#SONA2021: Business reacts to President Ramaphosa’s SONA

South Africa's President, Cyril Ramaphosa, delivered his State of the Nation Address last night, promising to accelerate economic recovery and implement reforms to create sustainable jobs and drive inclusive growth. The address called for greater investment from business to help lift the country out of its weak economic spell. To unpack the address, Mamello Matikinca, Chief Economist at FNB; Jeff Schultz, Chief Economist at BNP Paribas South Africa; and Alan Mukoki, CEO of the South African Chamber of Commerce and Industry, joined CNBC Africa. Mamella Matikinca, when asked to rate the President's address, emphasized the importance of viewing it in the context of promises made late last year in the Economic Recovery and Reconstruction Plan (ERRP). She noted that while progress has been made in areas like infrastructure projects, there are still concerns about the timeline for energy reforms and the impact on investment. Matikinca highlighted the urgency of addressing constraints like electricity shortages to attract more investment. Jeff Schultz also expressed cautious optimism about the plans outlined by President Ramaphosa. While acknowledging the importance of having a vision, Schultz emphasized the need for structural reforms that underpin these plans. He highlighted key areas that need attention, such as fixing the public service, building a meritocracy, and addressing infrastructure and education challenges. In discussing the resilience of the South African economy, Schultz stressed the need for sustained support and mentioned positive developments like energy regulatory reforms that can boost future investments. The panel also delved into the government's priorities for 2021, including defeating COVID-19, accelerating economic recovery, implementing reforms for job creation and growth, and fighting corruption. Jeff Schultz reiterated the importance of vaccine procurement and energy reforms for the country's recovery. He emphasized the need for implementation to drive the economy towards normalcy. Alan Mukoki called for unity among stakeholders, including business, government, and labor, to work cohesively towards recovery. He highlighted the need for innovative solutions and collaborations to address challenges like education quality, income inequality, and economic diversification. Overall, the discussion emphasized the importance of effective implementation, structural reforms, and collaborative efforts to achieve sustainable economic growth in South Africa. With challenges like energy shortages and policy uncertainties still looming, a unified approach and decisive actions are essential to overcome obstacles and propel the country towards a path of inclusive growth and development. As South Africa navigates its economic landscape, stakeholders from both the public and private sectors must work together to unlock the country's potential and create a vibrant and resilient economy for future generations.