South Africa must enshrine its reform process in law to guarantee the momentum gained under President Cyril Ramaphosa endures after he leaves office, said the head of a key business lobby group.
“The reform project is the most important project that is happening in this country,” Business Leadership South Africa Chief Executive Officer Busi Mavuso said in an interview at Bloomberg’s office in Johannesburg on Wednesday. “Reducing government dominance in the country gives the country the resilience in order to continue functioning, irrespective of what happens in politics.”
Investors have warmed to Africa’s largest economy as reforms begin to bear fruit, most visibly with the end of almost daily power cuts as the state-owned electricity utility improves its performance. South Africa’s credit-rating has been upgraded, the much-maligned rand has strengthened, and the stock market hit a record high in February.
But the legacy of corruption and mismanagement under Ramaphosa’s predecessor, Jacob Zuma, still dogs an economy that has expanded at less than 1% annually for more than a decade. And with Zuma still a political force, there’s apprehension whether the pro-growth track of Ramaphosa and his government coalition partners will survive the election cycle.
