaphosa's call for an institutional clean-up was heeded by the Auditor-General this week, with a bombshell report that has seen top management of the Unemployment Insurance Fund suspended due to fraud and financial mismanagement of the COVID-19 relief funds. The COVID-19 crisis has put pressure on both the government and businesses to become more compliant and transparent, paving the way for much-needed policy and systematic changes. Murtaza Moulvi, Head of Financial Markets at Standard Chartered Bank, shared insights on how the pandemic could drive these changes during a recent interview on CNBC Africa. Amidst concerns about the impact of load shedding on businesses, Moulvi highlighted the silver lining that the pandemic has led to a drive for increased efficiency and transparency in corporate and government sectors. He emphasized the importance of oversight and accountability, acknowledging that while there have been positive economic indicators such as low inflation and a trade surplus, fundamental changes still need to take place to address issues of mismanagement and corruption. Moulvi expressed optimism about the potential for businesses to adapt and thrive in the post-COVID world, citing strong factory activity and consistent retail sales as positive signs for the economy. Despite ongoing economic challenges, including a 16-month contraction in private sector activity, Moulvi believes that there are opportunities for growth and improvement for businesses in South Africa. The market has shown signs of recovery, with the rand strengthening and increased trust in the central bank, but Moulvi stressed the importance of continued efforts to enhance accountability and fund management to build a more robust and resilient economy. As South Africa navigates the challenges posed by the COVID-19 crisis, the focus on policy and systematic changes will be crucial for fostering a more stable and prosperous future.